UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549

 

FORM 10-Q

 

 

NAVIGATION TECHNOLOGIES CORPORATION

(Exact name of registrant as specified in its charter)

 

 

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, $0.001 par value, outstanding as of November 2, 2003 was 1,178,098,603.

 

 

Certain statements in this document contain or may contain information that is forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  In some cases, you can identify forward-looking statements by the terminology used - for example, words and phrases such as “may,” “should,” “expect,” “anticipate,” “plan,” “believe,” “estimate,” “predict” and other comparable terminology typically would be deemed forward-looking. Actual events or results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors, including, without limitation, the risks described in the section of Navigation Technologies' Registration Statement on Form 10, File No. 0-21323, as amended, captioned “Risk Factors” under Item 1 thereof.  Readers should carefully review this document in its entirety, including, but not limited to, the condensed consolidated financial statements and notes thereto.  Navigation Technologies undertakes no obligation to publicly release any revisions to such forward-looking statements to reflect events or circumstances after the date hereof.  You should rely only on the information contained in this document.  We have not authorized anyone to provide you with information that is different.  The information contained herein may only be accurate as of the date of this document.

 

“NAVTECH” is a trademark of Navigation Technologies Corporation.

 

1

 

PART I

FINANCIAL INFORMATION

 

Item 1.                                   Financial Statements

 

NAVIGATION TECHNOLOGIES CORPORATION
AND SUBSIDIARIES

 

Condensed Consolidated Balance Sheets

 

(In thousands, except per share amounts)

 

		December 31, 2002			September 28, 2003
					(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	9,427		2,102
Notes receivable from affiliate		10,000			50,341
Accounts receivable, net of allowance for doubtful accounts of $2,784 and $3,814 in 2002 and 2003, respectively		30,261			41,585
Prepaid expenses and other current assets		3,342			5,006
Total current assets		53,030			99,034
Property and equipment, net		7,848			7,822
Capitalized software development costs, net		18,951			21,858
Deposits and other assets		498			931
Total assets		$	80,327		129,645
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	5,392		6,893
Accrued payroll and related liabilities		16,138			16,328
Other accrued expenses		13,438			15,773
Deferred revenue		26,695			23,656
Total current liabilities		61,663			62,650
Fair value of derivative		—			7,961
Long-term deferred revenue		5,213			4,796
Long-term source material obligations		1,324			1,004
Other long-term liabilities		890			1,521
Total liabilities		69,090			77,932
Stockholders' equity:
Common stock, $0.001 par value; 1,800,000 shares authorized; 1,175,587 and 1,178,053 shares issued and outstanding in 2002 and 2003, respectively		1,176			1,178
Additional paid-in capital		764,275			764,527
Note receivable for common stock		(219		)	(219	)
Accumulated other comprehensive income (loss)		3,600			(13,121	)
Accumulated deficit		(757,595		)	(700,652	)
Total stockholders' equity		11,237			51,713
Total liabilities and stockholders' equity		$	80,327		129,645

 

See accompanying notes to condensed consolidated financial statements.

 

2

 

NAVIGATION TECHNOLOGIES CORPORATION
AND SUBSIDIARIES

 

Condensed Consolidated Statements of Operations

 

(In thousands, except per share amounts)

 

		Quarter Ended					Nine Months Ended
		September 29, 2002			September 28, 2003		September 29, 2002			September 28, 2003
		(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)
Net revenue		$	44,822		71,320		$	114,200		190,889
Operating costs and expenses:
Database licensing and production costs		23,585			31,260		64,578			83,671
Selling, general, and administrative expenses		15,149			20,577		43,288			55,404
Total operating costs and expenses		38,734			51,837		107,866			139,075
Operating income		6,088			19,483		6,334			51,814
Other income (expense):
Interest income		38			107		124			225
Interest expense		(286		)	(8	)	(832		)	(18	)
Foreign currency gain (loss)		(228		)	204		(146		)	6,587
Income before income taxes		5,612