UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2002
or
o TRANSITION REPORT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 000-31623
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SIMPLETECH, INC. |
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(Exact name of Registrant as specified in its charter) |
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CALIFORNIA |
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33-0399154 |
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(State or other
jurisdiction of incorporation or |
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(I.R.S. Employer |
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3001
Daimler Street |
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92705-5812 |
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(Address of principal executive offices) |
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(Zip Code) |
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(949) 476-1180 |
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(Registrant’s telephone number, including area code) |
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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 ý No o
The number of shares outstanding of the Registrant’s common stock, par value $0.001, as of September 30, 2002 was 38,568,766.
INDEX TO FORM 10-Q FOR THE
QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002
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Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001 (unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Except as otherwise noted in this report, “SimpleTech,” the “Company,” “we,” “us” and “our” collectively refer to SimpleTech, Inc.
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PART I. FINANCIAL INFORMATION
SimpleTech, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
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September 30, |
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December 31, |
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ASSETS: |
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Current Assets: |
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Cash and cash equivalents |
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$ |
45,316 |
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$ |
51,831 |
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Accounts receivable, net of allowances of $973 at September 30, 2002 and $1,080 at December 31, 2001 |
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13,347 |
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12,062 |
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Inventory, net |
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12,129 |
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9,843 |
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Deferred income taxes |
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786 |
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786 |
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Other current assets |
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4,828 |
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4,474 |
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Total current assets |
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76,406 |
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78,996 |
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Furniture, fixtures and equipment, net |
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10,732 |
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9,127 |
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Goodwill |
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835 |
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— |
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Deferred income taxes |
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587 |
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587 |
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Total assets |
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$ |
88,560 |
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$ |
88,710 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY: |
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Current Liabilities: |
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Accounts payable |
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$ |
11,653 |
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$ |
10,320 |
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Current maturities of long-term debt |
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53 |
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741 |
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Current maturities of capital lease obligations |
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226 |
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441 |
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Accrued and other liabilities |
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3,578 |
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2,951 |
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Total current liabilities |
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15,510 |
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14,453 |
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Long-term debt |
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— |
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271 |
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Capital lease obligations |
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— |
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113 |
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Total liabilities |
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15,510 |
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14,837 |
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Commitments and contingencies |
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Shareholders’ Equity: |
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Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares outstanding |
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— |
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— |
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Common stock, $0.001 par value, 100,000,000 shares authorized, 38,568,766 shares issued and outstanding as of September 30, 2002 and 38,272,050 shares issued and outstanding as of December 31, 2001 |
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39 |
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38 |
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Additional paid-in capital |
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66,106 |
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65,484 |
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Unearned stock based compensation |
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(2 |
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(15 |
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Retained earnings |
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6,907 |
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8,366 |
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Total shareholders’ equity |
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73,050 |
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73,873 |
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Total liabilities and shareholders’ equity |
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$ |
88,560 |
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88,710 |
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See accompanying notes to unaudited consolidated financial statements.
3
SimpleTech, Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
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Three Months |
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Nine Months |
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2002 |
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2001 |
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2002 |
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2001 |
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Net revenues |
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$ |
36,501 |
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$ |
33,177 |
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$ |
130,754 |
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$ |
128,660 |
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Cost of revenues |
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29,911 |
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27,526 |
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106,554 |
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101,928 |
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Gross profit |
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6,590 |
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5,651 |
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24,200 |
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26,732 |
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Sales and marketing |
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4,065 |
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4,057 |
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13,132 |
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13,962 |
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General and administrative |
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2,316 |
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2,354 |
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8,020 |
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8,707 |
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Research and development |
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2,503 |
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984 |
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6,448 |
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3,247 |
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In-process research and development |
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— |
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1,360 |
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— |
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Total operating expenses |
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8,884 |
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7,395 |
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28,960 |
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25,916 |
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(Loss) income from operations |
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(2,294 |
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(1,744 |
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(4,760 |
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816 |
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Interest and other, net |
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(198 |
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(346 |
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(594 |
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(1,143 |
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(Loss) income before (benefit) provision for income taxes |
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