x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Delaware |
95-4148675 | |
| (State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer Identification No.) |
| March 31, 2002 |
June 30, 2002
|
|||||||
| (Unaudited) |
||||||||
| ASSETS |
||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ |
147,180 |
|
$ |
150,020 |
| ||
| Short-term investments |
|
370,591 |
|
|
363,180 |
| ||
| Accounts receivable, net |
|
130,748 |
|
|
118,772 |
| ||
| Deferred income taxes |
|
24,773 |
|
|
40,750 |
| ||
| Prepaid expenses |
|
20,721 |
|
|
20,418 |
| ||
| Other current assets |
|
33,650 |
|
|
26,182 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
727,663 |
|
|
719,322 |
| ||
| |
|
|
|
|
| |||
| Property, Equipment And Communication Lines, Net |
|
494,401 |
|
|
444,496 |
| ||
| Deferred Income Taxes |
|
142,699 |
|
|
140,650 |
| ||
| Intangible And Other Assets, Net |
|
45,376 |
|
|
55,847 |
| ||
| |
|
|
|
|
| |||
| Total Assets |
$ |
1,410,139 |
|
$ |
1,360,315 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current Liabilities: |
||||||||
| Current portion of long-term obligations |
$ |
10,315 |
|
$ |
11,213 |
| ||
| Current portion of capital lease obligations |
|
2,727 |
|
|
2,747 |
| ||
| Accounts payable |
|
51,185 |
|
|
46,340 |
| ||
| Network communications |
|
24,927 |
|
|
15,480 |
| ||
| Accrued salaries and related benefits |
|
18,947 |
|
|
15,652 |
| ||
| Income taxes payable |
|
4,669 |
|
|
4,665 |
| ||
| Advance billings |
|
26,996 |
|
|
25,522 |
| ||
| Deferred installation revenues |
|
10,714 |
|
|
10,752 |
| ||
| Other accrued expenses |
|
19,440 |
|
|
24,076 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
169,920 |
|
|
156,447 |
| ||
| |
|
|
|
|
| |||
| Deferred Revenue And Compensation |
|
35,849 |
|
|
34,576 |
| ||
| Capital Lease Obligations |
|
6,227 |
|
|
5,525 |
| ||
| Long Term Obligations |
|
98,902 |
|
|
95,282 |
| ||
| Minority Interest |
|
1,450 |
|
|
1,517 |
| ||
| Commitments and Contingencies |
||||||||
| Stockholders Equity: |
||||||||
| Class A common stock, $0.01 par value per share: |
||||||||
| 400,000 shares authorized; 364,160 shares issued as of March 31, 2002 and June 30, 2002 and 161,403 shares outstanding
as of March 31, 2002 and June 30, 2002; 202,757 shares held in treasury |
|
66,078 |
|
|
66,078 |
| ||
| Class B common stock $0.01 par value per share: |
||||||||
| 600,000 shares authorized, 310,287 and 310,883 shares issued as of March 31, 2002 and June 30, 2002; 309,116 and 308,594
shares outstanding as of March 31, 2002 and June 30, 2002; 1,171 and 2,289 shares held in treasury as of March 31, 2002 and June 30, 2002 |
|
1,174,577 |
|
|
1,179,375 |
| ||
| Treasury stock, at cost, 203,928 and 205,046 shares as of March 31, 2002 and June 30, 2002 |
|
(123,753 |
) |
|
(126,112 |
) | ||
| Notes receivable from issuance of common stock |
|
(8,577 |
) |
|
(8,591 |
) | ||
| Accumulated deficit |
|
(5,827 |
) |
|
(42,247 |
) | ||
| Accumulated other comprehensive loss |
|
(4,707 |
) |
|
(1,535 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
1,097,791 |
|
|
1,066,968 |
| ||
| |
|
|
|
|
| |||
| Total Liabilities and Stockholders Equity |
$ |
1,410,139 |
|
$ |
1,360,315 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended June 30, |
||||||||
| 2001 |
2002 |
|||||||
| Revenues, Net |
$ |
171,854 |
|
$ |
147,307 |
| ||
| |
|
|
|
|
| |||
| Expenses: |
||||||||
| Country representative compensation |
|
61,439 |
|
|
38,215 |
| ||
| Bandwidth and related costs |
|
29,460 |
|
|
69,139 |
| ||
| Network operations |
|
25,623 |
|
|
26,533 |
| ||
| Selling, general and administrative |
|
55,215 |
|
|
68,046 |
| ||
| |
|
|
|
|
| |||
| Total expenses |
|
