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Exhibit 99.1
The unaudited consolidated financial statements of OpenTV Corp. as of September
30, 2000 and for the nine month periods ended September 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, September 30,
ASSETS 1999 2000
------ --------------- -----------------
(audited) (unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents..................................................... $ 186,535 $ 108,180
Short-term investments........................................................ - 146,571
Accounts receivable, net...................................................... 6,234 22,705
Prepaid expenses and other current assets..................................... 1,698 6,799
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Total current assets..................................................... 194,467 284,255
Property and equipment, net........................................................ 5,025 15,309
Long-term marketable securities.................................................... -- 5,085
Long-term private equity investments............................................... -- 30,000
Goodwill and other intangibles, net................................................ 6,678 1,875,053
Deferred tax asset................................................................. -- 8,295
Other assets....................................................................... 620 3,414
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Total assets............................................................. $ 206,790 $2,221,411
=============== =================
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable.............................................................. $ 798 $ 4,375
Accrued liabilities........................................................... 7,261 18,891
Related parties payable....................................................... 606 136
Deferred revenue.............................................................. 3,564 8,557
Deferred income taxes......................................................... -- 13,975
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Total liabilities........................................................ 12,229 45,934
Shareholders' equity:
Class A Ordinary Shares, no par value, 500,000,000 shares authorized;
14,523,859 and 31,030,868 shares issued and outstanding in 1999 and 2000,
respectively................................................................ 188,562 1,989,497
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.................................................... 162,794 448,632
Receivable from shareholders.................................................. (1) (1)
Deferred compensation......................................................... (42,224) (25,410)
Accumulated other comprehensive income (loss)................................. 33 (702)
Accumulated deficit........................................................... (150,556) (272,492)
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Total shareholders' equity............................................... 194,561 2,175,477
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Total liabilities and shareholders' equity............................... $ 206,790 $2,221,411
=============== =================
</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>
Nine Months Ended September 30,
1999 2000
(unaudited)
<S> <C> <C>
Revenues:
Royalties............................................................................ $ 10,061 $ 21,743
License fees......................................................................... 1,904 7,798
Services and other................................................................... 5,592 11,355
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Total revenues.................................................................. 17,557 40,896
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Operating expenses:
Cost of services and other revenues (exclusive of $47 and $1,663
share-based compensation for the nine months ended 1999
and 2000).......................................................................... 3,450 9,147
Research and development (exclusive of $580 and $1,410 share-based
compensation for the nine months ended 1999 and 2000) (1).......................... 7,949 24,915
Sales and marketing (exclusive of $487 and $1,614 share-based
compensation for the nine months ended 1999 and 2000).............................. 7,600 18,312
General and administrative (exclusive of $1,207 and $7,193
share-based compensation for the nine months ended 1999
and 2000).......................................................................... 3,934 9,544
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Total operating expenses before non-cash charges................................ 22,933 61,918
Amortization of intangibles.......................................................... 827 2,684
Amortization of goodwill............................................................. -- 72,284
Amortization of share-based compensation............................................. 2,321 11,880
Non-cash warrant expense............................................................. -- 24,908
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Total operating expenses........................................................ 26,081 173,674
----------- -----------
Loss from operations................................................................. (8,524) (132,778)
Interest income........................................................................... -- 8,697
Interest expense.......................................................................... (73) --
Other income, net......................................................................... 113 17
----------- -----------
Loss before income taxes............................................................. (8,484) (124,064)
Income tax benefit........................................................................ -- 2,126
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Net loss............................................................................. $ (8,484) $ (121,938)
=========== ===========
Net loss per share attributable to ordinary shareholders, basic $ (0.23) $ (2.49)
=========== ===========
and diluted.............................................................................
Shares used in computing net loss per share attributable to ordinary
shareholders, basic and diluted......................................................... 36,184,858 48,907,147
=========== ===========
</TABLE>
Notes:
------
(1) The nine months ended September 30, 2000 includes $1.0 million in process
research and development related to the Spyglass acquisition.
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OPENTV CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands of U.S. dollars)
<TABLE>
<CAPTION>
Nine Months Ended September
--------------------------------
1999 2000
--------- ----------
<S> <C> <C>
Cash flows from operating activities: (unaudited)
Net loss........................................................... $ (8,484) $ (121,938)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation and amortization................................. 645 1,960
Amortization of intangibles and goodwill...................... 827 74,968
Amortization of deferred compensation......................... 2,320 11,880
Provision for doubtful accounts............................... 126 332
Interest on note payable converted to ordinary shares......... 133 --
Non-cash warrant expense...................................... -- 24,908
Deferred tax benefit.......................................... -- (2,126)
In-process research and development related to acquisition.... -- 1,000
Changes in operating assets and liabilities:
Accounts receivable...................................... (1,254) (8,730)
Prepaid expenses and other current assets................ (299) (113)
Accounts payable......................................... (591) 300
Accrued liabilities...................................... 1,229 1,265
Related parties payable.................................. 195 (470)
Deferred revenue......................................... (283) 4,028
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Net cash used in operating activities.................... (5,436) (12,736)
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Cash flows used in investing activities:
Purchases of property and equipment................................ (1,410) (8,074)
Cash from acquired subsidiary...................................... -- 74,712
Purchases of short-term investments................................ -- (98,896)
Purchases of long-term investments................................. -- (35,085)
Increase in other assets........................................... (15) (2,358)
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Net cash used in investing activities.................... (1,425) (69,701)
--------- ----------
Cash flows from financing activities:
Proceeds from issuance of ordinary shares.......................... 3,510 4,700
Proceeds from issuance of redeemable common shares................. 74 --
Proceeds from notes payable to shareholders........................ 2,500 --
--------- ----------
Net cash provided by financing activities................ 6,084 4,700
Effect of exchange rate changes on cash................................. 33 (618)
--------- ----------
Net decrease in cash and cash equivalents............................... (744) (78,355)
Cash and cash equivalents, beginning of period.......................... 3,324 186,535
--------- ----------
Cash and cash equivalents, end of period................................ $ 2,580 $ 108,180
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Noncash investing and financing activities:
Deferred compensation arising from issuances of options................. $ 17,305 $ 24,696
========= ==========
Conversion of notes payable, including accrued interest to ordinary $ 7,133
shares................................................................. =========
Intangible assets contributed by shareholder............................ $ 7,640
=========
Accretion on redeemable ordinary shares................................. $ 10,009
=========
Conversion of related party payable to Class B Ordinary Shares.......... $ 2,500
=========
Notes receivable issued on exercise of options for redeemable common $ 563
shares................................................................. =========
Value of shares issued for acquisition.................................. $2,086,045
==========
</TABLE>
