UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2004
OR
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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 No.: 000-20698
BROOKTROUT, INC.
(Exact Name of Registrant as Specified in Its Charter)
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MASSACHUSETTS |
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04-2814792 |
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(State or Other Jurisdiction of Incorporation or |
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(I.R.S. Employer Identification No.) |
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250 FIRST AVENUE, NEEDHAM, MASSACHUSETTS 02494 |
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(Address of Principal Executive Offices) (Zip Code) |
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Registrant’s Telephone Number, Including Area Code: (781) 449-4100 |
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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, 13,065,082 shares of common stock, $.01 par value per share, were outstanding.
BROOKTROUT, INC.
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2004
TABLE OF CONTENTS
“BROOKTROUT” and the “NEW NETWORK” are trademarks or registered trademarks of Brooktrout, Inc.
2
Item 1. Condensed Consolidated Financial Statements
BROOKTROUT, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
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March 31, |
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December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
28,724 |
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$ |
28,081 |
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Marketable debt securities |
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29,723 |
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27,869 |
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Accounts receivable (less allowances for doubtful accounts and sales returns of $897 at March 31, 2004 and $843 at December 31, 2003) |
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9,874 |
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10,232 |
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Inventory |
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5,041 |
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4,465 |
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Income tax receivable |
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184 |
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433 |
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Deferred tax assets |
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3,661 |
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3,830 |
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Prepaid expenses and other current assets |
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1,979 |
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2,354 |
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Total current assets |
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79,186 |
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77,264 |
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Equipment and furniture, less accumulated depreciation |
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2,266 |
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2,245 |
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Deferred tax assets |
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9,413 |
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9,413 |
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Intangible assets, less accumulated amortization |
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5,606 |
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5,909 |
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Other assets, less accumulated amortization |
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2,177 |
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1,748 |
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Total assets |
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$ |
98,648 |
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$ |
96,579 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
4,826 |
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$ |
5,350 |
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Accrued expenses |
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4,797 |
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5,128 |
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Accrued compensation and commissions |
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2,398 |
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2,405 |
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Accrued warranty costs |
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1,161 |
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1,138 |
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Customer deposits |
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812 |
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758 |
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Total current liabilities |
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13,994 |
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14,779 |
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Deferred rent |
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141 |
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146 |
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Total liabilities |
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14,135 |
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14,925 |
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Commitments and contingencies (Note 7) |
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Stockholders’ equity: |
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Preferred stock, $1.00 par value; authorized 100,000 shares; issued and outstanding, none |
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— |
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— |
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Common stock, $0.01 par value; authorized 40,000,000 shares; issued 13,308,957 at March 31, 2004 and 12,937,019 at December 31, 2003 |
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133 |
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129 |
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Additional paid-in capital |
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70,946 |
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68,270 |
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Accumulated other comprehensive loss |
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(44 |
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(45 |
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Notes receivable — officers |
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(9,845 |
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(9,845 |
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Retained earnings |
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27,124 |
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26,942 |
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Treasury stock, 260,629 shares at March 31, 2004 and 260,386 shares at December 31, 2003, at cost |
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(3,801 |
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(3,797 |
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Total stockholders’ equity |
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84,513 |
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81,654 |
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Total liabilities and stockholders’ equity |
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$ |
98,648 |
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$ |
96,579 |
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See notes to unaudited condensed consolidated financial statements.
3
BROOKTROUT, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
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Three
Months Ended |
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2004 |
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2003 |
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Revenue |
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$ |
18,693 |
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$ |
15,534 |
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Costs and expenses: |
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Cost of product sold |
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5,968 |
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6,330 |
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Research and development |
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4,485 |
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4,586 |
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Selling, general and administrative |
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8,118 |
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7,269 |
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Total costs and expenses |
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18,571 |
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18,185 |
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Operating income (loss) |
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122 |
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(2,651 |
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Other income, net |
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182 |
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200 |
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Income (loss) before income taxes |
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304 |
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(2,451 |
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Income tax provision (benefit) |
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122 |
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(788 |
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Net income (loss) |
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$ |
182 |
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$ |
(1,663 |
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