 |
2003 Third-Quarter Financial Statements
• Condensed Consolidated Statements of Operations (view)
• Condensed Consolidated Balance Sheets (view)
|
ENTRUST, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES |
|
(in thousands, except per share data) |
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30 |
|
September 30 |
| |
|
2003
|
2002
|
|
2003
|
2002
|
| |
|
(unaudited) |
|
(unaudited) |
| Revenues: |
|
|
|
|
|
| |
License |
$5,159 |
$8,548 |
|
$20,736 |
$32,542 |
| |
Services and maintenance |
14,879
|
15,460
|
|
43,446
|
45,495
|
| Total revenues |
20,038
|
24,008
|
|
64,182
|
78,037
|
| |
|
|
|
|
|
|
| Cost of revenues: |
|
|
|
|
|
| |
Licenses |
881 |
803 |
|
2,561 |
2,768 |
| |
Services and maintenance |
7,926
|
8,177
|
|
23,624
|
25,222
|
| Total cost of revenues |
8,807
|
8,980
|
|
26,185
|
27,990
|
| |
|
|
|
|
|
|
| Gross profit: |
|
|
|
|
|
| |
Licenses |
4,278 |
7,745 |
|
18,175 |
29,774 |
| |
Services and maintenance |
6,953
|
7,283
|
|
19,822
|
20,273
|
| Total gross profit |
11,231
|
15,028
|
|
37,997
|
50,047
|
| |
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
| |
Sales and marketing |
8,758 |
11,043 |
|
27,739 |
33,920 |
| |
Research and development |
5,953 |
5,827 |
|
18,182 |
18,336 |
| |
General and administrative |
3,223 |
3,525 |
|
10,073 |
10,924 |
| |
Amortization of purchased product rights |
- |
284 |
|
568 |
852 |
| |
Impairment of purchased product rights |
- |
- |
|
1,134 |
- |
| |
Restructuring charges |
2,233
|
-
|
|
13,623
|
(1,079)
|
| (Loss) from operations |
(8,936)
|
(5,651)
|
|
(33,322)
|
(12,906)
|
| |
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
| |
Interest income |
377 |
754 |
|
1,409 |
2,504 |
| |
Foreign exchange gain (loss) |
(92) |
96 |
|
(372) |
(114) |
| |
Loss from equity investment |
(212) |
(135) |
|
(450) |
(505) |
| |
Write-down of long-term strategic investments |
-
|
-
|
|
(2,780)
|
(1,238)
|
| Total other income (expense) |
73
|
715
|
|
(2,193)
|
647
|
| |
|
|
|
|
|
|
| (Loss) before income taxes |
(8,863) |
(4,936) |
|
(35,515) |
(12,259) |
| |
|
|
|
|
|
|
| Provision for income taxes |
91
|
276
|
|
411
|
1,071
|
| |
|
|
|
|
|
|
| Net (loss) |
$(8,954)
|
$(5,212)
|
|
$(35,926)
|
$(13,330)
|
| |
|
|
|
|
|
|
| Weighted average common shares used |
|
|
|
|
|
| |
Basic |
63,407 |
65,115 |
|
63,600 |
64,993 |
| |
Diluted |
63,407 |
65,115 |
|
63,600 |
64,993 |
| |
|
|
|
|
|
|
| Net (loss) per share |
|
|
|
|
|
| |
Basic |
($0.14) |
($0.08) |
|
($0.56) |
($0.21) |
| |
Diluted |
($0.14) |
($0.08) |
|
($0.56) |
($0.21) |
| |
|
|
|
|
|
|
|
ENTRUST, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(in thousands) |
| |
|
September 30 |
December 31 |
| ASSETS |
|
2003
|
2002
|
| |
|
(unaudited) |
|
| |
|
|
|
| Cash and marketable investments |
|
$110,392 |
$131,446 |
| Accounts receivable, net of allowance for doubtful accounts |
|
16,315 |
22,323 |
| Other current assets |
|
4,072 |
4,500 |
| Property and equipment, net |
|
8,603 |
12,795 |
| Purchased product rights, net |
|
- |
1,702 |
| Goodwill and other purchased intangibles, net |
|
11,186 |
11,186 |
| Long-term equity investment |
|
814 |
1,264 |
| Other long-term assets, net |
|
1,701
|
4,355
|
| |
|
|
|
| |
Total assets |
$153,083
|
$189,571
|
| |
|
|
|
| |
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
| |
|
|
|
| Accounts payable and accruals |
|
$15,885 |
$21,766 |
| Accrued restructuring charges |
|
38,341 |
33,166 |
| Deferred revenue |
|
18,419 |
16,547 |
| Long-term liabilities |
|
225
|
227
|
| |
|
|
|
| |
Total liabilities |
72,870 |
71,706 |
| |
|
|
|
| Shareholders' equity |
|
80,213
|
117,865
|
| |
|
|
|
| |
Total liabilities and shareholders' equity |
$153,083
|
$189,571
|
|
