x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE PERIOD ENDED SEPTEMBER 30, 2002 |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Delaware |
74-2769415 | |
| (State or other jurisdiction of incorporation or
organization) |
(I.R.S. Employer Identification
No.) |
| Page | ||||||
| Part I. Financial Information |
||||||
| Item 1. |
Financial Statements |
|||||
| 2 | ||||||
| 3 | ||||||
| 4 | ||||||
| 5 | ||||||
| Item 2. |
13 | |||||
| Item 3. |
37 | |||||
| Item 4. |
38 | |||||
| Part II. Other Information |
||||||
| Item 1. |
39 | |||||
| Item 6. |
40 | |||||
| 41 | ||||||
| 42 | ||||||
| September 30, 2002 |
December 31, 2001 | |||||
| (Unaudited) |
||||||
| ASSETS |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ |
225,237 |
$ |
348,916 | ||
| Short-term investments |
|
109,774 |
|
42,716 | ||
| Accounts receivable, net |
|
25,635 |
|
35,477 | ||
| Prepaid expenses and other current assets |
|
5,409 |
|
4,720 | ||
| |
|
|
| |||
| Total current assets |
|
366,055 |
|
431,829 | ||
| Property and equipment, net |
|
25,009 |
|
43,475 | ||
| Investments |
|
14,610 |
|
22,414 | ||
| Goodwill, net |
|
146,830 |
|
144,420 | ||
| Other intangibles, net |
|
802 |
|
18,791 | ||
| Other assets |
|
2,623 |
|
2,097 | ||
| |
|
|
| |||
| Total assets |
$ |
555,929 |
$ |
663,026 | ||
| |
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||
| Current liabilities: |
||||||
| Accounts payable and accrued expenses |
$ |
60,898 |
$ |
73,456 | ||
| Deferred revenue |
|
38,895 |
|
46,051 | ||
| Current portion of capital lease obligation |
|
326 |
|
750 | ||
| Other current liabilities |
|
5,073 |
|
5,746 | ||
| |
|
|
| |||
| Total current liabilities |
|
105,192 |
|
126,003 | ||
| Long-term liabilities, less current portion |
|
24,785 |
|
26,722 | ||
| |
|
|
| |||
| Total liabilities |
|
129,977 |
|
152,725 | ||
| Stockholders equity |
|
425,952 |
|
510,301 | ||
| |
|
|
| |||
| Total liabilities and stockholders equity |
$ |
555,929 |
$ |
663,026 | ||
| |
|
|
| |||
| Three Months Ended September
30, |
Nine Months Ended September
30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Revenue: |
||||||||||||||||
| Product license |
$ |
11,354 |
|
$ |
40,276 |
|
$ |
44,455 |
|
$ |
132,809 |
| ||||
| Services |
|
21,362 |
|
|
30,220 |
|
|
70,289 |
|
|
111,437 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
32,716 |
|
|
70,496 |
|
|
114,744 |
|
|
244,246 |
| ||||
| Cost of revenue: |
||||||||||||||||
| Product license |
|
394 |
|
|
1,639 |
|
|
1,706 |
|
|
4,251 |
| ||||
| Services (1) |
|
9,701 |
|
|
17,021 |
|
|
33,728 |
|
|
64,476 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of revenue |
|
10,095 |
|
|
18,660 |
|
|
35,434 |
|
|
68,727 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
22,621 |
|
|
51,836 |
|
|
79,310 |
|
|
175,519 |
| ||||
| Operating expenses: |
||||||||||||||||
| Research and development (1) |
|
11,757 |
|
|
15,570 |
|
|
38,657 |
|
|
51,021 |
| ||||
| Sales and marketing (1) |
|
16,681 |
|
|
44,867 |
|
|
64,457 |
|
|
147,656 |
| ||||
| General and administrative (1) |
|
5,107 |
|
|
6,932 |
|
|
16,968 |
|
|
23,004 |
| ||||
