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 Exchange Act of 1934. |
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For the period ended September 30, 2004 or |
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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: 1-9158
MAI Systems Corporation
(Exact name of registrant as specified in its charter)
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Delaware |
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22-2554549 |
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(State or other jurisdiction of |
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(IRS Employer Identification No.) |
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26110
Enterprise Way, Lake Forest, CA 92630 |
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Registrant’s telephone number including area code (949) 598-6000 |
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 aggregate market value of the common stock held by non-affiliates of the registrant, based upon the last sale price of the Common Stock reported on the National Association of Securities Dealers Automated Quotation National Market System on November 18, 2004 was $1,648,000
The number of shares of common stock issued, outstanding and subscribed as of November 18, 2004 was 57,847,862.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MAI SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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(in thousands, except share data) |
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As of December |
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As of September |
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ASSETS |
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Current assets: |
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Cash |
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$ |
664 |
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$ |
555 |
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Receivables, less allowance for doubtful accounts of $335 in 2003 and $311 in 2004 |
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1,313 |
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2,130 |
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Inventories |
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47 |
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74 |
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Prepaids and other assets |
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814 |
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659 |
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Total current assets |
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2,838 |
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3,418 |
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Furniture, fixtures and equipment, net |
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758 |
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501 |
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Intangibles, net |
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2,876 |
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3,697 |
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Other assets |
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58 |
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14 |
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Total assets |
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$ |
6,530 |
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$ |
7,630 |
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LIABILITIES AND STOCKHOLDERS’ DEFICIENCY |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
3,646 |
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$ |
983 |
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Accounts payable |
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904 |
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1,078 |
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Customer deposits |
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2,334 |
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2,243 |
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Accrued liabilities |
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3,059 |
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2,725 |
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Income taxes payable |
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85 |
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111 |
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Unearned revenue |
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3,209 |
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3,415 |
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Total current liabilities |
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13,237 |
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10,555 |
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Long-term debt |
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7,135 |
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9,982 |
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Other liabilities |
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744 |
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505 |
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Total liabilities |
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21,116 |
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21,042 |
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Commitments and contingencies |
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Stockholders’ deficiency: |
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Preferred Stock, par value $0.01 per share; 1,000,000 shares authorized, none issued and outstanding |
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— |
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— |
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Common Stock, par value $0.01 per share; authorized 99,000,000 shares; 14,875,752 and 14,675,752 shares issued,outstanding and subscribed at December 31, 2003 and September 30, 2004, respectively. |
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152 |
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152 |
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Additional paid-in capital |
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218,112 |
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218,112 |
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Common stock subscribed |
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— |
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1,000 |
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Accumulated other comprehensive loss |
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Minimum pension liability |
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(1,005 |
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(1,005 |
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Foreign currency translation |
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(2 |
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(47 |
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Unearned Compensation |
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(53 |
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(25 |
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Accumulated deficit |
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(231,790 |
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(231,599 |
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Total stockholders’ deficiency |
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(14,586 |
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(13,412 |
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Total liabilities and stockholders’ deficiency |
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$ |
6,530 |
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$ |
7,630 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
1
MAI SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited) |
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(Unaudited) |
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(in thousands, except per share data) |
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(in thousands, except per share data) |
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2003 |
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2004 |
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2003 |
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2004 |
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Revenue: |
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Software |
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$ |
842 |
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$ |
842 |
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$ |
3,098 |
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$ |
2,945 |
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Network and computer equipment |
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104 |
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118 |
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339 |
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329 |
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Services |
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3,868 |
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3,923 |
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11,315 |
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11,683 |
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Total revenue |
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4,814 |
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4,883 |
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14,752 |
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14,957 |
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Direct costs:< | |||||||||||||