DENDRITE INTERNATIONAL INC - 10-Q Quarterly Report

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 September 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

Dendrite International, Inc.
(Exact name of registrant as specified in its charter)

New Jersey		22-2786386
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1405 Route 206 South
Bedminster, NJ 07921
(Address, including zip code, of principal executive offices)

(908) 443-2000
(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, 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 November 5, 2004, 41,766,520 shares of Dendrite International, Inc. no par value common stock were outstanding.

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	THREE MONTHS ENDED										NINE MONTHS ENDED
	SEPTEMBER 30,										SEPTEMBER 30,
	2004					2003					2004				2003
Revenues	$	99,428				$	92,862				$		294,399		$		222,100

Operating Costs & Expenses:
Operating costs	51,578					46,688					151,807				110,839
Selling, general and administrative	32,832					33,780					98,923				74,535
Research and development	1,673					2,863					7,417				8,775
Amortization of acquired intangible assets	1,214					1,251					3,467				2,168
Other operating (income)	(368				)	-					(707			)	-
Total costs & operating expenses	86,929					84,582					260,907				196,317

Operating income	12,499					8,280					33,492				25,783

Interest expense (income), net	14					(58				)	11				(612				)
Other (income) expense, net	(190				)	55					(251			)	21

Income before income tax expense	12,675					8,283					33,732				26,374
Income tax expense	4,880					3,314					12,987				11,158

Net income	$		7,795			$	4,969				$	20,745			$			15,216

Net income per share:
Basic	$		0.19			$		0.12			$	0.50			$		0.38
Diluted	$			0.18		$			0.12		$	0.48			$	0.37

The accompanying notes are an integral part of these consolidated statements.

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE DATA)

(UNAUDITED)

	September 30,		December 31,
	2004		2003
Assets
Current Assets:
Cash and cash equivalents	$	46,134	$	30,405
Accounts receivable, net	69,589		71,383
Prepaid expenses and other current assets	7,843		7,949
Deferred taxes	4,976		8,844
Income tax receivable	3,045		—
Facility held for sale	—		6,900
Total current assets	131,587		125,481

Property and equipment, net of accumulated amortization of $53,096 and $43,946	42,613		28,140
Other assets	5,851		2,538
Long-term receivable	—		3,157
Goodwill	85,752		70,403
Intangible assets, net	20,067		18,574
Purchased capitalized software, net

PART I.	FINANCIAL INFORMATION

ITEM 1.	Financial Statements

	Consolidated Statements of Operations (unaudited) Three and nine month periods ended September 30, 2004 and 2003

	Consolidated Balance Sheets (unaudited) September 30, 2004 and December 31, 2003

	Consolidated Statements of Cash Flows (unaudited) Nine months ended September 30, 2004 and 2003

	Notes to Unaudited Consolidated Financial Statements

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

ITEM 4.	Controls and Procedures

PART II.	OTHER INFORMATION

ITEM 6.	Exhibits

Signatures