Delaware
|
93-1051328
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer
Identification
Number)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨
|
Fiscal
Period
|
Additional
Compensation
Expense
|
||||
2000
|
$
|
474
|
|||
2001
|
2,082
|
||||
2002
|
2,715
|
||||
2003
|
1,529
|
||||
Adjustment
to accumulated deficit as of December 31, 2003
|
6,800
|
||||
2004
|
928
|
||||
2005
|
325
|
||||
2006
and thereafter
|
208
|
||||
Total
|
$
|
8,261
|
Page
No.
|
||
2
|
||
PART I.
FINANCIAL INFORMATION
|
||
|
|
|
Item 1.
|
5
|
|
|
|
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
|
7
|
|
|
|
|
|
8
|
|
|
|
|
Item 2.
|
35
|
|
|
|
|
Item 3.
|
54
|
|
|
|
|
Item 4.
|
55
|
|
|
||
PART II.
OTHER INFORMATION
|
||
|
|
|
Item 1.
|
58
|
|
|
|
|
Item 1A.
|
59
|
|
|
|
|
Item 6.
|
68
|
|
|
|
|
|
68
|
|
|
|
June
30,
2006
|
September
30,
2005
|
|
|||
|
|
|
|
(restated)(1)
|
|
|||
ASSETS
|
|
|
|
|
||||
Current
assets:
|
|
|
|
|
||||
Cash
and cash equivalents
|
|
$
|
42,664
|
$
|
38,546
|
|
||
Restricted
cash
|
|
|
175
|
|
1,982
|
|
||
Accounts
receivable, net, including $152 and $263 due from related parties
at June
30, 2006 and September 30, 2005, respectively
|
|
|
22,233
|
|
18,979
|
|
||
Prepaid
expenses and other current assets
|
|
|
4,864
|
|
4,345
|
|
||
Total
current assets
|
|
|
69,936
|
|
63,852
|
|
||
Restricted
cash
|
|
|
341
|
|
365
|
|
||
Property
and equipment, net
|
|
|
2,607
|
|
2,479
|
|
||
Goodwill
|
|
|
32,044
|
|
31,907
|
|
||
Intangible
assets, net
|
|
|
4,239
|
|
5,148
|
|
||
Other
assets
|
|
|
2,789
|
|
3,499
|
|
||
Total
assets
|
|
$
|
111,956
|
$
|
107,250
|
|
||
|
|
|
|
|
|
|
||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Current
liabilities:
|
|
|
|
|
||||
Accounts
payable, including $132 and nil due to related parties at June
30, 2006
and 2005, respectively`
|
|
$
|
7,787
|
$
|
4,554
|
|
||
Accrued
expenses
|
|
|
13,781
|
|
9,302
|
|
||
Deferred
revenue, including related party balances of $174 and $370 at June
30,
2006 and September 30, 2005, respectively
|
|
|
21,060
|
|
26,050
|
|
||
Current
portion of capital lease obligations
|
|
|
150
|
|
213
|
|
||
Total
current liabilities
|
|
|
42,778
|
|
40,119
|
|
||
Deferred
revenue—long-term
|
|
|
3,976
|
|
147
|
|
||
Restructuring
costs, net of current portion
|
|
|
1,331
|
|
1,731
|
|
||
Other
long-term liabilities
|
|
|
75
|
|
96
|
|
||
Total
liabilities
|
|
|
48,160
|
|
42,093
|
|
||
Commitments
and contingencies (Notes 6, 8, 9, 10 and 13)
|
|
|
|
|
||||
|
|
|
|
|
|
|
||
Stockholders’
equity:
|
|
|
|
|
||||
Preferred
stock, $0.001 par value; 51,000 shares authorized; none issued
and
outstanding at June 30, 2006 and September 30, 2005
|
|
|
—
|
|
—
|
|
||
Common
stock, $0.001 par value; 300,000 shares authorized; 79,648 and
78,488
shares issued and outstanding at June 30, 2006 and September 30,
2005, respectively
|
|
|
79
|
|
78
|
|
||
Additional
paid-in capital and deferred compensation
|
|
|
284,908
|
|
279,537
|
|
||
Accumulated
deficit
|
|
|
(224,579
|
)
|
|
(216,942
|
)
|
|
Accumulated
other comprehensive income
|
|
|
3,388
|
|
2,484
|
|
||
Total
stockholders’ equity
|
|
|
63,796
|
|
65,157
|
|
||
Total
liabilities and stockholders’ equity
|
|
$
|
111,956
|
$
|
107,250
|
|
|
|
Three Months Ended June
30,
|
Nine Months Ended June
30,
|
|||||||||||||
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
||||||
|
|
|
(restated)(1)
|
(restated)(1)
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
||||||||||
License,
including related party items aggregating $305 for the three months
ended
June 30, 2005, and $5,612 for the nine months ended June 30, 2005,
respectively.
