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 February 29, 2004 |
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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 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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2655 Campus Drive, Suite 250, San Mateo, |
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94403 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(650) 645-4000 |
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(Registrant’s Telephone Number, Including Area Code) |
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2 Circle Star Way, San Carlos, California 94070
(Former Address)
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
105,479,192 shares of the Registrant’s common stock were outstanding as of March 31, 2004.
LIBERATE TECHNOLOGIES
FORM 10-Q
For The Quarterly Period Ended February 29, 2004
TABLE OF CONTENTS
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Condensed Consolidated Balance Sheets as of February 29, 2004 and May 31, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
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February 29, |
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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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$ |
222,299 |
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$ |
261,689 |
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Accounts receivable, net |
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3,835 |
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3,310 |
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Prepaid expenses and other current assets |
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2,273 |
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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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228,407 |
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275,004 |
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Property and equipment, net |
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4,270 |
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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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4,479 |
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14,449 |
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Restricted cash |
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10,876 |
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9,249 |
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Other assets |
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324 |
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131 |
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Total assets |
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$ |
248,356 |
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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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$ |
1,848 |
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$ |
1,888 |
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Accrued liabilities |
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19,522 |
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39,442 |
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Accrued payroll and related expenses |
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1,380 |
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1,562 |
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Deferred revenues |
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10,415 |
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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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33,165 |
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58,886 |
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Long-term excess facilities charges |
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19,631 |
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22,330 |
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Other long-term liabilities |
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2,373 |
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2,242 |
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Total liabilities |
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55,169 |
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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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1,055 |
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1,040 |
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Contributed and paid-in-capital |
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1,501,597 |
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1,490,125 |
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Deferred stock-based compensation |
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(7,589 |
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(194 |
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Accumulated other comprehensive income (loss) |
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(2,011 |
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1,804 |
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Accumulated deficit |
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(1,299,865 |
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(1,271,265 |
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Total stockholders’ equity |
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193,187 |
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221,510 |
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Total liabilities and stockholders’ equity |
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$ |
248,356 |
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$ |
304,968 |
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The accompanying notes are an integral part of these unaudited 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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Nine months ended |
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February 29, |
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February 28, |
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February 29, |
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February 28, |
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Revenues: |
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License and royalty |
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$ |
(54 |
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2,077 |
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(1,675 |
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5,633 |
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Service |
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1,756 |
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3,250 |
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6,110 |
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14,692 |
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Total revenues |
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1,702 |
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5,327 |
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4,435 |
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20,325 |
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Cost of revenues: |
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License and royalty |
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206 |
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257 |
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565 |
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1,101 |
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Service |
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1,549 |
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4,240 |
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4,360 |
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21,464 |
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Total cost of revenues |
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1,755 |
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4,497 |
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4,925 |
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22,565 |
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Gross margin (loss) |
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(53 |
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830 |
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(490 |
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(2,240 |
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Operating expenses: |
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Research and development |
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5,022 |
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5,485 |
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12,336 |
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21,865 |
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Sales and marketing |
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703 |
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4,258 |
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3,136 |
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16,087 |
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General and administrative |
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3,667 |
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5,858 |
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12,327 |
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14,905 |
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Amortization of deferred costs related to warrants |
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— |
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841 |
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1,831 |
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2,788 |
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Restructuring costs |
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86 |
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4,412 |
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