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 |
| California (State or other
jurisdiction of incorporation or organization) |
94-3003809 (I.R.S.
Employer Identification No.) | |
| 280 N. Bernardo Ave. Mountain
View, CA (Address of principal executive offices) |
94043 (Zip
Code) |
| PART IFINANCIAL INFORMATION |
||
| ITEM 1Condensed Consolidated Financial Statements |
||
| 3 | ||
| 4 | ||
| 5 | ||
| 6 | ||
| 7 | ||
| 13 | ||
| 32 | ||
| 33 | ||
| PART IIOTHER INFORMATION |
||
| 34 | ||
| 34 | ||
| 34 | ||
| 35 | ||
| 36 |
| September 30, 2002 |
June 30, 2002 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
92,115 |
|
$ |
80,575 |
| ||
| Marketable securities |
|
7,854 |
|
|
7,854 |
| ||
| Accounts receivable, less allowance for doubtful accounts and returns of $4,349 and $7,583 as of September 30, 2002, and
$4,065 and $6,337 as of June 30, 2002, respectively |
|
32,841 |
|
|
32,462 |
| ||
| Inventories |
|
42,827 |
|
|
40,328 |
| ||
| Deferred income taxes |
|
3,854 |
|
|
3,854 |
| ||
| Prepaid expenses and other assets |
|
6,505 |
|
|
6,470 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
185,996 |
|
|
171,543 |
| ||
| Property and equipment, net |
|
11,525 |
|
|
12,256 |
| ||
| Goodwill and other intangibles, net |
|
52,516 |
|
|
75,136 |
| ||
| Other assets |
|
620 |
|
|
622 |
| ||
| |
|
|
|
|
| |||
| $ |
250,657 |
|
$ |
259,557 |
| |||
| |
|
|
|
|
| |||
| LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
15,741 |
|
$ |
12,441 |
| ||
| Accrued expenses |
|
27,019 |
|
|
25,177 |
| ||
| Deferred revenue |
|
14,969 |
|
|
11,477 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
57,729 |
|
|
49,095 |
| ||
| Deferred income taxes |
|
4,554 |
|
|
4,554 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
62,283 |
|
|
53,649 |
| ||
| |
|
|
|
|
| |||
| Shareholders equity: |
||||||||
| Preferred stock, no par value; authorized 5,000 shares; none issued and outstanding |
|
|
|
|
|
| ||
| Common stock, no par value; authorized 120,000 shares; 59,208 and 59,101 issued and outstanding as of September 30, 2002
and June 30, 2002, respectively |
|
311,459 |
|
|
310,874 |
| ||
| Treasury shares at cost; 793 shares |
|
(6,508 |
) |
|
(6,508 |
) | ||
| Accumulated deficit |
|
(111,303 |
) |
|
(93,433 |
) | ||
| Accumulated other comprehensive loss |
|
(5,274 |
) |
|
(5,025 |
) | ||
| |
|
|
|
|
| |||
| Total shareholders equity |
|
188,374 |
|
|
205,908 |
| ||
| |
|
|
|
|
| |||
| $ |
250,657 |
|
$ |
259,557 |
| |||
| |
|
|
|
|
| |||
| Three Months Ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Net sales |
$ |
68,574 |
|
$ |
46,968 |
| ||
| Cost of sales |
|
30,981 |
|
|
26,526 |
| ||
| |
|
|
|
|
| |||
| Gross profit |
|
37,593 |
|
|
20,442 |
| ||
| |
|
|
|
|
| |||
| Operating expenses: |
||||||||
| Engineering and product development |
|
8,263 |
|
|
7,323 |
| ||
| Sales and marketing |
|
19,668 |
|
|
15,540 |
| ||
| General and administrative |
|
4,810 |
|
|
4,372 |
| ||
| Amortization of goodwill |
|
|
|
|
4,522 |
| ||
| Amortization of other intangible assets |
|
3,371 |
|
|
4,205 |
| ||
| |
|
|
|
|
| |||
| Total operating expenses |
|
36,112 |
|
|
35,962 |
| ||
| |
|
|
|
|
| |||
| Operating income (loss) |
|
1,481 |
|
|
(15,520 |
