-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V9mANS4e0qFdZmCP8cV/VA6gq4jS4ND2YwZDJrFYpejy4B0x/DRQEvcDd+8klme4 gvgz8CQjEHlg8AT/rPb2SQ== 0000891618-96-001498.txt : 19960802 0000891618-96-001498.hdr.sgml : 19960802 ACCESSION NUMBER: 0000891618-96-001498 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960801 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MICROCIDE PHARMACEUTICALS INC CENTRAL INDEX KEY: 0001010915 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 943186021 STATE OF INCORPORATION: CA FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-28006 FILM NUMBER: 96602174 BUSINESS ADDRESS: STREET 1: 850 MAUDE AVE CITY: MOUNTAIN VIEW STATE: CA ZIP: 94043 BUSINESS PHONE: 4154281550 MAIL ADDRESS: STREET 1: 850 MAUDE AVE CITY: MOUNTAIN VIEW STATE: CA ZIP: 94043 10-Q 1 MICROCIDE PHARMACEUTICALS FORM 10-Q 6/30/96 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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, 1996 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 0-28006 MICROCIDE PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) DELAWARE 94-3186021 (State or other jurisdiction of (I.R.S.Employer incorporation of organization) Identification Number) 850 MAUDE AVENUE, MOUNTAIN VIEW, CALIFORNIA 94043 (Address of principal executive offices) (ZIP Code) Registrant's telephone number, including area code: 415-428-1550 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 No X* ---- ---- Number of shares of Common Stock, no par value, outstanding as of June 30, 1996: 10,670,429. * Registrant has been subject to such filing requirements since May 14, 1996, the effective date of its Registration Statement on Form S-1, and has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 since such date. -1- 2 MICROCIDE PHARMACEUTICALS, INC. INDEX FOR FORM 10-Q JUNE 30, 1996
PAGE NUMBER PART I FINANCIAL INFORMATION Item 1. Financial Statements and Notes Condensed Balance Sheets as of June 30, 1996 3 and December 31, 1995. Condensed Statements of Operations for the three and six months ended June 30, 1996 and June 30, 1995 4 Condensed Statements of Cash Flows for the three and six months ended June 30, 1996 and June 30, 1995 5 Notes to Condensed Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II OTHER INFORMATION 11 Item 1. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults in Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K SIGNATURES 13
-2- 3 MICROCIDE PHARMACEUTICALS, INC. (a development stage company) CONDENSED BALANCE SHEETS (in thousands)
June 30,1996 December 31, 1995 ------------ ----------------- (unaudited) ASSETS Current assets: Cash and cash equivalents $ 50,381 $ 8,517 Prepaid expenses and other current assets 292 138 -------- -------- Total current assets 50,673 8,655 Property and equipment, net 5,597 4,606 Other assets 159 232 -------- -------- Total assets $ 56,429 $ 13,493 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 758 $ 463 Accrued compensation and other accrued liabilities 370 273 Current portion of capital lease obligations 1,110 1,118 Deferred revenue 1,543 413 -------- -------- Total current liabilities 3,781 2,267 Long-term portion of capital lease obligations 1,426 1,920 Accrued rent 150 155 Stockholders' equity: Preferred stock -- 22,435 Common stock 66,328 632 Stockholder note receivable (35) (35) Deferred compensation (1,858) (412) Net unrealized loss on securities available-for-sale (2) (2) Deficit accumulated during the development stage (13,361) (13,467) -------- -------- Total stockholders' equity 51,072 9,151 -------- -------- Total liabilities and stockholders' equity $ 56,429 $ 13,493 ======== ========
See notes to condensed financial statements -3- 4 MICROCIDE PHARMACEUTICALS, INC. (a development stage company) CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited)
Three Months Ended Six Months Ended June 30 June 30, ------------------------- ------------------------- 1996 1995 1996 1995 ------- ------- ------- ------- Revenues: License fees $ -- $ -- $ 1,000 $ -- Research revenue 2,243 -- 3,868 -- ------- ------- Total revenues 2,243 -- 4,868 -- Operating expenses: Research and development 2,305 1,402 4,085 2,726 General and administrative 581 384 1,107 863 ------- ------- ------- ------- Total operating expenses 2,886 1,786 5,192 3,589 Loss from operations (643) (1,786) (324) (3,589) Interest income 416 48 553 133 Interest expense (50) (71) (123) (141) ------- ------- ------- ------- Net income (loss) $ (277) $(1,809) $ 106 $(3,597) ======= ======= ======= ======= Net income (loss) per share $ (0.04) $ (0.78) $ 0.02 $ (1.56) ======= ======= ======= ======= Shares used in calculation of net income (loss) per share 6,616 2,316 4,984 2,310 Pro forma net income (loss) per share $ (0.03) $ (0.22) $ 0.01 $ (0.45) ======= ======= ======= ======= Shares used in calculation of pro forma net income (loss) per share 9,408 8,052 9,248 8,046
See notes to condensed financial statements. -4- 5 MICROCIDE PHARMACEUTICALS, INC. (a development stage company) CONDENSED STATEMENTS OF CASH FLOWS Increase (decrease) in cash and cash equivalents (unaudited)