|
|
$
|
10,257
|
$
|
9,228
|
$
|
32,588
|
$
|
25,029
|
|
||||||
Service,
including related party items aggregating $296 and $678 for the
three
months ended June 30, 2006 and 2005, respectively, and $527 and
$2,009 for
the nine months ended June 30, 2006 and 2005, respectively
|
|
|
16,769
|
|
12,393
|
|
43,268
|
|
37,440
|
|
||||||
Total
revenues
|
|
|
27,026
|
|
21,621
|
|
75,856
|
|
62,469
|
|
||||||
Cost
of revenues:
|
|
|
|
|
|
|
||||||||||
License
|
|
|
398
|
|
337
|
|
1,360
|
|
702
|
|
||||||
Service,
including related party items aggregating $468 and nil for the
three
months ended June 30, 2006 and 2005, respectively, and $542 and
nil for
the nine months ended June 30, 2006 and 2005 respectively
|
|
|
8,965
|
|
7,311
|
|
23,217
|
|
22,456
|
|
||||||
Amortization
of intangible assets
|
|
|
303
|
|
303
|
|
908
|
|
765
|
|
||||||
Total
cost of revenues
|
|
|
9,666
|
|
7,951
|
|
25,485
|
|
23,923
|
|
||||||
Gross
profit
|
|
|
17,360
|
|
13,670
|
|
50,371
|
|
38,546
|
|
||||||
Operating
expenses:
|
|
|
|
|
|
|
||||||||||
Sales
and marketing
|
|
|
7,976
|
|
7,275
|
|
24,876
|
|
21,678
|
|
||||||
Research
and development
|
|
|
7,780
|
|
5,421
|
|
18,159
|
|
15,600
|
|
||||||
General
and administrative
|
|
|
4,842
|
|
4,679
|
|
14,806
|
|
13,812
|
|
||||||
Amortization
of intangible assets
|
|
|
—
|
|
—
|
|
—
|
|
118
|
|
||||||
Purchased
in-process research and development
|
|
|
—
|
|
—
|
|
—
|
|
1,940
|
|
||||||
Restructuring
reversal
|
|
|
—
|
|
—
|
|
—
|
|
(96
|
)
|
||||||
Total
operating expenses
|
|
|
20,598
|
|
17,375
|
|
57,841
|
|
53,052
|
|
||||||
Loss
from operations
|
|
|
(3,238
|
)
|
|
(3,705
|
)
|
|
(7,470
|
)
|
|
(14,506
|
)
|
|||
Interest
income, net
|
|
|
329
|
|
147
|
|
809
|
|
539
|
|
||||||
Other
income (expense), net
|
|
|
(623
|
)
|
|
186
|
|
(536
|
)
|
|
(43
|
)
|
||||
Net
loss before income taxes
|
|
|
(3,532
|
)
|
|
(3,372
|
)
|
|
(7,197
|
)
|
|
(14,010
|
)
|
|||
Provision
for income taxes
|
|
|
150
|
|
138
|
|
441
|
|
293
|
|
||||||
Net
loss
|
|
$
|
(3,682
|
)
|
$
|
(3,510
|
)
|
$
|
(7,638
|
)
|
$
|
(14,303
|
)
|
|||
Other
comprehensive loss:
|
|
|
|
(
|
|
|
|
|||||||||
Foreign
currency translation gain (loss)
|
|
|
971
|
|
(588
|
)
|
|
904
|
|
(476
|
)
|
|||||
Comprehensive
loss
|
|
$
|
(2,711
|
)
|
$
|
(4,098
|
)
|
$
|
(6,734
|
)
|
$
|
(14,779
|
)
|
|||
Net
loss per share— basic and diluted
|
|
$
|
(0.05
|
)
|
$
|
(0.05
|
)
|
$
|
(0.10
|
)
|
$
|
(0.19
|
)
|
|||
Weighted
average shares used in computing basic and diluted loss per
share
|
|
|
78,035
|
|
