UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period ended March 31, 2005
Commission File Number 0-25882
EZENIA! INC.
(Exact name of registrant as specified in its charter)
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DELAWARE |
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04-3114212 |
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(State or other
jurisdiction of incorporation |
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(IRS Employer Identification No.) |
(Address of principal executive offices, including Zip Code)
(781) 505-2100
(Registrant’s telephone number, including area code)
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 Securities Exchange Act of 1934). Yes o No ý
The number of shares outstanding of the registrant’s Common Stock as of May 2, 2005 was 14,506,724.
EZENIA! INC.
INDEX
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Part I. |
Financial Information |
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Item 1 |
Condensed Consolidated Financial Statements (unaudited) |
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Condensed Consolidated Balance Sheets March 31, 2005 and December 31, 2004 |
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Condensed Consolidated Statements of Income Three months ended March 31, 2005 and 2004 |
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Condensed Consolidated Statements of Cash Flows Three months ended March 31, 2005 and 2004 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Certifications |
15 |
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This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including without limitation those discussed in the Management’s Discussion and Analysis section of Ezenia!’s 2004 Annual Report on Form 10-K/A for the year ended December 31, 2004, such as the evolution of Ezenia!’s market, its dependence on major customers, rapid technological change and competition within the collaborative software market, its reliance on third party technology, protection of its propriety technology, its history of liquidity concerns and operating losses, and other considerations that are discussed further in this report.
The forward-looking statements contained in this report represent the Company’s judgment as of the date of this report. Ezenia! cautions readers not to place undue reliance on such statements.
Note: Ezenia!, the Ezenia! Logo, InfoWorkSpace, LaunchPad and Encounter are trademarks of Ezenia! Inc. All other trademarks are property of their respective companies.
2
EZENIA! INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share related data)
(Unaudited)
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March 31, |
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December 31, |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
7,023 |
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$ |
5,520 |
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Accounts receivable, less allowances of $371at March 31,2005 and December 31, 2004 |
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2,828 |
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3,465 |
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Prepaid software licenses |
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2,473 |
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2,630 |
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Prepaid expenses and other current assets |
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394 |
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306 |
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Total current assets |
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12,718 |
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11,921 |
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Equipment and improvements, net of accumulated depreciation |
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104 |
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85 |
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Total Assets |
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12,822 |
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$ |
12,006 |
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Liabilities and stockholders’ equity |
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Current liabilities |
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Accounts payable |
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79 |
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734 |
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Accrued expenses |
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371 |
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571 |
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Employee compensation and benefits |
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182 |
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200 |
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Accrued license costs |
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86 |
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— |
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Deferred revenue |
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7,521 |
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6,663 |
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Total current liabilities |
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8,239 |
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8,168 |
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Stockholders’ equity |
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Preferred stock, $.01 par value; 2,000,000 shares authorized, none issued and outstanding |
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Common stock, $.01 par value, 40,000,000 shares authorized, 15,063,005 issued and 14,402,568 outstanding at March 31, 2005; 14,846,598 issued and 14,186,161outstanding at December 31, 2004 |
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151 |
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148 |
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Capital in excess of par value |
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63,681 |
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63,643 |
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Accumulated deficit |
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(56,388 |
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(57,092 |
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Treasury stock at cost, 660,437 shares at March 31, 2005 and December 31, 2004 |
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(2,861 |
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(2,861 |
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Total Stockholders’ Equity |
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4,583 |
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3,838 |
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Total Liabilities and Stockholders’ Equity |
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$ |
12,822 |
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$ |
12,006 |
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See accompanying notes.
3
EZENIA! INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share related data)
(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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Product revenue |
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$ |
2,949 |
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$ |
1,834 |
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Product development revenue |
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118 |
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679 |
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Service revenue |
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75 |
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112 |
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3,142 |
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2,625 |
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Cost of revenues |
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Cost of product revenue |
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1,037 |
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813 |
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Cost of product development revenue |
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41 |
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216 |
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Cost of service revenue |
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19 |
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18 |
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1,097 |
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1,047 |
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Gross profit |
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2,045 |
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1,578 |
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Operating expenses |
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Research and development |
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286 |
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290 |
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Sales and marketing |
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412 |
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264 |
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General and administrative |
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539 |
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462 |
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Depreciation |
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5 |
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— |
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Occupancy and other facilities related expenses |
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135 |
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156 |
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Total operating expenses |
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1,377 |
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1,172 |
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Income from operations |
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668 |
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406 |
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Interest income, net |
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29 |
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3 |
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Other income |
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8 |
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— |
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Net income |
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