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 For the Transition Period from
to |
| PART I. FINANCIAL INFORMATION |
||||||
| Item 1. |
Financial Statements (Unaudited) |
|||||
| 3 | ||||||
| 4 | ||||||
| 5 | ||||||
| 6 | ||||||
| Item 2. |
15 | |||||
| Item 3. |
34 | |||||
| Item 4. |
36 | |||||
| PART II. OTHER INFORMATION |
||||||
| Item 1. |
37 | |||||
| Item 2. |
38 | |||||
| Item 3. |
38 | |||||
| Item 4. |
38 | |||||
| Item 5. |
39 | |||||
| Item 6. |
39 | |||||
| 40 | ||||||
| 41 | ||||||
| September 30, 2002 |
March 31, 2002 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
148,269 |
|
$ |
66,874 |
| ||
| Short-term investments |
|
45,402 |
|
|
95,097 |
| ||
| |
|
|
|
|
| |||
| Total cash, cash equivalents and short-term investments |
|
193,671 |
|
|
161,971 |
| ||
| Accounts receivable, net |
|
18,910 |
|
|
24,181 |
| ||
| Inventory, net |
|
1,473 |
|
|
3,032 |
| ||
| Related party loans, current |
|
1,311 |
|
|
36 |
| ||
| Prepaid expenses and other current assets |
|
26,407 |
|
|
27,477 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
241,772 |
|
|
216,697 |
| ||
| Related party loans, non-current |
|
5,665 |
|
|
8,305 |
| ||
| Fixed assets, net |
|
41,966 |
|
|
49,189 |
| ||
| Intangible assets, net |
|
202,535 |
|
|
226,579 |
| ||
| Restricted cash |
|
10,922 |
|
|
11,409 |
| ||
| Other non-current assets |
|
4,349 |
|
|
5,659 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
507,209 |
|
$ |
517,838 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
4,020 |
|
$ |
6,719 |
| ||
| Accrued liabilities |
|
54,229 |
|
|
56,082 |
| ||
| Accrued restructuring, current |
|
11,158 |
|
|
12,224 |
| ||
| Unearned revenues |
|
26,949 |
|
|
24,791 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
96,356 |
|
|
99,816 |
| ||
| Accrued restructuring, non-current |
|
25,387 |
|
|
30,809 |
| ||
| Other non-current liabilities |
|
6,490 |
|
|
6,492 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
128,233 |
|
|
137,117 |
| ||
| |
|
|
|
|
| |||
| Stockholders equity: |
||||||||
| Common stock and additional paid-in capital, par value $0.001 per common share; 200,000 shares authorized; 62,112 and 60,987 shares issued at September 30, 2002 and March 31, 2002, respectively |
|
746,370 |
|
|
734,816 |
| ||
| Treasury stock at cost; 1,818 common shares at September 30, 2002 and March 31, 2002 |
|
(33,649 |
) |
|
(33,649 |
) | ||
| Deferred stock compensation |
|
(84 |
) |
|
(281 |
) | ||
| Accumulated other comprehensive loss |
|
(7 |
) |
|
(158 |
) | ||
| Accumulated deficit |
|
(333,654 |
) |
|
(320,007 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
378,976 |
|
|
380,721 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
507,209 |
|
$ |
517,838 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended September 30, |
Six Months Ended September 30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Net revenues |
$ |
85,407 |
|
$ |
87,086 |
|
$ |
169,096 |
|
$ |
175,829 |
| ||||
| Cost of revenues |
|
7,662 |
|
|
9,887 |
|
|
18,168 |
|
|
21,024 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
77,745 |
|
|
77,199 |
|
|
150,928 |
|
|
154,805 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating expenses: |
||||||||||||||||
| Sales and marketing |
|
35,442 |
|
|
45,806 |
|
|
72,820 |
|
|
94,427 |
| ||||
| Research and development |
|
23,674 |
|
|
27,540 |
|
|
50,046 |
|
|
57,486 |
| ||||
| General and administrative |
|
9,761 |
|
|
9,887 |
|
|
20,374 |
|
|
22,623 |
| ||||
| Impairment of intangible assets |
|
17,316 |
|
|
|
|
|
17,316 |
|
|
|
| ||||
| Amortization of intangible assets |
|
3,364 |
|
|
28,448 |
|
|
6,728 |
|
|
57,513 |
| ||||
| Restructuring expenses |
|
|
|
|
|
|
|
|
|
|
39,539 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
89,557 |
|
|
111,681 |
|
|
167,284 |
|
|
271,588 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating loss |
|
(11,812 |
) |
|
(34,482 |
) |
|
(16,356 |
) |
|
(116,783 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Other income (expense): |
||||||||||||||||
| Interest income and other, net |
|
739 |
|
|
1,752 |
|
|
1,887 |
|
|
4,578 |
| ||||
| Gain (loss) on investments |
|
53 |
|
|
98 |
|
|
(750 |
) |
|
(6,585 |
) | ||||
| Loss on equity affiliate |
|
|
|
|
(9,155 |
) |
|
|
|
|
(36,016 |
) | ||||
| Litigation settlements |
|
|
|
|
(28,500 |
) |
|
2,822 |
|
|
(28,500 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total other income (expense) |
|
792 |
|
|
(35,805 |
) |
|
3,959 |
|
|
(66,523 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss before income taxes |
|
(11,020 |
) |
|
(70,287 |
) |
|
(12,397 |
) |
|
(183,306 |
) | ||||
| Benefit (provision) for income taxes |
|
(643 |
) |
|
(417 |
) |
|
(1,250 |
) |
|
828 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(11,663 |
) |
$ |
(70,704 |
) |
$ |
(13,647 |
) |
$ |
(182,478 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss per common share: |
||||||||||||||||
| Basic and diluted |
$ |
(0.19 |
) |
$ |
(1.22 |
) |
$ |
(0.23 |
) |
$ |
(3.16 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average common shares outstanding used in calculating net loss per common share: |
||||||||||||||||
| Basic and diluted |
|
60,040 |
|
|
57,943 |
|
|
59,800 |
|
|
57,759 |
| ||||
| |
|
|
|
|
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