75,080
|
|
77,358
|
|
73,966
|
|
Nine Months Ended June
30,
|
||||||||
|
|
|
2006
|
|
2005
|
|
||
|
|
|
|
(restated)(1)
|
|
|||
Cash
flows from operating activities:
|
|
|
|
|
||||
Net
loss
|
|
$
|
(7,638
|
)
|
$
|
(14,303
|
)
|
|
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
||||
Depreciation
and amortization
|
|
|
892
|
|
1,063
|
|
||
Purchased
in-process research and development
|
|
|
—
|
|
1,940
|
|
||
Amortization
of intangibles and capitalized software
|
|
|
1,583
|
|
883
|
|
||
Non-cash
stock-based compensation expense
|
|
|
3,694
|
|
1,851
|
|
||
Provision
for doubtful accounts and sales returns
|
|
|
51
|
|
86
|
|
||
Warrants
issued to customers
|
|
|
—
|
|
(42
|
)
|
||
Loss
(gain) on disposal of assets
|
|
|
39
|
|
(46
|
)
|
||
Other
non-cash charges
|
|
|
105
|
|
127
|
|
||
Changes
in assets and liabilities:
|
|
|
|
|
||||
Accounts
receivable
|
|
|
(3,122
|
)
|
|
(3,430
|
)
|
|
Prepaid
expenses and other current assets
|
|
|
(628
|
)
|
|
(1,470
|
)
|
|
Other
assets
|
|
|
(60
|
)
|
|
173
|
|
|
Accounts
payable
|
|
|
3,171
|
|
(3,481
|
)
|
||
Accrued
expenses
|
|
|
4,055
|
|
1,545
|
|
||
Deferred
revenue
|
|
|
(1,489
|
)
|
|
4,677
|
|
|
Net
cash provided by (used in) operating activities
|
|
|
653
|
|
(10,427
|
)
|
||
Cash
flows from investing activities:
|
|
|
|
|
||||
Property
and equipment purchases
|
|
|
(1,043
|
)
|
|
(630
|
)
|
|
Capitalized
product development costs
|
|
|
—
|
|
(2,089
|
)
|
||
Cash
used for acquisitions, net
|
|
|
—
|
|
(9,783
|
)
|
||
Cash
proceeds from disposal of property and equipment
|
|
|
11
|
|
—
|
|
||
Purchase
of marketable securities available for sale
|
|
|
—
|
|
(100
|
)
|
||
Proceeds
from release of (increase in) restricted cash
|
|
|
1,875
|
|
(8
|
)
|
||
Net
cash provided by (used for) investing activities
|
|
|
843
|
|
(12,610
|
)
|
||
Cash
flows from financing activities:
|
|
|
|
|
||||
Proceeds
from exercise of stock options
|
|
|
1,682
|
|
329
|
|
||
Payment
on capital leases
|
|
|
(158
|
)
|
|
(149
|
)
|
|
Net
cash provided by financing activities
|
|
|
1,524
|
|
180
|
|
||
Effect
of exchange rate changes
|
|
|
1,098
|
|
(152
|
)
|
||
Net
increase (decrease) in cash and cash equivalents
|
|
|
4,118
|
|
(23,009
|
)
|
||
Cash
and cash equivalents at beginning of period
|
|
|
38,546
|
|
55,748
|
|
||
Cash
and cash equivalents at end of period
|
|
$
|
42,664
|
$
|
32,739
|
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30
|
|||||||||||||||||
|
2006
|
2005
|
2006
|
2005
|
|
|||||||||||||
Citicorp
Credit Services, Inc.
