UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended June 30, 2004
OR
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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: 0-24081
EVOLVING SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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84-1010843 |
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(State or other jurisdiction of incorporation or organization) |
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(IRS Employer Identification No) |
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9777 Mount Pyramid Court, Suite 100 Englewood, Colorado |
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80112 |
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(Address of principal executive offices) |
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(Zip Code) |
(303) 802-1000
(Registrant’s telephone number)
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 Exchange Act). Yes o No ý
As of August 3, 2004 there were 15,962,461 shares outstanding of Registrant’s Common Stock (par value $0.001 per share).
EVOLVING SYSTEMS, INC.
Quarterly Report on Form 10-Q
June 30, 2004
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
EVOLVING SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share data)
(unaudited)
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June 30, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
22,462 |
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$ |
17,999 |
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Current portion of restricted cash |
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100 |
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100 |
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Contract receivables, net of allowance of $44 and $65 at June 30, 2004 and December 31, 2003, respectively |
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2,570 |
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9,292 |
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Unbilled work-in-progress |
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16 |
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622 |
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Prepaid and other current assets |
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1,216 |
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868 |
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Total current assets |
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26,364 |
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28,881 |
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Property and equipment, net |
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1,791 |
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1,579 |
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Intangible assets, net |
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3,413 |
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3,845 |
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Goodwill |
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6,955 |
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6,996 |
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Long-term restricted cash |
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400 |
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400 |
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Total assets |
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$ |
38,923 |
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$ |
41,701 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Current portion of long-term obligations |
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$ |
30 |
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$ |
29 |
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Accounts payable and accrued liabilities |
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2,379 |
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3,044 |
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Unearned revenue |
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9,483 |
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11,972 |
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Total current liabilities |
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11,892 |
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15,045 |
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Long-term obligations |
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149 |
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183 |
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Total liabilities |
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12,041 |
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15,228 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock, $0.001 par value; 25,000,000 shares authorized; 15,952,503 and 15,778,540 shares issued and outstanding as of June 30, 2004 and December 31, 2003, respectively |
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16 |
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16 |
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Additional paid-in capital |
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67,682 |
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67,342 |
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Other comprehensive loss |
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(7 |
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— |
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Accumulated deficit |
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(40,809 |
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(40,885 |
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Total stockholders’ equity |
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26,882 |
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26,473 |
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Total liabilities and stockholders’ equity |
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$ |
38,923 |
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$ |
41,701 |
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The accompanying notes are an integral part of these consolidated financial statements.
1
EVOLVING SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands except per share data)
(unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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REVENUE |
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License fees and services |
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$ |
2,383 |
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$ |
3,181 |
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$ |
5,602 |
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$ |
8,185 |
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Customer support |
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2,878 |
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3,258 |
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5,425 |
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6,845 |
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Total revenue |
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5,261 |
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6,439 |
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11,027 |
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15,030 |
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COSTS OF REVENUE AND OPERATING EXPENSES |
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Costs of license fees and services, excluding depreciation |
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1,134 |
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1,288 |
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2,211 |
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3,181 |
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Costs of customer support, excluding depreciation |
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2,021 |
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1,667 |
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3,895 |
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2,974 |
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Sales and marketing |
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901 |
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720 |
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1,837 |
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1,425 |
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General and administrative |
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934 |
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935 |
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1,869 |
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1,851 |
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Product development |
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241 |
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380 |
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732 |
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656 |
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Depreciation |
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265 |
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319 |
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539 |
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649 |
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Restructuring and other expenses (benefit) |
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— |
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(80 |
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— |
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38 |
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Total costs of revenue and operating expenses |
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5,496 |
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5,229 |
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11,083 |
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10,774 |
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