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 |
13-3667696 | |
| (State of Incorporation) |
(I.R.S. Employer Identification
Number) |
| Page | ||||
| Item 1. |
Financial Statements |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
15 | |||
| Item 3. |
29 | |||
| Item 4. |
29 | |||
| PART IIOTHER INFORMATION |
||||
| Item 1. |
30 | |||
| Item 2. |
31 | |||
| Item 3. |
31 | |||
| Item 4. |
31 | |||
| Item 5. |
31 | |||
| Item 6(a). |
31 | |||
| Item 6(b). |
31 | |||
| 32 | ||||
| 32 | ||||
| 33 | ||||
| September 30, 2002 |
December 31, 2001 |
|||||||
| (unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
7,105 |
|
$ |
8,015 |
| ||
| Accounts receivable (net of allowances of $131 in 2002 and $153 in 2001) |
|
4,609 |
|
|
6,002 |
| ||
| Inventories |
|
9,218 |
|
|
13,258 |
| ||
| Other current assets |
|
2,707 |
|
|
4,426 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
23,639 |
|
|
31,701 |
| ||
| Property, plant and equipment |
|
6,077 |
|
|
6,599 |
| ||
| Other assets |
|
783 |
|
|
873 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
30,499 |
|
$ |
39,173 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT
|
||||||||
| Current liabilities: |
||||||||
| Notes payable |
$ |
607 |
|
$ |
2,584 |
| ||
| Accounts payable |
|
1,885 |
|
|
3,665 |
| ||
| Net liabilities of discontinued operations |
|
1,034 |
|
|
1,383 |
| ||
| Accrued restructuring costs |
|
1,058 |
|
|
2,038 |
| ||
| Other accrued liabilities |
|
8,416 |
|
|
17,333 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
13,000 |
|
|
27,003 |
| ||
| Long-term debt |
|
66,113 |
|
|
58,790 |
| ||
| Other liabilities |
|
42,334 |
|
|
41,740 |
| ||
| Deferred income taxes |
|
1,213 |
|
|
1,213 |
| ||
| Net liabilities of discontinued operations |
|
3,098 |
|
|
3,874 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
125,758 |
|
|
132,620 |
| ||
| |
|
|
|
|
| |||
| Commitments and contingencies (Note 8) |
||||||||
| Mandatorily redeemable nonconvertible preferred stock, $1,000 liquidation value: |
||||||||
| Authorized: 69,970 shares in 2002 and in 2001 |
||||||||
| Issued and outstandingnone in 2002 and in 2001 |
|
|
|
|
|
| ||
| Mandatorily redeemable preferred stock, $2,000 liquidation value: |
||||||||
| Authorized: 21,859 shares in 2002 and in 2001 |
||||||||
| Issued and outstanding13,414 shares in 2002; 15,025 in 2001 |
|
26,828 |
|
|
30,050 |
| ||
| Convertible preferred stock, $2,000 liquidation value: |
||||||||
| Authorized: 10,000 shares in 2002 and in 2001 |
||||||||
| Issued and outstandingnone in 2002; 51 shares in 2001 |
|
|
|
|
102 |
| ||
| Stockholders deficit: |
||||||||
| Preferred stock, $1.00 par value: |
||||||||
| Authorized: 898,171 shares in 2002 and in 2001 |
||||||||
| Issued and outstandingnone in 2002 and in 2001 |
|
|
|
|
|
| ||
| Common stock, $.01 par value: |
||||||||
| Class A: |
||||||||
| Authorized: 175,000,000 shares in 2002 and in 2001 |
||||||||
| Issued and outstanding62,982,596 shares in 2002; 61,652,996 in 2001 |
|
630 |
|
|
616 |
| ||
| Class C: |
||||||||
| Authorized: 50,000,000 shares in 2002 and in 2001 |
||||||||
| Issued and outstandingnone in 2002 and in 2001 |
|
|
|
|
|
| ||
| Other additional capital |
|
431,471 |
|
|
428,161 |
| ||
| Notes receivable from stockholders |
|
(4,642 |
) |
|
(4,642 |
) | ||
| Accumulated deficit |
|
(511,915 |
) |
|
(510,023 |
) | ||
| Accumulated other comprehensive income |
|
(37,631 |
) |
|
(37,711 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders deficit |
|
(122,087 |
) |
|
(123,599 |
) | ||
| |
|
|
|
|
| |||
| Total liabilities, redeemable preferred stock and stockholders deficit |
$ |
30,499 |
|
$ |
39,173 |
| ||
| |
|
|
|
|
| |||
| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| (unaudited) |
||||||||||||||||
| Royalty income |
$ |
891 |
|
$ |
2,088 |
|
$ |
3,416 |
|
$ |
6,605 |
| ||||
| Product revenue |
|
8,110 |
|
|
7,500 |
|
|
24,885 |
|
|
25,454 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
9,001 |
|
|
9,588 |
|
|
28,301 |
|
|
32,059 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Intellectual property costs |
|
186 |
|
|
96 |
|
|
607 |
|
|
482 |
| ||||
| Cost of product sales |
|
5,466 |
|
|
5,057 |
|
|
15,261 |
|
|
17,640 |
| ||||
| Research, development and engineering |
|
648 |
|
|
1,181 |
|
|
1,968 |
|
|
4,655 |
| ||||
| Selling and administrative |
|
2,926 |
|
|
2,935 |
|
|
7,887 |
|
|
10,680 |
| ||||
| Restructuring charges |
|
|
|
|
|
|
|
|
|
|
808 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total costs and operating expenses |
|
9,226 |
|
|
9,269 |
|
|
25,723 |
|
|
34,265 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating income (loss) |
|
(225 |
) |
|
319 |
|
|
2,578 |
|
|
(2,206 |
) | ||||
| Interest expense |
|
2,127 |
|
|
1,825 |
|
|
6,286 |
|
|
5,357 |
| ||||
| Amortization of debt financing costs |
|
15 |
|
|
88 |
|
|
446 |
|
|
263 |
| ||||
| Interest income |
|
(54 |
) |
|
(22 |
) |
|
(332 |
) |
|
(260 |
) | ||||
| Other (income) expense, net |
|
2 |
|
|
122 |
|
|
194 |
|
|
(1 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from continuing operations before income taxes |
|
(2,315 |
) |
|
(1,694 |
) |
|
(4,016 |
) |
|
(7,565 |
) | ||||
| Provision for (benefit of) income taxes |
|
(2,402 |
) |
|
210 |
|
|
(2,124 |
) |
|
676 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) from continuing operations |
|
87 |
|
|
(1,904 |
) |
|
(1,892 |
) |
|
(8,241 |
) | ||||
| Loss on disposal of discontinued operations (net of taxes of none in 2001) |
|
|
|
|
|
|
|
|
|
|
(10,338 |
) | ||||
| Loss from discontinued operations (net of taxes of none in 2001) |
|
|
|
|
|
|
|
|
|
|
(7,294 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
|
87 |
|
|
(1,904 |
) |
|
(1,892 |
) |
|
(25,873 |
) | ||||
| Benefit from extinguishment of mandatorily redeemable preferred stock |
|
1,039 |
|
|
1,716 |
|
|
3,162 |
|
|
4,053 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) applicable to common stockholders |
|
1,126 |
|
|
(188 |
) |
|
1,270 |
|
|
(21,820 |
) | ||||
| Other comprehensive income (loss), net of tax: |
||||||||||||||||