|
|
16
|
%
|
|
*
|
|
|
13
|
%
|
|
*
|
|
||||||
Sky
Subscribers Service
|
|
13
|
%
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||
Capital
One Services, Inc.
|
|
*
|
|
|
16
|
%
|
|
10
|
%
|
|
22
|
%
|
||||||
ING
Canada, Inc.
|
|
*
|
|
|
14
|
%
|
|
*
|
|
|
*
|
|
||||||
Barclays
Bank plc
|
|
*
|
|
|
*
|
|
|
*
|
|
|
10
|
%
|
||||||
Three Months Ended June
30,
|
Nine Months Ended June
30,
|
|||||||||||||||
|
|
2006
|
2005
|
2006
|
2005
|
|
||||||||||
|
|
(restated)(1)
|
(restated)(1)
|
|||||||||||||
Net
loss available to common stockholders
|
$
|
(3,682
|
)
|
$
|
(3,510
|
)
|
$
|
(7,638
|
)
|
$
|
(14,303
|
)
|
||||
Weighted
average common stock outstanding
|
|
79,275
|
|
|
77,103
|
|
|
78,598
|
|
|
75,686
|
|
||||
Common
stock subject to repurchase
|
|
(1,240
|
)
|
|
(2,023
|
)
|
|
(1,240
|
)
|
|
(1,720
|
)
|
||||
Denominator
for basic and diluted calculation
|
|
78,035
|
|
|
75,080
|
|
|
77,358
|
|
|
73,966
|
|
||||
Net
loss per share - basic and diluted
|
$
|
(0.05
|
)
|
$
|
(0.05
|
)
|
$
|
(0.10
|
)
|
$
|
(0.19
|
)
|
|
|
June
30,
2006
|
|
|
June
30,
2005
|
|
||
Warrants
outstanding
|
|
1,662
|
|
|
1,662
|
|
||
Employee
stock options
|
|
9,801
|
|
|
9,748
|
|
||
Restricted
stock
|
|
1,240
|
|
|
2,023
|
|
||
|
|
|
12,703
|
|
|
13,433
|
|
· |
There
was a lack of oversight in the issuance and administration of the
Company’s stock options.
|
· |
There
was poor record keeping in connection with the authorization and
issuance
of stock options.
|
· |
Stock
options were granted for which the Company can not provide evidence
of
authorization consistent with the terms of the applicable option
plan and
Board of Directors resolutions.
|
· |
In
some cases, the Company issued stock options having exercise prices
that
were not consistent with the requirements of the applicable option
plan.
|
· |
There
is evidence to suggest that in some cases the dates used to establish
the
exercise prices for certain options were intentionally and selectively
chosen based on dates on which the closing prices of the Company’s stock
were lower than on the dates on which the options may have been actually
granted.
|
· |
There
is inconclusive evidence that on one occasion in 2002, a former employee
changed the date on documentation relating to the exercise of a stock
option by means of a promissory note to reflect an earlier exercise
date.
There is also inconclusive evidence that certain other option exercises
in
2001 by means of promissory notes may have been memorialized with
dates
preceding the actual exercise dates.
|
· |
With
respect to certain individuals, there was insufficient evidence to
support
a definitive conclusion that they appreciated the accounting or disclosure
issues associated with the Company’s stock option practices, or knowingly
participated in actions intended to mislead or deceive the Company’s
auditors.
