SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
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For the quarterly period ended September 30, 2002 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
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For the transition period from to
Commission File No. 000-20698
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BROOKTROUT, INC. |
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(Exact name of registrant as specified in its charter) |
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Massachusetts |
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04-2814792 |
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(State or other jurisdiction |
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(I.R.S. employer |
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250 First Avenue |
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02494-2814 |
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(Address of principal executive offices) |
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(Zip code) |
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Registrant’s telephone number, including area code: (781) 449-4100 |
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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
As of October 15, 2002, 12,244,217 shares of common stock, $.01 par value per share, were outstanding.
BROOKTROUT, INC.
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS
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Unaudited Condensed Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001 |
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Notes to Unaudited Condensed Consolidated Financial Statements |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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“BROOKTROUT” and the “NEW NETWORK” are trademarks or registered trademarks of Brooktrout, Inc.
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PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Brooktrout, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share
data)
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September
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December
31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
33,315 |
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$ |
26,218 |
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Marketable debt securities |
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8,933 |
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11,907 |
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Accounts receivable (less allowances of $1,770 in 2002 and $2,074 in 2001) |
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8,191 |
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8,870 |
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Inventory |
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7,027 |
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11,954 |
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Income tax receivable |
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5,049 |
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4,635 |
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Deferred tax assets |
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8,200 |
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9,168 |
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Prepaid expenses |
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847 |
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1,022 |
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Total current assets |
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71,562 |
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73,774 |
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Equipment and furniture, less accumulated depreciation and amortization |
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3,575 |
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5,136 |
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Deferred tax assets |
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6,746 |
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6,981 |
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Intangible assets, less accumulated amortization |
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7,795 |
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8,944 |
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Investment |
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— |
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1,451 |
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Other assets |
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1,675 |
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2,601 |
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Total assets |
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$ |
91,353 |
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$ |
98,887 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
4,931 |
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$ |
6,436 |
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Accrued expenses |
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6,603 |
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7,303 |
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Accrued compensation and commissions |
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2,348 |
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2,858 |
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Customer deposits |
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692 |
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697 |
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Accrued warranty costs |
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469 |
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789 |
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Net liabilities related to discontinued operations |
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155 |
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990 |
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Total current liabilities |
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15,198 |
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19,073 |
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Deferred rent |
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201 |
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242 |
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Total liabilities |
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15,399 |
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19,315 |
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Stockholders’ equity: |
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Preferred stock, $1.00 par value; authorized, 100,000 shares; issued and outstanding, none |
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— |
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— |
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Common stock, $0.01 par value; authorized, 40,000,000 shares; issued and outstanding 12,499,601 shares in 2002 and 12,462,242 in 2001 |
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125 |
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125 |
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Additional paid-in capital |
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64,021 |
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63,841 |
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Notes receivable — officers |
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(11,760 |
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(11,760 |
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Accumulated other comprehensive loss |
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(48 |
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(52 |
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Retained earnings |
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27,376 |
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31,178 |
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Treasury stock, 255,384 shares in 2002 and 2001, at cost |
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(3,760 |
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(3,760 |
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Total stockholders’ equity |
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75,954 |
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79,572 |
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Total liabilities and stockholders’ equity |
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$ |
91,353 |
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$ |
98,887 |
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See notes to unaudited condensed consolidated financial statements.
3
Brooktrout, Inc.
Unaudited Condensed Consolidated Statements of
Operations
(in thousands, except
per share data)
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Three
Months Ended |
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Nine
Months Ended |
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2002 |
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2001 |
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2002 |
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2001 |
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Revenue |
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$ |
18,510 |
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$ |
17,213 |
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$ |
55,730 |
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$ |
62,120 |
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