UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) |
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For the Quarterly Period Ended March 31, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) |
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For the Transition Period from to |
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Commission File Number 000-29423 |
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FAIRMARKET, INC. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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04-3351937 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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500 Unicorn Park Drive, Woburn, MA 01801-3341 |
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(Address of principal executive offices) (Zip Code) |
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Registrant’s telephone number, including area code: (781) 376-5600 |
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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
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Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 126-2 of the Exchange Act).
Yes o No
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The number of shares outstanding of the registrant’s common stock as of May 7, 2003 was 26,702,862.
FAIRMARKET, INC.
FORM 10-Q
For the Quarter Ended March 31, 2003
INDEX
FAIRMARKET and MarketSelect are registered service marks, and the FairMarket logo and FairMarket Network are service marks, of FairMarket, Inc. The names of other companies and products mentioned in this Report may be the trademarks of their respective owners.
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FAIRMARKET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(In
thousands)
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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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$ |
30,243 |
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$ |
32,743 |
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Marketable securities |
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2,675 |
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6,991 |
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Restricted cash |
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549 |
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548 |
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Accounts receivable, net of allowance for doubtful accounts of $168 and $267 at March 31, 2003 and December 31, 2002, respectively |
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1,057 |
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1,328 |
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Prepaid expenses |
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1,338 |
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610 |
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Other assets |
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515 |
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534 |
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Total current assets |
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36,377 |
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42,754 |
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Long-term marketable securities |
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20,016 |
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15,000 |
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Long-term prepaid expenses |
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— |
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35 |
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Property and equipment, net |
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994 |
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1,478 |
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Total assets |
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$ |
57,387 |
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$ |
59,267 |
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Liabilities, Preferred Stock and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
127 |
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$ |
133 |
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Deferred revenue |
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523 |
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520 |
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Accrued expenses |
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1,369 |
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1,489 |
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Short-term unutilized office space |
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1,040 |
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1,040 |
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Total current liabilities |
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3,059 |
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3,182 |
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Long-term unutilized office space |
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791 |
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1,040 |
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Other long-term liabilities |
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127 |
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169 |
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Total liabilities |
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3,977 |
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4,391 |
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Preferred stock |
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1,983 |
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1,967 |
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Stockholders’ equity: |
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Common stock |
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30 |
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30 |
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Additional paid-in capital |
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188,385 |
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188,747 |
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Treasury stock |
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(3,466 |
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(3,795 |
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Deferred compensation and equity-related charges |
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(69 |
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(159 |
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Accumulated other comprehensive income, net |
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24 |
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12 |
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Accumulated deficit |
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(133,477 |
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(131,926 |
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Total stockholders’ equity |
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51,427 |
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52,909 |
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Total liabilities, preferred stock and stockholders’ equity |
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$ |
57,387 |
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$ |
59,267 |
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See accompanying notes to condensed consolidated financial statements.
3
FAIRMARKET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
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Three
Months Ended |
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2003 |
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2002 |
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Revenue |
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$ |
1,357 |
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$ |
1,311 |
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Operating expenses: |
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Cost of revenue (exclusive of $5 in 2003 and $39 in 2002 reported below as equity-related charges) |
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759 |
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1,024 |
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Sales and marketing (exclusive of $24 in 2003 and $4,322 in 2002 reported below as equity-related charges) |
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562 |
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634 |
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Development and engineering (exclusive of $16 in 2003 and $72 in 2002 reported below as equity-related charges) |
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352 |
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794 |
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General and administrative (exclusive of $7 in 2003 and $46 in 2002 reported below as equity-related charges) |
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1,400 |
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2,125 |
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Unutilized office space charge |
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— |
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4,500 |
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Equity-related charges |
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52 |
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4,479 |
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Total operating expenses |
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