UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the period ended March 31, 1993
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 0-16230
STRUCTURAL DYNAMICS RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 31-0733928
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2000 Eastman Drive, Milford, Ohio 45150
(Address of principal executive offices)
(Zip Code)
(513) 576-2400
(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 [ ]
As of April 30, 1993 there were 28,415,358 shares of the
Registrant's Common Stock without par value issued and outstanding.
The Registrant hereby amends the following items and financial
statements of its Quarterly Report on Form 10-Q for the quarter
ended March 31, 1993 as set forth below. Items not referenced
below are not amended. Items referenced below are amended in their
entirety as set forth below:
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Statement of Operations
For the Three Month Periods Ended March 31, 1993 and 1992
(Unaudited)
(in thousands, except share data)
Three Months Ended March 31,
1993 1992
Revenue:
Software products and services $19,965 $21,578
Maintenance 8,237 6,997
Engineering services 5,304 5,794
Net revenue 33,506 34,369
Cost and expenses:
Cost of revenue 7,645 8,135
Research and development expenses 6,184 4,977
Selling, general and administrative
expenses 19,724 17,798
Total cost and expenses 33,553 30,910
Operating income (loss) (47) 3,459
Equity in losses of affiliate (133) -
Other income, principally interest 420 573
Income before income taxes
and cumulative effect of
accounting change 240 4,032
Income taxes 876 1,447
Income (loss) after income
taxes and before cumulative
effect of accounting change (636) 2,585
Cumulative effect of
accounting change - 700
Net income (loss) $(636) $3,285
Earnings (loss) per share:
Before cumulative effect
of accounting change $(.02) $ .09
Cumulative effect of
accounting change - .02
Earnings (loss) per share $(.02) $ .11
Average number of shares of
common stock and common stock
equivalents outstanding 29,586 31,160
See accompanying notes to consolidated financial statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheet
March 31, 1993 and December 31, 1992
(Unaudited)
(in thousands)
March 31, December 31,
1993 1992
Assets
Current assets:
Cash and cash equivalents $ 29,325 $ 31,661
Investments 24,718 20,752
Trade accounts receivable, net 23,946 26,944
Other accounts receivable 8,733 7,993
Prepaid expenses 4,279 4,427
Total current assets 91,001 91,777
Property and equipment, at cost:
Computer and other equipment 33,656 32,248
Office furniture and equipment 8,304 8,217
Leasehold improvements 3,382 3,449
45,342 43,914
Less accumulated depreciation and
amortization 28,578 27,243
Net property and equipment 16,764 16,671
Computer software construction costs,
net 28,263 26,420
Other assets 1,271 1,262
Total assets $ 137,299 $ 136,130
See accompanying notes to consolidated financial statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheet
March 31, 1993 and December 31, 1992
(Unaudited)
(in thousands, except share data)
March 31, December 31,
1993 1992
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 6,255 $ 4,037
Accrued expenses 16,056 20,741
Accrued income taxes 6,280 5,358
Deferred revenue 15,192 13,201
Total current liabilities 43,783 43,337
Deferred income taxes and other 342 346
Shareholders' equity:
Common stock, stated value $.0069
per share; 100,000 authorized shares
in 1993 and 1992; 28,376 issued
shares in 1993 and 28,136 issued
shares in 1992 net of 1,643 treasury
shares in 1993 and 1,762 in 1992 197 195
Capital in excess of stated value 42,939 41,474
Retained earnings 50,721 51,357
Foreign currency translation adjustment (683) (579)
Total shareholders' equity 93,174 92,447
Total liabilities and
shareholders' equity $ 137,299 $ 136,130
See accompanying notes to consolidated financial statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Cash Flows
For the Three Months Ended March 31, 1993 and 1992
(Unaudited)
(in thousands)
Three Months Ended March 31,
1993 1992
Net cash provided by
operating activities $ 4,663 $ 5,979
Cash flows from investing activities:
Purchases of investments, net (3,966) (1,684)
Additions to property and equipment, net (1,767) (3,595)
Additions to computer software
construction costs (2,408) (2,412)
Additions to purchased computer software (75) (10)
Other, net (146) (12)
Net cash used in investing activities (8,362) (7,713)
Cash flows from financing activities:
Stock issued under employee benefit plans 1,488 2,692
Purchases of treasury stock (21) (182)
Net cash (used in) provided
by financing activities 1,467 2,510
Effect of exchange rate changes on cash (104) (49)
Increase (decrease) in cash
and cash equivalents (2,336) 727
Cash and cash equivalents:
Beginning of period 31,661 31,319
End of period $29,325 $32,046
See accompanying notes to consolidated financial statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(in thousands)
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared by the Company pursuant to the rules and regulations
of the Securities and Exchange Commission. As permitted by the
rules of the Securities and Exchange Commission applicable to
quarterly reports on Form 10-Q, these notes are condensed and do
not contain all disclosures required by generally accepted
accounting principles. In the opinion of management, these
financial statements contain all adjustments (consisting of only
normal recurring adjustments, unless otherwise noted) necessary to
present fairly the Company's financial position, results of
operations and cash flows as of the dates and for the periods
indicated.
(2) Restatement of Financial Statements
The financial statements included herein have been restated from
those previously published to reflect correction of errors in the
accounting for (a) revenue recognition and revenue related expenses
and (b) accrued expenses and losses. Additionally, the related
income tax effects have been adjusted.
