-----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, NTZF5ifMyVxAg/F1Ue7ODcaeyHQv0vJ/jRVfm9yLjh9GhSM+VqW2kNEd1UOGf9vp CikcgTJxmQE81dweRDOtew== 0001029869-97-001342.txt : 19971124 0001029869-97-001342.hdr.sgml : 19971124 ACCESSION NUMBER: 0001029869-97-001342 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19971121 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEGASYSTEMS INC CENTRAL INDEX KEY: 0001013857 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 042787865 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: SEC FILE NUMBER: 001-11859 FILM NUMBER: 97726545 BUSINESS ADDRESS: STREET 1: 101 MAIN ST CITY: CAMBRIDGE STATE: MA ZIP: 02142-1590 BUSINESS PHONE: 6173749600 MAIL ADDRESS: STREET 1: 101 MAIN ST CITY: CAMBRIDGE STATE: MA ZIP: 02142-1590 10-Q/A 1 PEGASYSTEMS INC. FORM 10-Q/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q/A-2 (Mark One) [X] Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 1997 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: 1-11859 PEGASYSTEMS INC. (Exact name of Registrant as specified in its charter) Massachusetts 04-2787865 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization ) 101 Main Street Cambridge, MA 02142-1590 (Address of principal executive offices) (zip code) (617) 374-9600 (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 the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. There were 28,487,600 shares of the Registrant's common stock, $.01 par value per share, outstanding on June 30, 1997. PEGASYSTEMS INC. AND SUBSIDIARY Index to Form 10-Q/A-2 Part I - Financial Information Page ---- Item 1. Financial Statements Condensed Consolidated Balance Sheets at December 31, 1996 3 and June 30, 1997 Condensed Consolidated Statements of Income for the three 4 and six months ended: June 30, 1996 and June 30, 1997 Condensed Consolidated Statements of Cash Flows for the six 5 months ended: June 30, 1996 and June 30, 1997 Part II - Other Information Item 6. Exhibits and Reports on Form 8-K 6 SIGNATURES 7 Form 10-Q/A-2 Page 3 of 7 PEGASYSTEMS INC. Condensed Consolidated Balance Sheets (in thousands, except share-related amounts) (Unaudited)
December 31, June 30, 1996 1997 ------------------ ----------------- Assets Current assets: Cash and cash equivalents $24,201 $ 72,511 Trade and installment accounts receivable, net of allowance for doubtful accounts of $939 at December 31, 1996 and $671 at June 30, 1997 14,582 17,744 Prepaid expenses and other assets 1,235 1,620 ------------------ ----------------- Total current assets 40,018 91,875 Long-term license installments, net 23,802 27,604 Equipment and improvements, net 3,035 3,832 ------------------ ----------------- Total assets $66,855 $123,311 ================== ================= Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 2,697 $ 3,250 Deferred revenue 53 2,176 Deferred income taxes 2,904 1,865 ------------------ ----------------- Total current liabilities 5,654 7,291 ------------------ ----------------- Deferred income taxes 8,816 10,406 ------------------ ----------------- Stockholders' Equity: Preferred stock, $.01 par value, 1,000,000 shares authorized; no shares issued and outstanding -- -- Common stock, $.01 par value, 45,000,000 shares authorized; 26,392,200 shares and 28,487,600 shares issued and outstanding at December 31, 1996 and June 30, 1997, respectively 264 287 Additional paid-in capital 30,206 82,584 Deferred compensation (73) (63) Retained earnings 22,022 22,921 Cumulative foreign currency translation adjustment (34) (115) ------------------ ----------------- Total stockholders' equity 52,385 105,614 ------------------ ----------------- Total liabilities and stockholders' equity $66,855 $123,311 ================== =================
