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 March 31, 2003
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)
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Delaware |
02-0447481 |
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(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
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8A Industrial Way, Salem, NH |
03079 |
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(Address of Principal Executive Offices) |
(Zip Code) |
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(603) 898-8900 |
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(Registrant’s Telephone Number Including Area Code) |
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Indicate by check mark whether the Registrant has: (1) 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 1,746,113 shares of the Company’s Common Stock, par value $0.01, outstanding on May 4, 2003.
OMTOOL, LTD. AND SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2003
CONTENTS
2
Item 1. Financial Statements
OMTOOL, LTD. AND SUBSIDIARIES
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March 31, |
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December 31, |
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2003 |
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2002 |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
6,908,974 |
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$ |
8,192,523 |
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Short-term investments |
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1,999,449 |
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1,597,155 |
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Accounts receivable, less reserves of $446,000 at March 31, 2003 and $615,000 at December 31, 2002 |
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1,222,662 |
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1,664,849 |
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Inventory — finished goods |
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248,654 |
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187,918 |
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Prepaid expenses and other current assets |
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332,574 |
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420,083 |
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Total current assets |
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10,712,313 |
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12,062,528 |
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Property and equipment, net |
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625,046 |
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615,703 |
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Other assets |
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13,962 |
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13,962 |
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Total assets |
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$ |
11,351,321 |
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$ |
12,692,193 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,100,478 |
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$ |
1,019,584 |
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Accrued liabilities |
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1,363,892 |
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1,665,046 |
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Accrued state sales tax |
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910,654 |
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1,275,735 |
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Deferred revenue |
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3,338,668 |
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3,397,568 |
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Total current liabilities |
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6,713,692 |
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7,357,933 |
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Stockholders’ equity: |
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Preferred Stock, $.01 par value — |
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Authorized — 2,000,000 shares; Issued and outstanding — none |
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— |
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— |
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Common Stock, $.01 par value — |
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Authorized — 35,000,000 shares; Issued — 1,858,482 shares at March 31, 2003 and December 31, 2002, Outstanding — 1,746,113 and 1,744,542 shares at March 31, 2003 and December 31, 2002, respectively |
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18,585 |
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18,585 |
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Additional paid-in capital |
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31,980,616 |
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31,990,720 |
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Accumulated deficit |
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(26,337,245 |
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(25,671,834 |
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Treasury stock (112,369 shares at cost at March 31, 2003 and 113,940 shares at cost at December 31, 2002) |
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(911,826 |
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(924,570 |
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Accumulated other comprehensive loss |
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(112,501 |
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(78,641 |
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Total stockholders’ equity |
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4,637,629 |
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5,334,260 |
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Total liabilities and stockholders’ equity |
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$ |
11,351,321 |
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$ |
12,692,193 |
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The accompanying notes are an integral part of these consolidated financial statements.
3
OMTOOL, LTD. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
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Three
months ended |
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2003 |
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2002 |
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Revenues: |
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Software license |
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$ |
877,491 |
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$ |
1,278,821 |
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Hardware |
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506,208 |
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783,041 |
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Service and other |
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1,598,456 |
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1,900,762 |
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Total revenues |
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2,982,155 |
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3,962,624 |
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Cost of revenues: |
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Software license |
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54,035 |
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74,213 |
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Hardware |
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348,190 |
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517,116 |
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Service and other |
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791,754 |
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770,050 |
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Total cost of revenues |
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1,193,979 |
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1,361,379 |
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Gross profit |
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1,788,176 |
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2,601,245 |
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Operating expenses: |
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Sales and marketing |
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1,331,848 |
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1,646,830 |
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Research and development |
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584,605 |
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832,441 |
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General and administrative |
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731,800 |
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1,260,557 |
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Total operating expenses |
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2,648,253 |
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3,739,828 |
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Loss from operations |
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(860,077 |
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(1,138,583 |
) |
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Interest income |
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39,268 |
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51,181 |
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Loss before tax benefit |
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