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 |
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For the quarterly period ended September 30, 2004 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Commission file number: 000-27907 |
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NETRATINGS, INC.
(Exact name of Registrant as specified in its charter)
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Delaware |
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77-0461990 |
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(State or other jurisdiction |
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(I.R.S. Employer |
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120 West 45th Street, 35th Floor |
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10036 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (212) 703-5900 |
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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 (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 ý No o
The number of shares of the Registrant’s Common Stock outstanding as of October 31, 2004, was 35,065,959.
NETRATINGS, INC. FORM 10-Q INDEX
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Condensed Consolidated Balance Sheets - September 30, 2004 (Unaudited) and December 31, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
NETRATINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
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September 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
76,124 |
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$ |
103,221 |
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Short-term investments |
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118,305 |
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106,818 |
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Accounts receivable, net |
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11,532 |
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10,141 |
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Due from joint ventures |
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909 |
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589 |
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Due from related parties |
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— |
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458 |
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Prepaid expenses and other current assets |
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4,158 |
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3,444 |
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Total current assets |
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211,028 |
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224,671 |
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Property and equipment, net |
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5,386 |
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3,943 |
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Intangibles, net |
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16,128 |
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19,089 |
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Goodwill |
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77,644 |
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66,612 |
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Other assets |
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1,249 |
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936 |
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Total assets |
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$ |
311,435 |
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$ |
315,251 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
2,830 |
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$ |
3,314 |
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Accrued liabilities |
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8,534 |
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11,298 |
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Deferred revenue |
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13,003 |
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10,777 |
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Due to related parties |
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10,706 |
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12,195 |
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Restructuring liabilities |
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1,001 |
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1,711 |
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Total current liabilities |
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36,074 |
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39,295 |
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Restructuring liabilities, less current portion |
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1,160 |
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1,680 |
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Total liabilities |
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$ |
37,234 |
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$ |
40,975 |
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Minority interest |
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474 |
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222 |
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Commitments and contingencies |
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— |
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— |
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Stockholders’ equity: |
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Common stock, par value $0.001: |
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Authorized shares: 200,000 |
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Issued shares: 36,441 and 35,442 at September 30, 2004 and December 31, 2003, respectively; outstanding shares: 34,941 and 33,942 at September 30, 2004 and December 31, 2003, respectively |
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36 |
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35 |
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Additional paid-in capital |
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429,070 |
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420,172 |
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Deferred compensation and other costs |
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(759 |
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(7,587 |
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Accumulated other comprehensive income |
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592 |
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1,538 |
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Treasury stock |
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(20,631 |
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(20,631 |
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Accumulated deficit |
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(134,581 |
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(119,473 |
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Total stockholders’ equity |
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273,727 |
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274,054 |
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Total liabilities and stockholders’ equity |
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$ |
311,435 |
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$ |
315,251 |
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See accompanying notes to the condensed consolidated financial statements.
3
NETRATINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
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Three
Months |
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Nine
Months |
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2004 |
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2003 |
2004 |
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2003 |
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Revenue |
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$ |
15,623 |
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$ |
10,611 |
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$ |
43,362 |
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$ |
29,834 |
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Cost of revenue (exclusive of the amortization of stock-based compensation reported below) |
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5,653 |
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5,029 |
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17,590 |
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14,428 |
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