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) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarter ended April 30, 2003 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 |
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Commission file number 000-22009 |
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NEOMAGIC CORPORATION
(Exact name of Registrant as specified in its charter)
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DELAWARE |
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77-0344424 |
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[State or other
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[I.R.S. Employer Identification No.] |
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3250 Jay Street |
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95054 |
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[Address of principal executive offices] |
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[Zip Code] |
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(408) 988- 7020 |
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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 Rule 12b-2 of the Exchange Act) Yes o No ý
The number of shares of the Registrant’s Common Stock, $.001 par value, outstanding at April 30, 2003 was 30,277,155
NEOMAGIC CORPORATION
FORM 10-Q
INDEX
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Notes to Unaudited Consolidated Condensed Financial Statements |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
Part I. Financial Information
Item I. Financial Statements
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended |
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(In thousands, except per share data) |
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April 30, |
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April 30, |
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Net sales |
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$ |
624 |
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$ |
362 |
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Cost of sales (1) |
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588 |
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585 |
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Gross margin (loss) |
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36 |
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(223 |
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Operating expenses: |
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Research and development (2) |
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5,019 |
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6,974 |
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Sales, general and administrative (3) |
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1,777 |
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3,368 |
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Special charges |
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— |
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1,400 |
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Total operating expenses |
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6,796 |
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11,742 |
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Loss from operations |
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(6,760 |
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(11,965 |
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Other income (expense), net: |
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Income, net of expenses, from the sale of DVD assets |
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— |
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1,580 |
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Interest income and other income |
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211 |
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608 |
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Interest expense |
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(87 |
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— |
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Loss before income taxes |
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(6,636 |
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(9,777 |
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Income tax benefit |
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— |
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(6,000 |
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Net loss |
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$ |
(6,636 |
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(3,777 |
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Basic net loss per share |
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$ |
(.22 |
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(.13 |
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Diluted net loss per share |
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$ |
(.22 |
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(.13 |
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Weighted average common shares outstanding |
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30,277 |
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28,036 |
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Weighted average common shares outstanding, assuming dilution |
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30,277 |
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28,036 |
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(1) Includes $6 in amortization of deferred stock compensation for the three months ended April 30, 2003.
(2) Includes $67 and $625 in amortization of deferred stock compensation for the three months ended April 30, 2003 and April 30, 2002, respectively.
(3) Includes $35 and $613 in amortization of deferred stock compensation for the three months ended April 30, 2003 and April 30, 2002, respectively.
See accompanying notes to consolidated condensed financial statements.
3
NEOMAGIC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
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(In thousands) |
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April 30, |
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January 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
15,512 |
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$ |
37,428 |
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Short-term investments |
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44,542 |
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29,657 |
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Accounts receivable, net |
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122 |
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118 |
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Inventory |
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759 |
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535 |
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Employee note receivable |
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— |
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1,200 |
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Other current assets |
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1,304 |
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1,210 |
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Total current assets |
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62,239 |
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70,148 |
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Property, plant and equipment, net |
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5,193 |
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5,840 |
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Employee note receivable |
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100 |
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100 |
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Intangibles, net |
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4,196 |
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4,349 |
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Other assets |
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468 |
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511 |
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Total assets |
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$ |
72,196 |
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$ |
80,948 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
2,408 |
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$ |
2,864 |
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Compensation and related benefits |
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1,191 |
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1,393 |
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Income taxes payable |
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3,664 |
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3,633 |
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Current portion of capital lease obligations |
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1,602 |
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1,363 |
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Other accruals |
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1,016 |
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1,287 |
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Total current liabilities |
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9,881 |
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10,540 |
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Capital lease obligations |
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2,153 |
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