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 |
87-0616516 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) | |
| 588 West 400 South, Lindon, Utah |
84042 | |
| (Address of Principal Executive Offices) |
(Zip Code) |
| Page | ||||||||
| PART I. |
1 | |||||||
| Item 1. |
1 | |||||||
| Item 2. |
11 | |||||||
| Item 3. |
32 | |||||||
| Item 4. |
32 | |||||||
| PART II. |
33 | |||||||
| Item 1. |
33 | |||||||
| Item 2. |
33 | |||||||
| Item 3. |
33 | |||||||
| Item 4. |
33 | |||||||
| Item 5. |
33 | |||||||
| Item 6. |
34 | |||||||
| 36 | ||||||||
| September 30, 2002 |
December 31, 2001 |
|||||||
| ASSETS |
||||||||
| Currents assets: |
||||||||
| Cash and cash equivalents |
$ |
56,982,000 |
|
$ |
1,023,000 |
| ||
| Accounts receivable, net of allowances of $1,300,000 and $750,000, respectively |
|
11,316,000 |
|
|
7,288,000 |
| ||
| Prepaid expenses and other current assets |
|
1,009,000 |
|
|
330,000 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
69,307,000 |
|
|
8,641,000 |
| ||
| Property and equipment, net |
|
2,977,000 |
|
|
2,547,000 |
| ||
| Intangible assets, net |
|
1,082,000 |
|
|
1,669,000 |
| ||
| Long-term investments |
|
10,623,000 |
|
|
|
| ||
| Other assets |
|
201,000 |
|
|
88,000 |
| ||
| |
|
|
|
|
| |||
| Total Assets |
$ |
84,190,000 |
|
$ |
12,945,000 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) |
||||||||
| Current liabilities |
||||||||
| Borrowings under financing arrangement |
$ |
|
|
$ |
136,000 |
| ||
| Convertible note payable and accrued interest |
|
|
|
|
3,064,000 |
| ||
| Current portion of capital lease obligations |
|
783,000 |
|
|
513,000 |
| ||
| Current portion of note payable |
|
127,000 |
|
|
292,000 |
| ||
| Accounts payable |
|
1,793,000 |
|
|
1,489,000 |
| ||
| Accrued salaries and benefits |
|
2,434,000 |
|
|
1,637,000 |
| ||
| Other accrued expenses |
|
2,635,000 |
|
|
2,258,000 |
| ||
| Deferred revenue |
|
10,307,000 |
|
|
7,323,000 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
18,079,000 |
|
|
16,712,000 |
| ||
| Capital lease obligations, net of current portion |
|
841,000 |
|
|
827,000 |
| ||
| Note payable, net of current portion |
|
|
|
|
73,000 |
| ||
| Deferred revenue, non-current |
|
2,497,000 |
|
|
1,077,000 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
21,417,000 |
|
|
18,689,000 |
| ||
| |
|
|
|
|
| |||
| Commitments and contingencies (Note 6) |
||||||||
| Stockholders equity (deficit) |
||||||||
| Preferred stock, $0.0001 par value; none and 5,044,445 shares authorized, respectively |
||||||||
| Series A convertible preferred stock; none and 2,111,112 shares outstanding, respectively (liquidation preference of
$9,500,000 as of December 31, 2001) |
|
|
|
|
9,500,000 |
| ||
| Common Stock, $0.0001 par value; 100,000,000 and 50,000,000 shares authorized respectively; 19,539,369 and 9,206,958
shares outstanding, respectively |
|
2,000 |
|
|
1,000 |
| ||
| Class B non-voting common stock, $0.0001 par value; 258,064 authorized and outstanding at September 30,
2002 |
|
|
|
|
|
| ||
| Additional paid-in capital |
|
90,982,000 |
|
|
10,454,000 |
| ||
| Deferred compensation |
|
(2,986,000 |
) |
|
(2,267,000 |
) | ||
| Accumulated other comprehensive loss |
|
(88,000 |
) |
|
(3,000 |
) | ||
| Accumulated deficit |
|
(25,137,000 |
) |
|
(23,429,000 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity (deficit) |
|
62,733,000 |
|
|
(5,744,000 |
) | ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity (deficit) |
$ |
84,190,000 |
|
$ |
12,945,000 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended September
30, |
Nine Months Ended September
30, |
|||||||||||||||
| |
2002 |
|
|
2001 |
|
|
2002 |
|
|
2001 |
| |||||
| Revenue: |
||||||||||||||||
| Software |
$ |
10,452,000 |
|
$ |
5,368,000 |
|
$ |
26,186,000 |
|
$ |
13,607,000 |
| ||||
| Services |
|
5,522,000 |
|
|
3,535,000 |
|
|
18,554,000 |
|
|
10,211,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
15,974,000 |
|
|
8,903,000 |
|
|
44,740,000 |
|
|
23,818,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Cost of revenue: |
||||||||||||||||
| Software |
|
263,000 |
|
|
328,000 |
|
|
739,000 |
|
|
851,000 |
| ||||
| Amortization of acquired IP |
|
245,000 |
|
|
912,000 |
|
|
1,644,000 |
|
|
2,072,000 |
| ||||
| Write-down of acquired IP |
|
|
|
|
1,677,000 |
|
|
|
|
|
1,677,000 |
| ||||
| Service |
|
1,151,000 |
|
|
714,000 |
|
|
5,571,000 |
|
|
2,965,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of revenue |
|
1,659,000 |
|
|
3,631,000 |
|
|
7,954,000 |
|
|
7,565,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
14,315,000 |
|
|
5,272,000 |
|
|
36,786,000 |
|
|
16,253,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating expenses: |
||||||||||||||||
| Sales and marketing (exclusive of stock-based compensation of $370,000, $176,000, $1,097,000 and $436,000,
respectively) |
|
7,651,000 |
|
|
4,142,000 |
|
|
19,920,000 |
|
|
12,274,000 |
| ||||
| Research and development (exclusive of stock-based compensation of $67,000, $31,000, $196,000 and $78,000,
respectively) |
|
4,353,000 |
|
|
2,905,000 |
|
|
11,610,000 |
|
|
6,989,000 |
| ||||
| General and administrative (exclusive of stock-based compensation of $228,000, $108,000, $672,000 and $268,000,
respectively) |
|
1,833,000 |
|
|
1,063,000 |
|
|
5,033,000 |
|
|
2,963,000 |
| ||||
| Amortization of intangible assets |
|
|
|
|
109,000 |
|
|
25,000 |
|
|
325,000 |
| ||||
| Write-down of intangible assets |
|
|
|
|
788,000 |
|
|
|
|
|
788,000 |
| ||||
| Stock-based compensation |
|
665,000 |
|
|
315,000 |
|
|
1,965,000 |
|
|
782,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
14,502,000 |
|
|
9,322,000 |
|
|
38,553,000 |
|
|
24,121,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from operations |
|
(187,000 |
) |
|
(4,050,000 |
) |
|
(1,767,000 |
) |
|
(7,868,000 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Other income (expenses): |
||||||||||||||||
| Interest income (expense), net |
|
227,000 |
|
|
(147,000 |
) |
|
(96,000 |
) |
|
(443,000 |
) | ||||
| Other income (expense), net |
|
(60,000 |
) |
|
10,000 |
|
|
737,000 |
|
|
26,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Other income (expense), net |
|
167,000 |
|
|
(137,000 |
) |
|
641,000 |
|
|
(417,000 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss before income taxes |
|
(20,000 |
) |
|
(4,187,000 |
) |
|
(1,126,000 |
) |
|
(8,285,000 |
) | ||||
| Provision for income taxes |
|
|||||||||||||||