SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
|
|
ý |
|
QUARTERLY REPORT UNDER 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 No. 000-20698
BROOKTROUT, INC.
(Exact Name of Registrant as Specified in Its Charter)
|
MASSACHUSETTS |
|
04-2814792 |
|
(State or Other Jurisdiction of Incorporation or Organization) |
|
(I.R.S. Employer Identification No.) |
|
|
|
|
|
250 FIRST AVENUE, NEEDHAM, MASSACHUSETTS 02494 |
||
|
(Address of Principal Executive Offices) (Zip Code) |
||
|
|
|
|
|
Registrant’s telephone number, including area code: (781) 449-4100 |
||
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 Exchange Act). Yes o No ý
As of April 30, 2003, 12,540,421 shares of common stock, $.01 par value per share, were outstanding.
BROOKTROUT, INC.
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2003
TABLE OF CONTENTS
”BROOKTROUT,” the “NEW NETWORK,” and the “PARTNER ACCESS NETWORK PROGRAM” are trademarks or registered trademarks of Brooktrout, Inc.
ii
Item 1. Condensed Consolidated Financial Statements
BROOKTROUT, INC.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share
data)
|
|
|
March 31, |
|
December 31, |
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
22,083 |
|
$ |
23,685 |
|
|
Marketable debt securities |
|
23,851 |
|
18,103 |
|
||
|
Accounts receivable (less allowances for doubtful accounts and sales returns of $1,687 at March 31, 2003 and $1,679 at December 31, 2002) |
|
7,740 |
|
8,853 |
|
||
|
Inventory |
|
6,163 |
|
6,797 |
|
||
|
Income tax receivable |
|
188 |
|
6,236 |
|
||
|
Deferred tax assets |
|
4,661 |
|
3,856 |
|
||
|
Prepaid expenses |
|
1,014 |
|
1,137 |
|
||
|
|
|
|
|
|
|
||
|
Total current assets |
|
65,700 |
|
68,667 |
|
||
|
|
|
|
|
|
|
||
|
Equipment and furniture, less accumulated depreciation and amortization |
|
2,975 |
|
3,404 |
|
||
|
Deferred tax assets |
|
9,341 |
|
9,341 |
|
||
|
Intangible assets, less accumulated amortization |
|
7,029 |
|
7,412 |
|
||
|
Other assets |
|
1,346 |
|
1,511 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
86,391 |
|
$ |
90,335 |
|
|
|
|
|
|
|
|
||
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
3,782 |
|
$ |
5,715 |
|
|
Accrued expenses |
|
5,226 |
|
5,104 |
|
||
|
Accrued compensation and commissions |
|
1,602 |
|
2,141 |
|
||
|
Accrued warranty costs |
|
1,086 |
|
1,060 |
|
||
|
Customer deposits |
|
892 |
|
883 |
|
||
|
Net liabilities related to discontinued operations |
|
98 |
|
125 |
|
||
|
|
|
|
|
|
|
||
|
Total current liabilities |
|
12,686 |
|
15,028 |
|
||
|
|
|
|
|
|
|
||
|
Deferred rent |
|
196 |
|
209 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities |
|
12,882 |
|
15,237 |
|
||
|
|
|
|
|
|
|
||
|
Commitments and contingencies (Note 9) |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
|
|
||
|
Preferred stock, $1.00 par value; authorized 100,000 shares; issued and outstanding, none |
|
— |
|
— |
|
||
|
Common stock, $0.01 par value; authorized 40,000,000 shares; issued 12,540,421 at March 31, 2003 and 12,532,810 at December 31, 2002 |
|
125 |
|
125 |
|
||
|
Additional paid-in capital |
|
64,197 |
|
64,170 |
|
||
|
Accumulated other comprehensive loss |
|
(17 |
) |
(64 |
) |
||
|
Notes receivable — officers |
|
(11,760 |
) |
(11,760 |
) |
||
|
Retained earnings |
|
24,724 |
|
26,387 |
|
||
|
Treasury stock, 255,384 shares, at cost |
|
(3,760 |
) |
(3,760 |
) |
||
|
|
|
|
|
|
|
||
|
Total stockholders’ equity |
|
73,509 |
|
75,098 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
86,391 |
|
$ |
90,335 |
|
See notes to condensed consolidated financial statements.
1
BROOKTROUT, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
|
|
|
Three Months Ended March 31, |
|
||||
|
|
|
2003 |
|
2002 |
|
||
|
Revenue |
|
$ |
15,534 |
|
$ |
18,422 |
|
|
|
|
|
|
|
|
||
|
Costs and expenses: |
|||||||