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 |
04-2685985 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
| Common Stock, par value $.001 |
26,224,488 | |
| Class |
Number of Shares Outstanding at June 30, 2002 |
| Page | ||||
| PART I. |
||||
| Item 1. |
||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
15 | |||
| Item 3. |
28 | |||
| PART II. |
||||
| Item 1. |
29 | |||
| Item 2. |
29 | |||
| Item 3. |
29 | |||
| Item 4. |
29 | |||
| Item 5. |
29 | |||
| Item 6. |
||||
| 29 | ||||
| 29 |
| June 30, 2002 |
September 30, 2001 |
|||||||
| (unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
46,206 |
|
$ |
62,084 |
| ||
| Short-term investments |
|
11,787 |
|
|
2,950 |
| ||
| Accounts receivable, net of allowances of $2,176 and $2,374 at June 30, 2002 and September 30, 2001,
respectively |
|
27,637 |
|
|
21,527 |
| ||
| Prepaid royalties and maintenance |
|
2,312 |
|
|
1,443 |
| ||
| Deferred income taxes |
|
5,186 |
|
|
5,186 |
| ||
| Other current assets |
|
5,379 |
|
|
6,572 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
98,507 |
|
|
99,762 |
| ||
| Property and equipment, net |
|
9,629 |
|
|
10,793 |
| ||
| Computer software costs, net |
|
19,942 |
|
|
17,602 |
| ||
| Goodwill and intangible assets, net |
|
19,645 |
|
|
17,104 |
| ||
| Deferred income taxes |
|
8,743 |
|
|
8,743 |
| ||
| Prepaid royalties |
|
8,041 |
|
|
4,180 |
| ||
| Other assets |
|
2,280 |
|
|
2,427 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
166,787 |
|
$ |
160,611 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
1,483 |
|
$ |
2,949 |
| ||
| Accrued compensation and related liabilities |
|
9,991 |
|
|
9,918 |
| ||
| Deferred revenue |
|
7,881 |
|
|
5,088 |
| ||
| Accrued acquisition costs |
|
|
|
|
1,802 |
| ||
| Income taxes payable |
|
1,473 |
|
|
3,201 |
| ||
| Other accrued liabilities |
|
5,243 |
|
|
4,378 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
26,071 |
|
|
27,336 |
| ||
| Long-term obligations |
|
1,126 |
|
|
638 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
27,197 |
|
|
27,974 |
| ||
| Minority interest |
|
12,296 |
|
|
12,941 |
| ||
| |
|
|
|
|
| |||
| Stockholders equity: |
||||||||
| Preferred stock, $.10 par value, 500 shares authorized, none issued |
|
|
|
|
|
| ||
| Common stock, $.001 par value, 60,000 shares authorized, 31,208 and 30,114 shares issued, 26,224 and 25,239 shares
outstanding at June 30, 2002 and September 30, 2001, respectively |
|
31 |
|
|
30 |
| ||
| Additional paid-in capital |
|
177,299 |
|
|
165,396 |
| ||
| Retained earnings |
|
32,244 |
|
|
35,888 |
| ||
| Accumulated other comprehensive income (loss) |
|
(1,534 |
) |
|
(1,878 |
) | ||
| Less: Cost of treasury stock (4,984 and 4,875 shares at June 30, 2002 and September 30, 2001, respectively)
|
|
(80,746 |
) |
|
(79,740 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
127,294 |
|
|
119,696 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
166,787 |
|
$ |
160,611 |
| ||
| |
|
|
|
|
| |||
| Three months ended June 30, |
Nine months ended June 30, |
||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
||||||||||||
| Revenues: |
|||||||||||||||
| License fees |
$ |
28,334 |
$ |
27,129 |
|
$ |
81,142 |
|
$ |
82,429 |
| ||||
| Services |
|
3,517 |
|
4,605 |
|
|
10,887 |
|
|
13,841 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total revenues |
|
31,851 |
|
31,734 |
|
|
92,029 |
|
|
96,270 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Cost of revenues: |
|||||||||||||||
| License fees |
|
1,621 |
|
1,324 |
|
|
4,485 |
|
|
2,460 |
| ||||
| Services |
|
1,554 |
|
3,982 |
|
|
4,791 |
|
|
11,372 |
| ||||
| Amortization of purchased technology |
|
1,392 |
|
747 |
|
|
3,723 |
|
|
1,380 |
| ||||
| Restructuring related write-down and impairment of capitalized software |
|
325 |
|
|
|
|
1,172 |
|
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of revenues |
|
4,892 |
|
6,053 |
|
|
14,171 |
|
|
15,212 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Gross Margin |
|
26,959 |
|
25,681 |
|
|
77,858 |
|
|
81,058 |
| ||||
| Operating expenses: |
|||||||||||||||
| Research and development |
|
8,899 |
|
11,886 |
|
|
26,737 |
|
|
34,324 |
| ||||
| Sales and marketing |
|
10,330 |
|
8,894 |
|
|
29,875 |
|
|
28,680 |
| ||||
| General and administrative |
|
5,890 |
|
5,902 |
|
|
17,390 |
|
|
17,719 |
| ||||
| Amortization of goodwill and acquired intangible assets |
|
973 |
|
1,689 |
|
|
3,495 |
|
|
3,358 |
| ||||
| Stock-based compensation |
|
8 |
|
379 |
|
|
690 |
|
|
1,004 |
| ||||
| Restructuring and related charges |
|
|
|
1,525 |
|
|
5,142 |
|
|
1,525 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
26,100 |
|
30,275 |
|
|
83,329 |
|
|
86,610 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) from operations |
|
859 |
|
(4,594 |
) |
|
(5,471 |
) |
|
(5,552 |
) | ||||
| Interest and other income, net |
|
149 |
|
981 |
|
|
394 |
|
|
2,316 |
| ||||
| Gain on investment |
|
|
|
223 |
|
|
161 |
|
|
223 |
| ||||
| Minority interest |
|
846 |
|
706 |
|
|
2,615 |
|
|
1,475 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before income taxes |
|
1,854 |
|
(2,684 |
) |
|
(2,301 |
) |
|
(1,538 |
) | ||||
| Income tax expense (credit) |
|
1,288 |
|
(996 |
) |
|
1,343 |
|
|
(964 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Net Income (loss) |
$ |
566 |
$ |
(1,688 |
) |
$ |
(3,644 |
) |
$ |
(574 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Earnings (loss) per share: |
|||||||||||||||
| Basic |
$ |
0.02 |
$ |
(0.07 |
) |
$ |
(0.14 |
) |
$ |
(0.02 |
) | ||||
| Diluted |
$ |
0.02 |
$ |
(0.07 |
) |
$ |
(0.14 |
) |
$ |
(0.02 |
) | ||||
| Shares used in earnings (loss) per share calculation: |
|||||||||||||||
| Basic |
|
26,097 |
|
25,098 |
|
|
25,702 |
|
|
25,162 |
| ||||
| Diluted |
|
26,817 |
|||||||||||||