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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: June 30, 2000
Commission File Number: 00-28785
Lante Corporation
(Exact name of registrant as specified in its charter)
Delaware 36-3322393
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
161 North Clark Street, Suite 4900, Chicago, Illinois 60601
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (312) 696-5000
----------------
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
The number of shares of the registrant's Common Stock outstanding as of
July 31, 2000 was 39,506,269.
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<PAGE>
LANTE CORPORATION
QUARTER ENDED JUNE 30, 2000
INDEX
<TABLE>
<CAPTION>
Page
----
<C> <S> <C>
PART I--FINANCIAL INFORMATION............................................. 3
Item 1. Financial Statements.......................................... 3
Condensed Consolidated Statement of Operations for the three
and six months ended
June 30, 1999 and 2000....................................... 3
Condensed Consolidated Balance Sheet as of December 31, 1999
and June 30, 2000............................................ 4
Condensed Consolidated Statement of Cash Flows for the six
months ended
June 30, 1999 and 2000....................................... 5
Notes to Condensed Consolidated Financial Statements.......... 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of
Operations................................................... 8
Item 3. Quantitative and Qualitative Disclosures About Market Risk.... 11
PART II--OTHER INFORMATION................................................ 12
Item 1. Legal Proceedings............................................. 12
Item 2. Changes in Securities and Use of Proceeds..................... 12
Item 6. Exhibits and Reports on Form 8-K.............................. 12
</TABLE>
2
<PAGE>
PART I--FINANCIAL INFORMATION
Item 1. Financial Statements
LANTE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
---------------- ----------------
1999 2000 1999 2000
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues................................... $ 7,143 $23,637 $12,032 $40,763
Operating expenses:
Professional services.................... 3,799 12,030 6,280 21,111
Selling, general and administrative...... 3,465 13,136 5,777 23,454
Amortization of deferred compensation.... 150 685 150 1,334
------- ------- ------- -------
Total operating expenses............... 7,414 25,851 12,207 45,899
------- ------- ------- -------
Loss from operations....................... (271) (2,214) (175) (5,136)
Interest income, net....................... 49 1,471 58 2,368
------- ------- ------- -------
Loss before income taxes................... (222) (743) (117) (2,768)
Income tax benefit......................... 1,011 -- 1,014 616
------- ------- ------- -------
Net income (loss).......................... 789 (743) 897 (2,152)
Dividends and accretion on mandatorily
redeemable preferred
stock..................................... (65) -- (65) (234)
------- ------- ------- -------
Net income (loss) available to common
stockholders.............................. $ 724 $ (743) $ 832 $(2,386)
======= ======= ======= =======
Net income (loss) per common share:
Basic.................................... $ 0.03 $ (0.02) $ 0.04 $ (0.07)
Diluted.................................. $ 0.03 $ (0.02) $ 0.03 $ (0.07)
Pro forma basic and diluted net income
(loss) per common share................... $ (0.01) $ (0.02) $ 0.00 $ (0.07)
Weighted average common shares outstanding:
Basic.................................... 21,584 37,016 21,432 33,939
Diluted.................................. 25,989 37,016 25,327 33,939
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
3
<PAGE>
LANTE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except per share data)
<TABLE>
<CAPTION>
December 31, June 30,
1999 2000
------------ -----------
(unaudited)
ASSETS
------
<S> <C> <C>
Current assets:
Cash and cash equivalents........................... $13,692 $ 55,811
Short-term investments.............................. -- 37,455
Accounts receivable (net of allowance of $896 and
$1,170 at December 31, 1999 and June 30, 2000,
respectively)...................................... 10,349 20,853
Other current assets................................ 1,094 3,203
------- --------
Total current assets.............................. 25,135 117,322
Property and equipment, net........................... 6,380 11,515
Other assets.......................................... 9,971 8,246
------- --------
Total assets...................................... $41,486 $137,083
======= ========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<S> <C> <C>
Current liabilities:
Accounts payable and accrued liabilities............ $ 8,868 $ 7,817
Deferred revenues................................... 2,155 5,552
Other current liabilities........................... 1,379 1,145
------- --------
Total current liabilities......................... 12,402 14,514
Other liabilities..................................... 2,121 2,099
