 |
2001 Second-Quarter Financial Statements
Condensed Consolidated Statements of Operations (view)
Pro Forma Condensed Consolidated Statements of Operations (view)
Condensed Consolidated Balance Sheets (view)
ENTRUST TECHNOLOGIES INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands of dollars, except per share data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30 |
|
June 30 |
|
|
2001 |
2000 |
|
2001 |
2000 |
|
|
(unaudited) |
|
(unaudited) |
Revenues: |
|
|
|
|
|
|
License |
$12,554 |
$18,780 |
|
$23,113 |
$39,669 |
|
Services and maintenance |
17,462 |
10,536 |
|
38,408 |
18,709 |
|
Total revenues |
30,016 |
29,316 |
|
61,521 |
58,378 |
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
Licenses |
1,207 |
953 |
|
2,108 |
1,890 |
|
Services and maintenance |
11,312 |
6,064 |
|
24,658 |
10,632 |
|
Total cost of revenues |
12,519 |
7,017 |
|
26,766 |
12,522 |
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
Licenses |
11,347 |
17,827
|
|
21,005 |
37,779 |
|
Services and maintenance |
6,150 |
4,472 |
|
13,750 |
8,077 |
|
Total gross profit |
17,497 |
22,299 |
|
34,755 |
45,856 |
|
|
|
|
|
|
|
|
Sales and marketing |
32,987 |
14,905 |
|
59,567 |
27,762 |
|
Research and development |
8,345 |
5,825 |
|
17,832 |
10,818 |
|
General and administrative |
14,595 |
2,722 |
|
19,282 |
4,914 |
|
Acquisition related costs: |
|
|
|
|
|
|
Acquired in-process research & development |
- |
29,614 |
|
- |
29,614
|
|
Amortization of purchased product rights |
1,377 |
- |
|
2,754 |
- |
|
Amortization of goodwill and other purchased intangibles |
28,900 |
1,615 |
|
57,800 |
2,276 |
|
Impairment of goodwill, purchased product rights and other purchased intangibles |
326,953 |
- |
|
326,953 |
- |
Restructuring charges |
65,511 |
- |
|
65,511 |
- |
Write-down of leaseholds and other long-lived assets |
13,519 |
- |
|
13,519 |
- |
(Loss) from operations |
(474,690) |
(32,382) |
|
(528,463) |
(29,528) |
|
|
|
|
|
|
|
Interest income |
2,399 |
3,727 |
|
5,643 |
5,613 |
Write-down of strategic long-term investments |
(6,100) |
- |
|
(6,100) |
- |
|
|
|
|
|
|
|
(Loss) before income taxes |
(478,391) |
(28,655) |
|
(528,920) |
(23,915) |
|
|
|
|
|
|
|
Provision for income taxes |
396 |
287 |
|
746 |
1,709 |
|
|
|
|
|
|
|
Net (loss) |
$(478,787) |
$(28,942) |
|
$(529,666) |
$(25,624) |
|
|
|
|
|
|
|
Weighted average common shares used |
|
|
|
|
|
|
Basic |
63,205 |
53,581 |
|
63,058 |
51,415 |
|
Diluted |
63,205 |
53,581 |
|
63,058 |
51,415 |
|
|
|
|
|
|
|
Net loss per share |
|
|
|
|
|
|
Basic |
($7.58) |
($0.54) |
|
($8.40) |
($0.50) |
|
Diluted |
($7.58) |
($0.54) |
|
($8.40) |
($0.50) |
|
|
|
|
|
|
|
ENTRUST TECHNOLOGIES INC.
