UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES |
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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 |
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Commission File Number: 000-27707 |
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AETHER SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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52-2186634 |
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(State
or other jurisdiction of |
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(IRS Employer Identification Number) |
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621 E. Pratt Street |
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21202 |
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(Registrant’s telephone number, including area code): (443) 573-9400 |
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11500 Cronridge Dr., Suite 110, Owings Mills, MD 21117 |
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(former address) |
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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 Act) Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
As of November 4, 2004, 43,923,893 shares of the Registrant’s common stock, $.01 par value per share, were outstanding.
AETHER SYSTEMS, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2004
INDEX
2
AETHER SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
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September 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
206,860 |
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$ |
26,222 |
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Short-term investments available for sale, at fair value |
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55,993 |
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20 |
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Mortgage-backed securities, at fair value |
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20,950 |
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— |
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Interest receivable |
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311 |
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1,567 |
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Current assets from discontinued operations |
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— |
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55,649 |
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Prepaid expenses and other current assets |
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2,400 |
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1,153 |
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Total current assets |
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286,514 |
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84,611 |
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Restricted cash |
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8,832 |
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13,460 |
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Investments available for sale (non-current) |
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— |
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220,849 |
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Property and equipment, net |
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953 |
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2,608 |
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Investments not readily available for sale |
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171 |
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2,273 |
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Non-current assets from discontinued operations |
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— |
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71,984 |
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Other assets, net |
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732 |
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2,320 |
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$ |
297,202 |
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$ |
398,105 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Convertible subordinated notes payable |
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$ |
154,912 |
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$ |
— |
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Accounts payable and accrued expenses |
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4,611 |
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4,741 |
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Accrued employee compensation and benefits |
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709 |
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538 |
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Current liabilities from discontinued operations |
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— |
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35,185 |
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Restructuring reserve (current portion) |
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240 |
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1,407 |
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Accrued interest payable |
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206 |
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2,529 |
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Total current liabilities |
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160,678 |
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44,400 |
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Convertible subordinated notes payable |
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— |
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154,912 |
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Restructuring reserve (less current portion) |
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— |
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70 |
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Non-current liabilities from discontinued operations |
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— |
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19,419 |
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Other long term liabilities |
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2,057 |
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3 |
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Total liabilities |
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162,735 |
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218,804 |
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Stockholders’ equity: |
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Preferred stock, $0.01 par value; 1,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2004 and December 31, 2003 |
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— |
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Common stock, $0.01 par value; 1,000,000,000 shares authorized; 43,874,387 and 42,918,408 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively |
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439 |
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429 |
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Additional paid-in capital |
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2,592,900 |
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2,589,608 |
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Accumulated deficit |
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(2,458,720 |
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(2,414,283 |
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Foreign currency translation adjustment |
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— |
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3,830 |
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Unrealized loss on investments available for sale, net |
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(152 |
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(283 |
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Total stockholders’ equity |
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134,467 |
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179,301 |
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Commitments and contingencies |
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Total liabilities and stockholders’ equity |
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$ |
297,202 |
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$ |
398,105 |
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See accompanying notes to Condensed Consolidated Financial Statements.
3
AETHER SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
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Three Months Ended |
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Nine Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Interest income from MBS portfolio |
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$ |
256 |
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$ |
— |
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$ |
256 |
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$ |
— |
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Interest expense from MBS portfolio |
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— |
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— |
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