------- --------
Total liabilities................................. 14,523 16,613
Commitments and contingencies
Mandatorily redeemable preferred stock:
Series A convertible preferred stock, $0.01 par
value; 4,243 shares allocated and 3,536 shares
issued and outstanding as of December 31, 1999..... 25,728 --
------- --------
Stockholders' equity:
Preferred stock, $0.01 par value; 10,000 shares
authorized, no shares issued and outstanding as of
December 31, 1999 and June 30, 2000................ -- --
Common stock, $0.01 par value; 50,000 authorized,
26,069 shares issued and outstanding as of December
31, 1999 and 150,000 authorized, 39,505 shares
issued and outstanding as of June 30, 2000......... 260 395
Additional paid-in capital.......................... 18,509 139,194
Retained deficit.................................... (9,606) (11,758)
Deferred compensation............................... (4,613) (3,952)
Note receivable--stockholder........................ (3,315) (3,409)
------- --------
Total stockholders' equity........................ 1,235 120,470
------- --------
Total liabilities and stockholders' equity........ $41,486 $137,083
======= ========
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
4
<PAGE>
LANTE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-----------------
1999 2000
------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss)......................................... $ 897 $ (2,152)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization........................... 147 1,159
Deferred income taxes................................... (1,016) (616)
Amortization of deferred compensation and warrant
expense................................................ 150 1,334
Increase (decrease) in cash attributable to changes in
assets and liabilities:
Accounts receivable................................... (1,163) (10,486)
Accounts payable and accrued liabilities.............. 3,950 (1,455)
Deferred revenues..................................... 1,802 3,396
Other, net............................................ (2,639) 38
------- --------
Net cash provided by (used in) operating activities. 2,128 (8,782)
------- --------
Cash flows from investing activities:
Capital expenditures...................................... (465) (5,876)
Purchase of short-term investments........................ -- (37,455)
Equity investment......................................... -- (250)
------- --------
Net cash used in investing activities............... (465) (43,581)
------- --------
Cash flows from financing activities:
Proceeds from initial public offering, net................ -- 83,466
Proceeds from issuance of manditorily redeemable preferred
stock, net............................................... 23,383 --
Proceeds from private issuance of common stock............ 3,402 11,000
Redemption of common stock................................ (5,519) --
Loan to executive officer................................. (3,228) --
Dividends paid............................................ (4,549) --
Other, net................................................ 69 16
------- --------
Net cash provided by financing activities........... 13,558 94,482
------- --------
Increase in cash and cash equivalents....................... 15,221 42,119
Cash and cash equivalents, beginning of period.............. 3,377 13,692
------- --------
Cash and cash equivalents, end of period.................... $18,598 $ 55,811
======= ========
Supplemental disclosure of cash flow information:
Cash paid for interest.................................... $ 12 $ 73
Cash paid for taxes....................................... $ 20 $ 2
Supplemental disclosure of non-cash transactions:
Conversion of Series A convertible preferred stock to
common stock............................................. $ -- $ 25,962
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
5
<PAGE>
LANTE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared by Lante Corporation (the "Company") pursuant to the rules and
regulations of the Securities and Exchange Commission regarding interim
financial reporting. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements and should be read in conjunction with the
audited condensed consolidated financial statements and related notes thereto
included in the Company's Annual Report on Form 10-K as filed with the
Securities and Exchange Commission for the year ended December 31, 1999. The
accompanying unaudited condensed consolidated financial statements reflect all
adjustments (consisting solely of normal, recurring adjustments) which are, in
the opinion of management, necessary for a fair presentation of results for
the interim periods presented. The results of operations for the three-month
and six-month periods ended June 30, 2000 are not necessarily indicative of
the results to be expected for any future period or the full fiscal year.
2. Capital Stock
The effects of stock splits and recapitalizations have been retroactively
reflected in the condensed consolidated financial statements for all periods
presented.
