UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
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: 0-25457
NEON Systems, Inc.
(Exact name of Registrant as specified in its charter)
Delaware |
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76-0345839 |
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(State or other jurisdiction of |
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(I.R.S.Employer Identification No.) |
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14100 Southwest Freeway, Suite 500, |
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77478 |
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(Address of principal executive offices) |
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(zip code) |
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(281) 491-4200 |
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(Registrant’s telephone number, including area code) |
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Securities registered pursuant to Section 12(b) of the Act: |
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Title of Each Class |
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Name of each
exchange |
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None |
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None |
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, par value $0.01 per share
(Title of Class)
Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
The number of shares of the registrant’s common stock outstanding as of October 28, 2004, was 9,324,209.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes o No ý
NEON SYSTEMS, INC.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2004
INDEX
2
PART I - FINANCIAL INFORMATION
NEON SYSTEMS, INC. AND SUBSIDIARIES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
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SEPTEMBER 30, 2004 |
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MARCH 31, 2004 |
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(UNAUDITED) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
22,315 |
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$ |
20,899 |
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Accounts receivable, net |
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4,368 |
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6,150 |
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Other current assets |
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1,129 |
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1,232 |
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Total current assets |
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27,812 |
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28,281 |
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Property and equipment, net |
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610 |
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475 |
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Note receivable, net (Note 7) |
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4,260 |
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7,760 |
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Acquired intangibles, net (Note 10) |
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3,492 |
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— |
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Goodwill (Note 10) |
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1,308 |
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— |
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Other assets |
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390 |
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341 |
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Total assets |
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$ |
37,872 |
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$ |
36,857 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
505 |
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$ |
298 |
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Accrued expenses and other |
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1,414 |
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2,733 |
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Deferred revenue |
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5,386 |
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7,540 |
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Total current liabilities |
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7,305 |
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10,571 |
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Long-term debt and capital lease |
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69 |
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—- |
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Deferred revenue – long term |
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3,270 |
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931 |
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Accrued restructuring expenses – long term (Note 6) |
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903 |
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898 |
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Total liabilities |
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11,547 |
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12,400 |
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STOCKHOLDERS’ EQUITY: |
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Preferred stock, $.01 par
value. Authorized |
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— |
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— |
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Common stock, $.01 par value.
Authorized |
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102 |
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98 |
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Additional paid-in capital |
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53,168 |
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51,696 |
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Treasury stock, 913,400 shares at cost |
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(2,649 |
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(2,649 |
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Accumulated other comprehensive loss |
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(430 |
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(421 |
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Accumulated deficit |
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(23,866 |
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(24,267 |
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Total stockholders’ equity |
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26,325 |
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24,457 |
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Commitments and contingencies (Note 5) |
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Total liabilities and stockholders’ equity |
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$ |
37,872 |
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$ |
36,857 |
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SEE ACCOMPANYING CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3
NEON SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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THREE MONTHS ENDED SEPTEMBER 30, |
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SIX MONTHS ENDED SEPTEMBER 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues: |
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License |
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$ |
1,186 |
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$ |
1,138 |
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$ |
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