UNITED STATES
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 |
For the quarterly period ended March 31, 2004
Commission File Number: 000-25291
TUT SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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94-2958543 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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6000 SW Meadows Rd, Suite 200 |
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97035 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (503) 594-1400 |
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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
As of April 30, 2004, 20,375,838 shares of the Registrant’s common stock, par value $0.001 per share, were issued and outstanding.
TUT SYSTEMS, INC.
FORM 10-Q
INDEX
2
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
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December
31, |
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March
31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
14,370 |
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$ |
12,270 |
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Accounts receivable, net of allowance for doubtful accounts of $47 and $45 in 2003 and 2004, respectively |
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7,062 |
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6,083 |
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Insurance settlement receivable |
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10,725 |
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10,000 |
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Inventories, net |
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4,181 |
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3,972 |
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Prepaid expenses and other |
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1,026 |
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1,627 |
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Total current assets |
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37,364 |
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33,952 |
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Property and equipment, net |
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1,722 |
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2,078 |
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Intangibles and other assets |
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3,685 |
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3,103 |
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Total assets |
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$ |
42,771 |
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$ |
39,133 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
3,055 |
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$ |
3,732 |
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Accrued liabilities |
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1,516 |
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2,097 |
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Legal settlement liability |
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10,725 |
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10,000 |
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Deferred revenue |
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253 |
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368 |
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Total current liabilities |
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15,549 |
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16,197 |
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Note payable |
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3,523 |
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3,603 |
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Other liabilities |
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44 |
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31 |
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Total liabilities |
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19,116 |
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19,831 |
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Commitments and contingencies (Note 6) |
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Stockholders’ equity: |
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Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued and outstanding in 2003 and 2004, respectively |
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— |
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— |
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Common stock, $0.001 par value, 100,000 shares authorized, 20,274 and 20,329 shares issued and outstanding in 2003 and 2004, respectively |
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20 |
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20 |
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Additional paid-in capital |
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305,777 |
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305,865 |
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Accumulated other comprehensive loss |
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(89 |
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(80 |
) |
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Accumulated deficit |
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(282,053 |
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(286,503 |
) |
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Total stockholders’ equity |
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23,655 |
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19,302 |
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Total liabilities and stockholders’ equity |
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$ |
42,771 |
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$ |
39,133 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
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Three Months Ended |
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2003 |
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2004 |
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Revenues: |
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Product |
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$ |
6,401 |
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$ |
6,159 |
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License and royalty |
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200 |
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18 |
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Total revenues |
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6,601 |
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6,177 |
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Cost of goods sold: |
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3,259 |
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5,129 |
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Gross profit |
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3,342 |
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1,048 |
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Operating expenses: |
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Sales and marketing |
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1,927 |
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1,905 |
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Research and development |
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2,086 |
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1,822 |
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General and administrative |
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1,202 |
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1,117 |
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Impairment of intangible assets |
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¾ |
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202 |
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Amortization of intangible assets |
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459 |
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396 |
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Total operating expenses |
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5,674 |
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5,442 |
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Loss from operations |
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(2,332 |
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(4,394 |
) |
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Interest and other income (expense), net |
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101 |
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(56 |
) |
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Net loss |
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$ |
(2,231 |
) |
$ |
(4,450 |
) |
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Net loss per share, basic and diluted (Note 3) |
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$ |
(0.11 |
) |
$ |
(0.22 |
) |
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Shares used in computing net loss per share, basic and diluted (Note 3) |
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19,801 |
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20,297 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
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Three Months Ended |
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2003 |
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2004 |
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Cash flows from operating activities: |
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Net loss |
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$ |
(2,231 |
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