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Form 10-Q/A-2 Page 4 of 7 PEGASYSTEMS INC. Condensed Consolidated Statements of Income (in thousands, except per share amounts) (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, 1996 1997 1996 1997 -------------- -------------- ------------- ------------- Revenue Software license $3,874 $ 3,983 $ 6,394 $10,462 Services 2,575 3,250 4,996 6,004 -------------- -------------- ------------- ------------- Total revenue 6,449 7,233 11,390 16,466 -------------- -------------- ------------- ------------- Cost of revenue Cost of software license 118 10 236 20 Cost of services 1,584 2,346 2,989 4,365 -------------- -------------- ------------- ------------- Total cost of revenue 1,702 2,356 3,225 4,385 -------------- -------------- ------------- ------------- Gross Profit 4,747 4,877 8,165 12,081 Operating expenses Research and development 1,918 3,015 3,522 5,426 Selling and marketing 1,282 4,081 2,256 6,590 General and administrative 399 595 788 1,158 -------------- -------------- ------------- ------------- Total operating expenses 3,599 7,691 6,566 13,174 -------------- -------------- ------------- ------------- Income from operations 1,148 (2,814) 1,599 (1,093) License interest income 378 421 746 796 Other interest income 11 998 23 1,747 Interest expense (30) -- (69) -- -------------- -------------- ------------- ------------- Income before provision for income taxes 1,507 (1,395) 2,299 1,450 Provision for income taxes 588 (530) 899 551 -------------- -------------- ------------- ------------- Net income $ 919 $ (865) $ 1,400 $ 899 ============== ============== ============= ============= Net income per common and common equivalent share $ 0.04 $ (0.03) $ 0.06 $ 0.03 ============== ============== ============= ============= Weighted average number of common and common equivalent shares outstanding 25,359 29,674 25,432 29,413 ============== ============== ============= =============
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Form 10-Q/A-2 Page 5 of 7 PEGASYSTEMS INC. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited)
Six Months Ended June 30, 1996 1997 -------------------- ------------------- Operating Activities Net income $ 1,400 $ 899 Adjustments to reconcile net income to net cash provided (used) by operating activities: Provision for deferred income taxes 686 551 Depreciation and amortization 756 783 Changes in operating assets and liabilities: Increase in trade and installment accounts receivable (2,248) (6,963) Decrease (increase) in prepaid expenses and other assets 2 (385) Increase (decrease) in accounts payable and accrued expenses (24) 553 Increase in deferred revenue 409 2,123 -------------------- ------------------- Net cash provided (used) by operating activities 981 (2,439) -------------------- ------------------- Investing Activities Purchase of equipment and improvements (529) (1,571) -------------------- ------------------- Net cash used by investing activities (529) (1,571) -------------------- ------------------- Financing Activities Repayments of long-term debt (391) -- Issuance of common stock, net -- 52,067 Exercise of stock options 1 334 -------------------- ------------------- Net cash provided (used) by financing activities (390) 52,401 Effect of exchange rate on cash (16) (81) -------------------- ------------------- Net increase in cash and equivalents 46 48,310 Cash and cash equivalents at beginning of period 511 24,201 -------------------- ------------------- Cash and cash equivalents at end of period $ 557 $72,511 ==================== ===================
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements. Page 6 of 7 Form 10-Q/A Pegasystems Inc. Part II - Other Information: Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27.1 Financial Data Schedule Form 10-Q/A-2 Page 7 of 7 PEGASYSTEMS INC. 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. Pegasystems Inc. /s/ Ira Vishner Date: November 21, 1997 ---------------------------------- Ira Vishner Vice President, Corporate Services, Treasurer, Chief Financial Officer and Director (principal financial officer and chief accounting officer) EX-27.1 2 FINANCIAL DATA SCHEDULE
5 1,000 U.S. DOLLARS 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 1 72,511 0 17,744 671 0 91,875 7,054 (3,222) 123,311 7,291 0 0 0 287 82,584 123,311 16,466 16,466 4,385 4,385 13,174 0 0 1,450 551 899 0 0 0 899 0.03 0.03
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