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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q/A
[ X ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended December 31, 1997
----------------------
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from
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Commission File Number 0-021403
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VOXWARE, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Delaware 36-3934824
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(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
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305 College Road East
Princeton, New Jersey 08540
609-514-4100
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(Address, including zip code, and telephone
number (including area code) of registrant's
principal executive office)
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 last 90 days. YES X NO
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Shares Outstanding at April 20, 1999
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Common Stock, $.001 par value 13,343,851
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Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
10.1 Amendment One to the Software License Agreement by and
between the Company and Netscape Communications
Corporation. * +
10.2 Amendment dated December 12, 1997 to the License
Agreement dated March 31, 1997 by and between the
Company and Microsoft Corporation regarding the
license of the Company's MetaSound Codec. +
11.1 Statement re: Computation of Loss Per Share. *
27 Financial Data Schedule. *
(b) Reports on Form 8-K. None.
- --------------------------------------------------------------------------------
* Previously filed.
+ A request for confidential treatment has been made for portions of such
document.
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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.
Date: April 21, 1999
VOXWARE, INC.
(Registrant)
By: /s/ Bathsheba Malsheen
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Bathsheba Malsheen, President and
Chief Executive Officer
By: /s/ Nicholas Narlis
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Nicholas Narlis, Vice President,
Chief Financial Officer, Treasurer and Secretary
(Principal Financial Officer and Principal
Accounting Officer)
<PAGE>
Exhibit 10.2
Confidential treatment has been requested for portions of this Exhibit.
The Confidential Portions have been redacted and are denoted by [ * * *
]. The Confidential Portions have been separately filed with the
Commission.
AMENDMENT
THIS AMENDMENT ("Amendment") is made and entered into as of December 12, 1997,
by and between Microsoft Corporation, a Washington corporation located at One
Microsoft Way, Redmond, WA 98052 ("Microsoft"), and Voxware, Inc., a Delaware
corporation located at 305 College Road East, Princeton, NJ 08540 ("Voxware").
Recitals
The parties entered into a Software License Agreement dated March 31, 1997 for
Voxware's MetaSound Codec(s) in the Microsoft Products (the "MetaSound
Agreement") (as such terms are defined therein), which MetaSound Agreement
remains in effect;
Microsoft now also desires a license to additional programs of Voxware as
specified in this Amendment;
The parties now wish to modify the MetaSound Agreement in order to grant to
Microsoft the license to the additional programs (the "Additional Programs"), in
accordance with the terms of this Amendment.
NOW, THEREFORE, the parties hereby agree to modify the MetaSound Agreement as
follows:
Amendment
1. In addition to the MetaSound Codecs specified in Exhibit A of the
MetaSound Agreement, Microsoft shall also have a license subject to the
terms and conditions of the MetaSound Agreement, to the Additional
Programs specified in Exhibit A-1, which is attached hereto and
incorporated herein by this reference. Exhibit A of the MetaSound
Agreement remains in full force and effect, and all terms, conditions
and restrictions applicable to the MetaSound Codecs in Exhibit A shall
also apply to the Additional Programs in Exhibit A-1 unless otherwise
specified herein.
2. In addition to the license fee specified in Section 3.1 of the MetaSound
Agreement for the MetaSound Codecs, Microsoft shall also pay to Voxware
for the Additional Programs, the fees set forth in Exhibit C-1, which is
attached hereto and incorporated herein by this reference. Exhibit C of
the MetaSound Agreement remains in full force and effect.
3. Voxware shall deliver the Additional Programs according to the schedule
specified in Exhibit C-1. Microsoft's acceptance of the Additional
Programs shall be in accordance with Section 2.1 of the
MetaSoundAgreement.
4. The parties shall issue a joint press release at a mutually agreeable
date following execution of this Amendment, applicable to the Additional
Programs licensed hereunder. Microsoft will provide a quote from a
senior executive (e.g., General Manager) for the purposes of such press
release.
5. No maintenance fee for the Additional Programs shall be due for the
first one year period of this Amendment. Subsequent to the first
anniversary of this Amendment, Microsoft shall pay to
<PAGE>
Voxware an annual support fee of [ * * * ] Dollars (US$[ * * * ]) for
each year that Microsoft desires to receive Updates, Ports, and the
maintenance services described in Section 5.3 of the MetaSound Agreement
for the Additional Programs.