Three Months Ended Six Months Ended June 30, June 30, --------------------------- --------------------------- 1996 1995 1996 1995 -------- -------- -------- -------- CASH FLOWS USED IN OPERATING ACTIVITIES: Net income (loss) $ (277) $ (1,809) $ 106 $ (3,597) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 387 341 738 638 Amortization of deferred compensation 145 -- 209 -- Accrued rent (3) 3 (5) 7 Changes in assets and liabilities: Prepaid expenses and other current assets (80) 16 (154) 226 Other assets 50 28 73 (51) Accounts payable (65) (55) 295 (160) Accrued compensation and other accrued liabilities 61 13 97 50 Deferred revenue (494) -- 1,130 -- -------- -------- -------- -------- Net cash provided by (used in) operating activities (276) (1,463) 2,489 (2,887) -------- -------- -------- -------- CASH FLOWS USED IN INVESTING ACTIVITIES: Capital expenditures (807) (24) (1,729) (24) -------- -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on capital lease obligations (237) (297) (502) (474) Proceeds from issuance of common stock 36,610 -- 36,618 -- Net proceeds from issuance of convertible preferred stock (2) -- 4,988 -- -------- -------- -------- -------- Net cash provided by financing activities 36,371 (297) 41,104 (474) -------- -------- -------- -------- Net increase in cash and cash equivalents 35,288 (1,784) 41,864 (3,385) Cash and cash equivalents, beginning of period 15,093 4,209 8,517 5,810 -------- -------- -------- -------- Cash and cash equivalents, end of period $ 50,381 $ 2,425 $ 50,381 $ 2,425 ======== ======== ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Interest paid $ 50 $ 71 $ 120 $ 144 ======== ======== ======== ======== SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: Conversion of convertible preferred stock to common stock $ 27,423 $ -- $ 27,423 $ -- ======== ======== ======== ========
See notes to condensed financial statements. -5- 6 MICROCIDE PHARMACEUTICALS, INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO CONDENSED FINANCIAL STATEMENTS JUNE 30, 1996 (UNAUDITED) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Basis of Presentation Microcide Pharmaceuticals, Inc. (the "Company") is a biopharmaceutical company founded to discover, develop and commercialize novel antibiotics for the treatment of serious bacterial infections. The Company's discovery and development programs address the growing problem of antibiotic resistance in certain bacteria through two principal themes: (i) Targeted Antibiotics, which focuses on developing novel antibiotics and antibiotic potentiators, and (ii) Targeted Genomics, which utilizes bacterial genetics to discover new classes of antibiotics and other novel treatments for bacterial disease. The Company's activities to date have consisted principally of raising capital, arranging for facilities, acquiring equipment and intellectual property, recruiting managerial and technical personnel, and conducting research and development. Accordingly, the Company is classified as a development stage enterprise. The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the interim periods shown herein are not necessarily indicative of operating results for the entire year. This unaudited financial data should be read in conjunction with the financial statements contained in the Company's final prospectus included in its Registration Statement on Form S-1 (Registration No. 333-02400.) This Form 10-Q contains forward-looking statements based upon current expectations. Such forward-looking statements involve risks and uncertainties, including, without limitation, the factors set forth in "Risk Factors" and elsewhere in the Company's Registration Statement on Form S-1 and the Prospectus dated May 14, 1996 constituting a part thereof. Actual results and timing of certain events could differ materially from those indicated in the forward-looking statements as a result of these or other factors. 2. INITIAL PUBLIC OFFERING In May 1996, the Company raised approximately $36.4 million in net proceeds from the sale of 2,875,000 shares of common stock at $14.00 per share in its initial public offering. Concurrent with the initial public offering, all of the Company's outstanding preferred stock automatically converted into 6,880,791 shares of common stock. -6- 7 3. INVESTMENTS Investment securities are classified as available-for-sale and consist of the following investments due within three months:
June 30, December 31, 1996 1995 ------- ------- Cash equivalents: Money market funds $ 8,494 $ 1,039 Commercial paper 41,887 7,478 ------- ------- $50,381 $ 8,517 ======= =======
