Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15d OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 0-21705
SANCHEZ
COMPUTER ASSOCIATES, INC.
(Exact Name of
Registrant as Specified in Its Charter)
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Pennsylvania |
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23-2161560 |
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40
Valley Stream Parkway, Malvern PA |
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19355 |
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www.sanchez.com |
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Registrant’s Telephone Number, Including Area Code: (610) 296-8877
N/A
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
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 October 31, 2003, there were 26,921,551 outstanding shares of the issuer’s Common Stock, no par value.
SANCHEZ
COMPUTER ASSOCIATES, INC.
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2003
2
Sanchez Computer Associates, Inc.
Consolidated Balance Sheets
(in thousands, except per share amounts)
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September 30, |
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December 31, |
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2003 |
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2002 |
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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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$ |
27,994 |
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$ |
32,717 |
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Accounts receivables, less allowances ($325 and $979) |
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14,233 |
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12,993 |
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Contracts in process |
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3,742 |
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4,851 |
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Income tax refund receivable |
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2,380 |
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1,619 |
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Deferred income taxes |
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2,661 |
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2,661 |
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Prepaid and other current assets |
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2,617 |
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2,812 |
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Deferred expenses |
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10,723 |
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8,343 |
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Total current assets |
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64,350 |
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65,996 |
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Property and equipment |
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Equipment |
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18,544 |
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16,532 |
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Furniture and fixtures |
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2,663 |
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2,674 |
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Leasehold improvements |
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3,169 |
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3,148 |
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24,376 |
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22,354 |
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Accumulated depreciation and amortization |
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(19,514 |
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(16,826 |
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Net property and equipment |
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4,862 |
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5,528 |
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Goodwill |
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22,142 |
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23,896 |
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Deferred expenses |
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5,183 |
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11,496 |
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Amortizable intangible assets, net |
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3,494 |
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8,454 |
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Deferred income taxes |
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2,895 |
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2,895 |
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Other non-current assets |
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2,536 |
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2,832 |
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Total assets |
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$ |
105,462 |
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$ |
121,097 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
4,726 |
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$ |
3,771 |
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Accrued expenses |
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7,007 |
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9,617 |
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Deferred revenue |
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24,867 |
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22,804 |
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Total current liabilities |
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36,600 |
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36,192 |
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Deferred revenue |
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6,990 |
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18,150 |
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Minority interest |
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190 |
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209 |
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Total liabilities |
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43,780 |
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54,551 |
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Shareholders’ equity |
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Common stock stated value of $.01 per share, 75,000 shares authorized, 26,918 and 26,689 shares issued and outstanding |
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269 |
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267 |
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Additional paid-in capital |
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49,371 |
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48,794 |
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Retained earnings |
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9,094 |
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18,575 |
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Accumulated comprehensive income (loss) |
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2,948 |
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(1,090 |
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Total shareholders’ equity |
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61,682 |
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66,546 |
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Total liabilities and shareholders’ equity |
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$ |
105,462 |
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$ |
121,097 |
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See notes to consolidated financial statements
3
Sanchez Computer Associates, Inc.
Consolidated Statements of
Operations
(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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Revenues |
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Products |
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$ |
7,112 |
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$ |
4,132 |
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$ |
19,073 |
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$ |
10,813 |
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Services |
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7,264 |
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10,232 |
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20,560 |
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25,102 |
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Processing |
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4,557 |
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4,743 |
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13,837 |
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13,835 |
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Software maintenance and other |
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5,015 |
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4,546 |
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15,295 |
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12,689 |
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Customer reimbursements |
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1,211 |
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1,562 |
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3,439 |
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4,434 |
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Total revenues |
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25,159 |
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25,215 |
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72,204 |
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66,873 |
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Operating expenses |
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Product development |
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5,666 |
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4,483 |
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16,120 |
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11,377 |
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Product support |
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