6. The definition of "Microsoft Products" shall be amended to include
[* * *] .
7. The paragraph at the end of Section 4.1 is amended to read in its
entirety as follows:
Voxware will include a locking mechanism in the Encoder to inhibit
direct or independent access to the Encoder by other than a Microsoft
Product. Microsoft will not publish or disclose the key to the locking
mechanism to third parties; provided, however, Microsoft may license the
key to third parties for the sole purpose of creating streaming content
for formats supported by current and future versions of Microsoft
Products.
8. The following provision is added to the agreement as Section 4.7:
Covenant Not to Sue: Voxware agrees not to sue, or to bring or prosecute
a claim in any judicial, administrative or other proceedings of any kind
against Microsoft or its licensees (including without limitation OEM
customers and end users) for infringement, which infringement occurs
without reliance by Microsoft in any way on Voxware's Confidential
Information, of Voxware Patents (as defined below) on account of the
manufacture, use, sale or distribution of any Microsoft services and
product (including but not limited to Microsoft Products);
"Voxware Patents" as used in this subsection means all patents and
applications therefore throughout the world owned, controlled or
acquired by Voxware that relate to MetaSound Codecs licensed under this
agreement. The "Immunity Period" shall commence upon the first to issue
and shall terminate upon the last to expire, of any of the Voxware
Patents.
In the event Voxware assigns any Voxware Patents or rights to enforce
Voxware Patents, Voxware shall require as a condition of any such
assignment that the assignee agree to be bound by the provisions of this
subsection.
Except as expressly specified herein, all terms and conditions of the MetaSound
Agreement shall remain in full force and effect and shall apply to the subject
matter of this Amendment.
IN WITNESS WHEREOF, the parties indicate their agreement with and acceptance of
the terms and conditions contained in this Amendment, and this Amendment is
hereby made a part of the MetaSound Agreement, as of the date first provided
above.
MICROSOFT CORPORATION VOXWARE, INC.
/s/ Robert Muglia /s/ Kenneth Traub
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Signature Signature
Robert Muglia Kenneth Traub
- --------------------------------- ------------------------------------------
Print Name Print Name
VP, Server Applications Executive VP and CFO
- --------------------------------- ------------------------------------------
Title Title
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EXHIBIT A-1
DESCRIPTION OF SOFTWARE DELIVERABLES
Functional Specifications of the MetaSound Codec Additional Programs to
be delivered to Microsoft
A. Overview
Voxware will deliver localizable Implementations for use with a variety
of computing platforms, regardless of processor type. Below is the table
describing general requirements of each platform.
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Platform Encoder Decoder
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Win16 Not Applicable Wrapper: ACM
Processor: excluding 286-or-
slower processors
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Win32
(Intel and DEC Alpha) Wrapper: ACM & Wrapper: ACM & [ * * * ] Filter
[ * * * ] Filter Processor: excluding 386-or-
Keyed for use with slower processors
[ * * * ] Libraries,
[ * * * ] Libraries, and
related third party ASF
content creation
applications
Processor: excluding
386-or-slower processors
- --------------------------------------------------------------------------------
MacOS Wrapper: QuickTime Wrapper: QuickTime
Keyed for use with Processor: non-68K
[ * * * ] Libraries, System 7.1 and later
[ * * * ] Libraries,
and related third
party ASF content
creation applications
Processor: non-68K
System 7.1 and later
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Solaris 2.5 & higher Not Applicable Wrapper: Voxware's Native API
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Irix 6.2 & higher Not Applicable Wrapper: Voxware's Native API
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HP UX 10.01& higher Not Applicable Wrapper: Voxware's Native API
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SunOS 4.1.3 & higher Not Applicable Wrapper: Voxware's Native API
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Linux 2.0.18 & higher Not Applicable Wrapper: Voxware's Native API
- --------------------------------------------------------------------------------
B. General Description of the AC6 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 64ms of signal sampled at 8 kHz (512 samples);
* output: 384 bits of code for each input frame, hence a bit rate of
6000 bps.