4. NET INCOME (LOSS) PER SHARE Net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the periods presented. Common equivalent shares are included in the computation for income periods and excluded from the computation in loss periods as their effect is antidilutive, except that, pursuant to the Securities and Exchange Commission Staff Accounting Bulletins, common and common equivalent shares (stock options, warrants, and convertible preferred stock) issued during the 12 month period prior to the Company's initial public offering have been included in the calculation as if they were outstanding for all periods through March 31, 1996 (using the treasury stock method for stock options and warrants and the if-converted method for convertible preferred stock). The pro forma calculation of net income (loss) per share has been computed as described above but also gives retroactive effect from the date of issuance to the conversion of the convertible preferred stock which automatically converted to common shares upon closing of the Company's initial public offering. -7- 8 MICROCIDE PHARMACEUTICALS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW As part of the Company's strategy to enhance its research and development capabilities and to fund, in part, its capital requirements, Microcide has entered into collaborative agreements with three major pharmaceutical companies. The Company has received license fees and research support payments pursuant to these agreements and can potentially receive additional research support payments, milestone payments and royalty payments. License payments are typically nonrefundable up-front payments for licenses to develop, manufacture and market products, if any, that are developed as a result of the collaboration. Research support payments are typically contractually obligated payments to fund research and development over the term of the collaboration. Milestone payments are payments contingent upon the achievement of specified milestones, such as selection of candidates for drug development, the commencement of clinical trials or receipt of regulatory approvals. If drugs are successfully developed and commercialized as a result of the collaborative agreements, the Company will receive royalty payments based upon the net sales of such drugs. Through June 30, 1996, the Company had received in the aggregate $4.0 million in license fees and $7.4 million in research support payments under the collaborative agreements. Assuming none of the existing collaborative agreements is terminated prior to its scheduled expiration, the Company will be entitled to receive an additional $34.1 million of research support payments. In addition, in the event that any of the collaborative agreements are extended beyond their current terms, the Company will be entitled to receive additional research support payments. No milestone or royalty payments have yet been received. In the event that the Company achieves the specified research and product development milestones, the Company will be entitled to receive milestone payments ranging from $13.0 million to $32.5 million per product. The Company does not expect to receive royalties based upon the net sales of drugs for a significant number of years. Quarterly results of operations are subject to significant fluctuations based on the timing and amount of certain revenues earned under the collaborative agreements. The Company expects to incur operating losses in the future. This Form 10-Q contains forward-looking statements based upon current expectations. Such forward-looking statements involve risks and uncertainties, including, without limitation, the factors set forth in "Risk Factors" and elsewhere in the Company's Registration Statement on Form S-1 and the Prospectus dated May 14, 1996 constituting a part thereof. Actual results and timing of certain events could differ materially from those indicated in the forward-looking statements as a result of these or other factors. -8- 9 RESULTS OF OPERATIONS THREE MONTHS ENDED JUNE 30, 1996 AND 1995 Revenues. Total revenues for the second quarter of 1996 were $2.2 million, consisting of revenues earned for research performed under collaborative agreements. Research revenues in the second quarter increased 38% over that earned in the first quarter of 1996 due to an increase in the number of research personnel devoted to collaborative projects. No revenues were recognized for the second quarter of 1995 as no collaborative agreements were in effect at that time. Research and Development Expenses. Research and development expenses for the second quarter increased approximately 64% from $1.4 million in 1995 to $2.3 million in 1996 primarily due to increased compensation expenses and supplies expenses related to an increase in the number of research personnel, largely to support the Company's new collaborative programs. Additionally, expenditures for research materials and amortization of deferred compensation contributed to the increase in expense. General and Administrative Expenses. General and administrative expenses for the second quarter increased 51% from $384,000 in 1995 to $581,000 in 1996 primarily due to increased compensation expenses resulting from an increase in the number of administrative personnel and amortization of deferred compensation. Interest Income and Expense. Interest income for the second quarter increased from $48,000 in 1995 to $416,000 in 1996, primarily due to an increase in average cash