171,737 |
|
|
201,933 |
| ||
| |
|
|
|
|
| |||
| Operating Income (Loss) |
|
117 |
|
|
(54,626 |
) | ||
| |
|
|
|
|
| |||
| Other Income (Expense): |
||||||||
| Interest income |
|
8,404 |
|
|
4,322 |
| ||
| Interest expense |
|
(2,990 |
) |
|
(2,269 |
) | ||
| Other, net |
|
(288 |
) |
|
3,016 |
| ||
| |
|
|
|
|
| |||
| Total other income, net |
|
5,126 |
|
|
5,069 |
| ||
| |
|
|
|
|
| |||
| Income (Loss) Before Provision (Credit) For Income Taxes And Minority Interest |
|
5,243 |
|
|
(49,557 |
) | ||
| Provision (Credit) For Income Taxes |
|
2,390 |
|
|
(13,204 |
) | ||
| |
|
|
|
|
| |||
| Income (Loss) Before Minority Interest |
|
2,853 |
|
|
(36,353 |
) | ||
| Minority Interest |
|
323 |
|
|
67 |
| ||
| |
|
|
|
|
| |||
| Net Income (Loss) |
|
2,530 |
|
|
(36,420 |
) | ||
| |
|
|
|
|
| |||
| Other Comprehensive Income (Loss): |
||||||||
| Foreign currency translation adjustments |
|
(811 |
) |
|
3,675 |
| ||
| Unrealized gains (losses) on securities, net of tax |
|
(640 |
) |
|
290 |
| ||
| Cumulative effect of accounting change, net of tax |
|
(544 |
) |
|
|
| ||
| Unrealized gain (loss) on derivative instrument, net of tax |
|
156 |
|
|
(793 |
) | ||
| |
|
|
|
|
| |||
| Total other comprehensive income (loss), net |
|
(1,839 |
) |
|
3,172 |
| ||
| |
|
|
|
|
| |||
| Comprehensive Income (Loss) |
$ |
691 |
|
$ |
(33,248 |
) | ||
| |
|
|
|
|
| |||
| Basic And Diluted Earnings (Loss) Per Common Share |
$ |
0.01 |
|
$ |
(0.08 |
) | ||
| |
|
|
|
|
| |||
| Basic Weighted Average Number Of Common Shares Outstanding |
|
470,762 |
|
|
469,922 |
| ||
| Diluted Weighted Average Number Of Common Shares Outstanding |
|
472,207 |
|
|
469,922 |
| ||
| Three Months Ended June 30, |
||||||||
| 2001 |
2002 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income (loss) |
$ |
2,530 |
|
$ |
(36,420 |
) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
|
17,527 |
|
|
19,724 |
| ||
| Amortization of debt acquisition costs |
|
182 |
|
|
189 |
| ||
| Write-off of communication lines |
|
|
|
|
40,757 |
| ||
| Stock-based compensation charge |
|
4,200 |
|
|
3,777 |
| ||
| (Gain)/loss on disposal of property, equipment and communication lines |
|
(3 |
) |
|
5 |
| ||
| (Discount) Premium amortization on marketable securities |
|
(563 |
) |
|
1,310 |
| ||
| Realized gain on marketable securities |
|
(363 |
) |
|
(1,063 |
) | ||
| Deferred income taxes |
|
786 |
|
|
(13,614 |
) | ||
| Minority interest |
|
323 |
|
|
67 |
| ||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable, net |
|
12,567 |
|
|
14,596 |
| ||
| Prepaid expenses |
|
(2,319 |
) |
|
377 |
| ||
| Other current assets |
|
(660 |
) |
|
7,341 |
| ||
| Accounts payable |
|
8,833 |
|
|
(9,965 |
) | ||
| Network communications |
|
2,832 |
|
|
(7,580 |
) | ||
| Accrued salaries and related benefits |
|
(3,347 |
) |
|
(3,868 |
) | ||
| Income taxes payable |
|
(2,219 |
) |
|
(385 |
) | ||
| Advance billings |
|
193 |
|
|
(1,472 |
) | ||
| Other accrued expenses |
|
304 |
|
|
3,351 |
| ||
| Deferred revenue and compensation |
|
1,154 |
|
|
(218 |
) | ||
| Purchases of trading securities |
|
(4,561 |
) |
|
(1,786 |
) | ||
| Proceeds from sales of trading securities |
|
4,386 |
|
|
1,301 |
| ||
| Other operating activities |
|
(46 |
) |
|
172 |
| ||
| |
|
|
|
|
| |||
| Net cash provided by operating activities |
|
41,736 |
|
|
16,596 |
| ||
| |
|
|
|
|
| |||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Purchases of property, equipment and communication lines |
|
(75,389 |
) |
|
(12,515 |
) | ||
| Proceeds from sale of property, equipment and communication lines |
|
102 |
|
|
|
| ||
| Purchases of securities available-for-sale |
|
(61,543 |
) |
|
(93,940 |
) | ||