The second one (the decoder) has the following functionality:
* input: 384 bits of code for each frame of 64ms;
* output: 512 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples are
generated each 64ms, hence corresponding to a signal sampling frequency of 8
kHz.
<PAGE>
C. General Description of the AC32 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 44.1 kHz (2048
samples);
* output: 1488 bits of code for each input frame, hence a bit rate of
32041 bps.
The second one (the decoder) has the following functionality:
* input: 1488 bits of code for each frame of 46.44 ms;
* output: 2048 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples are
generated each 46.44 ms, hence corresponding to a signal sampling frequency
of 44.1 kHz.
D. General Description of the AC40 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 44.1 (2048
samples);
* output: 1864 bits of code for each input frame, hence a bit rate of
40138 bps.
The second one (the decoder) has the following functionality:
* input: 1864 bits of code for each frame of 46.44 ms;
* output: 2048 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples are
generated each 46.44 ms, hence corresponding to a signal sampling frequency
of 44.1 kHz.
E. General Description of the AC48 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 44.1 kHz
(2048 samples);
* output: 2232 bits of code for each input frame, hence a bit
rate of 48062 bps.
The second one (the decoder) has the following functionality:
* input: 2232 bits of code for each frame of 46.44 ms;
* output: 2048 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 46.44 ms, hence corresponding to a signal sampling
frequency of 44.1 kHz.
F. General Description of the ACS16 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 64 ms of signal sampled at 8 kHz (512
samples) stereo;
* output: 1024 bits of code for each input frame, hence a bit
rate of 16000 bps.
The second one (the decoder) has the following functionality:
<PAGE>
* input: 1024 bits of code for each frame of 46.44 ms;
* output: 512 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 46.44 ms, hence corresponding to a signal sampling
frequency of 8 kHz.
G. General Description of the ACS20 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 11 kHz
(512 samples) stereo;
* output: 928 bits of code for each input frame, hence a bit
rate of 20000 bps.
The second one (the decoder) has the following functionality:
* input: 928 bits of code for each frame of 46.44 ms;
* output: 512 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 46.44 ms, hence corresponding to a signal sampling
frequency of 11 kHz.
H. General Description of the ACS32 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 64 ms of signal sampled at 16 kHz
(1024 samples) stereo;
* output: 2048 bits of code for each input frame, hence a bit
rate of 32000 bps.
The second one (the decoder) has the following functionality:
* input: 2048 bits of code for each frame of 64 ms;
* output: 1024 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 64 ms, hence corresponding to a signal sampling
frequency of 16 kHz.
I. General Description of the ACS48 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 22 kHz
(1024 samples) stereo;
* output: 2232 bits of code for each input frame, hence a bit
rate of 48062 bps.
The second one (the decoder) has the following functionality:
* input: 2232 bits of code for each frame of 46.44 ms;
* output: 1024 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 46.44 ms, hence corresponding to a signal sampling
frequency of 22 kHz.
J. General Description of the ACS64 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 44.1 kHz
(2048 samples) stereo;
* output: 2976 bits of code for each input frame, hence a bit
rate of 64083 bps.
The second one (the decoder) has the following functionality:
* input: 2976 bits of code for each frame of 46.44 ms;
* output: 2048 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 46.44 ms, hence corresponding to a signal sampling
frequency of 44.1 kHz.
<PAGE>
K. General Description of the ACS80 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 44.1 kHz
(2048 samples) stereo;
* output: 3728 bits of code for each input frame, hence a bit
rate of 80276 bps.
The second one (the decoder) has the following functionality:
* input: 3728 bits of code for each frame of 46.44 ms;
* output: 2048 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 46.44 ms, hence corresponding to a signal sampling
frequency of 44.1 kHz.
L. General Description of the ACS96 codec
The package consists of one encoder and one decoder.
The encoder has the following functionality:
* input: one frame of 46.44 ms of signal sampled at 44.1 kHz
(2048 samples) stereo;
* output: 4464 bits of code for each input frame, hence a bit
rate of 96124 bps.