| Acquisition-related and other charges |
|
|
|
|
578 |
|
|
|
|
|
1,919 |
| ||||
| Business restructuring charges |
|
18,064 |
|
|
|
|
|
31,872 |
|
|
90,658 |
| ||||
| Amortization of deferred stock compensation |
|
137 |
|
|
1,731 |
|
|
1,210 |
|
|
8,533 |
| ||||
| Amortization of goodwill and other intangibles |
|
334 |
|
|
125,530 |
|
|
15,579 |
|
|
376,504 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
52,080 |
|
|
195,208 |
|
|
168,743 |
|
|
699,295 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from operations |
|
(29,459 |
) |
|
(143,372 |
) |
|
(89,433 |
) |
|
(523,776 |
) | ||||
| Other income (expense), net |
|
(4,676 |
) |
|
(4,248 |
) |
|
(1,938 |
) |
|
(35,900 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss before provision for income taxes |
|
(34,135 |
) |
|
(147,620 |
) |
|
(91,371 |
) |
|
(559,676 |
) | ||||
| Provision for income taxes |
|
70 |
|
|
297 |
|
|
692 |
|
|
1,375 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(34,205 |
) |
$ |
(147,917 |
) |
$ |
(92,063 |
) |
$ |
(561,051 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic net loss per common share |
$ |
(0.14 |
) |
$ |
(0.61 |
) |
$ |
(0.37 |
) |
$ |
(2.33 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Shares used in computing basic net loss per common share |
|
250,112 |
|
|
243,930 |
|
|
248,741 |
|
|
240,895 |
| ||||
(1) |
Excludes amortization of deferred stock compensation as follows: |
| Three Months Ended September
30, |
Nine Months Ended September
30, | |||||||||||
| 2002 |
2001 |
2002 |
2001 | |||||||||
| Cost of revenueservices |
$ |
18 |
$ |
527 |
$ |
163 |
$ |
1,936 | ||||
| Research and development |
|
62 |
|
496 |
|
372 |
|
2,255 | ||||
| Sales and marketing |
|
40 |
|
576 |
|
390 |
|
3,127 | ||||
| General and administrative |
|
17 |
|
132 |
|
285 |
|
1,215 | ||||
| |
|
|
|
|
|
|
| |||||
| $ |
137 |
$ |
1,731 |
$ |
1,210 |
$ |
8,533 | |||||
| |
|
|
|
|
|
|
| |||||
| Nine Months Ended September
30, |
||||||||
| 2002 |
2001 |
|||||||
| Operating activities: |
||||||||
| Net loss |
$ |
(92,063 |
) |
$ |
(561,051 |
) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Depreciation |
|
14,660 |
|
|
15,936 |
| ||
| Noncash compensation expense |
|
1,210 |
|
|
8,533 |
| ||
| Amortization of goodwill and other intangibles |
|
15,579 |
|
|
377,033 |
| ||
| Acquisition-related and other charges (noncash) |
|
|
|
|
207 |
| ||
| Noncash restructuring expense |
|
7,514 |
|
|
24,649 |
| ||
| Noncash investment impairments |
|
6,496 |
|
|
49,063 |
| ||
| Loss on disposal of fixed assets |
|
777 |
|
|
|
| ||
| Other noncash items |
|
(156 |
) |
|
167 |
| ||
| Changes in operating assets and liabilities |
|
(14,025 |
) |
|
49,340 |
| ||
| |
|
|
|
|
| |||
| Net cash used in operating activities |
|
(60,008 |
) |
|
(36,123 |
) | ||
| Investing activities: |
||||||||
| Purchase of property and equipment |
|
(4,044 |
) |
|
(17,521 |
) | ||
| Maturity (purchase) of short-term investments, net |
|
(67,058 |
) |
|
3,740 |
| ||
| Maturity of restricted investments |
|
1,148 |
|
|
1,018 |
| ||
| Purchase of equity securities |
|
(1,067 |
) |
|
(555 |
) | ||