UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter ended March 31, 2004 Commission File Number 1-13591
AXS-ONE INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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13-2966911 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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301 Route 17 North |
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07070 |
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(Address of principal executive offices) |
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(Zip Code) |
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(201) 935-3400 |
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(Registrant’s telephone number, including area code) |
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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.
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YES |
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ý |
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NO |
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o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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YES |
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o |
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NO |
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ý |
Number of shares outstanding of the issuer’s common stock as of May 3, 2004
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Class |
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Number of Shares Outstanding |
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Common Stock, par value $0.01 per share |
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27,984,564 |
AXS-ONE INC.
INDEX
2
AXS-ONE INC. AND SUBSIDIARIES
(In thousands, except per share data)
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March 31, |
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December
31, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
3,710 |
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$ |
2,946 |
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Restricted cash |
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57 |
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56 |
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Accounts receivable, net of allowance for doubtful accounts of $176 and $200 at March 31, 2004 and December 31, 2003, respectively |
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7,077 |
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5,541 |
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Due from joint venture |
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113 |
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107 |
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Prepaid expenses and other current assets |
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734 |
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603 |
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Total current assets |
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11,691 |
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9,253 |
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Equipment and leasehold improvements, at cost: |
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Computer and office equipment |
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11,244 |
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11,098 |
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Furniture and fixtures |
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928 |
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924 |
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Leasehold improvements |
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879 |
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873 |
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13,051 |
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12,895 |
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Less-accumulated depreciation and amortization |
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12,654 |
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12,559 |
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397 |
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336 |
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Capitalized software development costs, net of accumulated amortization of $9,761 and $9,487 at March 31, 2004 and December 31, 2003, respectively |
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2,424 |
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2,364 |
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Other assets |
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175 |
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197 |
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$ |
14,687 |
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$ |
12,150 |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
— |
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$ |
547 |
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Accounts payable |
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1,895 |
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1,737 |
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Accrued expenses |
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3,019 |
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3,111 |
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Due to joint venture |
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32 |
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4 |
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Deferred revenue |
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11,214 |
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8,946 |
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Total current liabilities |
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16,160 |
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14,345 |
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Long-term liabilities: |
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Long-term deferred revenue |
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1,289 |
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1,504 |
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Commitments and contingencies |
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Stockholders’ deficit: |
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Preferred stock, $.01 par value, authorized 5,000 shares, no shares issued and outstanding |
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— |
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— |
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Common stock, $.01 par value, authorized 50,000 shares; 25,401 and 25,026 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively |
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254 |
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250 |
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Additional paid-in capital |
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72,408 |
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72,148 |
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Accumulated deficit |
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(75,700 |
) |
(76,453 |
) |
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Accumulated other comprehensive income |
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276 |
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356 |
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Total stockholders’ deficit |
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(2,762 |
) |
(3,699 |
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$ |
14,687 |
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$ |
12,150 |
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The accompanying notes are an integral part of these consolidated financial statements.
3
AXS-ONE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share date)
(Unaudited)
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Three Months Ended March 31, |
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2004 |
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2003 |
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Revenues: |
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License fees |
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$ |
2,460 |
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$ |
1,241 |
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Services |
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8,411 |
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8,089 |
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Other-related parties |
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51 |
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115 |
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Total revenues |
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10,922 |
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9,445 |
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Operating expenses: |
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Cost of license fees |
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411 |
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341 |
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Cost of services |
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4,269 |
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3,964 |
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Sales and marketing |
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1,970 |
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1,631 |
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Research and development |
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1,899 |
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1,674 |
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General and administrative |
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1,567 |
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1,315 |
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Total operating expenses |
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10,116 |
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8,925 |
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Operating income |
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806 |
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520 |
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Other income (expense): |
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Interest income |
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25 |
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12 |
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Interest expense |
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(12 |
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(73 |
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Gain on sale of subsidiary |
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— |
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71 |
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