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Exhibit 99.1
The unaudited consolidated financial statements of OpenTV Corp. as of June 30,
2000 and for the six month periods ended June 30, 2000 and 1999 are set forth on
the following pages.
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OPENTV CORP.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands of U.S. dollars, except share and per share amounts)
<TABLE>
<CAPTION>
December 31, June 30,
1999 2000
------------ ---------
(Unaudited)
<S> <C> <C>
ASSETS
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Current assets:
Cash and short-term investments .......................................................... $ 186,535 $ 152,461
Accounts receivable, net ................................................................. 6,234 6,210
Prepaid expenses and other current assets ................................................ 1,698 3,722
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Total current assets ................................................................ 194,467 162,393
Long-term marketable securities ............................................................... -- 2,301
Property and equipment, net ................................................................... 5,025 7,815
Long-term private equity investments .......................................................... -- 20,000
Intangible assets ............................................................................. 6,678 6,042
Other assets .................................................................................. 620 2,095
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Total assets ........................................................................ $ 206,790 $ 200,646
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LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable ......................................................................... $ 798 $ 1,701
Accrued liabilities ...................................................................... 7,261 5,912
Related parties payable .................................................................. 606 667
Deferred revenue ......................................................................... 3,564 5,447
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Total liabilities.................................................................... 12,229 13,727
Shareholders' equity:
Class A Ordinary Shares, no par value, 500,000,000 shares authorized; 14,523,859 and
15,312,546 shares issued and outstanding in 1999, and 2000, respectively ............... 188,562 190,109
Class B Ordinary Shares, no par value, actual 200,000,000 shares authorized; 30,631,746
shares issued and outstanding in 1999 and 2000, respectively ........................... 35,953 35,953
Additional paid-in capital ............................................................... 162,794 156,750
Receivable from shareholders ............................................................. (1) (1)
Deferred compensation .................................................................... (42,224) (6,469)
Accumulated other comprehensive income (loss) ............................................ 33 (365)
Accumulated deficit ...................................................................... (150,556) (189,058)
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Total shareholders' equity .......................................................... 194,561 186,919
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Total liabilities and shareholders' equity .......................................... $ 206,790 $ 200,646
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</TABLE>
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OPENTV CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands of U.S. dollars, except share and per share amounts)
<TABLE>
<CAPTION>
Six Months Ended June 30,
----------------------------
1999 2000
------------ ------------
(Unaudited)
<S> <C> <C>
Revenues:
Royalties .............................................................. $ 7,031 $ 15,011
License fees ........................................................... 1,175 2,961
Services and other ..................................................... 3,808 4,236
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Total revenues .................................................... 12,014 22,208
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Operating expenses:
Cost of services and other revenues (exclusive of $12 and $59
share-based compensation for the six months ended June 30, 1999
and 2000) ............................................................ 2,178 3,737
Research and development (exclusive of $156 and $735 share-based
compensation for the six months ended June 30, 1999 and 2000) ........ 4,797 16,193
Sales and marketing (exclusive of $131 and $618 share-based
compensation for the six months ended June 30, 1999 and 2000) ........ 5,148 10,917
General and administrative (exclusive of $323 and $3,263
share-based compensation for the six months ended June 30,
1999 and 2000) ....................................................... 2,129 4,844
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Total operating expenses before non-cash charges .................. 14,252 35,691
Amortization of intangibles ............................................ 446 764
Amortization of share-based compensation ............................... 622 4,675
Non-cash warrant expense ............................................... -- 24,908
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Total operating expenses .......................................... 15,320 66,038
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Loss from operations ................................................... (3,306) (43,830)
Interest income ............................................................. -- 5,321
Interest expense ............................................................ (73) --
Other income (expense), net ................................................. 69 7
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Net loss ............................................................... $ (3,310) $ (38,502)
============ ============
Net loss per share attributable to ordinary shareholders, basic
and diluted ............................................................... $ (0.09) $ (0.85)
============ ============
Shares used in computing net loss per share attributable to ordinary
shareholders, basic and diluted ........................................... 35,096,379 45,417,591
============ ============
</TABLE>
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OPENTV CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands of U.S. dollars)
<TABLE>
<CAPTION>
Six months Ended June 30,
-------------------------
1999 2000
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(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net loss .................................................................. $ (3,310) $ (38,502)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization ........................................ 414 962
Amortization of intangible assets .................................... 446 764
Amortization of deferred compensation ................................ 622 4,675
Provision for doubtful accounts ...................................... (6) (135)
Non-cash warrant expense ............................................. -- 24,908
Changes in operating assets and liabilities:
Accounts receivable ............................................. (3,150) 159
Prepaid expenses and other current assets ....................... (560) (2,024)
Accounts payable ................................................ 84 903
Accrued liabilities ............................................. 437 (1,349)
Related parties payable ......................................... 2,828 61
Deferred revenue ................................................ 239 1,883
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Net cash used in operating activities ........................... (1,956) (7,695)
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Cash flows used in investing activities:
Purchase of property and equipment ........................................ (837) (3,752)
Purchase of long-term investments ......................................... -- (22,301)
Increase in intangible and other assets ................................... (10) (1,603)
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Net cash used in investing activities ........................... (847) (27,656)
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Cash flows from financing activities:
Proceeds from issuance of ordinary shares ................................. 55 1,674
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Net cash provided by financing activities ....................... 55 1,674
Effect of exchange rate changes on cash ........................................ 92 (397)
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Net increase (decrease) in cash and cash equivalents ........................... (2,656) (34,074)
Cash and cash equivalents, beginning of period ................................. 3,324 186,535
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Cash and cash equivalents, end of period ....................................... $ 668 $ 152,461
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Noncash investing and financing activities:
Conversion of notes payable, including accrued interest, to ordinary shares .... $ 7,133
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Intangible assets contributed by shareholder ................................... $ 7,640
=========
Accretion on redeemable ordinary shares ........................................ $ 431
=========
</TABLE>