In January 2000, the Company completed the sale of 1,000 shares of common
stock to Dell USA, L.P., a wholly-owned subsidiary of Dell Computer
Corporation, at $11.00 per share.
On February 16, 2000, the Company completed an initial public offering of
common stock which resulted in the issuance of 4,600 shares of common stock.
Proceeds to the Company, net of underwriting discounts and costs of the
offering, were approximately $83,500. Concurrent with the initial public
offering, 3,536 shares of the Company's Series A convertible preferred stock
were converted to 7,072 shares of the Company's common stock. Dividends and
accretion related to the Company's Series A convertible preferred stock
reduced income available to common stockholders up through the date of
conversion.
3. Investments
In accordance with Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt on Equity Securities," the Company
has categorized its marketable securities as "held-to-maturity." At June 30,
2000, amortized cost approximated fair value and unrealized gains and losses
were not material.
4. Net Income (Loss) Per Share
The Company computes net income (loss) per share in accordance with
Statement of Financial Accounting Standards No. 128, "Earnings Per Share."
Basic net income (loss) per share is computed using the weighted average
number of common shares outstanding during the period. Diluted net income
(loss) per share is based upon the weighted average number of shares
outstanding, including common stock equivalents, if dilutive.
The Company terminated its S-Corporation election for federal and state
income tax purposes on June 17, 1999. Accordingly, all income that was earned
in the subsequent C-Corporation period was taxable at the statutory federal
and state tax rates. In order to present amounts in a comparable format, the
statement of operations includes pro forma earnings per share that
contemplates additional taxes that would have been recorded if the Company had
been a C-Corporation for all periods presented, based upon the tax laws in
effect during those periods.
6
<PAGE>
5. Amortization of Deferred Compensation Expense
Deferred compensation expense relates to the amortization of certain options
that were deemed granted in-the-money, a loan made to our chief executive
officer that is being recorded as compensation expense, the sale of restricted
shares to our chief executive officer at a price that was deemed less than our
common stock's fair value, and deferred compensation related to one of our
acquisitions.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis compares the three-month and six-
month periods ended June 30, 2000 to the corresponding periods ended June 30,
1999 for the Company. You should read the following discussion and analysis
along with our condensed consolidated financial statements and the related
notes included in this quarterly report. The following discussion contains
forward-looking statements that are subject to risks, uncertainties and
assumptions. Our actual results, performance and achievements in 2000 and
beyond may differ materially from those expressed in, or implied by, these
forward-looking statements. See "Cautionary Note Regarding Forward-Looking
Statements."
Overview
We are an Internet services company that develops sophisticated technology-
based solutions that are secure, reliable and scalable and integrated with
multiple back-end systems. Our strategists, user experience experts and
technologists work as a multi-disciplinary team to build these solutions. We
integrate our competencies through an iterative development process with the
client that is overseen by our delivery management specialists.
Since our inception in 1984, we have been innovators in applying emerging
technologies to businesses, evolving from personal computer networks to
database applications to distributed client-server architectures to the
Internet. We began focusing on e-markets in late 1996 and virtually all of our
revenues are now derived from Internet services. We expect revenues from
Internet services to continue to represent virtually all of our revenues for
the foreseeable future.
Our client base ranges from smaller start-up ventures to larger, more
established companies. We have begun our anticipated shift in business
development activities toward more established companies and industry-
sponsored consortia. Targeting such larger enterprises will likely lead to a
more competitive bidding process and a longer sales cycle which could
negatively impact our results of operations.
Revenues from a few large clients have historically constituted a
significant portion of our total revenues in a particular quarter or year. For
example, during the six months ended June 30, 1999, our five largest clients
represented 54% of our revenues compared to 29% of our revenues during the six
months ended June 30, 2000. During the three months ended June 30, 1999, one
client represented 41% of our revenues and in the six months ended June 30,
1999, one client represented 34% of our revenues and another client
represented 10% of our revenues. During the three months ended June 30, 2000,
one client represented 12% and another client represented 11% of our revenues.