(3) Income Taxes
The provisions for increased taxes reflects taxes currently
payable. Deferred tax benefits relating to temporary differences
have been offset by a valuation allowance due to doubt as to their
ultimate realization. These factors have the impact of disturbing
the effective tax rate from the expected statutory rate.
Effective January 1, 1992 the Company adopted Statement of
Financial Accounting Standards No. 109, "Accounting for Income
Taxes." The effect of applying this statement was to increase net
income by $.02 per share for the three month period ended March 31,
1992. The adoption has been reflected as a cumulative effect of a
change in accounting principle in these financial statements.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
(in thousands)
Revenue
Consolidated revenue decreased by $863 (or 3%) for the three months
ended March 31, 1993 as compared to the corresponding 1992 period.
Software segment revenue decreased $373 (or 1%) from the
corresponding period in 1992 due to declining revenue from a
significant customer, partially offset by I-DEAS license revenue
growth.
Engineering Services segment revenue decreased $490 (or 8%) due to
decreased consulting activities in the automotive market.
Expenses
Cost of revenue in 1993 decreased 6% as compared to the same period
in 1992 primarily due to a decrease in engineering services cost in
alignment with the decline in revenue.
Due to the Company's continuing commitment to the technological
advancement of its software product line, research and development
expenses increased as compared to the corresponding 1992 period.
Selling, general and administrative expenses increased by 11% in
1993 over 1992 due to continued expansion of the field sales and
support organization, as well as increased general corporate
expenses.
Other
Interest income has decreased as compared to the same period in
1992 due to declining interest rates. In 1993, the equity in loss
of affiliate represents the Company's share of the start-up loss of
Metaphase Inc., a joint venture company formed in late 1992 which
develops and markets product data management (PDM) software.
Taxes
The provision for income taxes reflects taxes currently payable.
Deferred tax benefits relating to temporary differences have been
offset by a valuation allowance due to doubt as to their ultimate
realization. These factors have the impact of disturbing the
effective tax rate from the expected statutory rate.
Effective January 1, 1992 the Company adopted Statement of
Financial Accounting Standards No. 109, "Accounting for Income
Taxes". The effect of initially applying this statement was to
increase net income by $700 or $.02 per share for the three month
period ended March 31, 1992. The adoption has been reflected as a
cumulative effect of a change in accounting principle in these
financial statements.
Quarterly Results
Future quarterly results could be impacted by factors such as order
deferrals, a slower growth rate in the market, increased
competition or adverse changes in general economic conditions in
any of the countries in which the Company does business. Any
shortfall in revenue or earnings could have an immediate and
significant adverse effect on the trading price of the Company's
stock in any given period.
Liquidity and Capital Resources
At March 31, 1993, the Company had cash and investments of $54,043.
The Company has no current commitments for material capital
expenditures. These existing sources of liquidity and funds
anticipated to be generated from operations are expected to provide
adequate cash to fund the Company's projected needs for the
foreseeable future.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(A) Exhibits filed as part of this report:
11(a) Calculation of Primary Earnings (Loss) Per Common
Share
11(b) Calculation of Fully Diluted Earnings (Loss) Per
Common Share
(B) Reports on Form 8-K filed during the quarter ended March 31,
1992: None
SIGNATURE
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.
STRUCTURAL DYNAMICS RESEARCH CORPORATION
January 13, 1995 By: /s/ Jeffrey J. Vorholt
(Date) (Jeffrey J. Vorholt,
Vice President and Controller)
*Pursuant to the last sentence
of General Instruction G to
Form 10-Q, Jeffrey J. Vorholt
has executed this Quarterly
Report on Form 10-Q both on
behalf of the registrant and
in his capacity as its
principal financial and
accounting officer.
EXHIBIT 11(a)
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Calculation of Primary Earnings (Loss) Per Common Share
(in thousands, except share data)
Three Months Ended March 31,
1993 1992
Income (loss) after income
taxes and before cumulative
effect of accounting change $ (636) $ 2,585
Cumulative effect of accounting
change 0 700
Net income (loss) $(636) $3,285
Average Number of Shares of
Common Stock Outstanding 28,290 27,468
Average Number of Common Stock
Equivalents:
Effect of stock options
outstanding after
application of the
treasury stock method 1,296 3,692
29,586 31,160
Primary Earnings (Loss)
Per Common Share:
Before cumulative effect
of accounting change $(.02) $.09
Cumulative effect of accounting
change -- .02
Earnings (loss) per share $(.02) $.11
Exhibit 11(b)
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Calculation of Fully Diluted Earnings (Loss) Per Common Share
(in thousands, except share data)
Three Months Ended March 31,
1993 1992
Income (loss) after income
taxes and before cumulative
effect of accounting change $ (636) $ 2,585
Cumulative effect of accounting
change -- 700
Net income (loss) $(636) $3,285
Average Number of Shares of
Common Stock Outstanding 28,290 27,468
Average Number of Common Stock
Equivalents:
Effect of stock options
outstanding after
application of the
treasury stock method 1,832 3,692
30,122 31,160
Fully Diluted Earnings (Loss)
Per Common Share:
Before cumulative effect of
accounting change $(.02) $.09
Cumulative effect of
accounting change -- .02
Earnings (loss) per share $(.02) $.11