The second one (the decoder) has the following functionality:
* input: 4464 bits of code for each frame of 46.44 ms;
* output: 2048 samples of signal with an average amplitude that
corresponds to the one used during the encoding phase; output samples
are generated each 46.44 ms, hence corresponding to a signal sampling
frequency of 44.1 kHz.
<PAGE>
M. Performance
There is one package containing an algorithm implemented in software
(both object code and source code). There are eleven codecs. Each codec
has a single flat bit rate: AC6 - 6000 bps, AC32 - 32041 bps, AC40 -
40138 bps, AC48 -48062 bps, ACS16 - 16000 bps, ACS20 - 20000 bps, ACS32
- 32041 bps, ACS48 -48062 bps, ACS64 - 64083 bps, ACS80 - 80276 bps,
ACS96 - 96124 bps. The codecs achieve certain performance criteria.
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Codec Bandwidth Sampling Rate Frequency Response
- --------------------------------------------------------------------------------
AC6 6 Kbps 8 kHz 0 - 4 kHz
- --------------------------------------------------------------------------------
AC32 32 Kbps 44.1 kHz 0 - 22.05 kHz
- --------------------------------------------------------------------------------
AC40 40 Kbps 44.1 kHz 0 - 22.05 kHz
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AC48 48 Kbps 44.1 kHz 0 - 22.05 kHz
- --------------------------------------------------------------------------------
ACS16 16 Kbps 8 kHz 0 - 4 kHz
- --------------------------------------------------------------------------------
ACS20 20 Kbps 11 kHz 0 - 5.5 kHz
- --------------------------------------------------------------------------------
ACS32 32 Kbps 16 kHz 0 - 8 kHz
- --------------------------------------------------------------------------------
ACS48 48 Kbps 22 kHz 0 - 11 kHz
- --------------------------------------------------------------------------------
ACS64 64 Kbps 44.1 kHz 0 - 22.05 kHz
- --------------------------------------------------------------------------------
ACS80 80 Kbps 44.1 kHz 0 - 22.05 kHz
- --------------------------------------------------------------------------------
ACS96 96 Kbps 44.1 kHz 0 - 22.05 kHz
- --------------------------------------------------------------------------------
<PAGE>
EXHIBIT C-1
Delivery And Payment Schedule
As the sole and exclusive consideration for (a) all of the rights granted to
Microsoft under this Agreement to the Additional Programs (the Beta Win32
component of which has been accepted by Microsoft) and (b) Voxware's obligations
regarding the maintenance of the Additional Programs, Microsoft shall pay
Voxware [ * * * ] Dollars (US$[ * * * ] ). Such fee will be payable as follows:
a one-time non-refundable, fully paid up license fee of [ * * * ] Dollars (US$[
* * * ] ) payable within forty five (45) days following execution of this
Amendment, and [ * * * ] Dollars (US$[ * * * ] ) as nonrecurring engineering
fees according t o the schedule set forth below, upon Microsoft's acceptance of
each Additional Program Deliverable:
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Platform Processor Encoder Decoder NRE
- --------------------------------------------------------------------------------
Beta Win32 Intel 12/19/97 12/19/97 $[ * * * ]
- --------------------------------------------------------------------------------
Win16 Intel Not Applicable 3/30/98 $[ * * * ]
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Final Win32 Intel, DEC Alpha 3/9/98 3/9/98 $[ * * * ]
- --------------------------------------------------------------------------------
MacOS PPC 3/16/98 3/16/98 $[ * * * ]
- --------------------------------------------------------------------------------
Solaris 2.5 & SPARC Not Applicable 4/20/98 $[ * * * ]
higher
- --------------------------------------------------------------------------------
Irix 6.2 & higher MIPS Not Applicable 4/20/98 $[ * * * ]
- --------------------------------------------------------------------------------
HP UX 10.01 & PA RISC Not Applicable 4/20/98 $[ * * * ]
higher
- --------------------------------------------------------------------------------
SunOS 4.1.3 & SPARC Not Applicable 4/20/98 $[ * * * ]
higher
- --------------------------------------------------------------------------------
Linux 2.0.18 & Intel Not Applicable 4/20/98 $[ * * * ]
higher
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[ * * * ]-Only Intel, DEC Alpha 3/9/98 3/9/98 $[ * * * ]
Light Version
for Win32
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