None of our clients individually represented more than 10% of our revenues for
the six months ended June 30, 2000.
To the extent that any significant client uses less of our services or
terminates its relationship with us, our revenues could decline substantially
and our operating results could be adversely affected to the extent we are
unable to quickly redeploy our billable professionals to other client
engagements.
Costs of professional services consist of salaries, bonuses and benefits
for our billable professionals, the cost of subcontractors and other
engagement costs that are not reimbursed directly by the client. We expect
that salaries for our billable professionals will increase over time due to
the intense competition in our industry for qualified individuals. We use the
term "professional services margin" to mean revenues less costs of
professional services, stated as a percentage of revenues. Professional
services margins are affected by our ability to utilize our billable
professionals, to incorporate any wage increases of our professionals into our
billing rates and to price and execute effectively our fixed-fee engagements.
Professional services margins may be reduced in any given period to the extent
that we use subcontractors or hire new billable professionals who we may not
be able to utilize immediately on client engagements. We expect that our
professional services margins will vary from quarter to quarter.
8
<PAGE>
Our number of employees increased from 94 on January 1, 1997 to 561 as of
June 30, 2000, of which 387 were billable professionals. We actively recruit
billable professionals and support staff and expect our total number of
employees to increase significantly.
Selling, general and administrative expenses consist primarily of salaries,
bonuses and benefits for non-project personnel, facility costs, staff
recruiting and training costs, depreciation and amortization, general
operating expenses and selling and marketing expenses. We largely develop new
business through our regional managing directors and principals. Our selling,
general and administrative expenses are expected to continue to increase in
the future as we add additional personnel, expand our information systems,
open new offices, increase our recruiting efforts and incur additional costs
related to the growth of our business and operations as a public company.
We expect to report an operating loss in 2000. As we strive to grow our
business, we expect to spend significant funds for marketing, recruiting and
hiring additional personnel, upgrading our infrastructure, including internal
information systems, and expanding into new geographical markets. To the
extent revenues do not increase at a rate commensurate with these costs and
expenditures, our results of operations and liquidity could be materially and
adversely affected.
Results of Operations
The following table presents for the periods indicated, our selected
condensed consolidated statement of operations data as a percentage of our
revenues. We have derived these percentages from our unaudited condensed
consolidated financial statements for all periods presented.
<TABLE>
<CAPTION>
Three Six
Months Months
Ended Ended
June 30, June 30,
---------- ----------
1999 2000 1999 2000
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues.............................................. 100% 100% 100% 100%
Operating expenses:
Professional services............................... 53 51 52 52
Selling, general and administrative................. 49 55 48 58
Amortization of deferred compensation............... 2 3 1 3
--- --- --- ---
Total operating expenses.............................. 104 109 101 113
--- --- --- ---
Loss from operations.................................. (4) (9) (1) (13)
Other income, net..................................... 1 6 -- 6
Income tax benefit.................................... 14 -- 8 2
--- --- --- ---
Net income (loss)..................................... 11% (3)% 7% (5)%
=== === === ===
</TABLE>
Comparison of Three and Six Months Ended June 30, 2000 and 1999
Revenues
Revenues increased $16.5 million, or 230.9%, to $23.6 million in the three
months ended June 30, 2000 from $7.1 million in the three months ended June
30, 1999. For the six months ended June 30, 2000, revenues increased $28.7
million, or 238.8%, to $40.8 million from $12.0 million for the comparable
period of the prior year. These increases resulted from an increase in the
average size and number of client engagements and an increase in average
realized billing rates. The revenue increases during 2000 were limited by
revenue not recognized on certain clients where their ability to pay was
uncertain.
Operating Expenses
Professional services
Costs of professional services increased $8.2 million, or 216.7%, to $12.0
million in the three months ended June 30, 2000 from $3.8 million in the three
months ended June 30, 1999. For the six months ended June 30,
9
<PAGE>
2000, costs of professional services increased $14.8 million, or 236.2%, to
$21.1 million from $6.3 million for the comparable period of the prior year.