|
Total
effect
at
September
30,
2005
|
Year
ended
September
30,
2005
|
Nine
months
ended
September
30,
2004
|
Total
effect at
December
31,
2003
|
||||||||||||
Net
loss, as previously reported
|
$
|
(19,540
|
)
|
$
|
(443
|
)
|
|||||||||
Additional
compensation expense resulting from improper measurement dates
for stock
option grants
|
$
|
(7,652
|
)
|
(187
|
)
|
(761
|
)
|
(6,704
|
)
|
||||||
Payroll
tax related effects
|
(401
|
)
|
(138
|
)
|
(167
|
)
|
(96
|
)
|
|||||||
Total
increase to net loss
|
$
|
(8,053
|
)
|
(325
|
)
|
(928
|
)
|
$
|
(6,800
|
)
|
|||||
Net
loss, as restated
|
$
|
(19,865
|
)
|
$
|
(1,371
|
)
|
|||||||||
Year
ended
December
31, 2003
|
Year
ended
December
31,
2002
|
Year
ended
December
31,
2001
|
Year
ended
December
31,
2000
|
||||||||||||
Additional
compensation expense resulting from improper measurement dates
for stock
option grants
|
$
|
(1,433
|
)
|
$
|
(2,715
|
)
|
$
|
(2,082
|
)
|
$
|
(474
|
)
|
|||
Payroll
tax related effects
|
(96
|
)
|
—
|
—
|
—
|
||||||||||
Total
increase to net loss
|
$
|
(1,529
|
)
|
$
|
(2,715
|
)
|
$
|
(2,082
|
)
|
$
|
(474
|
)
|
|||
|
September
30, 2005
|
|||||||||||
|
As
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
ASSETS
|
||||||||||||
Current
assets:
|
|
|
||||||||||
Cash
and cash equivalents
|
$
|
38,546
|
$
|
—
|
$
|
38,546
|
||||||
Restricted
cash
|
|
1,982
|
—
|
1,982
|
||||||||
Accounts
receivable
|
|
18,979
|
|
—
|
|
18,979
|
||||||
Prepaid
expenses and other current assets
|
|
4,345
|
|
—
|
|
4,345
|
||||||
Total
current assets
|
|
63,852
|
|
—
|
|
63,852
|
||||||
Restricted
cash
|
|
365
|
|
—
|
|
365
|
||||||
Property
and equipment, net
|
|
2,479
|
|
—
|
|
2,479
|
||||||
Goodwill
|
|
31,907
|
|
—
|
|
31,907
|
||||||
Intangible
assets, net
|
|
5,148
|
|
—
|
|
5,148
|
||||||
Other
assets
|
|
3,499
|
|
—
|
|
3,499
|
||||||
Total
assets
|
$
|
107,250
|
$
|
—
|
$
|
107,250
|
||||||
|
|
|
|
|||||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|||||||||
Current
liabilities:
|
|
|
|
|||||||||
Accounts
payable
|
$
|
4,554
|
$
|
—
|
$
|
4,554
|
||||||
Accrued
expenses
|
|
8,902
|
400
|
9,302
|
||||||||
Deferred
revenue
|
|
26,050
|
|
—
|
|
26,050
|
||||||
Current
portion of capital lease obligations
|
|
213
|
|
—
|
|
213
|
||||||
Total
current liabilities
|
|
39,719
|
|
400
|
|
40,119
|
||||||
Deferred
revenue—long-term
|
|
147
|
|
—
|
|
147
|
||||||
Restructuring
costs, net of current portion
|
|
1,731
|
|
—
|
|
1,731
|
||||||
Other
long-term liabilities
|
|
96
|
|
—
|
|
96
|
||||||
Total
liabilities
|
|
41,693
|
|
400
|
|
42,093
|
||||||
|
|
|
|
|
|
|||||||
Stockholders’
equity:
|
|
|
|
|||||||||
Preferred
stock, $0.001 par value; 51,000 shares authorized; none issued
and
outstanding at September 30, 2005
|
|
—
|
|
—
|
|
—
|
||||||
Common
stock, $0.001 par value; 300,000 shares authorized; 78,488 shares
issued
and outstanding at September 30, 2005
