UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
|
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 PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 0-22871
OMTOOL, LTD.
(Exact Name of Registrant as Specified in Its Charter)
|
Delaware |
|
02-0447481 |
|
(State or Other
Jurisdiction of |
|
(I.R.S. Employer |
|
|
|
|
|
8A Industrial Way, Salem, NH |
|
03079 |
|
(Address of Principal Executive Offices) |
|
(Zip Code) |
|
|
|
|
|
(603) 898-8900 |
||
|
(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 ý 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 ý
There were 12,211,793 shares of the Company’s Common Stock, par value $0.01, outstanding on November 12, 2002.
OMTOOL, LTD. AND SUBSIDIARIES
FORM 10-Q
For the Quarter Ended September 30, 2002
CONTENTS
2
OMTOOL, LTD. AND SUBSIDIARIES
|
|
|
September
30, |
|
December
31, |
|
||
|
|
|
(Unaudited) |
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
9,375,744 |
|
$ |
11,194,118 |
|
|
Short-term investments |
|
— |
|
1,296,750 |
|
||
|
Accounts receivable, less reserves of $720,000 at September 30, 2002 and $630,000 at December 31, 2001 |
|
1,406,652 |
|
1,867,332 |
|
||
|
Inventory – finished goods |
|
150,733 |
|
168,039 |
|
||
|
Prepaid expenses and other current assets |
|
468,973 |
|
613,662 |
|
||
|
Deferred tax asset |
|
— |
|
1,225,350 |
|
||
|
Total current assets |
|
11,402,102 |
|
16,365,251 |
|
||
|
|
|
|
|
|
|
||
|
Property and equipment, net |
|
699,858 |
|
836,366 |
|
||
|
|
|
|
|
|
|
||
|
Other assets |
|
13,962 |
|
13,962 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
12,115,922 |
|
$ |
17,215,579 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
549,115 |
|
$ |
733,290 |
|
|
Accrued liabilities |
|
2,906,837 |
|
2,023,601 |
|
||
|
Deferred revenue |
|
3,092,521 |
|
3,383,759 |
|
||
|
Total current liabilities |
|
6,548,473 |
|
6,140,650 |
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
|
|
||
|
Preferred Stock,
$.01 par value — |
|
— |
|
— |
|
||
|
Common Stock,
$.01 par value — |
|
130,093 |
|
130,093 |
|
||
|
Additional paid-in capital |
|
31,879,212 |
|
31,924,984 |
|
||
|
Accumulated deficit |
|
(25,425,634 |
) |
(20,152,079 |
) |
||
|
Treasury Stock (797,579 shares at cost at September 30, 2002 and 320,305 shares at cost at December 31, 2001) |
|
(924,570 |
) |
(734,086 |
) |
||
|
Cumulative translation adjustment |
|
(91,652 |
) |
(93,983 |
) |
||
|
Total stockholders’ equity |
|
5,567,449 |
|
11,074,929 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
12,115,922 |
|
$ |
17,215,579 |
|
The accompanying notes are an integral part of these consolidated financial statements.
3
OMTOOL, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three
months ended |
|
Nine
months ended |
|
||||||||
|
|
|
2002 |
|
2001 |
|
2002 |
|
2001 |
|
||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||
|
Software license |
|
$ |
899,656 |
|
$ |
1,078,336 |
|
$ |
3,041,068 |
|
$ |
3,649,610 |
|
|
Hardware |
|
712,509 |
|
688,534 |
|
2,143,808 |
|
2,239,401 |
|
||||
|
Service and other |
|
1,925,714 |
|
1,769,944 |
|
5,607,134 |
|
5,362,857 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total revenues |
|
3,537,879 |
|
3,536,814 |
|
10,792,010 |
|
11,251,868 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
||||
|
Software license |
|
84,948 |
|
100,242 |
|
237,793 |
|
321,031 |
|
||||
|
Hardware |
|
437,355 |
|
480,588 |
|
1,398,172 |
|
1,471,175 |
|
||||
|
Service and other |
|
867,780 |
|
879,871 |
|
2,466,957 |
|
3,222,143 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total cost of revenues |
|
1,390,083 |
|
1,460,701 |
|
4,102,922 |
|
5,014,349 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gross profit |
|
2,147,796 |
|
2,076,113 |
|
6,689,088 |
|
6,237,519 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Sales and marketing |
|
1,332,134 |
|||||||||||