These increases were primarily due to an increase in the number of billable
professionals and a $3.8 million increase in project-related expenses.
Professional services margin increased to 49.1% in the three months ended June
30, 2000 from 46.8% in the three months ended June 30, 1999 and increased to
48.2% in the six months ended June 30, 2000 from 47.8% in the six months ended
June 30, 1999.
Selling, general and administrative
Selling, general and administrative expenses increased $9.7 million, or
279.1%, to $13.1 million in the three months ended June 30, 2000 from $3.5
million in the three months ended June 30, 1999. For the six months ended June
30, 2000, selling, general and administrative expenses increased $17.7
million, or 306.0%, to $23.5 million from $5.8 million for the comparable
period of the prior year. These increases in selling, general and
administrative expenses were primarily the result of efforts to significantly
expand our business and prepare for rapid growth. During the first six months
of 2000, we increased personnel in internal systems, marketing, finance and
recruiting, commenced marketing initiatives and enhanced internal systems and
communications infrastructure necessary for growth.
Amortization of deferred compensation expense
Amortization of deferred compensation was $0.7 million and $1.3 million in
the three months ended June 30, 2000 and the six months ended June 30, 2000,
respectively. Amortization of deferred compensation of $0.2 million was
recorded in the three and six months ended June 30, 1999. Deferred
compensation was recorded related to certain options that were deemed granted
in-the-money, a loan made to our chief executive officer that is being
recorded as compensation expense, the sale of restricted shares to our chief
executive officer at a price that was deemed less than our common stock's fair
value, and deferred compensation related to one of our acquisitions.
Net Loss
Net loss for the three months ended June 30, 2000 was $0.7 million compared
to net income of $0.8 million in the three months ended June 30, 1999. Net
loss for the six months ended June 30, 2000 was $2.2 million compared to net
income of $0.9 million in the six months ended June 30, 1999.
Liquidity and Capital Resources
During 1999, we financed our operations and investments in property and
equipment and two acquisitions primarily through cash generated from debt and
equity financings.
Cash and cash equivalents and short-term investments increased to $93.3
million at June 30, 2000 from $13.7 million at December 31, 1999. This
increase is primarily the result of net proceeds of $83.5 million from the
Company's initial public offering on February 16, 2000. In addition, the
Company received proceeds of $11.0 million from the sale in January 2000 of
one million shares of common stock to Dell USA, L.P., a wholly owned
subsidiary of Dell Computer Corporation. These proceeds were offset primarily
by cash used for operating activities of approximately $8.8 million. Cash used
for operating activities was principally made up of $2.2 million in net loss
for the six months ended June 30, 2000, a $10.5 million increase in accounts
receivable primarily due to increased revenues, and a $1.5 million decrease in
accounts payable and accrued liabilities caused by timing of payments, offset
by a $3.4 million increase in deferred revenues.
We anticipate that we will expend capital to develop the infrastructure
needed to support our future growth. During the six-month period ended June
30, 2000, our capital expenditures were $5.9 million. We expect to use cash
from operations and the net proceeds from our initial public offering and
private placement in the first quarter of 2000 to meet our anticipated cash
needs for capital expenditures and working capital necessary to
10
<PAGE>
support our future growth. We believe that the cash provided from operations,
and cash on hand will be sufficient to meet our anticipated working capital
and capital expenditure requirements through December 31, 2000. However,
during this period, we may seek additional capital in the private or public
equity or debt markets to support more rapid growth, including through
acquisitions. If we receive additional funds through the issuance of equity
securities, our existing stockholders may experience significant dilution and
these equity securities may have rights, preferences, or privileges senior to
those of our common stock.
