Version 1 (4-18-03)

 

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 Quarterly period ended March 31, 2004

 

Commission File Number 0-25882

 

 

 

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 Securities Exchange Act of 1934).     Yes  o     No  ý

 

The number of shares outstanding of the registrant’s Common Stock as of May 3, 2004 was 14,128,380.

 

 

EZENIA! INC.

 

INDEX

 

Part I.	Financial Information
Item 1	Condensed Consolidated Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets March 31, 2004 and December 31, 2003
	Condensed Consolidated Statements of Operations Three months ended March 31, 2004 and 2003
	Condensed Consolidated Statements of Cash Flows Three months ended March 31, 2004 and 2003
	Notes to Condensed Consolidated Financial Statements
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3	Quantitative and Qualitative Disclosures About Market Risk
Item 4	Controls and Procedures
Part II.	Other Information
Item 5	Exhibits and Reports on Form 8-K
Signature
Certifications

 

 

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements are subject to certain risks and uncertainties, including without limitation those discussed in the Management’s Discussion and Analysis section of Ezenia!’s 2003 Annual Report on Form 10-K for the year ended December 31, 2003, such as the evolution of Ezenia!'s market, its dependence on major customers, rapid technological change and competition within the collaborative software market, its reliance on third party technology, protection of its propriety technology, its history of liquidity concerns and operating losses, and other considerations that are discussed in this report.

 

2

 

The forward-looking statements contained in this report represent the Company’s judgment as of the date of this report.  Ezenia! cautions readers not to place undue reliance on such statements.

 

Note: Ezenia!, the Ezenia! Logo, InfoWorkSpace, LaunchPad and Encounter are trademarks of Ezenia! Inc.  All other trademarks are property of their respective companies.

 

3

 

EZENIA! INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share related data)

(Unaudited)

 

		March 31, 2004			December 31, 2003
Assets
Current assets
Cash and cash equivalents		$	3,809		$	2,316
Accounts receivable, less allowances of $1,068		952			2,745
Prepaid software licenses		2,517			1,724
Prepaid expenses and other current assets		265			297
Total current assets		7,543			7,082
Equipment and improvements, net of accumulated depreciation		17			—
Total Assts		$	7,560		$	7,082
Liabilities and stockholders’ equity (deficit)
Current liabilities
Accounts payable		631			185
Accrued expenses		172			205
Employee compensation and benefits		170			186
Accrued license costs		537			920
Deferred revenue		4,997			5,034
Total current liabilities		6,507			6,530
Stockholders’ equity (deficit)
Preferred stock, $.01 par value; 2,000,000 shares authorized, none issued and outstanding
Common stock, $.01 par value, 40,000,000 shares authorized, 14,781,817 issued and 14,121,380outstanding at March 31, 2004; 14,360,817 issued and 13,700,380 outstanding at December 31, 2003		148			140
Capital in excess of par value		63,633			63,549
Accumulated deficit		(59,867		)	(60,276		)
Treasury stock 660,437 shares at cost		(2,861		)	(2,861		)
		1,053			552
		$	7,560		$	7,082

 

See accompanying notes.

 

4

 

EZENIA! INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for share and per share related data)

(Unaudited)

 

		Three Months Ended March 31,
		2004			2003
Revenues
Product and service revenue		$	2,625		$	2,400
Cost of revenues
Cost of product and service revenue		1,047			852
Gross profit		1,578			1,548
Operating expenses
Research and development		290			715
Sales and marketing		264			400
General and administrative		405			283
Occupancy and other facilities related expenses		213			275
Total operating expenses		1,172			1,673
Income (loss) from operations		406			(125		)
Other income		3			3
Net Income (loss)		$	409		$	(122	)
Basic and diluted earnings (loss) per share:		$	0.03		$	(0.01	)

 

See accompanying notes.

 

5

 

EZENIA! INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

		Three Months Ended March 31,
		2004			2003
Operating activities
Net income (loss)		$	409		$	(122	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Changes in operating assets and liabilities:
Accounts receivable		1,793			354
Inventories		—			112
Prepaid software licenses		(793		)	(1,491		)
Prepaid expenses and other current assets		32			(56		)
Accounts payable and accrued expenses		14			180
Income taxes		—