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Delaware	54-1242469
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

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PART I.	FINANCIAL INFORMATION	Page
Item 1.	Financial Statements (Unaudited)
	Consolidated Interim Statements of Operations	1
	Consolidated Interim Balance Sheets	2
	Consolidated Interim Statements of Cash Flows	3
	Notes to Consolidated Interim Financial Statements	4
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Submission of Matters to a Vote of Security Holders	22
Item 5.	Other Information	22
Item 6.	Exhibits and Reports on Form 8-K	22
SIGNATURES		23
EXHIBIT INDEX		24

 

 

		Three Months Ended
		March 31,
		2005			2004
Revenues		$	49,721		$	49,603
Expenses:
Production and customer support			8,334			8,349
Commissions, royalties and licenses			3,364			3,174
Selling, general and administrative			17,689			17,930
Depreciation and amortization			1,978			2,103
Product development and programming			7,196			8,037
Total operating expenses			38,561			39,593
Operating income			11,160			10,010
Interest expense			(2,792	)		(146	)
Other income, net			134			87
Equity in income of ChoiceParts			125			109
Income before income taxes			8,627			10,060
Income tax provision			(3,208	)		(3,853	)
Net income		$	5,419		$	6,207
Per Share Data:
Income per common share:
Basic		$	0.34		$	0.23
Diluted		$	0.31		$	0.22
Weighted average shares outstanding:
Basic			16,148			26,472
Diluted			17,347			27,927

 

 

		March 31,			December 31,
ASSETS		2005			2004
Cash and cash equivalents		$	26,807		$	19,958
Accounts receivable (net of allowances of $2,191 and $2,357 at March 31, 2005 and December 31, 2004, respectively)			12,806			12,721
Other current assets			8,861			7,790
Total current assets			48,474			40,469
Property and equipment (net of accumulated depreciation and amortization of $39,296 and $37,530 at March 31, 2005 and December 31, 2004, respectively)			11,885			12,151
Intangible assets (net of accumulated amortization of $1,783 and $1,569 at March 31, 2005 and December 31, 2004, respectively)			1,084			1,298
Goodwill			15,747			15,747
Deferred income taxes (net of valuation allowance of $11,599 at March 31, 2005 and December 31, 2004)			9,514			9,420
Investments			904			778
Other assets			5,513			3,770
Total assets		$	93,121		$	83,633
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable		$	7,072		$	7,728
Accrued expenses			17,309			19,468
Income taxes payable			3,090			97
Deferred revenues			8,059			6,886
Current portion of long-term debt			431			—
Total current liabilities			35,961			34,179
Long-term debt			169,182			169,613
Other liabilities			1,352			1,716
Total liabilities			206,495			205,508
Commitments and contingencies
Preferred stock ($1.00 par value, 100 shares authorized, issued and outstanding)			—			—
Common stock ($0.10 par value, 40,000,000 shares authorized, 16,489,087 and 16,144,124 shares outstanding at March 31, 2005 and December 31, 2004, respectively)			1,649			1,614
Additional paid-in capital			14,704			7,298
Deferred stock compensation			(6,184	)		(292	)
Other comprehensive income			1,605			72
Accumulated deficit			(72,896	)		(78,315	)
Treasury stock, at cost (4,460,501 common shares in treasury at March 31, 2005 and December 31, 2004)			(52,252	)		(52,252	)
Total stockholders' deficit			(113,374	)		(121,875	)
Total liabilities and stockholders' deficit		$	93,121		$	83,633