| Delaware |
74-2693793 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification
Number) |
| (1) |
Yes |
þ |
No |
¨ | ||||
| (2) |
Yes |
þ |
No |
¨ |
| PART I. FINANCIAL INFORMATION |
PAGE | |||
| Item 1. |
3 | |||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
8 | |||
| Item 3. |
13 | |||
| Item 4. |
22 | |||
| PART II. OTHER INFORMATION |
24 | |||
| Item 4. |
24 | |||
| Item 6. |
24 | |||
| 26 | ||||
| 27 | ||||
| September 30, 2002 |
June 30, 2002 |
|||||||
| |
(Unaudited |
) |
||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
27,209 |
|
$ |
22,215 |
| ||
| Marketable securities |
|
8,849 |
|
|
11,973 |
| ||
| Trade accounts receivable, net |
|
4,302 |
|
|
4,263 |
| ||
| Notes receivable from related parties |
|
102 |
|
|
102 |
| ||
| Prepaid expenses and other current assets |
|
1,005 |
|
|
1,209 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
41,467 |
|
|
39,762 |
| ||
| Property and equipment, net |
|
2,565 |
|
|
2,922 |
| ||
| Notes receivable from related parties |
|
268 |
|
|
306 |
| ||
| Other assets |
|
184 |
|
|
369 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
44,484 |
|
$ |
43,359 |
| ||
| |
|
|
|
|
| |||
| Liabilities and Stockholders Equity |
||||||||
| Current liabilities: |
||||||||
| Trade accounts payable |
$ |
376 |
|
$ |
268 |
| ||
| Accrued payroll and payroll related costs |
|
1,716 |
|
|
1,740 |
| ||
| Deferred rent and lease related accruals |
|
1,698 |
|
|
1,494 |
| ||
| Other accrued expenses |
|
3,539 |
|
|
3,234 |
| ||
| Deferred revenues |
|
2,086 |
|
|
2,147 |
| ||
| Liabilities of discontinued operations |
|
260 |
|
|
684 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
9,675 |
|
|
9,567 |
| ||
| Stockholders equity: |
||||||||
| Common stock |
|
58,698 |
|
|
59,096 |
| ||
| Retained deficit |
|
(23,889 |
) |
|
(25,304 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
34,809 |
|
|
33,792 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
44,484 |
|
$ |
43,359 |
| ||
| |
|
|
|
|
| |||
| Three months ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Revenues |
$ |
9,176 |
|
$ |
8,965 |
| ||
| Costs and expenses: |
||||||||
| Cost of revenues and technical support |
|
1,550 |
|
|
1,665 |
| ||
| Sales and marketing |
|
3,190 |
|
|
3,083 |
| ||
| Research and development |
|
1,964 |
|
|
1,938 |
| ||
| General and administrative |
|
1,177 |
|
|
1,351 |
| ||
| |
|
|
|
|
| |||
| Total costs and expenses |
|
7,881 |
|
|
8,037 |
| ||
| |
|
|
|
|
| |||
| Operating income from continuing operations |
|
1,295 |
|
|
928 |
| ||
| Interest and other income, net |
|
162 |
|
|
229 |
| ||
| Income tax provision |
|
(150 |
) |
|
(175 |
) | ||
| |
|
|
|
|
| |||
| Income from continuing operations before effect of adoption of new accounting principle |
|
1,307 |
|
|
982 |
| ||
| Effect of adoption of new accounting principle |
|
|
|
|
(676 |
) | ||
| |
|
|
|
|
| |||
| Income from continuing operations |
|
1,307 |
|
|
306 |
| ||
| Gain from discontinued operations |
|
159 |
|
|
|
| ||
| |
|
|
|
|
| |||
| Net income |
$ |
1,466 |
|
$ |
306 |
| ||
| |
|
|
|
|
| |||
| Basic earnings per share: |
||||||||
| Income from continuing operations before effect of adoption of new accounting principle |
$ |
0.08 |
|
$ |
0.06 |
