UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

Form 10-Q

 

(Mark One)

 

 

Commission file number 000-22009

 

NEOMAGIC CORPORATION

(Exact name of Registrant as specified in its charter)

 

 

(408) 988-7020

Registrant’s telephone number, including area code

 

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 July 31, 2003 was 30,611,371

 

 

INDEX

 

PART I.   CONSOLIDATED CONDENSED FINANCIAL INFORMATION
Item 1.	Unaudited Consolidated Condensed Financial Statements:
	Consolidated Condensed Statements of Operations Three and Six months ended July 31, 2003 and 2002
	Consolidated Condensed Balance Sheets July 31, 2003 and January 31, 2003
	Consolidated Condensed Statements of Cash Flows Six months ended July 31, 2003 and 2002
	Notes to Unaudited Consolidated Condensed Financial Statements
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.	Quantitative and Qualitative Disclosures about Market Risk
Item 4.	Controls and Procedures
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings
Item 2.	Changes in Securities
Item 3.	Defaults Upon Senior Securities
Item 4.	Submission of Matters to a Vote of Security Holders
Item 5.	Other Information
Item 6.	Exhibits and Reports on Form 8-K
Signatures

 

2

 

Part I.  Financial Information

Item 1.  Financial Statements

 

NEOMAGIC CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended						Six Months Ended
		July 31, 2003			July 31, 2002			July 31, 2003			July 31, 2002
Net sales		$	222		$	494		$	846		$	856
Cost of sales (1)		419			720			1,007			1,305
Gross loss		(197		)	(226		)	(161		)	(449		)
Operating expenses:
Research and development (2)		4,490			5,495			9,509			12,469
Sales, general and administrative (3)		1,767			2,341			3,544			5,709
Special charges		—			2,200			—			3,600
Total operating expenses		6,257			10,036			13,053			21,778
Loss from operations		(6,454		)	(10,262		)	(13,214		)	(22,227		)
Other income (expense), net:
Income, net of expenses, from the sale of DVD assets		—			—			—			1,580
Interest income and other income		168			672			379			1,280
Interest expense		(73		)	—			(160		)	—
Loss before income taxes		(6,359		)	(9,590		)	(12,995		)	(19,367		)
Income tax expense (benefit)		6			(339		)	6			(6,339		)
Net loss		$	(6,365	)	$	(9,251	)	$	(13,001	)	$	(13,028	)
Basic and diluted net loss per share		$	(0.21	)	$	(0.33	)	$	(0.43	)	$	(0.46	)
Weighted average common shares outstanding for basic and diluted		30,457			28,167			30,367			28,102

 

(1)               Includes $9 and $0 in amortization of deferred stock compensation for the three months ended July 31, 2003 and 2002, respectively, and $15 and $0 for the six months ended July 31, 2003 and 2002, respectively.

 

(2)               Includes $90 and $137 in amortization of deferred stock compensation for the three months ended July 31, 2003 and 2002, respectively, and $157 and $762 for the six months ended July 31, 2003 and 2002, respectively.

 

(3)               Includes $52 and $150 in amortization of deferred stock compensation for the three months ended July 31, 2003 and 2002, respectively, and $87 and $763 for the six months ended July 31, 2003 and 2002, respectively.

 

See accompanying notes to consolidated condensed financial statements.

 

3

 

NEOMAGIC CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

 

		July 31, 2003			January 31, 2003 (1)
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	12,599		$	37,428
Short-term investments		38,680			29,657
Accounts receivable, net		164			118
Inventory		665			535
Employee note receivable		—			1,200
Other current assets		1,064			1,210
Total current assets		53,172			70,148
Property, plant and equipment, net		4,669			5,840
Long-term investments		2,168			—