UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
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ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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For the Quarterly Period Ended December 31, 2004 |
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OR |
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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For the transition period from to |
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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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Sugar Land, Texas |
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77478 |
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(Address of principal executive offices) |
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(zip code) |
(281) 491-4200
(Registrant’s telephone number, including area code)
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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes oNo ý
The number of shares of the registrant’s common stock outstanding as of January 31, 2005, was 9,371,539.
NEON SYSTEMS, INC.
FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2004
INDEX
2
PART I - FINANCIAL INFORMATION
NEON SYSTEMS, INC. AND SUBSIDIARIES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
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DECEMBER 31, 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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$ |
13,259 |
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$ |
20,899 |
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Accounts receivable, net |
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3,709 |
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6,150 |
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Other current assets |
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980 |
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1,232 |
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Total current assets |
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17,948 |
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28,281 |
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Property and equipment, net |
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700 |
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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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8,856 |
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— |
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Goodwill |
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8,785 |
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— |
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Other assets |
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301 |
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341 |
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Total assets |
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$ |
40,850 |
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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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$ |
384 |
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$ |
298 |
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Accrued expenses and other |
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1,455 |
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2,733 |
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Deferred revenue |
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6,796 |
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7,540 |
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Total current liabilities |
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8,635 |
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10,571 |
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Deferred revenue – long term |
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3,676 |
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931 |
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Accrued expenses – long term (Note 6) |
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798 |
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898 |
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Total liabilities |
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13,109 |
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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, $.01 par value. Authorized |
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103 |
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98 |
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Additional paid-in capital |
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54,668 |
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51,696 |
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Treasury stock, 913,400 shares at cost |
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(2,649 |
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(2,649 |
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Accumulated other comprehensive loss |
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(398 |
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(421 |
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Accumulated deficit |
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(23,983 |
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(24,267 |
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Total stockholders’ equity |
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27,741 |
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24,457 |
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Commitments and contingencies (Note 5) |
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Total liabilities and stockholders’ equity |
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$ |
40,850 |
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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 DECEMBER 31, |
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NINE MONTHS ENDED DECEMBER 31, |
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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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$ |
2,072 |
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$ |
1,157 |
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$ |
4,360 |
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$ |
3,855 |
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Maintenance and services |
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2,630 |
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2,489 |
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7,668 |
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7,519 |
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Total revenues |
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4,702 |
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3,646 |
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12,028 |
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11,374 |
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Cost of revenues: |
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Cost of licenses |
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246 |
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