UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003
OR
o
TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
COMMISSION FILE NUMBER: 000-24597
CARRIER ACCESS CORPORATION
(Exact name of registrant as specified in its charter)
| DELAWARE (State or other jurisdiction of incorporation or organization) |
84-1208770 (I.R.S. Employer Identification No.) |
5395 Pearl Parkway, Boulder, CO 80301
(Address of principal executive
offices)
(Zip Code)
(303) 442-5455
(Registrant’s telephone number, including area
code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes o No x
The number of shares outstanding of the issuer’s common stock, par value $0.001 per share, as of March 31, 2003 was 24,771,498 shares.
CARRIER ACCESS CORPORATION
TABLE OF CONTENTS
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Page No. |
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| PART I |
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FINANCIAL INFORMATION |
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Item 1. |
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Condensed Consolidated Balance Sheets (unaudited) – March 31, 2003 and December 31, 2002 |
3 |
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Condensed Consolidated Statements of Operations (unaudited) – Three Months Ended March 31, 2003 and 2002 |
4 |
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Condensed Consolidated Statements of Cash Flows (unaudited) – Three Months Ended March 31, 2003 and 2002 |
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Notes to Condensed Consolidated Financial Statements (unaudited) |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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| PART II |
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OTHER INFORMATION |
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Item 1. |
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Item 2. |
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Item 3. |
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Item 4. |
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Item 5. |
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Item 6. |
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24 | |
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Page 2
ITEM 1.
FINANCIAL STATEMENTS
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share amounts)
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March 31, |
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December 31, |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
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$ |
15,300 |
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$ |
14,900 |
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| Marketable securities available for sale |
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14,474 |
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10,828 |
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| Accounts receivables, net |
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8,559 |
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8,598 |
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| Other receivables |
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395 |
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174 |
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| Income tax receivable |
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107 |
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6,989 |
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| Inventory, net |
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25,641 |
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24,134 |
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| Prepaid expenses and other |
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818 |
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1,024 |
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| Total current assets |
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65,294 |
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66,647 |
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| Property and equipment, net of accumulated depreciation and amortization |
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8,602 |
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9,462 |
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| Goodwill and other intangibles, net of amortization |
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153 |
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146 |
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| Other assets |
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190 |
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182 |
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| Total assets |
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$ |
74,239 |
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$ |
76,437 |
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
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$ |
3,869 |
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$ |
5,437 |
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| Accrued expenses and other liabilities |
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4,103 |
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4,886 |
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| Total current liabilities |
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7,972 |
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10,323 |
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| Stockholders’ equity: |
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| Preferred stock $0.001 par value, 5,000 authorized and no shares issued or outstanding at March 31, 2003 and December 31, 2002 |
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| Common stock $0.001 par value, 60,000 authorized, and 24,771 shares issued and outstanding at March 31, 2003, and 24,771 shares issued and outstanding at December 31, 2002 |
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30 |
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30 |
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| Additional paid-in capital |
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85,808 |
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85,780 |
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| Deferred compensation |
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(42 |
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(65 |
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| Accumulated deficit |
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(19,526 |
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(19,643 |
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| Accumulated other comprehensive income |
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1 |
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12 |
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| Total stockholders’ equity |
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66,267 |
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66,114 |
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| Commitments and contingencies |
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| Total liabilities and stockholders’ equity |
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$ |
74,239 |
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$ |
76,437 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
Page 3
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
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Three Months Ended March 31, |
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2003 |
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2002 |
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| Net revenue |
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$ |
11,203 |
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$ |
16,446 |
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| Cost of goods sold |
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6,154 |
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11,232 |
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| Gross profit |
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5,049 |
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5,214 |
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| Operating expenses: |
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| Research and development (exclusive of stock based compensation expense of $23 and $79, respectively, for the quarters ended March 31, 2003 and 2002) |
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2,585 |
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8,929 |
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| Sales and marketing (exclusive of stock based compensation expense of $0 and $5, respectively, for the quarters ended March 31, 2003 and 2002) |
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2,675 |
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5,297 |
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| General and administrative (exclusive of stock based compensation expense of $25 and $2, respectively, for the quarters ended March 31, 2003 and 2002) |
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1,209 |
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2,379 |
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| Bad debt expense (recoveries) |
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(1,412 |
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2,766 |
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| Goodwill and other intangible amortization |
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— |
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72 |
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| Stock-based compensation expense |
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48 |
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86 |
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| Total operating expenses |
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5,105 |
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19,529 |
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| Loss from operations |
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(56 |
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(14,315 |
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| Other income, net |
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84 |
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241 |
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| Income (loss) before income taxes |
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28 |
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(14,074 |
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| Income tax benefit |
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(89 |
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(5,063 |
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| Net income (loss) |
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$ |
117 |
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$ |
(9,011 |
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| Income (loss) per share: |
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| Basic |
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$ |
0.00 |
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(0.36 |
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| Diluted |
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$ |
0.00 |
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$ |
(0.36 |
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| Weighted average common shares outstanding: |
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| Basic |
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24,771 |
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24,742 |
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| Diluted |
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24,950 |
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24,742 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
Page 4
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
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Three Months Ended March 31, |
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2003 |
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2002 |
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| Cash flows from operating activities: |
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| Net income (loss) |
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$ |
117 |
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(9,011 |
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| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: |
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| Depreciation and amortization expense |
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1,079 |
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671 |
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| Provision for (recoveries of) doubtful accounts, net |
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(1,412 |
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2,762 |
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| Provision for inventory obsolescence |
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— |
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1,797 |
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| Stock-based compensation |
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48 |
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86 |
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| Deferred income tax benefit |
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(5,227 |
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| Changes in operating assets and liabilities: |
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| Accounts receivable |
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1,450 |
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1,994 |
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| Income taxes receivable |
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6,882 |
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1,798 |
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| Inventory |
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(1,507 |
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5,691 |
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| Prepaid expenses and other |
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(29 |
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1,522 |
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| Accounts payable and accrued expenses |
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(2,351 |
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(5,403 |
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| Net cash provided (used) by operating activities |
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4,277 |
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(3,320 |
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| Cash flows from investing activities: |
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| Purchases of property and equipment |
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(220 |
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(68 |
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| Purchases of marketable securities |
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(4,155 |
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| Sales of marketable securities |
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498 |
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2,318 |
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| Net cash provided (used) by investing activities |
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(3,877 |
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2,250 |
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| Cash flows from financing activities: |
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| Proceeds from exercise of stock options |
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— |
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