UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 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 described in Exchange Act Rule 12b-2). Yes o No ý
The number of shares outstanding of the Registrant’s common stock, par value $0.001, as of June 30, 2003 was 38,914,423.
INDEX TO FORM 10-Q FOR THE
QUARTERLY PERIOD ENDED JUNE 30, 2003
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Consolidated Balance Sheets as of December 31, 2002 and June 30, 2003 (unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Except as otherwise noted in this report, “SimpleTech,” the “Company,” “we,” “us” and “our” collectively refer to SimpleTech, Inc.
2
PART I. FINANCIAL INFORMATION
SimpleTech, Inc.
(in thousands, except share and per share amounts)
(unaudited)
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June 30, |
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December 31, |
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ASSETS: |
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Current Assets: |
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Cash and cash equivalents |
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$ |
34,036 |
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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 $763 at June 30, 2003 and $782 at December 31, 2002 |
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16,572 |
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19,019 |
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Inventory, net |
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15,462 |
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14,141 |
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Income taxes receivable |
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2,799 |
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3,860 |
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Deferred income taxes |
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— |
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28 |
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Other current assets |
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804 |
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59 |
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Total current assets |
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79,653 |
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81,079 |
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Furniture, fixtures and equipment, net |
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9,003 |
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10,169 |
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Intangible assets |
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378 |
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835 |
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Deferred income taxes |
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4,327 |
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2,378 |
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Total assets |
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$ |
93,361 |
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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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$ |
18,414 |
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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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3,091 |
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4,152 |
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Deferred income taxes |
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231 |
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— |
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Total current liabilities |
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21,736 |
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20,646 |
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Total liabilities |
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21,736 |
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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, $0.001 par value, 100,000,000 shares authorized, 38,914,423 shares issued and outstanding as of June 30, 2003 and 38,725,800 shares issued and outstanding as of December 31, 2002 |
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39 |
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39 |
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Additional paid-in capital |
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67,051 |
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66,716 |
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Retained earnings |
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4,535 |
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7,060 |
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Total shareholders’ equity |
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71,625 |
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73,815 |
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Total liabilities and shareholders’ equity |
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$ |
93,361 |
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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 per share amounts)
(unaudited)
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Three
Months |
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Six Months |
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2003 |
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2002 |
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2003 |
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2002 |
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Net revenues |
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$ |
44,745 |
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$ |
43,301 |
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$ |
85,663 |
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$ |
94,253 |
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Cost of revenues |
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37,021 |
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37,167 |
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71,008 |
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76,643 |
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Gross profit |
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7,724 |
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6,134 |
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14,655 |
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17,610 |
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Sales and marketing |
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4,958 |
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4,230 |
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10,330 |
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9,067 |
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General and administrative |
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2,361 |
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2,673 |
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4,875 |
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5,704 |
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Research and development |
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2,055 |
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2,007 |
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4,172 |
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3,945 |
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In-process research and development |
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— |
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— |
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— |
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1,360 |
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Total operating expenses |
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9,374 |
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8,910 |
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19,377 |
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20,076 |
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Loss from operations |
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(1,650 |
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(2,776 |
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(4,722 |
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(2,466 |
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Interest and other, net |
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125 |
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187 |
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276 |
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