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 June 30, 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)

 

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 June 30, 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 June 30, 2004 and December 31, 2003		3
	Consolidated Condensed Statements of Operations for the three and six months ended June 30, 2004 and 2003		4
	Consolidated Condensed Statements of Cash Flows for the six-months ended June 30, 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		12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		20
Item 4.	Controls and Procedures		26
	PART II: OTHER INFORMATION
Item 1.	Legal Proceedings		27
Item 2.	Changes in Securities, Use of Proceeds and Issuer Purchasers of Equity Securities		27
Item 3.	Defaults Upon Senior Securities		27
Item 4.	Submission of Matters to a Vote of Securities Holders		27
Item 5.	Other Information		28
Item 6.	Exhibits and Reports on Form 8-K		28
	Signature		29

 

2

PART I. FINANCIAL INFORMATION

ITEM 1.   CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

VIEWSONIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
JUNE 30, 2004 AND DECEMBER 31, 2003
(In thousands, except for share data and par value)
(Unaudited)

		June 30, 2004					December 31, 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	84,809				$	87,760
Short-term investments			4,529					3,687
Trade receivables—net			120,055					131,805
Other receivables			6,925					5,765
Inventories			176,095					128,803
Deferred income taxes			12,689					11,592
Prepaids and other current assets			5,590					4,980
Income taxes receivable			7					123
Net assets of business held for sale			4,161					4,013
Total current assets			414,860					378,528
PROPERTY, PLANT AND EQUIPMENT—Net			16,017					15,909
LONG-TERM INVESTMENTS			11,889					13,704
GOODWILL			2,123					2,123
OTHER ASSETS—Net			1,526					2,869
TOTAL			$	446,415				$	413,133
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Bank borrowings			$	1,117				$	6,342
Accounts payable			267,058					237,269
Accrued promotional expenses			16,989					15,779
Accrued warranty expense			15,145					14,706
Other accrued expenses			19,693					18,684
Total current liabilities			320,002					292,780
SUBORDINATED NOTES PAYABLE—Related party			43,000					43,000
DEFERRED INCOME TAXES			—					590
CONVERTIBLE MANDATORILY REDEEMABLE PREFERRED STOCK			12,720					12,056
STOCKHOLDERS’ EQUITY:
Common stock, $.01 par value: Authorized—600,000,000 shares at June 30, 2004 and December 31, 2003 Outstanding—353,919,677 and 353,897,749 shares at June 30, 2004 and December 31, 2003, respectively			3,539					3,539
Additional paid-in capital			92,143					92,105
Accumulated deficit			(21,431		)			(28,125		)
Accumulated other comprehensive loss			(3,558		)			(2,812		)
Total stockholders’ equity			70,693					64,707
TOTAL			$	446,415				$	413,133

 

See accompanying notes to consolidated condensed financial statements.

3

VIEWSONIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
JUNE 30, 2004 AND 2003
(In thousands, except per share data)
(Unaudited)

		Three Months Ended June 30,						Six Months Ended June 30,
		2004			2003			2004			2003
NET SALES		$	265,039		$	240,054