| Delaware |
77-0439730 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
| Page No. | ||||
| PART I. |
FINANCIAL INFORMATION |
|||
| Item 1. |
Financial Statements (Unaudited) |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
18 | |||
| Item 3. |
43 | |||
| PART II. |
OTHER INFORMATION |
|||
| Item 1. |
45 | |||
| Item 2. |
45 | |||
| Item 3. |
45 | |||
| Item 4. |
45 | |||
| Item 5. |
45 | |||
| Item 6. |
46 | |||
| 47 |
| June 30, 2002
|
September 30, 2001 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
104,094 |
|
$ |
71,971 |
| ||
| Short-term investments |
|
63,508 |
|
|
145,931 |
| ||
| Restricted cash |
|
800 |
|
|
2,800 |
| ||
| Accounts receivable, net |
|
6,965 |
|
|
27,336 |
| ||
| Prepaid expenses and other current assets |
|
17,756 |
|
|
35,963 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
193,123 |
|
|
284,001 |
| ||
| Property and equipment, net |
|
34,048 |
|
|
50,353 |
| ||
| Long-term investments |
|
80,245 |
|
|
43,109 |
| ||
| Restricted cash |
|
29,782 |
|
|
29,771 |
| ||
| Other assets |
|
2,493 |
|
|
3,007 |
| ||
| Goodwill and other intangible assets, net |
|
442,764 |
|
|
877,806 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
782,455 |
|
$ |
1,288,047 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
16,009 |
|
$ |
28,395 |
| ||
| Accrued compensation and related liabilities |
|
41,426 |
|
|
53,285 |
| ||
| Accrued liabilities |
|
51,363 |
|
|
56,072 |
| ||
| Restructuring costs |
|
18,660 |
|
|
18,339 |
| ||
| Deferred revenue |
|
66,863 |
|
|
70,006 |
| ||
| Current portion of other long-term liabilities |
|
180 |
|
|
296 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
194,501 |
|
|
226,393 |
| ||
| Restructuring costs, net of current portion |
|
47,461 |
|
|
12,855 |
| ||
| Deferred revenue, net of current portion |
|
94,950 |
|
|
107,055 |
| ||
| Other long-term liabilities, net of current portion |
|
2 |
|
|
106 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
336,914 |
|
|
346,409 |
| ||
| |
|
|
|
|
| |||
| Minority interests |
|
15,165 |
|
|
15,720 |
| ||
| |
|
|
|
|
| |||
| Commitments and contingencies (Note 4) |
||||||||
| Stockholders equity: |
||||||||
| Common stock |
|
528 |
|
|
520 |
| ||
| Additional paid-in capital |
|
4,476,829 |
|
|
4,477,971 |
| ||
| Deferred stock-based compensation |
|
(8,260 |
) |
|
(33,023 |
) | ||
| Accumulated other comprehensive loss |
|
(2,024 |
) |
|
(1,172 |
) | ||
| Accumulated deficit |
|
(4,036,697 |
) |
|
(3,518,378 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
430,376 |
|
|
925,918 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
782,455 |
|
$ |
1,288,047 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended June
30, |
Nine Months Ended June
30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Revenues: |
||||||||||||||||
| License |
$ |
26,636 |
|
$ |
47,885 |
|
$ |
75,272 |
|
$ |
229,316 |
| ||||
| Maintenance and service |
|
31,907 |
|
|
36,245 |
|
|
95,713 |
|
|
109,615 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenues |
|
58,543 |
|
|
84,130 |
|
|
170,985 |
|
|
338,931 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Cost of revenues: |
||||||||||||||||
| License |
|
538 |
|
|
2,527 |
|
|
2,710 |
|
|
16,979 |
| ||||
| Maintenance and service (exclusive of stock-based compensation expense of $450 and $955 for the three months ended June
30, 2002 and 2001 and $1,471 and $3,814 for the nine month periods ended June 30, 2002 and 2001, respectively) |
|
11,024 |
|
|
12,965 |
|
|
31,009 |
|
|
56,635 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of revenues |
|
11,562 |
|
|
15,492 |
|
|
33,719 |
|
|
73,614 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
46,981 |
|
|
68,638 |
|
|
137,266 |
|
|
265,317 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating expenses: |
||||||||||||||||
| Sales and marketing (exclusive of stock-based compensation expense of $1,247 and $3,190 for the three months ended
June 30, 2002 and 2001 and $3,820 and $15,455 for the nine month periods ended June 30, 2002 and 2001, respectively and exclusive of business partner warrants expense of $0 and $18,975 for the three months ended June 30, 2002 and 2001 and
$5,562 and $26,833 for the nine month periods ended June 30, 2002 and 2001, respectively) |
|
21,840 |
|
|
59,448 |
|
|
68,930 |
|
|
223,090 |
| ||||
| Research and development (exclusive of stock-based compensation expense of $(34) and $2,363 for the three months ended
June 30, 2002 and 2001 and $(203) and $7,929 for the nine month periods ended June 30, 2002 and 2001, respectively) |
|
16,772 |
|
|
25,372 |
|
|
48,572 |
|
|
71,740 |
| ||||
| General and administrative (exclusive of stock-based compensation expense of $1,378 and $6,492 for the three months
ended June 30, 2002 and 2001 and $6,181 and $21,830 for the nine month periods ended June 30, 2002 and 2001, respectively) |
|
7,351 |
|
|
14,520 |
|
|
27,564 |
|
|
49,687 |
| ||||
| Amortization of goodwill and other intangible assets |
|
144,776 |
|
|
144,208 |
|
|
434,964 |
|
|
800,307 |
| ||||
| Business partner warrants, net |
|
|
|
|
18,975 |
|
|
5,562 |
|
|
26,833 |
| ||||
| Stock-based compensation, net |
|
3,041 |
|
|
13,000 |
|
|
11,269 |
|
|
49,028 |
| ||||
| Restructuring and lease abandonment costs |
|
57,125 |
|
|
70,041 |
|
|
62,609 |
|
|
70,041 |
| ||||
| Impairment of goodwill, other intangible assets and equity investments |
|
|
|
|
|
|
|
|
|
|
1,433,292 |
| ||||
| Merger related costs |
|
|
|
|
|
|
|
|
|
|
9,185 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
250,905 |
|
|
345,564 |
|
|
659,470 |
|
|
2,733,203 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from operations |
|
(203,924 |
) |
|
(276,926 |
) |
|
(522,204 |
) |
|
(2,467,886 |
) | ||||
| Interest income |
|
1,801 |
|
|
4,090 |
|
|
6,257 |
|
|
15,650 |
| ||||
| Interest expense |
|
(7 |
) |
|
(18 |
) |
|
(126 |
) |
|
(191 |
) | ||||
| Other income |
|
55 |
|
|
1,503 |
|
|
749 |
|
|
828 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss before income taxes |
|
(202,075 |
) |
|
(271,351 |
) |
|
(515,324 |
) |
|
(2,451,599 |
) | ||||
| Income tax provision |
|
(1,000 |
) |
|
(2,173 |
) |
|
(2,995 |
) |
|
(4,725 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(203,075 |
) |
$ |
(273,524 |
) |
$ |
(518,319 |
) |
$ |
(2,456,324 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic and diluted net loss per share |
$ |
(0.78 |
) |
$ |
(1.10 |
) |
$ |
(2.01 |
) |
$ |
(10.15 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Shares used in computing net loss per sharebasic and diluted | ||||||||||||||||