Financial Statements

EX-99.2 3 dex992.htm FINANCIAL STATEMENTS Financial Statements

Exhibit 99.2

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Pro Forma Statement of Operations

(In thousands, except per share data, unaudited)


	Three Months Ended						Six Months Ended
	July 30, 2004			August 1, 2003			July 30, 2004			August 1, 2003
Revenues
License fees	$	890		$	11,321		$	5,862		$	24,891
Services		17,672			21,880			43,919			40,403

Total revenues		18,562			33,201			49,781			65,294

Costs and expenses
Cost of license fees		99			22			126			109
Cost of services		17,578			13,195			33,813			24,808
Research and development		9,892			6,981			17,491			14,148
Sales and marketing		11,879			11,633			23,192			23,022
General and administrative		5,120			3,095			9,049			6,428

Total costs and expenses		44,568			34,926			83,671			68,515

Pro forma loss from operations		(26,006	)		(1,725	)		(33,890	)		(3,221	)
Interest and other income (loss), net		(291	)		(152	)		(592	)		(29	)

Pro forma loss before income taxes		(26,297	)		(1,877	)		(34,482	)		(3,250	)
Provision for income taxes		697			(600	)		162			(1,236	)

Pro forma net loss	$	(25,600	)	$	(2,477	)	$	(34,320	)	$	(4,486	)


Items excluded from pro forma net loss
Stock option compensation charges		3,563			(23,749	)		7,338			(30,839	)
Amortization of acquired intangibles		(665	)		(665	)		(1,330	)		(1,330	)
Restructuring costs		361			—			(25	)		—

GAAP net loss	$	(22,341	)	$	(26,891	)	$	(28,337	)	$	(36,655	)


Pro forma loss per share
Pro forma net loss per share	$	(0.60	)	$	(0.07	)	$	(0.81	)	$	(0.12	)

Shares used in computing pro forma net loss per share		42,533			36,102			42,362			35,908


GAAP loss per share
Basic and diluted net loss per share	$	(0.53	)	$	(0.74	)	$	(0.67	)	$	(1.02	)

Shares used in computing basic and diluted net loss per share		42,533			36,102			42,362			35,908

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Condensed Consolidated Balance Sheets

(In thousands)


	July 30, 2004			January 30, 2004
Assets	(Unaudited)
Current assets
Cash and short-term investments	$	69,717		$	85,460
Accounts receivable, net		18,385			29,749
Deferred contract costs		1,717			103
Prepaid expenses and other current assets		3,562			3,926

Total current assets		93,381			119,238
Property and equipment, net		20,810			20,848
Purchased developed technology, net		665			1,995
Restricted long-term investments		14,019			13,164
Other assets		2,675			2,910

Total assets	$	131,550		$	158,155


Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	9,212		$	5,390
Accrued employee benefits		8,953			8,829
Current portion restructuring costs		8,884			9,193
Other accrued liabilities		12,474			12,870
Current portion of long-term debt		96			96
Deferred revenue		37,378			28,891

Total current liabilities		76,997			65,269
Long-term accrued restructuring costs		14,826			18,791
Long-term notes payable and other liabilities		1,554			1,564

Total liabilities		93,377			85,624

Stockholders' equity
Common stock		43			42
Additional paid-in capital		613,440			618,966
Accumulated other comprehensive income (loss)		(1,189	)		(647	)
Notes receivable from stockholders		(15	)		(61	)
Accumulated deficit		(574,106	)		(545,769	)

Total stockholders' equity		38,173			72,531


Total liabilities and stockholders' equity	$	131,550		$	158,155