Cautionary Note Regarding Forward-Looking Statements
This quarterly report includes forward-looking statements that reflect our
current expectations and projections about our future results, performance,
prospects and opportunities. We have tried to identify these forward-looking
statements by using words including "may," "will," "expect," "anticipate,"
"believe," "intend" and "estimate" and similar expressions. These forward-
looking statements are based on information currently available to us and are
subject to a number of risks, uncertainties and other factors that could cause
our actual results, performance, prospects or opportunities in 2000 and beyond
to differ materially from those expressed in, or implied by, these forward-
looking statements. These risks, uncertainties and other factors include, but
are not limited to: our ability to predict revenues; our ability to accurately
estimate the cost, scope and duration of our engagements and to collect on
amounts billed for such engagements; our concentrated client base; our ability
to manage our rapid growth and meet client expectations; the percentage of our
clients that are dot-com ventures that will require significant additional
capital to fund their operations or more established entities with longer
decision and contracting cycles; our ability to attract, train and retain
executive management, regional managing directors and other qualified
personnel; our ability to manage international operations; intense competition
within the Internet professional services market; the rate of acceptance and
the use of the Internet as a means for commerce; our ability to keep pace with
technological changes and future regulations affecting our business, the
implementation of e-markets or the Internet generally. For further information
about these and other risks, uncertainties and factors, please review the
disclosure under "Management's Discussion and Analysis of Financial Condition
and Results of Operations--Factors that Could Affect Our Operations" in our
annual report on Form 10-K for the year ended December 31, 1999.
You should not place undue reliance on any forward-looking statements.
Except as otherwise required by federal securities laws, we undertake no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, changed circumstances
or any other reason after the date of this quarterly report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our primary financial instruments are cash in banks and commercial paper.
We do not believe that these instruments are subject to material potential
near-term losses in future earnings from reasonably possible near-term changes
in market rates or prices. We do not have derivative financial instruments for
speculative or trading purposes.
11
<PAGE>
PART II--OTHER INFORMATION
Item 1. Legal Proceedings
Pantelis Georgiadis, our former chief operating officer, filed a complaint
against us on October 21, 1999 in the Circuit Court of Cook County, Illinois.
Mr. Georgiadis previously owned 2,000,000 shares of our common stock with
respect to which we exercised our contractual right to repurchase upon the
termination of his employment. Pursuant to this contractual right, we tendered
to Mr. Georgiadis $4,010,000, or approximately $2.00 per share, payable in the
form of cash and a promissory note. Mr. Georgiadis contends that we breached
our contractual obligations by improperly valuing these shares in connection
with the repurchase. Mr. Georgiadis' complaint asserts that the repurchase
price of his shares should have been as high as $8.10 per share. We deny Mr.
Georgiadis' allegations, believe they are without merit and intend to defend
this lawsuit vigorously.
From time to time, we may be involved in litigation incidental to the
conduct of our business. Except as described above, however, we are not
currently party to any material legal proceedings.
Item 2. Changes in Securities and Use of Proceeds
On February 10, 2000 our registration statement on Form S-1 (File No. 333-
92373) relating to the initial public offering of our common stock was
declared effective by the SEC. After payment of underwriting discounts and
expenses of approximately $8,500,000, we received net proceeds of
approximately $83,500,000 from the offering. During the six months ended June
30, 2000, we used approximately $8.8 million of the proceeds of the initial
public offering for working capital and we used approximately $5.9 million for
purchases of leasehold improvements and equipment. We have invested the
remaining net proceeds, pending its use for working capital and general
corporate purposes, in short-term, investment grade, interest-bearing
securities.
Item 6. Exhibits and Reports on Form 8-K.
a) We have filed the following exhibits with this quarterly report.
<TABLE>
<CAPTION>
Exhibit
Number Exhibit
------- -------
<C> <S>
27 Financial Data Schedule
</TABLE>
b) Reports on Form 8-K.
We did not file any Current Reports on Form 8-K during the second
quarter of 2000.
12
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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.
Lante Corporation
Date: August 14, 2000 /s/ Brian Henry
By: _________________________________
Brian Henry
Executive Vice President, Chief
Financial
Officer (Principal Financial
Officer)
Date: August 14, 2000 /s/ William J. Davis
By: _________________________________
William J. Davis
Controller (Principal Accounting
Officer)
13
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Exhibit
------- -----------------------
<C> <S>
27 Financial Data Schedule
</TABLE>
14