|
|
78
|
|
—
|
|
78
|
||||||
Additional
paid-in capital
|
273,824
|
|
7,653
|
|
281,477
|
|||||||
Deferred
stock-based compensation
|
(1,940
|
)
|
—
|
(1,940
|
)
|
|||||||
Accumulated
deficit
|
(208,889
|
)
|
(8,053
|
)
|
(216,942
|
)
|
||||||
Accumulated
other comprehensive income
|
2,484
|
—
|
2,484
|
|||||||||
Total
stockholders’ equity
|
65,557
|
(400
|
)
|
65,157
|
||||||||
Total
liabilities and stockholders’ equity
|
$
|
107,250
|
$
|
—
|
$
|
107,250
|
Three
Months Ended June 30, 2005
|
Nine
Months Ended June 30, 2005
|
||||||||||||||||||||||
As
Previously
Reported
|
|
Adjustments
|
|
Restated
|
As
Previously
Reported
|
|
Adjustments
|
|
Restated
|
||||||||||||||
|
|
||||||||||||||||||||||
Revenues:
|
|
|
|||||||||||||||||||||
License
|
$
|
9,228
|
—
|
$
|
9,228
|
$
|
25,029
|
—
|
$
|
25,029
|
|||||||||||||
Service
|
|
12,393
|
—
|
12,393
|
37,440
|
—
|
37,440
|
||||||||||||||||
Total
revenues
|
|
21,621
|
—
|
21,621
|
62,469
|
—
|
62,469
|
||||||||||||||||
Cost
of revenues:
|
|
||||||||||||||||||||||
License
|
|
337
|
—
|
337
|
702
|
—
|
702
|
||||||||||||||||
Service
|
|
7,300
|
11
|
7,311
|
22,393
|
63
|
22,456
|
||||||||||||||||
Amortization
of intangible assets
|
|
303
|
—
|
303
|
765
|
—
|
765
|
||||||||||||||||
Total
cost of revenues
|
|
7,940
|
11
|
7,951
|
23,860
|
63
|
23,923
|
||||||||||||||||
Gross
profit
|
|
13,681
|
(11
|
)
|
13,670
|
38,609
|
(63
|
)
|
38,546
|
||||||||||||||
Operating
expenses:
|
|
||||||||||||||||||||||
Sales
and marketing
|
|
7,262
|
13
|
7,275
|
21,624
|
54
|
21,678
|
||||||||||||||||
Research
and development
|
|
5,408
|
13
|
5,421
|
15,556
|
44
|
15,600
|
||||||||||||||||
General
and administrative
|
|
4,672
|
7
|
4,679
|
13,758
|
54
|
13,812
|
||||||||||||||||
Amortization
of intangible assets
|
|
—
|
—
|
—
|
118
|
—
|
118
|
||||||||||||||||
Purchased
in-process research and development
|
|
—
|
—
|
—
|
1,940
|
—
|
1,940
|
||||||||||||||||
Restructuring
reversal
|
|
—
|
—
|
—
|
(96
|
)
|
—
|
(96
|
)
|
||||||||||||||
Total
operating expenses
|
|
17,342
|
33
|
17,375
|
52,900
|
152
|
53,052
|
||||||||||||||||
Loss
from operations
|
|
(3,661
|
)
|
(44
|
)
|
(3,705
|
)
|
(14,291
|
)
|
(215
|
)
|
(14,506
|
)
|
||||||||||
Interest
income, net
|
|
147
|
—
|
147
|
539
|
—
|
539
|
||||||||||||||||
Other
income (expense), net
|
|
186
|
—
|
186
|
(43
|
)
|
—
|
(43
|
)
|
||||||||||||||
Net
loss before income taxes
|
|
(3,328
|
)
|
(44
|
)
|
(3,372
|
)
|
(13,795
|
)
|
(215
|
)
|
(14,010
|
)
|
||||||||||
Provision
for income taxes
|
|
138
|
138
|
293
|
293
|
||||||||||||||||||
Net
loss
|
$
|
(3,466
|
)
|
$
|
(44
|
)
|
$
|
(3,510
|
)
|
$
|
(14,088
|
)
|
$
|
(215
|
)
|
$
|
(14,303
|
)
|
|||||
Other
comprehensive loss:
|
(
|
(
|
|||||||||||||||||||||
Foreign
currency translation loss
|
(588
|
)
|
—
|
(588
|
)
|
(476
|
)
|
—
|
(476
|
)
|
|||||||||||||
Comprehensive
loss
|
$
|
(4,054
|
)
|
$
|
—
|
