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 June 30, 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 001-16379
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Dendrite International, Inc. |
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(Exact name of registrant as specified in its charter) |
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New Jersey |
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22-2786386 |
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(State
or other jurisdiction of |
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(I.R.S.
Employer |
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1200 Mount Kemble Avenue |
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Morristown, NJ 07960 |
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(Address,
including zip code, of |
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(973) 425-1200 |
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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, and (2) has been subject to such filing requirements for the past 90
days.
ý yes o no
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act): ýyes o no
As of August 3, 2004, 41,613,913 shares of Dendrite International, Inc. no par value common stock were outstanding.
DENDRITE INTERNATIONAL, INC.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2004
2
PART I. FINANCIAL INFORMATION
DENDRITE INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
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THREE MONTHS ENDED |
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SIX MONTHS ENDED |
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2004 |
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2003 |
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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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$ |
2,431 |
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$ |
2,752 |
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$ |
5,777 |
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$ |
5,315 |
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Services |
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97,476 |
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66,776 |
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189,194 |
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123,923 |
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Total revenues |
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99,907 |
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69,528 |
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194,971 |
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129,238 |
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Cost of revenues: |
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Cost of license fees |
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923 |
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1,204 |
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1,912 |
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2,283 |
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Cost of services |
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50,007 |
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33,578 |
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99,043 |
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62,318 |
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Total cost of revenues |
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50,930 |
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34,782 |
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100,955 |
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64,601 |
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Gross margin: |
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License fees |
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1,508 |
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1,548 |
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3,865 |
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3,032 |
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Services |
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47,469 |
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33,198 |
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90,151 |
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61,605 |
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Total gross margin |
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48,977 |
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34,746 |
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94,016 |
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64,637 |
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Operating expense (income): |
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Selling, general and administrative |
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34,652 |
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20,983 |
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67,618 |
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41,222 |
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Research and development |
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2,722 |
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3,215 |
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5,744 |
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5,912 |
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Other operating (income) |
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— |
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— |
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(339 |
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— |
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37,374 |
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24,198 |
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73,023 |
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47,134 |
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Operating income |
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11,603 |
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10,548 |
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20,993 |
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17,503 |
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Interest (expense) income, net |
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(4 |
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312 |
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3 |
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554 |
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Other income |
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18 |
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25 |
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61 |
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34 |
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Income before income tax expense |
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11,617 |
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10,885 |
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21,057 |
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18,091 |
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Income tax expense |
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4,331 |
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4,962 |
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8,107 |
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7,844 |
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Net income |
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$ |
7,286 |
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$ |
5,923 |
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$ |
12,950 |
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$ |
10,247 |
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Net income per share: |
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Basic |
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$ |
0.18 |
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$ |
0.15 |
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$ |
0.31 |
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$ |
0.26 |
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Diluted |
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$ |
0.17 |
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$ |
0.14 |
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$ |
0.30 |
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$ |
0.25 |
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The accompanying notes are an integral part of these consolidated statements.
3