UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x                              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2004

OR

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: 000-50730

VIEWSONIC CORPORATION

(Exact name of Registrant as Specified in Its Charter)

 

381 Brea Canyon Road
Walnut, California  91789
(909) 869-7976

(Address, including Zip Code, of Registrant’s Principal Executive Offices
and Registrant’s Telephone Number, including Area Code)

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 o No x

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock outstanding as of July 15, 2004 was 353,919,677 shares.

 

VIEWSONIC CORPORATION
FORM 10-Q
TABLE OF CONTENTS

		Page
PART I: FINANCIAL INFORMATION
Item 1.	Consolidated Condensed Financial Statements (unaudited)		3
	Consolidated Condensed Balance Sheets as of March 31, 2004 and December 31, 2003		3
	Consolidated Condensed Statements of Operations for the three-months ended March 31, 2004 and 2003		4
	Consolidated Condensed Statements of Cash Flows for the three-months ended March 31, 2004 and 2003		5
	Notes to Consolidated Condensed Financial Statements		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		17
Item 4.	Controls and Procedures		23
PART II: OTHER INFORMATION
Item 1.	Legal Proceedings		24
Item 2.	Changes in Securities, Use of Proceeds and Issuer Purchasers of Equity Securities		24
Item 3.	Defaults Upon Senior Securities		24
Item 4.	Submission of Matters to a Vote of Securities Holders		24
Item 5.	Other Information		25
Item 6.	Exhibits and Reports on Form 8-K		25
	Signature		26

 

2

PART I. FINANCIAL INFORMATION

ITEM 1.   CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

VIEWSONIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
MARCH 31, 2004 AND DECEMBER 31, 2003
(In thousands, except for share data and par value)
(Unaudited)

		March 31,					December 31,
		2004					2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	102,439				$	87,870
Short-term investments			1,216					3,687
Trade receivables—net			133,325					132,120
Other receivables			4,205					5,765
Inventories			111,940					128,718
Deferred income taxes			12,555					11,592
Prepaids and other current assets			5,389					5,002
Income taxes receivable			42					123
Total current assets			371,111					374,877
PROPERTY, PLANT AND EQUIPMENT—Net			16,627					16,015
LONG-TERM INVESTMENTS			14,991					13,704
GOODWILL			7,464					7,464
OTHER ASSETS—Net			1,483					2,869
TOTAL			$	411,676				$	414,929
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Bank borrowings			$	4,200				$	6,342
Accounts payable			222,482					237,363
Accrued promotional expenses			12,760					15,779
Accrued warranty expense			15,082					14,706
Other accrued expenses			24,025					18,945
Total current liabilities			278,549					293,135
SUBORDINATED NOTES PAYABLE—Related party			43,000					43,000
DEFERRED INCOME TAXES			1,079					590
CONVERTIBLE MANDATORILY REDEEMABLE PREFERRED STOCK			12,384					12,056
MINORITY INTEREST			1,309					1,441
STOCKHOLDERS’ EQUITY:
Common stock, $.01 par value:
Authorized—600,000,000 shares at March 31, 2004 and December 31, 2003 Outstanding—353,912,183 and 353,897,749 shares at March 31, 2004 and December 31, 2003, respectively			3,539					3,539
Additional paid-in capital			92,120					92,105
Accumulated deficit			(18,807		)			(28,125		)
Accumulated other comprehensive loss			(1,497		)			(2,812		)
Total stockholders’ equity			75,355					64,707
TOTAL			$	411,676