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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
AMENDMENT NO. 1
/ x / Annual report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
FOR THE FISCAL YEAR ENDING MARCH 31, 1996
/ / 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 0-12167
RATIONAL SOFTWARE CORPORATION
(Exact name of Registrant as specified in its charter)
DELAWARE 54-1217099
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
2800 SAN TOMAS EXPRESSWAY, SANTA CLARA, CA 95051-0951
(Address of principal executive office) (Zip Code)
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<S> <C>
Securities Registered Pursuant to Section 12(b) of the Act: None
Securities Registered Pursuant to Section 12(g) of the Act: Common Stock, par value $.01 per share
(Title of Class)
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408-496-3600
(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 by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this form 10-K or any amendment to
this Form 10-K. / /
At June 20, 1996, the aggregate market value of the Registrant's voting stock
held by nonaffiliates was $830,240,247.38. For the purposes of the preceding
sentence only, "affiliates" is deemed to consist of executive officers and
directors. At June 20, 1996, there were 17,220,067 shares of the Registrant's
$.01 par value common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's 1996 Annual Report to Shareholders and definitive
Proxy Statement issued in connection with its 1996 Annual Meeting of
Stockholders are incorporated by reference in Parts II and III of this Report
on Form 10-K.
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RATIONAL SOFTWARE CORPORATION
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The undersigned registrant hereby amends Form 10-K as follows:
1. Item 6 of the previously filed Rational Software Corporation 10-K, which
contained certain typographical errors, is hereby replaced with the
following corrected version:
ITEM 6 -- SELECTED FINANCIAL DATA
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<CAPTION>
FISCAL YEAR ENDED MARCH 31,
-----------------------------------------------------------------------
1992 1993 1994 1995 1996
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(in thousands, except per share data)
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CONSOLIDATED STATEMENTS OF OPERATIONS DATA:
Net product revenue........................... $38,161 $46,123 $ 41,716 $39,221 $55,899
Consulting and support revenue................ 22,168 24,880 28,627 33,678 35,208
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Total revenue............................... 60,329 71,003 70,343 72,899 91,107
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Cost of product revenue....................... 10,057 10,268 11,862 6,955 7,196
Cost of consulting and support revenue........ 10,807 11,291 13,494 18,095 19,336
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Total cost of revenue....................... 20,864 21,559 25,356 25,050 26,532
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Gross profit................................ 39,465 49,444 44,987 47,849 64,575
Operating expenses:
Research and development...................... 17,834 18,986 20,221 12,187 15,939
Sales and marketing........................... 17,564 21,652 21,338 25,100 35,000
General and administrative.................... 5,597 7,510 7,194 6,995 9,511
Charges for acquired in-process research
and development............................. -- -- -- -- 8,700
Merger and restructuring costs................ -- 2,500 9,922 (1,100) --
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Total operating expenses.................... 40,995 50,648 58,675 43,182 69,150
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Income (loss) from continuing operations.... (1,530) (1,204) (13,688) 4,667 (4,575)
Other income, net............................. 981 545 285 417 1,582
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Income (loss) from continuing operations
before income taxes......................... (549) (659) (13,403) 5,084 (2,993)
Provision for income taxes.................... 516 1,504 404 406 1,028
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Income(loss) from continuing operations.... (1,065) (2,163) (13,807) 4,678 (4,021)
Discontinued operations:
Income (loss) from discontinued operations.. 304 (1,515) -- -- --
Income (loss) on disposal................... -- (296) (175) -- --
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Net income (loss)............................. $ (761) $(3,974) $(13,982) $ 4,678 $(4,021)
======= ======= ======== ======= =======
Income (loss) from continuing operations per
common share................................ $ (.09) $ (.18) $ (1.13) $ .37 $ (.26)
Net income (loss) per common share............ $ (.06) $ (.33) $ (1.15) $ .37 $ (.26)
Shares used in computing per share amounts.... 11,910 12,130 12,197 12,606 15,363
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RATIONAL SOFTWARE CORPORATION
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ITEM 6 -- SELECTED FINANCIAL DATA (CONTINUED)
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<CAPTION>
MARCH 31,
----------------------------------------------------
1992 1993 1994 1995 1996
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(IN THOUSANDS)
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CONSOLIDATED BALANCE SHEETS DATA:
Cash and cash equivalents......... $ 8,320 $ 5,564 $ 7,439 $ 9,440 $43,934
Working capital................... 22,438 22,921 4,972 7,742 45,548
Total assets...................... 53,727 50,836 39,343 38,000 85,674
Long-term obligations............. 5,392 5,683 7,809 3,675 2,189
Stockholders' equity.............. 28,489 27,045 6,487 12,084 50,906
</TABLE>
The amounts presented above have been restated to reflect the Merger and the
Reverse Stock Split.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
RATIONAL SOFTWARE CORPORATION
Date: July 19, 1996 /s/ Robert T. Bond
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Robert T. Bond, Senior Vice President,
Chief Operating Officer, Chief Financial
Officer and Secretary
POWER OF ATTORNEY
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, this Report has been signed below by the following persons on
behalf of the Registrant and in the capacities and on the dates indicated:
Date: July 18, 1996 /s/ Michael T. Devlin*
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Michael T. Devlin,
Chairman of the Board
Date: July 18, 1996 /s/ Paul D. Levy
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Paul D. Levy, President and Chief
Executive Officer, Director
Date: July 18, 1996 /s/ Robert T. Bond*
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Robert T. Bond, Senior Vice President,
Chief Operating Officer, Chief Financial
Officer and Secretary
Date: July 18, 1996 /s/ James S. Campbell*
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James S. Campbell, Director
Date: July 18, 1996 /s/ Daniel H. Case III*
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Daniel H. Case III, Director
Date: July 18, 1996 /s/ Leslie G. Denend*
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Leslie G. Denend, Director
Date: July 18, 1996 /s/ John E. Montague*
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John E. Montague, Director
Date: July 18, 1996 /s/ Allison R. Schleicher*
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Allison R. Schleicher, Director
Date: July 18, 1996 /s/ Timothy A. Brennan*
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Timothy A. Brennan, Vice President,
Finance and Administration
(Principal Accounting Officer)
* By: /s/ Paul D. Levy
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Paul D. Levy
Attorney-in-fact
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