UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
OR
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 0-22871
OMTOOL, LTD.
(Exact Name of Registrant as Specified in Its Charter)
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Delaware |
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02-0447481 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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8A Industrial Way, Salem, NH |
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03079 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(603) 898-8900 |
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(Registrant’s Telephone Number Including Area Code) |
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Indicate by check mark whether the Registrant has: (1) 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 Securities Exchange Act of 1934).
Yes o No ý
There were 3,915,763 shares of the Company’s common stock, par value $0.01, outstanding on May 11, 2005.
OMTOOL, LTD. AND SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2005
CONTENTS
2
Item 1. Consolidated Financial Statements
OMTOOL, LTD. AND SUBSIDIARIES
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March 31, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
10,468,733 |
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$ |
10,655,121 |
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Accounts receivable, less reserves of $58,000 at March 31, 2005 and $82,000 at December 31, 2004 |
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2,399,466 |
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1,802,784 |
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Inventories |
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155,658 |
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137,992 |
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Prepaid expenses and other current assets |
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358,143 |
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278,972 |
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Total current assets |
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13,382,000 |
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12,874,869 |
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Property and equipment, net |
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194,326 |
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213,512 |
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Other assets |
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11,562 |
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11,562 |
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Total assets |
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$ |
13,587,888 |
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$ |
13,099,943 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
989,691 |
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$ |
849,572 |
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Accrued liabilities |
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1,236,844 |
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1,258,672 |
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Accrued state sales tax |
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674,377 |
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699,816 |
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Deferred revenue, short term |
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3,492,299 |
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3,205,072 |
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Total current liabilities |
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6,393,211 |
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6,013,132 |
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Long term liabilities: |
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Deferred revenue, long-term |
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393,412 |
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455,604 |
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Total liabilities |
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6,786,623 |
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6,468,736 |
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Stockholders’ equity: |
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Preferred Stock, $0.01 par value — |
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Authorized — 2,000,000 shares; Issued and outstanding — none |
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— |
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— |
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Common stock, $0.01 par value — |
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Authorized — 35,000,000 shares; Issued — 4,367,878 shares at March 31, 2005 and December 31, 2004; Outstanding — 3,913,263 shares at March 31, 2005 and 3,500,500 shares at December 31, 2004, respectively |
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43,679 |
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43,679 |
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Deferred compensation |
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(433,032 |
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— |
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Additional paid-in capital |
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35,413,836 |
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35,259,706 |
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Accumulated deficit |
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(25,875,971 |
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(26,018,011 |
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Treasury stock, at cost (454,615 shares at March 31, 2005 and 516,406 shares at December 31, 2004) |
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(2,332,700 |
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(2,649,756 |
) |
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Accumulated other comprehensive loss |
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(14,547 |
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(4,411 |
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Total stockholders’ equity |
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6,801,265 |
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6,631,207 |
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Total liabilities and stockholders’ equity |
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$ |
13,587,888 |
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$ |
13,099,943 |
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The accompanying notes are an integral part of these unaudited consolidated financial statements.
3
OMTOOL, LTD. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
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Three months ended |
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2005 |
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2004 |
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Revenues: |
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Software license |
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$ |
1,317,629 |
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$ |
1,171,898 |
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Hardware |
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837,344 |
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1,167,551 |
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Service and other |
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1,706,511 |
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1,688,629 |
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Total revenues |
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3,861,484 |
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4,028,078 |
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Cost of revenues: |
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Software license |
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20,767 |
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31,525 |
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Hardware |
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543,677 |
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674,243 |
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Service and other |
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717,375 |
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747,227 |
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Total cost of revenues |
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1,281,819 |
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1,452,995 |
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Gross profit |
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2,579,665 |
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2,575,083 |
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Operating expenses: |
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Sales and marketing |
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1,179,316 |
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1,043,287 |
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Research and development |
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516,990 |
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471,175 |
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General and administrative |
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775,171 |
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699,391 |
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Total operating expenses |
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2,471,477 |
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