$
|
(4,098
|
)
|
$
|
(14,565
|
)
|
$
|
—
|
$
|
(14,779
|
)
|
|||||||
Net
loss per share— basic and diluted
|
$
|
(0.05
|
)
|
$
|
—
|
$
|
(0.05
|
)
|
$
|
(0.19
|
)
|
$
|
—
|
$
|
(0.19
|
)
|
|||||||
Weighted
average shares used in computing basic and diluted loss per
share
|
75,080
|
—
|
75,080
|
73,966
|
—
|
73,966
|
Nine
Months Ended June 30, 2005
|
||||||||||||
|
As
Previously
Reported
|
|
Adjustments
|
|
Restated
|
|||||||
Cash
flows from operating activities
|
||||||||||||
Net
loss
|
$
|
(14,088
|
)
|
$
|
(215
|
)
|
$
|
(14,303
|
)
|
|||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
|
|
—
|
|
|
|||||||
Depreciation
and amortization
|
|
1,063
|
|
—
|
|
1,063
|
|
|||||
Purchased
in-process research and development
|
|
1,940
|
|
—
|
|
1,940
|
|
|||||
Amortization
of intangibles and capitalized software
|
|
883
|
|
—
|
|
883
|
|
|||||
Non-cash
stock-based compensation expense
|
|
1,647
|
|
204
|
|
1,851
|
|
|||||
Provision
for doubtful accounts
|
|
86
|
|
—
|
|
86
|
|
|||||
Warrants
issued to customers
|
|
(42
|
)
|
—
|
|
(42
|
)
|
|||||
Loss
on disposal of assets
|
|
(46
|
)
|
—
|
|
(46
|
)
|
|||||
Other
non-cash charges
|
|
127
|
|
—
|
|
127
|
|
|||||
Changes
in assets and liabilities:
|
|
|
|
|
||||||||
Accounts
receivable
|
|
(3,430
|
)
|
—
|
|
(3,430
|
)
|
|||||
Prepaid
expenses and other current assets
|
|
(1,470
|
)
|
—
|
|
(1,470
|
)
|
|||||
Other
assets
|
|
173
|
|
—
|
|
173
|
|
|||||
Accounts
payable
|
|
(3,481
|
)
|
—
|
|
(3,481
|
)
|
|||||
Accrued
expenses
|
|
1,534
|
|
11
|
|
1,545
|
|
|||||
Deferred
revenue
|
|
4,677
|
|
—
|
|
4,677
|
|
|||||
Net
cash used in operating activities
|
|
(10,427
|
)
|
—
|
|
(10,427
|
)
|
|||||
Cash
flows from investing activities:
|
|
|
|
|
||||||||
Property
and equipment purchases
|
|
(630
|
)
|
—
|
|
(630
|
)
|
|||||
Capitalized
product development costs
|
|
(2,089
|
)
|
—
|
|
(2,089
|
)
|
|||||
Cash
used for acquisitions, net
|
|
(9,783
|
)
|
—
|
|
(9,783
|
)
|
|||||
Purchases
of marketable securities available for sale
|
|
(100
|
)
|
—
|
|
(100
|
)
|
|||||
Increase
in restricted cash
|
|
(8
|
)
|
—
|
|
(8
|
)
|
|||||
Net
cash used for investing activities
|
|
(12,610
|
)
|
—
|
|
(12,610
|
)
|
|||||
Cash
flows from financing activities:
|
|
|
—
|
|
|
|||||||
Proceeds
from exercise of stock options
|
|
329
|
|
—
|
|
329
|
|
|||||
Payment
on capital leases
|
|
(149
|
)
|
—
|
|
(149
|
)
|
|||||
Net
cash provided by financing activities
|
|
180
|
|
—
|
|
180
|
|
|||||
Effect
of exchange rate changes
|
|
(152
|
)
|
—
|
|
(152
|
)
|
|||||
Net
decrease in cash and cash equivalents
|
|
(23,009
|
)
|
—
|
|
(23,009
|
)
|
|||||
Cash
and cash equivalents at beginning of period
|
|
55,748
|
|
—
|
|
55,748
|
|
|||||
Cash
and cash equivalents at end of period
|
$
|
32,739
|
|
$
|
—
|
$
|
32,739
|
|
June
30,
2006
|
September
30,
2005
|
|
||||||
Accounts
receivable, net:
|
|
|
|
|
||||