|
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands of dollars, except per share data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30 |
|
June 30 |
|
|
2001 |
2000 |
|
2001 |
2000 |
|
|
(unaudited) |
|
(unaudited) |
Revenues: |
|
|
|
|
|
|
License |
$12,554 |
$18,780 |
|
$23,113 |
$39,669 |
|
Services and maintenance |
17,462 |
10,536 |
|
38,408 |
18,709 |
|
Total revenues |
30,016 |
29,316 |
|
61,521 |
58,378 |
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
Licenses |
1,207 |
953 |
|
2,108 |
1,890 |
|
Services and maintenance |
11,289 |
6,064 |
|
24,635 |
10,632 |
|
Total cost of revenues |
12,496 |
7,017 |
|
26,743 |
12,522 |
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
Licenses |
11,347 |
17,827
|
|
21,005 |
37,779 |
|
Services and maintenance |
6,173 |
4,472 |
|
13,773 |
8,077 |
|
Total gross profit |
17,520 |
22,299 |
|
34,778 |
45,856 |
|
|
|
|
|
|
|
|
Sales and marketing |
22,304 |
14,905 |
|
48,884 |
27,762 |
|
Research and development |
8,345 |
5,825 |
|
17,832 |
10,818 |
|
General and administrative |
3,767 |
2,722 |
|
8,454 |
4,914 |
Earnings/(Loss) from operations |
(16,896) |
(1,153) |
|
(40,392) |
2,362 |
|
|
|
|
|
|
|
Interest income |
2,399 |
3,727 |
|
5,643 |
5,613 |
|
|
|
|
|
|
|
Earnings/(loss) before income taxes |
(14,497) |
2,574 |
|
(34,749) |
7,975 |
|
|
|
|
|
|
|
Provision for income taxes |
- |
772 |
|
- |
2,392 |
|
|
|
|
|
|
|
Net Earnings/(loss) |
$(14,497) |
$1,802 |
|
$(34,749) |
$5,583 |
|
|
|
|
|
|
|
Weighted average common shares used |
|
|
|
|
|
|
Basic |
63,205 |
53,581 |
|
63,058 |
51,415 |
|
Diluted |
63,205 |
58,279 |
|
63,058 |
58,019 |
|
|
|
|
|
|
|
Net earnings/(loss) per share |
|
|
|
|
|
|
Basic |
($0.23) |
$0.03 |
|
($0.55) |
$0.11 |
|
Diluted |
($0.23) |
$0.03 |
|
($0.55) |
$0.10 |
|
|
|
|
|
|
|
Note: The above unaudited pro forma condensed consolidated statement of operations exclude the effects of the following:
For all periods presented:
- Acquired in-process research and development, amortization of purchased product rights, goodwill and other purchased intangibles.
- Provision for income taxes adjusted to an effective tax rate of zero on losses and 30% on income.
For the three and six months ended June 30, 2001:
- Impairment of purchased products rights, goodwill and other purchased intangibles ($327.0M).
- Restructuring charges including: expenses associated with the workforce reduction ($13.5M), closure of facilities ($38.2M), and
expenses related to the discontinuance of non-core products and programs ($13.8M).
- Write-down of strategic long-term investments ($6.1M).
- Special non-recurring charges including: workforce related expenses for Restructuring related employee relocations, CEO bonus and hiring fees ($4.1M), write-down of fixed assets and leasehold improvements related to facilities closures ($13.2M), expenses related to the write-off accounts receivable and increase in the allowance for doubtful accounts ($11.0M), and expenses and impairment of assets related to rebranding and expenses related to the discontinuance of non-core products and programs ($6.7M).
ENTRUST TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands of dollars) |
|
|
Jun. 30 |
Dec. 31 |
ASSETS |
|
2001 |
2000 |
|
|
(unaudited) |
|
|
|
|
|
Cash and short-term marketable investments |
|
$ 169,350 |
$ 227,687 |
Accounts receivable, net of allowance for doubtful accounts |
|
28,255 |
46,301 |
Other current assets |
|
6,192 |
9,603 |
Property and equipment, net |
|
19,690 |
25,168 |
Purchased product rights, net |
|
3,406 |
19,259 |
Other purchased intangibles, net |
|
6,333 |
22,054 |
Goodwill, net |
|
9,195 |
365,127 |
Other long-term assets, net |
|
13,457 |
18,907
|
|
|
|
|
|
Total assets |
$ 255,878 |
$ 734,106 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Accounts payable and accruals |
|
$ 27,405 |
$ 39,300 |
Accrued restructuring charges |
|
60,814 |
- |
Deferred income |
|
21,110 |
19,466 |
Due to related party |
|
- |
799 |
Long-term liabilities |
|
248 |
477 |
|
|
|
|
|
Total liabilities |
109,577 |
60,042 |
|
|
|
|
Shareholders' equity |
|
146,301 |
674,064 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ 255,878 |
$ 734,106 |
|