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 QUARTERLY PERIOD ENDED JUNE 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number: 000-29391
VIA NET.WORKS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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84-1412512 |
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(State or other jurisdiction) |
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(I.R.S. Employer Identification No.) |
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H.
Walaardt Sacrestraat 401-403 |
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(Address of principal executive offices) |
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Registrant’s telephone number, including area code: +31 203 483800 |
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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 report) 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 August 1, 2003, there were outstanding 55,965,577 shares of the registrant’s common stock and 5,050,000 shares of the registrant’s non-voting common stock.
VIA NET.WORKS, INC.
TABLE OF CONTENTS
1
VIA NET.WORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share data)
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December 31, 2002 |
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June 30, 2003 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
97,813 |
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$ |
82,819 |
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Restricted cash |
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895 |
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940 |
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Trade and other accounts receivable, net of allowance of $4,529 and $2,509 respectively |
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13,037 |
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12,754 |
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Assets of operation held for sale (Note 2) |
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— |
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867 |
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Assets of business transferred under contractual arrangement (Note 3) |
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— |
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424 |
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Other current assets |
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3,900 |
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5,668 |
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Total current assets |
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115,645 |
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103,472 |
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Property and equipment, net |
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13,696 |
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11,900 |
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Goodwill, net |
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9,189 |
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9,608 |
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Other non-current assets |
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762 |
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724 |
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Deferred tax asset |
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3,387 |
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3,387 |
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Assets of business transferred under contractual arrangement (Note 3) |
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3,142 |
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2,670 |
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Total assets |
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$ |
145,821 |
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$ |
131,761 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
7,897 |
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$ |
12,133 |
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VAT and other taxes payable |
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922 |
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160 |
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Short-term notes, current portion of long-term debt and capital lease obligations |
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63 |
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11 |
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Deferred revenue |
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13,516 |
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13,199 |
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Accrued expenses |
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9,922 |
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8,635 |
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Deferred tax liability |
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3,387 |
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3,387 |
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Liabilities of operation held for sale (Note 2) |
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— |
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1,681 |
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Liabilities of business transferred under contractual arrangement (Note 3) |
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— |
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454 |
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Other current liabilities |
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2,092 |
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1,830 |
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Total current liabilities |
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37,799 |
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41,490 |
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Long-term debt and capital lease obligations, less current portion |
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46 |
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20 |
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Liabilities of business transferred under contractual arrangement (Note 3) |
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3,396 |
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2,890 |
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Total liabilities |
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41,241 |
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44,400 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $.001 par value; 10,000,000 shares authorized; no shares issued and outstanding |
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— |
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— |
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Common stock, $.001 par value; 132,500,000 shares authorized; 60,844,900 and 61,015,577 shares issued and outstanding; respectively |
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61 |
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61 |
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Additional paid-in capital |
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555,574 |
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555,706 |
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Treasury stock, 697,196 and 1,520,789 shares; respectively |
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(733 |
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(1,521 |
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Accumulated deficit |
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(427,574 |
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(438,762 |
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Accumulated other comprehensive loss |
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(22,463 |
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(27,843 |
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Accumulated other comprehensive loss of businesses transferred under contractual arrangements |
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(285 |
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(280 |
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Total stockholders’ equity |
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104,580 |
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87,361 |
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Total liabilities and stockholders’ equity |
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$ |
145,821 |
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$ |
131,761 |
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The accompanying notes are an integral part of these consolidated financial statements.
2
VIA NET.WORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
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For the three months ended June 30, |
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For the six months ended June 30, |
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2002 |
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2003 |
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2002 |
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2003 |
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Revenue |
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19,036 |
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16,612 |
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37,030 |
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34,378 |
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Operating costs and expenses: |
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Internet services |
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10,572 |
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7,829 |
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21,592 |
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16,349 |
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Selling, general and administrative |
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17,836 |
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15,713 |
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38,045 |
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30,410 |
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Restructuring and impairment charges |
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— |
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1,415 |
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2,282 |
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Depreciation and amortization |
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3,034 |
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1,799 |
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5,814 |
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3,848 |
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Total operating costs and expenses |
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31,442 |
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26,756 |
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65,451 |
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52,889 |
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Operating loss from continuing operations |
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