Accounts
receivable
|
$
|
22,375
|
|
$
|
19,193
|
|
||
Less:
allowance for doubtful accounts
|
|
(142
|
)
|
|
(214
|
)
|
||
|
|
$
|
22,233
|
|
$
|
18,979
|
|
|
|
June
30,
2006
|
September
30,
2005
|
|||||
Property
and equipment, net:
|
|
|||||||
Computer
hardware (useful lives of 3 years)
|
$
|
3,421
|
|
$
|
9,216
|
|||
Purchased
internal-use software (useful lives of 3 years)
|
|
2,127
|
|
|
2,336
|
|
||
Furniture
and equipment (useful lives of 3 to 7 years)
|
|
840
|
|
|
1,508
|
|
||
Computer
equipment and software under capital leases (useful lives of
3 years)
|
|
549
|
|
|
549
|
|
||
Leasehold
improvements (shorter of 7 years or the term of the lease)
|
|
2,693
|
|
|
2,855
|
|
||
|
|
9,630
|
|
|
16,464
|
|
||
Accumulated
depreciation and amortization
|
|
(7,023
|
)
|
|
(13,985
|
)
|
||
|
|
$
|
2,607
|
|
$
|
2,479
|
|
June
30, 2006
|
September 30,
2005
|
|||||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
|
|||||||||||||||
Intangible
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Developed
technologies
|
|
$
|
6,904
|
|
$
|
(3,748
|
)
|
$
|
3,156
|
|
$
|
6,904
|
|
$
|
(3,075
|
)
|
$
|
3,829
|
|
|||||
Customer
list and trade names
|
|
|
2,732
|
|
|
(1,649
|
)
|
|
1,083
|
|
|
2,732
|
|
|
(1,413
|
)
|
|
1,319
|
|
|||||
|
|
$
|
9,636
|
|
$
|
(5,397
|
)
|
$
|
4,239
|
|
$
|
9,636
|
|
$
|
(4,488
|
)
|
$
|
5,148
|
|
|
June
30,
2006
|
|
September
30,
2005
|
|||||||||||
|
|
|
As
Previously
Reported
|
|
Adjustment
|
Restated(1)
|
||||||||
Accrued
expenses:
|
||||||||||||||
Accrued
payroll, payroll taxes and related expenses
|
$
|
6,716
|
|
$
|
4,094
|
|
$
|
400
|
$
|
4,494
|
||||
Accrued
restructuring expenses, current portion (Note 6)
|
|
|
950
|
|
|
1,235
|
|
|
—
|
|
1,235
|
|||
Accrued
third party consulting fees
|
1,785
|
521
|
—
|
521
|
||||||||||
Accrued
income, sales and other taxes
|
2,857
|
1,156
|
—
|
1,156
|
||||||||||
Other
accrued liabilities
|
|
|
1,473
|
|
|
1,896
|
|
|
—
|
|
1,896
|
|||
|
$
|
13,781
|
|
$
|
8,902
|
|
$
|
400
|
$
|
9,302
|
|
Nine Months
Ended
June
30, 2005
|
|
|||
|
(restated)
|
|
|||
Pro
forma adjusted total revenue
|
$
|
63,363
|
|
||
Pro
forma adjusted net loss
|
$
|
(12,829
|
)
|
||
Pro
forma adjusted net loss per share—basic and diluted
|
$
|
(0.17
|
)
|
||
Pro
forma weighted average shares—basic and diluted
|
|
75,956
|
|
|
|
Current
|
Non-Current
|
Total
|
|
|||||
Severance
and termination
|
$
|
31
|
|
$
|
—
|
|
$
|
31
|
|
|
Excess
facilities
|
|
919
|
|
|
1,331
|
|
|
2,250
|
|
|
Total
|
$
|
950
|
|
$
|
1,331
|
|
$
|
2,281
|
|
Fiscal
Year Ended September 30,
|
Total
Future
Minimum
Payments
|
|
|
||||
2006
(remaining three months)
|
$
|
114
|
|
|
|||
2007
|
|
891
|
|
|
|||
2008
|
|
351
|
|
|
|||
2009
|
|
357
|
|
|
|||
2010
|
|
364
|
|
|
|||
Thereafter
|
|
173
|
|
|
|||
Total
|
$
|
2,250
|
|
|
|
|
Severance
and Benefits
|
|
||
Reserve
balance at September 30, 2005
|
$
|
469
|
|
||