UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
Form 10-Q
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(Mark One) |
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ý QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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For the Quarterly Period Ended December 31, 2003 |
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OR |
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o TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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For the transition period from to |
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Commission File Number: 0-25457 |
NEON Systems, Inc. |
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(Exact name of Registrant as specified in its charter) |
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Delaware |
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76-0345839 |
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(State or other jurisdiction of |
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(I.R.S.Employer Identification No.) |
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14100 Southwest Freeway, Suite 500, |
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77478 |
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(Address of principal executive offices) |
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(zip code) |
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(281) 491-4200 |
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(Registrant’s telephone number, including area code) |
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Securities registered pursuant to Section 12(b) of the Act: |
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Title of Each Class |
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Name of each exchange |
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None |
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None |
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Securities registered pursuant to Section 12(g) of the Act: |
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Common Stock, par value $0.01 per share |
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(Title of Class) |
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Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes oNo ý
The number of shares of the registrant’s common stock outstanding as of January 31, 2004, was 8,902,097.
NEON SYSTEMS, INC.
FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2003
INDEX
2
PART I - FINANCIAL INFORMATION
NEON SYSTEMS, INC. AND SUBSIDIARIES
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
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DECEMBER 31, 2003 |
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MARCH 31, 2003 |
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(UNAUDITED) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
20,213 |
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$ |
19,791 |
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Accounts receivable, net |
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3,305 |
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3,443 |
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Taxes receivable |
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— |
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1,311 |
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Other current assets |
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519 |
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655 |
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Total current assets |
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24,037 |
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25,200 |
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Property and equipment, net |
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518 |
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839 |
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Notes receivable, net (related party, Note 7) |
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7,760 |
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7,760 |
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Other assets |
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100 |
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515 |
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Total assets |
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$ |
32,415 |
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$ |
34,314 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
304 |
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$ |
424 |
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Accrued expenses |
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1,397 |
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2,116 |
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Deferred revenue |
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5,269 |
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6,086 |
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Total current liabilities |
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6,970 |
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8,626 |
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Accrued restructuring expenses – long term (Note 6) |
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1,030 |
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1,297 |
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Total liabilities |
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8,000 |
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9,923 |
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STOCKHOLDERS’ EQUITY: |
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Preferred stock, $.01 par value. Authorized 10,000,000 shares; no shares issued and outstanding |
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— |
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— |
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Common stock, $.01 par value. Authorized 30,000,000 shares; 8,885,097 and 8,764,427 shares issued and outstanding at December 31, 2003 and March 31, 2003, respectively |
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98 |
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97 |
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Additional paid-in capital |
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51,677 |
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51,585 |
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Treasury stock, 913,400 shares at cost |
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(2,649 |
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(2,649 |
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Accumulative other comprehensive loss |
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(426 |
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(473 |
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Accumulated deficit |
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(24,285 |
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(24,169 |
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Total stockholders’ equity |
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24,415 |
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24,391 |
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Commitments and contingencies (Note 5) |
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Total liabilities and stockholders’ equity |
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$ |
32,415 |
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$ |
34,314 |
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SEE ACCOMPANYING CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
3
NEON SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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THREE MONTHS ENDED DECEMBER 31, |
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NINE MONTHS ENDED DECEMBER 31, |
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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 |
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$ |
1,157 |
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$ |
2,233 |
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$ |
3,855 |
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$ |
5,582 |
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Maintenance |
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2,489 |
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2,363 |
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7,519 |
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7,113 |
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Total revenues |
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3,646 |
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4,596 |
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11,374 |
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12,695 |
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Cost of revenues: |
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Cost of licenses |
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1 |
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5 |
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84 |
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270 |
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Cost of maintenance |
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342 |
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475 |
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1,077 |
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1,521 |
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Total cost of revenues |
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343 |
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480 |
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< | |||||||