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 June 30, 1992
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 July 31, 1992 there were 28,067,429 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 June 30, 1992 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 and Six Month Periods Ended
June 30, 1992 and 1991
(Unaudited)
(in thousands, except share data)
Three Months Ended June 30, Six Months Ended June 30,
1992 1991 1992 1991
Revenue:
Software
products
and services $26,252 $20,064 $47,830 $36,288
Maintenance 7,461 5,856 14,458 11,140
Engineering
services 5,447 6,482 11,241 13,535
Net revenue 39,160 32,402 73,529 60,963
Cost and expenses:
Cost of revenue 7,946 8,349 16,081 16,791
Research and
development
expenses 6,358 5,252 11,335 10,102
Selling, general
and administrative
expenses 19,232 16,362 37,030 29,892
Total cost
and expenses 33,536 29,963 64,446 56,785
Operating income 5,624 2,439 9,083 4,178
Other income,
principally interest 738 575 1,311 1,213
Income before income
taxes and cumulative
effect of accounting
change 6,362 3,014 10,394 5,391
Income taxes 2,273 1,094 3,720 1,958
Income after
income taxes and
before cumulative
effect of accounting
change 4,089 1,920 6,674 3,433
Cumulative effect
of accounting change - - 700 -
Net income $4,089 $1,920 $7,374 $3,433
Earnings per share:
Before cumulative
effect of accounting
change $ .14 $ .07 $ .22 $ .12
Cumulative effect of
accounting change - - .02 -
Earnings per share $ .14 $ .07 $ .24 $ .12
Average number of
shares of common
stock and common
stock equivalents
outstanding 29,806 28,538 30,629 28,372
See accompanying notes to consolidated financial statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheet
(Unaudited)
June 30, 1992 and December 31, 1991
(in thousands)
June 30, December 31,
1992 1991
Assets
Current assets:
Cash and cash equivalents $ 33,480 $ 31,319
Investments 19,163 16,490
Trade accounts receivable, net 25,162 22,713
Other accounts receivable 3,989 4,235
Prepaid expenses 5,036 4,335
Total current assets 86,830 79,092
Property and equipment, at cost:
Computer and other equipment 29,913 29,515
Office furniture and equipment 7,654 6,958
Leasehold improvements 3,363 3,294
40,930 39,767
Less accumulated depreciation and
amortization 24,931 24,853
Net property and equipment 15,999 14,914
Computer software construction costs,
net 23,513 20,462
Other assets 198 4,871
Total assets $ 126,540 $ 119,339
See accompanying notes to consolidated financial statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheet
June 30, 1992 and December 31, 1991
(Unaudited)
(in thousands, except share data)
June 30, December 31,
1992 1991
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 4,341 $ 6,386
Accrued expenses 17,311 16,621
Accrued income taxes 2,570 438
Deferred revenue 12,296 10,440
Total current liabilities 36,518 33,885
Deferred income taxes and other 356 5,095
Shareholders' equity:
Common stock, stated value $.0069
per share; 100,000 authorized shares
in 1992 and 50,000 in 1991; 28,005
issued shares in 1992 and 27,081
issued shares in 1991, net of 1,735
treasury shares in 1992 and 2,036
in 1991 194 188
Capital in excess of stated value 40,333 38,440
Retained earnings 49,256 41,882
Foreign currency translation
adjustment (117) (151)
Total shareholders' equity 89,666 80,359
Total liabilities and
shareholders' equity $ 126,540 $ 119,339
See accompanying notes to consolidated financial statements.
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Cash Flows
For the Six Month Periods Ended June 30, 1992 and 1991
(Unaudited)
(in thousands)
Six Months Ended June 30,
1992 1991
Net cash provided by
operating activities $ 12,253 $ 3,655
Cash flows from investing activities:
Purchases of investments, net (2,673) (16,390)
Additions to property and
equipment, net (4,587) (8,389)
Disposition of facilities - 3,224
Additions to computer software
construction costs (4,753) (2,544)
Additions to purchased
computer software (20) (500)
Other, net 8 286
Net cash used in
investing activities (12,025) (24,313)
Cash flows from financing activities:
Stock issued under employee
benefit plans 2,628 2,087
Purchases of treasury stock (729) (249)
Decrease in long-term obligations - (2,716)
Net cash provided by (used in)
financing activities 1,899 (878)
Effect of exchange rate changes on cash 34 (354)
Increase (decrease)in cash and
cash equivalents 2,161 (21,890)
Cash and cash equivalents:
Beginning of period 31,319 43,175
End of period $ 33,480 $ 21,285
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. Additionally, the related income tax
effects have been adjusted.