| ||
| Effect of adoption of new accounting principle |
|
|
|
|
(0.04 |
) | ||
| Gain from discontinued operations |
|
0.01 |
|
|
|
| ||
| |
|
|
|
|
| |||
| Net income |
$ |
0.09 |
|
$ |
0.02 |
| ||
| |
|
|
|
|
| |||
| Diluted earnings per share: |
||||||||
| Income from continuing operations before effect of adoption of new accounting principle |
$ |
0.07 |
|
$ |
0.06 |
| ||
| Effect of adoption of new accounting principle |
|
|
|
|
(0.04 |
) | ||
| Gain from discontinued operations |
|
0.01 |
|
|
|
| ||
| |
|
|
|
|
| |||
| Net income |
$ |
0.08 |
|
$ |
0.02 |
| ||
| |
|
|
|
|
| |||
| Three months ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Cash from continuing operations |
||||||||
| Income from continuing operations |
$ |
1,307 |
|
$ |
306 |
| ||
| Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:
|
||||||||
| Depreciation and amortization |
|
407 |
|
|
595 |
| ||
| Effect of adoption of new accounting principle |
|
|
|
|
676 |
| ||
| Other non cash items |
|
8 |
|
|
|
| ||
| Change in current assets and liabilities: |
||||||||
| Increase in trade accounts receivable |
|
(38 |
) |
|
(28 |
) | ||
| Decrease in prepaid expenses and other current assets |
|
185 |
|
|
1,179 |
| ||
| Increase (decrease) in accounts payable and accrued liabilities |
|
598 |
|
|
(500 |
) | ||
| Increase (decrease) in deferred revenue |
|
(61 |
) |
|
122 |
| ||
| |
|
|
|
|
| |||
| Net cash provided by continuing operations |
|
2,406 |
|
|
2,350 |
| ||
| Cash from discontinued operations |
||||||||
| Gain from discontinued operations |
|
159 |
|
|
|
| ||
| Decrease in liabilities of discontinued operations |
|
(424 |
) |
|
(133 |
) | ||
| |
|
|
|
|
| |||
| Net cash used in discontinued operations |
|
(265 |
) |
|
(133 |
) | ||
| Cash from investing activities |
||||||||
| Purchase of property and equipment |
|
(73 |
) |
|
(216 |
) | ||
| Sales and purchases of marketable securities, net |
|
3,123 |
|
|
1,619 |
| ||
| Investment in business venture |
|
50 |
|
|
(351 |
) | ||
| (Increase) decrease in other assets |
|
176 |
|
|
(141 |
) | ||
| |
|
|
|
|
| |||
| Net cash provided by investing activities |
|
3,276 |
|
|
911 |
| ||
| Cash from financing activities |
||||||||
| Proceeds from issuance of stock, net of issuance costs |
|
87 |
|
|
9 |
| ||
| Acquisition of treasury stock |
|
(493 |
) |
|
(684 |
) | ||
| |
|
|
|
|
| |||
| Net cash used in financing activities |
|
(406 |
) |
|
(675 |
) | ||
| Effect of exchange rate on cash and cash equivalents |
|
(17 |
) |
|
96 |
| ||
| |
|
|
|
|
| |||
| Increase in cash and cash equivalents |
|
4,994 |
|
|
2,549 |
| ||
| Cash and cash equivalents at beginning of period |
|
22,215 |
|
|
20,593 |
| ||
| |
|
|
|
|
| |||
| Cash and cash equivalents at end of period |
$ |
27,209 |
|
$ |
23,142 |
| ||
| |
|
|
|
|
| |||
| Three months ended September 30, | ||||||
| 2002 |
2001 | |||||
| Numerator: |
||||||
| Income from continuing operations before effect of adoption of new accounting principle |
$ |
1,307 |
$ |
982 | ||
| |
|
|
| |||
| Denominator: |
||||||
| Denominator for basic earnings per share weighted average shares |
|
16,736 |
|
16,919 | ||
| Effect of dilutive securities: |
||||||
| Employee stock options |
|
906 |
|
593 | ||
| |
|
|
| |||