UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

 

Washington, DC  20549

 

Form 10-Q

 

ý        Quarterly Report pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

 

For the quarterly period ended March 31, 2004

 

o        Transition Report Pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

 

For the transition period from           to          

 

Commission File Number   0-26138

 

Dendrite International, Inc.

(Exact name of registrant as specified in its charter)

 

 

1200 Mount Kemble Avenue

Morristown, NJ  07960

(Address, including zip code, of

principal executive offices)

 

(973) 425-1200

(Registrant’s telephone number, including area code)

 

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, and (2) has been subject to such filing requirements for the past 90 days. ý

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act): ý

 

As of May 3, 2004, 41,489,754 shares of Dendrite International, Inc. no par value common stock were outstanding.

 

 

DENDRITE INTERNATIONAL, INC.

INDEX TO QUARTELY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2004

 

PART I.	FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Consolidated Statements of Operations (unaudited)
	Three months ended March 31, 2004 and 2003
	Consolidated Balance Sheets
	March 31, 2004 (unaudited) and December 31, 2003
	Consolidated Statements of Cash Flows (unaudited)
	Three months ended March 31, 2004 and 2003
	Notes to Unaudited Consolidated Financial Statements
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
ITEM 4.	Controls and Procedures
PART II.	OTHER INFORMATION
ITEM 6.	Exhibits and Reports on Form 8-K
Signatures

 

2

 

PART I.                             FINANCIAL INFORMATION

 

ITEM 1.                             Financial Statements

 

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

 

		THREE MONTHS ENDED MARCH 31,
		2004			2003
Revenues:
License fees		$	3,346		$	2,562
Services		91,718			57,148
		$	95,064		$	59,710
Cost of revenues:
Cost of license fees		989			1,079
Cost of services		49,036			28,741
		50,025			29,820
Gross margin		45,039			29,890
Operating expense (income):
Selling, general and administrative		32,966			20,239
Research and development		3,022			2,698
Other operating (income)		(339		)	—
		35,649			22,937
Operating income		9,390			6,953
Interest income, net		7			243
Other income		43			9
Income before income tax expense		9,440			7,205
Income tax expense		3,776			2,882
Net income		$	5,664		$	4,323
Net income per share:
Basic		$	0.14		$	0.11
Diluted		$	0.13		$	0.11

 

The accompanying notes are an integral part of these statements.

 

3

 

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE DATA)

 

		March 31, 2004			December 31, 2003
		(Unaudited)
Assets
Current Assets:
Cash and cash equivalents		$	41,396		$	30,405
Accounts receivable, net		62,239			71,383
Prepaid expenses and other current assets		8,555			8,483
Deferred taxes		8,844			8,844
Facility held for sale		6,900			6,900
Total current assets		127,934			126,015
Property and equipment, net of accumulated amortization of $47,063 and $43,946		28,019			28,140
Other assets		2,120			2,004
Long-term receivable		—			3,157
Goodwill		76,666			70,403
Intangible assets, net		19,672			18,574
Purchased capitalized software, net		1,513			1,666
Capitalized software development costs, net		6,240			6,126
Deferred taxes		6,372			6,372
		$	268,536		$	262,457
Liabilities and Stockholders’ Equity
Current Liabilities:
Current installments of long-term debt		$	834		$	—
Accounts payable		7,983			4,990
Income taxes payable		4,694			6,194
Capital lease obligations		722			1,033