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 SEPTEMBER 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 November 1, 2003, there were outstanding 56,383,173 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
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Condensed Consolidated Balance Sheets as of December 31, 2002 and September 30, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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1
VIA NET.WORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share data)
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December
31, |
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September
30, |
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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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$ |
73,062 |
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Restricted cash |
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895 |
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955 |
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Trade and other accounts receivable, net of allowance of $4,529 and $1,708 respectively |
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13,037 |
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10,382 |
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Other current assets |
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3,900 |
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4,624 |
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Total current assets |
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115,645 |
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89,023 |
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Property and equipment, net |
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13,696 |
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11,752 |
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Goodwill, net |
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9,189 |
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9,698 |
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Intangible assets |
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— |
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662 |
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Other non-current assets |
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762 |
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794 |
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Deferred tax asset |
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3,387 |
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3,387 |
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Assets of businesses transferred under contractual arrangement (Note 2) |
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3,142 |
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— |
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Total assets |
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$ |
145,821 |
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$ |
115,316 |
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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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$ |
8,353 |
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VAT and other taxes payable |
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922 |
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927 |
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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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194 |
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Deferred revenue |
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13,516 |
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12,769 |
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Accrued expenses |
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9,922 |
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8,234 |
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Deferred tax liability |
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3,387 |
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3,387 |
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Other current liabilities |
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2,092 |
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1,632 |
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Total current liabilities |
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37,799 |
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35,496 |
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Long-term debt and capital lease obligations, less current portion |
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46 |
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388 |
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Liabilities of businesses transferred under contractual arrangement (Note 2) |
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3,396 |
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— |
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Total liabilities |
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41,241 |
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35,884 |
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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, $.001 par value; 132,500,000 shares authorized; 60,844,900 and 61,414,475 shares issued and outstanding; respectively |
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61 |
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61 |
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Additional paid-in capital |
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555,574 |
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556,046 |
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Treasury stock, 697,196 and 1,520,789 shares; respectively |
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(733 |
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(1,521 |
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Accumulated deficit |
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(427,574 |
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(446,313 |
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Accumulated other comprehensive loss |
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(22,463 |
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(28,841 |
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Accumulated other comprehensive loss of businesses transferred under contractual arrangements (Note 2) |
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(285 |
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— |
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Total stockholders’ equity |
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104,580 |
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79,432 |
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Total liabilities and stockholders’ equity |
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$ |
145,821 |
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$ |
115,316 |
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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 |
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For the
nine months ended |
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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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18,142 |
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16,586 |
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48,853 |
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50,964 |
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Operating costs and expenses: |
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Internet services |
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8,752 |
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7,992 |
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26,324 |
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24,342 |
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Selling, general and administrative |
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13,376 |
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14,322 |
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46,656 |
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44,732 |
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Restructuring and impairment charges |
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1,027 |
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1,458 |
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1,027 |
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3,740 |
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Depreciation and amortization |
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2,725 |
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2,172 |
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8,524 |
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6,019 |
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Total operating costs and expenses |
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25,880 |
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25,944 |
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82,531 |
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78,833 |
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Operating loss from continuing operations |
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(7,738 |
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(9,358 |
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(33,678 |
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(27,869 |
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Interest income |
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632 |
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225 |
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2,663 |
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945 |
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Interest expense |
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(7 |
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(2 |
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(59 |
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(12 |
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Other expense, net |
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(2,002 |
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(124 |
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(2,331 |
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(267 |
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Foreign currency (losses)/gains, net |
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(1,089 |
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1,545 |
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8,449 |
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8,805 |
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Loss from continuing operations before income taxes |
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(10,204 |
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(7,714 |
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(24,956 |
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(18,398 |
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Income tax |
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— |
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— |
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— |
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— |
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Net loss from continuing operations |
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