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 |
33-010761159 | |
| (STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) |
(I.R.S. EMPLOYER IDENTIFICATION NUMBER) |
| PAGE | ||||
| PART IFINANCIAL INFORMATION |
||||
| Item 1 |
Financial Statements: |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2 |
9 | |||
| Item 3 |
14 | |||
| PART IIOTHER INFORMATION |
||||
| Item 1 |
15 | |||
| Item 2 |
15 | |||
| Item 4 |
15 | |||
| Item 6 |
15 | |||
| 16 | ||||
| JUNE 30, 2002 |
DECEMBER 31, 2001 |
|||||||
| (unaudited) |
||||||||
| ASSETS | ||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
59,179 |
|
$ |
67,341 |
| ||
| Short-term investments |
|
31,293 |
|
|
15,059 |
| ||
| Restricted cash |
|
2,177 |
|
|
2,233 |
| ||
| Accounts receivable, net |
|
31,825 |
|
|
32,223 |
| ||
| Current portion of notes receivable |
|
78 |
|
|
113 |
| ||
| Notes receivable from related parties |
|
99 |
|
|
124 |
| ||
| Prepaid expenses and other current assets |
|
7,166 |
|
|
5,626 |
| ||
| Income tax receivable |
|
538 |
|
|
75 |
| ||
| Deferred tax asset |
|
6,738 |
|
|
6,738 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
139,093 |
|
|
129,532 |
| ||
| Property and equipment, net |
|
39,165 |
|
|
34,867 |
| ||
| Long term portion of notes receivable |
|
118 |
|
|
141 |
| ||
| Other assets |
|
21,849 |
|
|
14,479 |
| ||
| Goodwill and other intangible assets, net |
|
204,901 |
|
|
211,702 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
405,126 |
|
$ |
390,721 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: |
||||||||
| Short-term notes payable and lines of credit |
$ |
17,385 |
|
$ |
16,808 |
| ||
| Capital lease obligations |
|
3,475 |
|
|
2,799 |
| ||
| Accounts payable |
|
9,951 |
|
|
8,109 |
| ||
| Accrued liabilities |
|
28,037 |
|
|
23,414 |
| ||
| Income taxes payable |
|
108 |
|
|
1,049 |
| ||
| Deferred revenue |
|
46,499 |
|
|
31,208 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
105,455 |
|
|
83,387 |
| ||
| Long-term notes payable and lines of credit |
|
4,517 |
|
|
6,094 |
| ||
| Deferred taxes |
|
11,275 |
|
|
13,751 |
| ||
| Capital lease obligations |
|
3,681 |
|
|
3,605 |
| ||
| Deferred revenue |
|
4,115 |
|
|
1,889 |
| ||
| Other long-term liabilities |
|
1,038 |
|
|
1,040 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
130,081 |
|
|
109,766 |
| ||
| |
|
|
|
|
| |||
| Stockholders equity: |
||||||||
| Common stock |
|
46 |
|
|
45 |
| ||
| Additional paid-in capital |
|
399,405 |
|
|
397,740 |
| ||
| Notes receivable from stockholders |
|
(41 |
) |
|
(41 |
) | ||
| Deferred stock compensation |
|
(3,557 |
) |
|
(4,265 |
) | ||
| Accumulated deficit |
|
(120,808 |
) |
|
(112,524 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
275,045 |
|
|
280,955 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
405,126 |
|
$ |
390,721 |
| ||
| |
|
|
|
|
| |||
| THREE MONTHS ENDED JUNE 30, |
SIX MONTHS ENDED JUNE
30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| REVENUE: |
||||||||||||||||
| Recurring revenue |
$ |
40,844 |
|
$ |
33,333 |
|
$ |
80,628 |
|
$ |
63,656 |
| ||||
| Non-recurring revenue |
|
25,937 |
|
|
19,986 |
|
|
45,847 |
|
|
35,702 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
66,781 |
|
|
53,319 |
|
|
126,475 |
|
|
99,358 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| COST OF REVENUE: |
||||||||||||||||
| Recurring revenue (1) |
|
29,047 |
|
|
24,734 |
|
|
57,252 |
|
|
49,005 |
| ||||
| Non-recurring revenue (2) |
|
15,814 |
|
|
11,473 |
|
|
28,008 |
|
|
21,129 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of revenue |
|
44,861 |
|
|
36,207 |
|
|
85,260 |
|
|
70,134 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| GROSS PROFIT |
|
21,920 |
|
|
17,112 |
|
|
41,215 |
|
|
29,224 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| OPERATING EXPENSES: |
||||||||||||||||
| Research and development (3) |
|
5,577 |
|
|
4,720 |
|
|
11,008 |
|
|
9,564 |
| ||||
| Selling, general and administrative (4) |
|
14,252 |
|
|
13,574 |
|
|
27,516 |
|
|
26,584 |
| ||||
| Amortization of intangibles |
|
6,997 |
|
|
16,985 |
|
|
13,479 |
|
|
34,269 |
| ||||
| Restructuring and related impairment charges |
|
165 |
|
|
|
|
|
244 |
|
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
26,991 |
|
|
35,279 |
|
|
52,247 |
|
|
70,417 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| LOSS FROM OPERATIONS |
|
(5,071 |
) |
|
(18,167 |
) |
|
(11,032 |
) |
|
(41,193 |
) | ||||
| Interest income |
|
351 |
|
|
450 |
|
|
676 |
|
|
858 |
| ||||
| Interest expense |
|
(340 |
) |
|
(364 |
) |
|
(708 |
) |
|
(698 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| LOSS BEFORE BENEFIT FROM INCOME TAXES |
|
(5,060 |
) |
|
(18,081 |
) |
|
(11,064 |
) |
|
(41,033 |
) | ||||
| Benefit from income taxes |
|
1,390 |
|
|
3,100 |
|
|
2,780 |
|
|
8,118 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| NET LOSS |
$ |
(3,670 |
) |
$ |
(14,981 |
) |
$ |
(8,284 |
) |
$ |
(32,915 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss per share: |
||||||||||||||||
| Basic and diluted |
$ |
(0.08 |
) |
$ |
(0.40 |
) |
$ |
(0.18 |
) |
$ |
(0.90 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Shares used in computing net loss per share: |
||||||||||||||||
| Basic and diluted |
|
45,094 |
|
|
37,298 |
|
|
45,007 |
|
|
36,535 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
(1) |
Cost of recurring revenue for the three months ended June 30, 2002 and 2001, includes $104 and $216 of amortization of deferred stock compensation,
respectively. Cost of recurring revenue for the six months ended June 30, 2002 and 2001, includes $271 and $431 of amortization of deferred stock compensation, respectively. |
(2) |
Cost of non-recurring revenue for the three months ended June 30, 2002 and 2001, includes $150 and $190 of amortization of deferred stock compensation,
respectively. Cost of non-recurring revenue for the six months ended June 30, 2002 and 2001, includes $333 and $272 of amortization of deferred stock compensation, respectively. |
(3) |
Research and development for the three months ended June 30, 2002 and 2001, includes $51 and $64 of amortization of deferred stock compensation, respectively.
Research and development for the six months ended June 30, 2002 and 2001, includes $106 and $127 of amortization of deferred stock compensation, respectively. |
(4) |
Selling, general and administrative for the three months ended June 30, 2002 and 2001, includes $271 and $442 of amortization of deferred stock compensation,
respectively. Selling, general and administrative for the six months ended June 30, 2002 and 2001, includes $703 and $951 of amortization of deferred stock compensation, respectively. |
| SIX MONTHS ENDED JUNE 30, |
||||||||
| 2002 |
||||||||