balances in 1996 related to proceeds received from the Company's initial public offering in May 1996, from proceeds received from the sale of other equity and cash received under collaborative agreements. Interest expense for the second quarter decreased 30% from $71,000 in 1995 to $50,000 in 1996 due to a decrease in capital lease balances outstanding. Net Income (Loss). Net loss for the second quarter decreased $1.5 million from a loss of $1.8 million in 1995 to a loss of $277,000 in 1996, primarily as a result of the items discussed above. SIX MONTHS ENDED JUNE 30, 1996 AND 1995 Revenues. Revenues for the six months ended June 30, 1996 were $4.9 million, consisting of $1.0 million in license fees and $3.9 million in revenues earned for research performed under collaborative agreements. No revenues were recognized for the first two quarters of 1995 as no collaborative agreements were in effect at that time. Research and Development Expenses. Research and development expenses for the first half of 1996 increased approximately 50% from $2.7 million in 1995 to $4.1 million in 1996 primarily due to increased compensation expenses, supplies and other expenses related to an increase in the number of research personnel, largely to support the Company's new collaborative programs. Additionally, expenditures for research materials, outside research services and amortization of deferred compensation contributed to the increase. General and Administrative Expenses. General and administrative expenses for the first half of 1996 increased approximately 28% from $863,000 in 1995 to $1.1 million in 1996 primarily due to increased compensation expenses resulting from an increase in the number of administrative personnel and amortization of deferred compensation. -9- 10 Interest Income and Expense. Interest income for the first half of 1996 increased from $133,000 in 1995 to $553,000 in 1996, primarily due to an increase in average cash balances in 1996 related to proceeds received from the Company's initial public offering in May 1996, from proceeds received from the sale of other equity and cash received under collaborative agreements. Interest expense for the first half of 1996 decreased 13% from $141,000 in 1995 to $123,000 in 1996 due to a decrease in capital lease balances outstanding. Net Income (Loss). Net income for the first half of 1996 increased $3.7 million from a loss of $3.6 million in 1995 to a profit of $106,000 in 1996, primarily as a result of the items discussed above. LIQUIDITY AND CAPITAL RESOURCES The Company has financed its operations since inception primarily through the sale of equity, through funds provided under collaborative agreements and through equipment financing. As of June 30, 1996 the Company had received approximately $64.0 million in net proceeds from the sale of equity and approximately $11.4 million in cash for license fees and research support payments under collaborative agreements. Cash and cash equivalents at June 30, 1996 were $50.4 million compared to $8.5 million at December 31,1995. The increase during the first half of 1996 was due primarily to proceeds received from the Company's initial public offering, the sale of other equity and payments received under collaborative agreements. Net cash provided by the Company's operations was $2.5 million for the six months ended June 30, 1996 and was primarily due to receipt of a license fee and receipt of research support payments in excess of research revenue earned during the six month period. Net cash used in the Company's operations was $276,000, $1.5 million and $2.9 million for the three months ended June 30, 1996, the three months ended June 30, 1995 and the six months ended June 30, 1995, respectively. Net cash used in operations was primarily used to fund research and development expenses and for general and administrative expenses to support the Company's activities. From inception through June 30, 1996, the Company had invested approximately $8.5 million in property and equipment, including $4.6 million in equipment and leasehold improvements under capital leases. For the first half of 1996, $1.7 million was invested in property and equipment. The Company believes that its existing capital resources, interest income and future payments due under collaborative agreements will be sufficient to satisfy its funding requirements at least through 1998. -10- 11 PART II OTHER INFORMATION Item 1. Legal Proceedings None. Item 2. Changes in Securities None. Item 3. Defaults in Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders None. Item 5. Other Information None. Item 6. Exhibits and Reports on Form 8-K (a) The following exhibits have been filed with this report: 3.1+ Restated Articles of Incorporation of Microcide Pharmaceuticals, Inc., a California corporation, as in effect prior to the Registrant's reincorporation in Delaware 3.2+ Restated Certificate of Incorporation of Microcide Pharmaceuticals, Inc., a Delaware corporation, as in effect immediately following Registrant's reincorporation in Delaware 3.3+ Form of Restated Certificate of Incorporation of the Registrant to be filed upon the closing of the offering under the Registration Statement. 