UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
o QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
or
ý TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 0-27118
PHARMACOPEIA, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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33-0557266 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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9685 Scranton Road, San Diego, CA |
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92121 |
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(Address of principal executive offices) |
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(Zip code) |
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(858) 799-5000 |
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(Registrant’s telephone number, including area code) |
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Former fiscal year end: December 31, 2003 |
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Former address: PO Box 5350, Princeton, New Jersey 08543-5350 |
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(Former name, former address and former fiscal year, if changed since last report) |
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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 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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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Class |
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Outstanding at April 30, 2004 |
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Common Stock, $.0001 par value |
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24,362,943 shares |
PHARMACOPEIA, INC.
Form 10-Q
Table of Contents
2
PART I - FINANCIAL INFORMATION
Item 1. Unaudited Consolidated Financial Statements
Pharmacopeia, Inc.
(Dollars in thousands)
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March 31, |
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December
31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
40,072 |
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$ |
27,509 |
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Marketable securities |
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101,557 |
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106,546 |
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Trade receivables, net of allowance for doubtful accounts of $191 and $505, respectively |
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11,358 |
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42,082 |
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Prepaid expenses and other current assets |
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5,370 |
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5,365 |
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Total current assets |
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158,357 |
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181,502 |
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Property and equipment, net |
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19,327 |
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15,398 |
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Goodwill, net of accumulated amortization of $13,201 |
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34,072 |
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34,072 |
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Software development costs, net of accumulated amortization of $27,443 and $26,555, respectively |
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7,748 |
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7,634 |
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Other assets |
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974 |
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1,061 |
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Total assets |
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$ |
220,478 |
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$ |
239,667 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
5,483 |
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$ |
4,659 |
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Accrued liabilities |
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20,954 |
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19,762 |
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Deferred revenue, current portion |
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25,330 |
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27,255 |
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Leases payable, current portion |
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38 |
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8 |
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Total current liabilities |
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51,805 |
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51,684 |
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Restructuring reserve, long-term |
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2,655 |
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— |
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Deferred revenue, long-term |
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5,767 |
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5,249 |
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Stockholders’ equity: |
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Preferred stock, $.0001 par value, 2,000 shares authorized, none issued and outstanding |
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— |
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— |
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Common stock, $.0001 par value, 40,000 shares authorized, 24,949 and 24,568 shares issued and outstanding, respectively |
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2 |
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2 |
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Additional paid-in capital |
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291,977 |
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287,592 |
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Unearned compensation |
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(862 |
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(536 |
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Treasury stock |
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(8,340 |
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(8,340 |
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Accumulated deficit |
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(124,088 |
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(97,318 |
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Accumulated comprehensive income |
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1,562 |
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1,334 |
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Total stockholders’ equity |
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160,251 |
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182,734 |
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Total liabilities and stockholders’ equity |
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$ |
220,478 |
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$ |
239,667 |
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See accompanying notes to these unaudited financial statements.
3
Pharmacopeia, Inc.
Consolidated Statements of
Operations
(Dollars in thousands, except per share data)
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For the
Three Months |
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2004 |
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2003 |
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Revenues: |
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Software license, service and other |
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$ |
11,135 |
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$ |
17,219 |
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Drug discovery |
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5,369 |
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7,521 |
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Total revenues |
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16,504 |
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24,740 |
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Cost of revenues: |
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Software license, service and other |
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4,107 |
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5,169 |
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Drug discovery |
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5,550 |
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5,776 |
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Total cost of revenues |
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9,657 |
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10,945 |
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Gross margin |
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6,847 |
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13,795 |
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Operating costs and expenses: |
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Research and development |
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5,654 |
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5,733 |
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Sales, general and administrative |
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15,288 |
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14,658 |
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Restructuring and other charges |
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11,147 |
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(384 |
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Total operating costs and expenses |
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32,089 |
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20,007 |
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Operating loss |
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(25,242 |
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(6,212 |
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Spin-off transaction costs |
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(2,321 |
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— |
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Interest and other income, net |
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924 |
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1,136 |
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Loss before tax provision |
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(26,639 |
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(5,076 |
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Provision for income taxes |
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