UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
December 31, 2002
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from: to
Commission File Number 0-21422
OPTi Inc.
(Exact name of registrant as specified in this charter)
| CALIFORNIA |
77-0220697 | |||
| (State or other jurisdiction of incorporated or organization) |
(I.R.S. Employer Identification No.) |
| 880 Maude Avenue, Suite A, Mountain View, California |
94043 | |||
| (Address of principal executive office) |
(Zip Code) |
Registrant’s telephone number, including area code (650) 625-8787
Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No x
The number of shares outstanding of the registrant’s common stock as of December 31, 2002 was 11,633,903.
FORM 10-Q
For the Quarterly Period Ended December 31, 2002
INDEX
| Page | ||||||||
| Part I. Financial Information |
||||||||
| Item 1. |
Financial Statements |
|||||||
| a) |
3 | |||||||
| b) |
Condensed Consolidated Balance Sheets as of December 31, 2002, and March 31, 2002 |
4 | ||||||
| c) |
Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2002 and 2001 |
5 | ||||||
| d) |
6 | |||||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
10 | ||||||
| Item 3. |
13 | |||||||
| Item 4. |
13 | |||||||
| Part II. Other Information |
||||||||
| Item 1. |
15 | |||||||
| Item 2. |
15 | |||||||
| Item 3. |
15 | |||||||
| Item 4. |
15 | |||||||
| Item 6. |
15 | |||||||
| 16 | ||||||||
2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended December 31, |
Nine Months Ended December 31, |
||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
||||||||||||
| (000’s omitted, except per share data) |
|||||||||||||||
| Revenues: |
|||||||||||||||
| Product sales |
$ |
— |
|
$ |
2,522 |
$ |
2,249 |
|
$ |
5,449 |
| ||||
| License and royalties |
|
281 |
|
|
— |
|
556 |
|
|
— |
| ||||
| Net revenues |
|
281 |
|
|
2,522 |
|
2,805 |
|
|
5,449 |
| ||||
| Costs and expenses: |
|||||||||||||||
| Cost of revenues |
|
— |
|
|
882 |
|
1,289 |
|
|
2,381 |
| ||||
| Research and development |
|
— |
|
|
20 |
|
— |
|
|
408 |
| ||||
| Selling, general, and administrative |
|
341 |
|
|
1,438 |
|
1,520 |
|
|
3,431 |
| ||||
| Total costs and expenses |
|
341 |
|
|
2,340 |
|
2,809 |
|
|
6,220 |
| ||||
| Operating income (loss) |
|
(60 |
) |
|
182 |
|
(4 |
) |
|
(771 |
) | ||||
| Interest and other income, net |
|
53 |
|
|
199 |
|
1,711 |
|
|
1,207 |
| ||||
| Income (loss) before income tax provision |
|
(7 |
) |
|
381 |
|
1,707 |
|
|
436 |
| ||||
| Income tax provision (benefit) |
|
— |
|
|
— |
|
(165 |
) |
|
2 |
| ||||
| Net income (loss) |
$ |
(7 |
) |
$ |
381 |
$ |
1,872 |
|
$ |
434 |
| ||||
| Basic net income (loss) per share |
$ |
0.00 |
|
$ |
0.03 |
$ |
0.16 |
|
$ |
0.04 |
| ||||
| Diluted net income (loss) per share |
$ |
0.00 |
|
$ |
0.03 |
$ |
0.16 |
|
$ |
0.04 |
| ||||
| Shares used in computing basic per share amounts |
|
11,634 |
|
|
11,634 |
|
11,634 |
|
|
11,634 |
| ||||
| Shares used in computing diluted per share amounts |
|
11,634 |
|
|
11,634 |
|
11,634 |
|
|
11,634 |
| ||||
See accompanying notes.
3
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| December 31, 2002 |
March 31, 2002 | |||||
| (000’s omitted) | ||||||
| Assets |
||||||
| Current assets |
||||||
| Cash and cash equivalents |
$ |
14,691 |
$ |
14,332 | ||
| Short-term investments |
|
15 |
|
3,347 | ||
| Accounts receivable, net of allowance of $6 and $50 as of December 31, 2002 and March 31, 2002 |
|
214 |
|
182 | ||
| Inventories |
|
— |
|
258 | ||
| Other current assets |
|
152 |
|
799 | ||
| Total current assets |
|
15,072 |
|
18,918 | ||
| Property and equipment, net |
|
9 |
|
35 | ||
| Other assets |
|
405 |
|
287 | ||
| Total assets |
$ |
15,486 |
$ |
19,240 | ||
| Liabilities and Shareholders’ Equity |
||||||
| Current liabilities |
||||||
| Accounts payable |
$ |
39 |
$ |
88 | ||
| Accrued expenses |
|
218 |
|
607 | ||
| Accrued employee expenses |
|
3 |
|
326 | ||
| Deferred tax liability |
|
— |
|
65 | ||
| Total current liabilities |
|
260 |
|
1,086 | ||
| Shareholders’ equity: |
||||||
| Preferred stock, no par value: |
||||||
| Authorized shares—5,000 No shares issued or outstanding |
|
— |
|
— | ||
| Common stock, no par value: |
||||||
| Authorized shares—50,000 Issued and outstanding shares—11,634 at December 31, 2002 and March 31, 2002 |
|
15,053 |
|
15,597 | ||
| Accumulated other comprehensive income |
|
6 |
|
2,557 | ||
| Retained earnings |
|
167 |
|
— | ||
| Total shareholders’ equity |
|
15,226 |
|
18,154 | ||
| Total liabilities and shareholders’ equity |
$ |
15,486 |
$ |
19,240 | ||
See accompanying notes.
4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended December 31, |
||||||||
| 2002 |
2001 |
|||||||
| (000’s omitted) |
||||||||
| Operating Activities: |
||||||||
| Net income |
$ |
1,872 |
|
$ |
434 |
| ||
| Adjustments: |
||||||||
| Depreciation |
|
26 |
|
|
168 |
| ||
| Impairment on short-term investments |
|
11 |
|
|
— |
| ||
| Gain on Tripath Technology distribution |
|
(1,544 |
) |
|
— |
| ||
| Changes in assets and liabilities: |
||||||||
| Accounts receivable |
|
(32 |
) |
|
(91 |
) | ||
| Inventories |
|
258 |
|
|
508 |
| ||
| Other assets |
|
529 |
|
|
(313 |
) | ||
| Accounts payable |
|
(49 |
) |
|
156 |
| ||
| Accrued expenses |
|
(389 |
) |
|
(88 |
) | ||
| Accrued employee expenses |
|
(323 |
) |
|
6 |
| ||
| Net cash provided by operating activities |
|
359 |
|
|
780 |
| ||
| Investing Activities: |
||||||||