UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2003
Commission file number 000-25475
LATITUDE COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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94-3177392 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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2121 Tasman Drive, Santa Clara, CA 95054 |
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(Address of principal executive offices, including zip code) |
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(408) 988-7200 |
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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
As of July 31, 2003, there were 19,501,356 shares of the registrant’s Common Stock outstanding.
INDEX
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
LATITUDE COMMUNICATIONS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except per share amounts)
(Unaudited)
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June 30, |
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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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$ |
22,621 |
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$ |
13,119 |
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Short-term investments |
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— |
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12,066 |
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Accounts receivable, net |
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6,070 |
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7,035 |
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Inventory |
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1,349 |
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952 |
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Prepaids and other assets |
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1,817 |
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2,135 |
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Total current assets |
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31,857 |
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35,307 |
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Property and equipment, net |
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3,605 |
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3,915 |
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Goodwill |
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888 |
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— |
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Deposits and other long-term assets |
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1,024 |
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1,060 |
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Total assets |
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$ |
37,374 |
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$ |
40,282 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
707 |
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$ |
744 |
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Accrued liabilities |
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4,384 |
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5,274 |
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Deferred revenue |
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5,376 |
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5,054 |
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Total current liabilities |
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10,467 |
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11,072 |
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Other non-current liabilities |
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2,027 |
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2,605 |
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Total liabilities |
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12,494 |
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13,677 |
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Stockholders’ equity: |
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Preferred stock,
$0.001 par value |
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— |
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— |
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Common stock, $0.001 par value Authorized: 75,000 shares at June 30, 2003 and December 31, 2002 Issued and outstanding: 19,457 shares at June 30, 2003 and 19,390 shares at December 31, 2002 |
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19 |
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19 |
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Additional paid-in capital |
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57,850 |
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57,757 |
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Accumulated other comprehensive income (loss) |
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(58 |
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49 |
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Accumulated deficit |
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(32,931 |
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(31,220 |
) |
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Total stockholders’ equity |
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24,880 |
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26,605 |
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Total liabilities and stockholders’ equity |
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$ |
37,374 |
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$ |
40,282 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
LATITUDE COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share amounts)
(Unaudited)
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Three Months
Ended |
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Six Months
Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenue: |
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Product |
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$ |
1,953 |
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$ |
3,498 |
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$ |
3,926 |
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$ |
6,924 |
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Service |
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6,350 |
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6,517 |
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13,812 |
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12,563 |
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Total revenue |
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8,303 |
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10,015 |
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17,738 |
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19,487 |
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Cost of revenue: |
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Product |
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826 |
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1,356 |
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1,510 |
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2,408 |
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Service (includes non-cash stock compensation of $0, $0, $0 and $1, respectively) |
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3,438 |
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3,335 |
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6,822 |
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6,763 |
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Total cost of revenue |
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4,264 |
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4,691 |
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8,332 |
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9,171 |
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Gross profit |
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4,039 |
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5,324 |
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9,406 |
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10,316 |
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Operating expenses: |
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Research and development (includes non-cash stock compensation of $0, $10, $0 and $22, respectively) |
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1,388 |
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1,510 |
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2,520 |
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2,930 |
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Marketing and sales (includes non-cash stock compensation of $0, $8, $0 and $18, respectively) |
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3,317 |
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4,800 |
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6,502 |
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9,710 |
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General and administrative (includes non-cash stock compensation of $0, $39, $0 and $85, respectively) |
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1,101 |
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1,150 |
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2,249 |
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2,354 |
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Purchased in-process technology |
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70 |
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— |
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70 |
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— |
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Total operating expenses |
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5,876 |
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7,460 |
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11,341 |
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14,994 |
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