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 November 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 |
Commission File Number 000-26565
LIBERATE TECHNOLOGIES
(Exact name of registrant as specified in its charter)
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Delaware |
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94-3245315 |
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(State or Other Jurisdiction of Incorporation) |
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(I.R.S. Employer Identification No.) |
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2 Circle Star Way, San Carlos, California |
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94070-6200 |
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(Address of principal executive office) |
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(Zip Code) |
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(650) 701-4000 |
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(Registrant’s telephone number, including area code) |
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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 Exchange Act). Yes ý No o
104,999,213 shares of the Registrant’s common stock were outstanding as of December 31, 2003.
LIBERATE TECHNOLOGIES
FORM 10-Q
For The Quarterly Period Ended November 30, 2003
TABLE OF CONTENTS
Part I. Financial Information
Item 1. Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
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November 30,
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May 31,
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
186,347 |
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$ |
261,689 |
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Short-term investments |
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44,987 |
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— |
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Accounts receivable, net |
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4,089 |
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3,310 |
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Prepaid expenses and other current assets |
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2,464 |
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3,069 |
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Assets of discontinued operations |
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— |
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6,936 |
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Total current assets |
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237,887 |
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275,004 |
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Property and equipment, net |
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4,779 |
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6,113 |
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Intangible assets, net |
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— |
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22 |
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Deferred costs related to warrants |
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5,374 |
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14,449 |
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Restricted cash |
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9,776 |
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9,249 |
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Other assets |
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123 |
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131 |
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Total assets |
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$ |
257,939 |
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$ |
304,968 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,362 |
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$ |
1,888 |
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Accrued liabilities |
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20,596 |
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39,436 |
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Accrued payroll and related expenses |
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2,084 |
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1,568 |
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Deferred revenues |
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10,688 |
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10,619 |
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Liabilities of discontinued operations |
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— |
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5,375 |
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Total current liabilities |
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34,730 |
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58,886 |
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Long-term excess facilities charges |
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20,753 |
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22,330 |
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Other long-term liabilities |
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2,329 |
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2,242 |
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Total liabilities |
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57,812 |
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83,458 |
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Commitments and contingencies (Note 7) |
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Stockholders’ equity: |
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Common stock |
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1,050 |
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1,040 |
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Contributed and paid-in-capital |
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1,492,282 |
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1,490,125 |
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Deferred stock-based compensation |
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— |
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(194 |
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Accumulated other comprehensive income(loss) |
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(812 |
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1,804 |
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Accumulated deficit |
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(1,292,393 |
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(1,271,265 |
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Total stockholders’ equity |
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200,127 |
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221,510 |
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Total liabilities and stockholders’ equity |
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$ |
257,939 |
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$ |
304,968 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
1
LIBERATE TECHNOLOGIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Unaudited
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Three
months ended |
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Six 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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License and royalty |
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$ |
(697 |
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$ |
2,549 |
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$ |
(1,621 |
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$ |
3,556 |
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Service |
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1,885 |
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3,448 |
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4,354 |
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11,442 |
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Total revenues |
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1,188 |
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5,997 |
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2,733 |
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14,998 |
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Cost of revenues: |
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License and royalty |
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208 |
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412 |
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359 |
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844 |
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Service |
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1,368 |
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6,164 |
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2,811 |
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17,224 |
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Total cost of revenues |
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1,576 |
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6,576 |
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3,170 |
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18,068 |
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Gross margin (loss) |
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(388 |
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(579 |
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(437 |
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(3,070 |
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Operating expenses: |
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Research and development |
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3,647 |
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8,258 |
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7,314 |
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16,380 |
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Sales and marketing |
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