UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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 TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 000-31623
SIMPLETECH, INC.
(Exact name of Registrant as specified in its charter)
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CALIFORNIA |
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33-0399154 |
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(State or other
jurisdiction of incorporation or |
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(I.R.S. Employer |
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3001
Daimler Street |
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92705-5812 |
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(Address of principal executive offices) |
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(Zip Code) |
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(949) 476-1180 |
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(Registrant’s telephone number, including area code) |
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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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes o No ý
The number of shares outstanding of the Registrant’s common stock, par value $0.001, as of March 31, 2003 was 38,900,883.
SIMPLETECH, INC.
INDEX
TO FORM 10-Q FOR THE
QUARTERLY PERIOD ENDED MARCH 31, 2003
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Consolidated Balance Sheets as of December 31, 2002 and March 31, 2003 (unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Except as otherwise noted in this report, “SimpleTech,” the “Company,” “we,” “us” and “our” collectively refer to SimpleTech, Inc.
2
SimpleTech, Inc.
(in thousands, except share and per share amounts)
(unaudited)
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March 31, |
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December
31, |
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ASSETS: |
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Current Assets: |
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Cash and cash equivalents |
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$ |
31,857 |
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$ |
33,992 |
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Marketable securities |
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9,980 |
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9,980 |
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Accounts receivable, net of allowances of $764 at March 31, 2003 and $782 at December 31, 2002 |
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14,701 |
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19,019 |
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Inventory, net |
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10,776 |
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14,141 |
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Income taxes receivable |
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4,250 |
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3,860 |
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Deferred income taxes |
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28 |
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28 |
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Other current assets |
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998 |
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59 |
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Total current assets |
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72,590 |
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81,079 |
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Furniture, fixtures and equipment, net |
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9,710 |
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10,169 |
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Intangible assets |
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835 |
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835 |
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Deferred income taxes |
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2,378 |
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2,378 |
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Total assets |
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$ |
85,513 |
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$ |
94,461 |
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LIABILITIES AND SHAREHOLDERS' EQUITY: |
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Current Liabilities: |
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Accounts payable |
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$ |
9,131 |
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$ |
16,381 |
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Current maturities of capital lease obligations |
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— |
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113 |
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Accrued and other liabilities |
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3,992 |
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4,152 |
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Total current liabilities |
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13,123 |
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20,646 |
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Total liabilities |
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13,123 |
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20,646 |
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Commitments and contingencies (Note 5) |
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Shareholders' Equity: |
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Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares outstanding |
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— |
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— |
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Common stock, $0.001 par value, 100,000,000 shares
authorized, |
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39 |
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39 |
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Additional paid-in capital |
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66,952 |
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66,716 |
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Retained earnings |
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5,399 |
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7,060 |
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Total shareholders' equity |
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72,390 |
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73,815 |
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Total liabilities and shareholders' equity |
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$ |
85,513 |
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$ |
94,461 |
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See accompanying notes to unaudited consolidated financial statements.
3
SimpleTech, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
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Three
Months |
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2003 |
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2002 |
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Net revenues |
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$ |
40,918 |
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$ |
50,952 |
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Cost of revenues |
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33,987 |
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39,476 |
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Gross profit |
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6,931 |
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11,476 |
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Sales and marketing |
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5,372 |
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4,837 |
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General and administrative |
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2,514 |
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3,031 |
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Research and development |
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2,117 |
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1,938 |
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In-process research and development |
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— |
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1,360 |
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Total operating expenses |
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10,003 |
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11,166 |
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(Loss) income from operations |
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(3,072 |
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310 |
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Interest and other, net |
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151 |
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209 |
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(Loss) income before (benefit) provision for income taxes |
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(2,921 |
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519 |
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(Benefit) provision for income taxes |
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(1,260 |
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206 |
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Net (loss) income |
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$ |
(1,661 |
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$ |
313 |
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Net (loss) income per share: |
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Basic |
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$ |
(0.04 |
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0.01 |
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Diluted |
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$ |
(0.04 |
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0.01 |
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Shares used in computation of net (loss) income per share: |
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