3.4+ Bylaws of the Registrant, as in effect prior to the Registrant's reincorporation in Delaware 3.5+ Bylaws of the Registrant, as in effect immediately following the Registrant's reincorporation in Delaware 4.3+ Series A Preferred Warrant Purchase Agreement and Warrant between Dominion Ventures, Inc. and the Registrant dated May 10, 1993 4.4+ Series B Preferred Warrant Purchase Agreement and Warrant between Dominion Ventures, Inc. and the Registrant dated May 10, 1993 4.5+ Series C Preferred Warrant Purchase Agreement and Warrant between Dominion Ventures, Inc. and the Registrant dated June 10, 1994 4.6+ Series B Preferred Warrant Purchase Agreement and Warrant between Comdisco Inc. and the Registrant dated September 1, 1993 4.7+ Series C Preferred Warrant Purchase Agreement and Warrant between Comdisco Inc. and the Registrant dated September 1, 1993 10.1+ Information and Registration Rights Agreement dated June 29, 1994 as amended 10.2+ 1993 Amended Incentive Stock Plan 10.3+ 1996 Employee Stock Purchase Plan 10.4+ 1996 Director Stock Option Plan 10.5+ 401(k) Plan 10.6+* Research and License Agreement between the Registrant and Ortho Pharmaceutical Corporation and the R.W. Johnson Pharmaceutical Research Institute dated October 24, 1995 -11- 12 10.7+* Research and License Agreement between the Registrant and Ortho Pharmaceutical Corporation and the R.W. Johnson Research Institute dated October 24, 1995 10.8+* Joint Research Agreement between the Registrant and Daiichi Pharmaceutical Co., Ltd. dated November 6, 1995 10.9+* Collaborative Research Agreement between the Registrant and Pfizer Inc dated March 1, 1996 10.10+* License and Royalty Agreement between the Registrant and Pfizer Inc dated March 1, 1996 10.11+ Master Lease Agreement between Dominion Ventures, Inc. and Registrant, dated May 10, 1993, as amended on June 10, 1994 and November 22, 1994 10.12+ Master Lease Agreement between the Registrant and Comdisco, Inc. dated September 1, 1993 10.13+ Lease Agreement between the Registrant and Portola Land Company dated April 1993 10.14+ Form of Indemnification Agreement between the Registrant and its Officers and Directors 10.15+ Employment Agreement Dated January 31, 1994 between the Registrant and James E. Rurka 10.16+ Employment Agreement Dated December 23, 1992 between the Registrant and Keith A. Bostian, Ph.D. 11.1 Calculation of Net Income (Loss) Per Share 27.1 Financial Data Schedule - -------------------- + Incorporated by reference to same-numbered exhibits filed with the Company's Registration Statement on Form S-1 (Registration No. 333-2400). * Confidential Treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been filed separately with the Securities and Exchange Commission. (b) No reports on Form 8-K were filed during the quarter ended June 30, 1996. -12- 13 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. Dated: August 1, 1996 MICROCIDE PHARMACEUTICALS, INC. ------------------------------- (Registrant) /s/ James E. Rurka -------------------- President, Chief Executive Officer and Director (principal executive officer) /s/ Matthew J. Hogan ---------------------- Chief Financial Officer (principal financial and accounting officer) -13- 14 EXHIBIT 11.1 CALCULATION OF NET INCOME (LOSS) PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Six Months Ended June 30 June 30 ------------------------- ------------------------ 1996 1995 1996 1995 ------- ------- ------- ------- Net income (loss) $ (277) $(1,809) $ 106 $(3,597) ======= ======= ======= ======= Weighted average shares of common stock outstanding 5,883 849 3,379 843 Net effect of dilutive stock options and warrants using the treasury stock method -- -- 505 -- Shares related to staff accounting bulletin topic 4D: Stock options 161 322 241 322 Preferred stock (1) 572 1,145 859 1,145 ------- ------- ------- ------- Shares used in calculating net income (loss) per share 6,616 2,316 4,984 2,310 ======= ======= ======= ======= Net income (loss) per share $ (0.04) $ (0.78) $ 0.02 $ (1.56) ======= ======= ======= ======= Calculation of shares outstanding for computing pro forma net income (loss) per share: Shares used in computing net income (loss) per share 6,616 2,316 4,984 2,310 Adjusted to reflect the effect of the assumed conversion of preferred stock from the date of issuance (2) 2,792 5,736 4,264 5,736 Shares used in computing pro forma net income (loss) per share 9,408 8,052 9,248 8,046 ======= ======= ======= ======= Pro forma net income (loss) per share $ (0.03) $ (0.22) $ 0.01 $ (0.45) ======= ======= ======= =======
- -------------------- (1) Series D and E shares (2) Series A, B and C shares -14- EX-27 2 FINANCIAL DATA SCHEDULE
5 1000 3-MOS DEC-31-1996 APR-01-1996 JUN-30-1996 8,494 41,887 0 0 0 50,673 8,504 (2,907) 56,429 3,781 0 0 0 66,328 (15,256) 56,429 0 2,243 0 0 2,886 0 50 (277) 0 (277) 0 0 0 (277) (0.04) (0.03)
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