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 |
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For the transition period from to |
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Commission file number 0-27012 |
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Insignia Solutions plc
(Exact name of Registrant as specified in its charter)
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England and Wales |
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Not applicable |
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(State or other
jurisdiction |
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(I.R.S. employer |
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41300 Christy Street |
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The Mercury Centre, Wycombe Lane |
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(Address and telephone number of principal executive offices and principal places of business) |
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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 defined in Rule 12b-2 of the Act): Yes o No ý
As of November 3, 2003 there were 24,092,601 Ordinary shares of £0.20 each nominal value, outstanding.
INSIGNIA SOLUTIONS PLC
2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INSIGNIA SOLUTIONS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, unaudited)
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September
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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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$ |
1,471 |
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$ |
726 |
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Restricted cash |
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20 |
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250 |
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Accounts receivable, net of allowances of $24 and $50, respectively |
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35 |
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931 |
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Other receivable |
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1,900 |
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— |
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Tax receivable |
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274 |
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702 |
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Prepaid royalties |
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2,211 |
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1,000 |
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Prepaid expenses |
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319 |
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695 |
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Other current assets |
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393 |
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438 |
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Total current assets |
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6,623 |
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4,742 |
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Property and equipment, net |
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157 |
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230 |
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Prepaid royalties |
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— |
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1,381 |
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Other noncurrent assets |
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— |
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100 |
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$ |
6,780 |
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$ |
6,453 |
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LIABILITIES, |
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Current liabilities: |
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Accounts payable |
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$ |
641 |
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$ |
665 |
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Accrued liabilities |
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833 |
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950 |
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Accrued severance |
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97 |
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— |
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Note payable |
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1,000 |
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— |
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Deferred revenue |
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912 |
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534 |
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Income taxes payable |
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187 |
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191 |
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Total current liabilities |
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3,670 |
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2,340 |
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Commitments and contingencies (Note 6) |
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Mandatorily redeemable warrants |
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38 |
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1,440 |
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Shareholders’ equity: |
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Ordinary shares |
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7,726 |
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6,444 |
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Additional paid-in capital |
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61,600 |
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59,901 |
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Accumulated deficit |
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(65,793 |
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(63,211 |
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Other accumulated comprehensive loss |
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(461 |
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(461 |
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Total shareholders’ equity |
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3,072 |
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2,673 |
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$ |
6,780 |
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$ |
6,453 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts, unaudited)
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Three
months ended |
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Nine
months ended |
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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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License |
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$ |
201 |
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$ |
736 |
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$ |
393 |
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$ |
5,271 |
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Service |
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— |
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277 |
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187 |
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1,178 |
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Total net revenues |
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201 |
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1,013 |
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580 |
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6,449 |
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Cost of net revenues: |
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License |
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70 |
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124 |
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221 |
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1,852 |
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Service |
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— |
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100 |
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52 |
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549 |
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Total cost of net revenues |
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70 |
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224 |
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273 |
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2,401 |
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Gross profit |
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131 |
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789 |
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307 |
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4,048 |
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Operating expenses: |
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Sales and marketing |
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423 |
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1,262 |
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1,329 |
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4,475 |
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Research and development |
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670 |
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