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Previous: RYDEX ADVISOR VARIABLE ANNUITY ACCOUNT, 485BPOS, 1997-11-21 |
Next: AMERICAN RESIDENTIAL SERVICES INC, 4, 1997-11-21 |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A-2
(Mark One)
[X] Quarterly Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1997
or
[ ] Transition Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the transition period from___to___
Commission File Number: 1-11859
PEGASYSTEMS INC.
(Exact name of Registrant as specified in its charter)
Massachusetts 04-2787865
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization )
101 Main Street
Cambridge, MA 02142-1590
(Address of principal executive offices) (zip code)
(617) 374-9600
(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 X No
---- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
There were 28,487,600 shares of the Registrant's common stock, $.01 par value
per share, outstanding on June 30, 1997.
<PAGE>
PEGASYSTEMS INC. AND SUBSIDIARY
Index to Form 10-Q/A-2
Part I - Financial Information
Page
----
Item 1. Financial Statements
Condensed Consolidated Balance Sheets at December 31, 1996 3
and June 30, 1997
Condensed Consolidated Statements of Income for the three 4
and six months ended: June 30, 1996 and June 30, 1997
Condensed Consolidated Statements of Cash Flows for the six 5
months ended: June 30, 1996 and June 30, 1997
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K 6
SIGNATURES 7
<PAGE>
Form 10-Q/A-2 Page 3 of 7
PEGASYSTEMS INC.
Condensed Consolidated Balance Sheets
(in thousands, except share-related amounts)
(Unaudited)
<TABLE>
<CAPTION>
December 31, June 30,
1996 1997
------------------ -----------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $24,201 $ 72,511
Trade and installment accounts receivable, net of
allowance for doubtful accounts of $939 at
December 31, 1996 and $671 at June 30, 1997 14,582 17,744
Prepaid expenses and other assets 1,235 1,620
------------------ -----------------
Total current assets 40,018 91,875
Long-term license installments, net 23,802 27,604
Equipment and improvements, net 3,035 3,832
------------------ -----------------
Total assets $66,855 $123,311
================== =================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 2,697 $ 3,250
Deferred revenue 53 2,176
Deferred income taxes 2,904 1,865
------------------ -----------------
Total current liabilities 5,654 7,291
------------------ -----------------
Deferred income taxes 8,816 10,406
------------------ -----------------
Stockholders' Equity:
Preferred stock, $.01 par value, 1,000,000 shares
authorized; no shares issued and outstanding -- --
Common stock, $.01 par value, 45,000,000 shares
authorized; 26,392,200 shares and 28,487,600 shares
issued and outstanding at December 31, 1996 and June
30, 1997, respectively 264 287
Additional paid-in capital 30,206 82,584
Deferred compensation (73) (63)
Retained earnings 22,022 22,921
Cumulative foreign currency translation adjustment (34) (115)
------------------ -----------------
Total stockholders' equity 52,385 105,614
------------------ -----------------
Total liabilities and stockholders' equity $66,855 $123,311
================== =================
</TABLE>
The accompanying Notes are an integral part of these Condensed
Consolidated Financial Statements.
