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 (State or other
jurisdiction of incorporation or organization) |
77-0394711 (I. R. S.
Employer Identification No.) |
| Page No. | ||
| PART I. FINANCIAL INFORMATION |
||
| ITEM 1. Financial Statements (Unaudited): |
||
| 3 | ||
| 4 | ||
| 5 | ||
| 6 | ||
| 16 | ||
| 40 | ||
| 42 | ||
| PART II. OTHER INFORMATION |
||
| 43 | ||
| 44 | ||
| 45 | ||
| 46 |
| Three Months Ended October
31, |
Nine Months Ended October
31, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Revenues: |
||||||||||||||||
| License fees |
$ |
126,116 |
|
$ |
126,625 |
|
$ |
381,317 |
|
$ |
460,029 |
| ||||
| Services |
|
107,907 |
|
|
92,998 |
|
|
303,412 |
|
|
284,521 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenues |
|
234,023 |
|
|
219,623 |
|
|
684,729 |
|
|
744,550 |
| ||||
| Cost of revenues: |
||||||||||||||||
| Cost of license fees |
|
4,981 |
|
|
4,559 |
|
|
14,097 |
|
|
16,251 |
| ||||
| Cost of services |
|
46,177 |
|
|
42,500 |
|
|
131,797 |
|
|
140,921 |
| ||||
| Amortization of acquired intangible assets |
|
6,393 |
|
|
6,627 |
|
|
21,492 |
|
|
19,043 |
| ||||
| Impairment of acquired intangible assets |
|
|
|
|
7,082 |
|
|
|
|
|
7,082 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of revenues |
|
57,551 |
|
|
60,768 |
|
|
167,386 |
|
|
183,297 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
176,472 |
|
|
158,855 |
|
|
517,343 |
|
|
561,253 |
| ||||
| Operating expenses: |
||||||||||||||||
| Sales and marketing |
|
89,572 |
|
|
93,597 |
|
|
274,507 |
|
|
306,820 |
| ||||
| Research and development |
|
34,548 |
|
|
29,660 |
|
|
99,068 |
|
|
90,710 |
| ||||
| General and administrative |
|
18,936 |
|
|
18,962 |
|
|
56,595 |
|
|
57,098 |
| ||||
| Amortization of goodwill |
|
|
|
|
11,838 |
|
|
|
|
|
42,956 |
| ||||
| Facilities consolidation and severance charges |
|
|
|
|
20,666 |
|
|
|
|
|
20,666 |
| ||||
| Impairment of goodwill |
|
|
|
|
73,068 |
|
|
|
|
|
73,068 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
143,056 |
|
|
247,791 |
|
|
430,170 |
|
|
591,318 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) from operations |
|
33,416 |
|
|
(88,936 |
) |
|
87,173 |
|
|
(30,065 |
) | ||||
| Interest expense |
|
(5,504 |
) |
|
(5,449 |
) |
|
(16,567 |
) |
|
(16,723 |
) | ||||
| Write-down of equity investments |
|
|
|
|
(9,867 |
) |
|
(22,386 |
) |
|
(21,022 |
) | ||||
| Net gains on sale of equity investments (see Note 2Related Party Transactions) |
|
|
|
|
|
|
|
453 |
|
|
17,374 |
| ||||
| Interest income and other, net |
|
7,408 |
|
|
9,102 |
|
|
21,097 |
|
|
32,115 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before income taxes |
|
35,320 |
|
|
(95,150 |
) |
|
69,770 |
|
|
(18,321 |
) | ||||
| Provision (benefit) for income taxes |
|
10,596 |
|
|
(4,287 |
) |
|
20,931 |
|
|
27,963 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
|
24,724 |
|
|
(90,863 |
) |
|
48,839 |
|
|
(46,284 |
) | ||||
| Other comprehensive income (loss): |
||||||||||||||||
| Foreign currency translation adjustments |
|
(799 |
) |
|
884 |
|
|
1,991 |
|
|
(2,097 |
) | ||||
| Unrealized gain on available-for-sale investments, net of income taxes |
|
426 |
|
|
278 |
|
|
1,631 |
|
|
335 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Comprehensive income (loss) |
$ |
24,351 |
|
$ |
(89,701 |
) |
$ |
52,461 |
|
$ |
(48,046 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) per share: |
||||||||||||||||
| Basic and diluted net income (loss) per share |
$ |
0.06 |
|
$ |
(0.23 |
) |
$ |
0.12 |
|
$ |
(0.12 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Number of shares used in per share calculations: |
||||||||||||||||
| Basic |
|
406,900 |
|
|
397,970 |
|
|
405,880 |
|
|
394,860 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Diluted |
|
413,400 |
|
|
397,970 |
|
|
417,323 |
|
|
394,860 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| October 31, 2002 |
January 31, 2002 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
771,173 |
|
$ |
821,802 |
| ||
| Restricted cash |
|
1,143 |
|
|
6,903 |
| ||
| Short-term investments |
|
358,980 |
|
|
205,395 |
| ||
| Accounts receivable, net |
|
198,503 |
|
|
193,099 |
| ||
| Deferred tax assets |
|
|
|
|
1,983 |
| ||
| Other current assets (see Note 2Related Party Transactions) |
|
40,982 |
|
|
34,247 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
1,370,781 |
|
|
1,263,429 |
| ||
| Property and equipment, net |
|
70,413 |
|
|
79,204 |
| ||
| Goodwill, net |
|
53,567 |
|
|
46,545 |
| ||
| Acquired intangible assets, net |
|
14,991 |
|
|
26,497 |
| ||
| Long-term restricted cash |
|
131,389 |
|
|
122,839 |
| ||
| Other long-term assets (see Note 2Related Party Transactions) |
|
96,152 |
|
|
121,437 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
1,737,293 |
|
$ |
1,659,951 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
11,017 |
|
$ |
23,111 |
| ||
| Accrued liabilities |
|
151,122 |
|
|
147,949 |
| ||
| Accrued facilities consolidation and severance charges |
|
19,353 |
|
|
26,552 |
| ||
| Accrued income taxes |
|
45,615 |
|
|
34,719 |
| ||
| Deferred revenues |
|
218,727 |
|
|
194,846 |
| ||
| Other current liabilities |
|
764 |
|
|
1,340 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
446,598 |
|
|
428,517 |
| ||
| Deferred tax liabilities |
|
4,214 |
|
|
4,383 |
| ||
| Notes payable and other long-term obligations |
|
3,671 |
|
|
3,135 |
| ||
| Convertible subordinated notes |
|
550,000 |
|
|
550,000 |
| ||
| Commitments and contingencies |
||||||||
| Stockholders equity: |
||||||||
| Common stock |
|
410 |
||||||