) | ||
| Interest and other income, net |
|
390 |
|
|
203 |
| ||
| |
|
|
|
|
| |||
| Income (loss) before income taxes and cumulative effect of change in accounting principle |
|
1,871 |
|
|
(15,317 |
) | ||
| Income tax expense |
|
450 |
|
|
175 |
| ||
| |
|
|
|
|
| |||
| Income (loss) before cumulative effect of change in accounting principle |
|
1,421 |
|
|
(15,492 |
) | ||
| Cumulative effect of change in accounting principle |
|
(19,291 |
) |
|
|
| ||
| |
|
|
|
|
| |||
| Net loss |
$ |
(17,870 |
) |
$ |
(15,492 |
) | ||
| |
|
|
|
|
| |||
| Net income (loss) per share before cumulative effect of change in accounting principle: |
||||||||
| Basic and diluted |
$ |
0.02 |
|
$ |
(0.28 |
) | ||
| |
|
|
|
|
| |||
| Cumulative effect per share of change in accounting principle: |
||||||||
| Basic |
$ |
(0.32 |
) |
$ |
|
| ||
| |
|
|
|
|
| |||
| Diluted |
$ |
(0.31 |
) |
$ |
|
| ||
| |
|
|
|
|
| |||
| Net loss per share: |
||||||||
| Basic |
$ |
(0.30 |
) |
$ |
(0.28 |
) | ||
| |
|
|
|
|
| |||
| Diluted |
$ |
(0.29 |
) |
$ |
(0.28 |
) | ||
| |
|
|
|
|
| |||
| Shares used to compute net loss per share: |
||||||||
| Basic |
|
59,128 |
|
|
54,892 |
| ||
| |
|
|
|
|
| |||
| Diluted |
|
62,018 |
|
|
54,892 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Net loss |
$ |
(17,870 |
) |
$ |
(15,492 |
) | ||
| Foreign currency translation adjustment |
|
(249 |
) |
|
3,535 |
| ||
| |
|
|
|
|
| |||
| Comprehensive loss |
$ |
(18,119 |
) |
$ |
(11,957 |
) | ||
| |
|
|
|
|
| |||
| Three Months Ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ |
(17,870 |
) |
$ |
(15,492 |
) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
|
5,036 |
|
|
10,373 |
| ||
| Provision for doubtful accounts |
|
386 |
|
|
640 |
| ||
| Cumulative effect of change in accounting principle |
|
19,291 |
|
|
|
| ||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
|
(873 |
) |
|
10,699 |
| ||
| Inventories |
|
(2,648 |
) |
|
614 |
| ||
| Accounts payable |
|
3,367 |
|
|
(3,471 |
) | ||
| Accrued expenses |
|
1,731 |
|
|
(2,384 |
) | ||
| Accrued income taxes |
|
207 |
|
|
(273 |
) | ||
| Deferred revenue |
|
3,502 |
|
|
5,688 |
| ||
| Prepaid expenses and other assets |
|
16 |
|
|
(1,247 |
) | ||
| |
|
|
|
|
| |||
| Net cash provided by operating activities |
|
12,145 |
|
|
5,147 |
| ||
| |
|
|
|
|
| |||
| Cash flows from investing activities: |
||||||||
| Purchases of property and equipment |
|
(1,019 |
) |
|
(492 |
) | ||
| |
|
|
|
|
| |||
| Net cash used in investing activities |
|
(1,019 |
) |
|
(492 |
) | ||
| |
|
|
|
|
| |||
| Cash flows from financing activities: |
||||||||
| Proceeds from issuance of common stock |
|
585 |
|
|
98 |
| ||
| |
|
|
|
|
| |||
| Net cash provided by financing activities |
|
585 |
|
|
98 |
| ||
| |
|
|
|
|
| |||
| Effects of exchange rate changes on cash |
|
(171 |
) |
|
1,219 |
| ||
| |
|
|
|
|
| |||
| Net increase in cash and cash equivalents |
|
11,540 |
|
|
5,972 |
| ||
| Cash and cash equivalents at beginning of period |
|
80,575 |
|
|
47,751 |
| ||
| |
|
|
|
|
| |||
| Cash and cash equivalents at end of period |
$ |
92,115 |
|
$ |
53,723 |
| ||
| |
|
|
|
|
| |||
| Supplemental disclosures of cash paid during the period for: | ||||||||