<PAGE>
Form 10-Q/A-2 Page 4 of 7
PEGASYSTEMS INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1997 1996 1997
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenue
Software license $3,874 $ 3,983 $ 6,394 $10,462
Services 2,575 3,250 4,996 6,004
-------------- -------------- ------------- -------------
Total revenue 6,449 7,233 11,390 16,466
-------------- -------------- ------------- -------------
Cost of revenue
Cost of software license 118 10 236 20
Cost of services 1,584 2,346 2,989 4,365
-------------- -------------- ------------- -------------
Total cost of revenue 1,702 2,356 3,225 4,385
-------------- -------------- ------------- -------------
Gross Profit 4,747 4,877 8,165 12,081
Operating expenses
Research and development 1,918 3,015 3,522 5,426
Selling and marketing 1,282 4,081 2,256 6,590
General and administrative 399 595 788 1,158
-------------- -------------- ------------- -------------
Total operating expenses 3,599 7,691 6,566 13,174
-------------- -------------- ------------- -------------
Income from operations 1,148 (2,814) 1,599 (1,093)
License interest income 378 421 746 796
Other interest income 11 998 23 1,747
Interest expense (30) -- (69) --
-------------- -------------- ------------- -------------
Income before provision for
income taxes 1,507 (1,395) 2,299 1,450
Provision for income taxes 588 (530) 899 551
-------------- -------------- ------------- -------------
Net income $ 919 $ (865) $ 1,400 $ 899
============== ============== ============= =============
Net income per common and common
equivalent share $ 0.04 $ (0.03) $ 0.06 $ 0.03
============== ============== ============= =============
Weighted average number of common
and common equivalent shares
outstanding 25,359 29,674 25,432 29,413
============== ============== ============= =============
</TABLE>
The accompanying Notes are an integral part of these Condensed Consolidated
Financial Statements.
<PAGE>
Form 10-Q/A-2 Page 5 of 7
PEGASYSTEMS INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1996 1997
-------------------- -------------------
<S> <C> <C>
Operating Activities
Net income $ 1,400 $ 899
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Provision for deferred income taxes 686 551
Depreciation and amortization 756 783
Changes in operating assets and liabilities:
Increase in trade and installment accounts receivable (2,248) (6,963)
Decrease (increase) in prepaid expenses and other
assets 2 (385)
Increase (decrease) in accounts payable and accrued
expenses (24) 553
Increase in deferred revenue 409 2,123
-------------------- -------------------
Net cash provided (used) by operating activities 981 (2,439)
-------------------- -------------------
Investing Activities
Purchase of equipment and improvements (529) (1,571)
-------------------- -------------------
Net cash used by investing activities (529) (1,571)
-------------------- -------------------
Financing Activities
Repayments of long-term debt (391) --
Issuance of common stock, net -- 52,067
Exercise of stock options 1 334
-------------------- -------------------
Net cash provided (used) by financing activities (390) 52,401
Effect of exchange rate on cash (16) (81)
-------------------- -------------------
Net increase in cash and equivalents 46 48,310
Cash and cash equivalents at beginning of period 511 24,201
-------------------- -------------------
Cash and cash equivalents at end of period $ 557 $72,511
==================== ===================
</TABLE>
The accompanying Notes are an integral part of these Condensed Consolidated
Financial Statements.
<PAGE>
Page 6 of 7
Form 10-Q/A
Pegasystems Inc.
Part II - Other Information:
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
<PAGE>
Form 10-Q/A-2 Page 7 of 7
PEGASYSTEMS INC.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Pegasystems Inc.
/s/ Ira Vishner
Date: November 21, 1997 ----------------------------------
Ira Vishner
Vice President, Corporate Services,
Treasurer, Chief Financial Officer
and Director
(principal financial officer and
chief accounting officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 72,511
<SECURITIES> 0
<RECEIVABLES> 17,744
<ALLOWANCES> 671
<INVENTORY> 0
<CURRENT-ASSETS> 91,875
<PP&E> 7,054
<DEPRECIATION> (3,222)
<TOTAL-ASSETS> 123,311
<CURRENT-LIABILITIES> 7,291
<BONDS> 0
0
0
<COMMON> 287
<OTHER-SE> 82,584
<TOTAL-LIABILITY-AND-EQUITY> 123,311
<SALES> 16,466
<TOTAL-REVENUES> 16,466
<CGS> 4,385
<TOTAL-COSTS> 4,385
<OTHER-EXPENSES> 13,174
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,450
<INCOME-TAX> 551
<INCOME-CONTINUING> 899
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 899
<EPS-PRIMARY> 0.03
<EPS-DILUTED> 0.03
</TABLE>
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