(3) Income Taxes
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 six month period ended June 30,
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)
<PAGE>
Revenue
Consolidated revenue increased by $6,758 (or 21%) and $12,566 (or
21%) for the three and six months ended June 30, 1992,
respectively, as compared to the corresponding 1991 periods.
During the second quarter and six months ended June 30, 1992,
software segment revenue increased $7,793 (or 30%) and $14,860 (or
31%) for the comparable periods over 1991. As compared to the
prior year quarter, I-DEAS license revenue increased 47%,
maintenance revenue increased 27% and license revenue from a
marketing agreement with a significant customer declined 14%.
As compared to the prior year six month period I-DEAS license
revenue increased 30%, maintenance revenue increased 30% and
license revenue from a marketing agreement with a significant
customer increased 23%.
Engineering services revenue decreased 16% and 17% for the three
and six months ended June 30, 1992, respectively, as compared to
the corresponding 1991 periods due to a decrease in all markets.
Expenses
Operating income increased by $3,185 (or 131%) and $4,905 (or 117%)
for the three and six months ended June 30, 1992, respectively, as
compared to the corresponding 1991 periods.
During the three and six months ending June 30, 1992, cost of
revenue declined as compared to 1991 primarily due to a decrease in
engineering services cost to offset the decline in revenue. This
decrease was partially offset by an increase in variable costs
directly associated with the software revenue growth.
Due to the Company's continuing commitment to the technological
advancement of its software product line, research and development
expenses increased 21% for the quarter and 12% year-to-date as
compared to the corresponding 1991 periods. This increase was
offset by an increase in the amount of software construction costs
capitalized in accordance with Statement of Financial Accounting
Standards No. 86.
Selling, general and administrative expenses increased 18% for the
quarter and 24% year-to-date as compared to the corresponding 1991
periods due to continued expansion of the field sales and support
organization, as well as increased general corporate expenses.
Taxes
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 six month
period ended June 30, 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 June 30, 1992 the Company had cash and investments of $52,643.
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 Per Common Share
11(b) Calculation of Fully Diluted Earnings Per Common Share
(B) Reports on Form 8-K filed during the quarter ended June 30,
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 Per Common Share
(in thousands, except share data)
Three Months Ended June 30, Six Months Ended June 30,
1992 1991 1992 1991
Income after income
taxes and before
cumulative effect
of accounting change $ 4,089 $ 1,920 $ 6,674 $ 3,433
Cumulative effect
of accounting change -- -- 700 --
Net income $ 4,089 $ 1,920 $ 7,374 $ 3,433
Average Number of
Shares of Common
Stock Outstanding 27,923 26,091 27,696 25,940
Average Number of
Common Stock
Equivalents:
Effect of stock
options outstanding
after application
of the treasury
stock method 1,883 2,447 2,933 2,432
29,806 28,538 30,629 28,372
Primary Earnings
Per Common Share:
Before cumulative
effect of
accounting change $ .14 $ .07 $ .22 $ .12
Cumulative effect
of accounting
change -- -- .02 --
Earnings per share $ .14 $ .07 $ .24 $ .12<PAGE>
Exhibit 11(b)
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Calculation of Fully Diluted Earnings Per Common Share
(in thousands, except share data)
Three Months Ended June 30, Six Months Ended June 30,
1992 1991 1992 1991
Income after income
taxes and before
cumulative effect
of accounting change $ 4,089 $ 1,920 $ 6,674 $ 3,433
Cumulative effect of
accounting change -- -- 700 --
Net income $ 4,089 $ 1,920 $ 7,374 $ 3,433
Average Number of
Shares of Common
Stock Outstanding 27,923 26,091 27,696 25,940
Average Number of
Common Stock
Equivalents:
Effect of stock
options outstanding
after application
of the treasury
stock method 1,883 2,447 2,933 2,432
29,806 28,538 30,629 28,372
Fully Diluted
Earnings Per
Common Share:
Before cumulative
effect of
accounting change $ .14 $ .07 $ .22 $ .12
Cumulative effect
of accounting
change -- -- .02 --
Earnings per share $ .14 $ .07 $ .24 $ .12
