-----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, Fqrcm3sa7rRLeMY4HOFVcgg3kpzovHRAS8V1S+0UyD9d0jUwQUZJ6h2jJnaRuAM8 QFCrFWBo4UvGhyWyAYereg== 0000950135-04-000256.txt : 20040122 0000950135-04-000256.hdr.sgml : 20040122 20040122074532 ACCESSION NUMBER: 0000950135-04-000256 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040122 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIGHTBRIDGE INC CENTRAL INDEX KEY: 0001017172 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 043065140 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21319 FILM NUMBER: 04536519 BUSINESS ADDRESS: STREET 1: 67 S BEDFORD ST CITY: BURLINGTON STATE: MA ZIP: 01803 BUSINESS PHONE: 6173594000 MAIL ADDRESS: STREET 1: 67 SOUTH BEDFORD STREET CITY: BURLINGTON STATE: MA ZIP: 01803 8-K 1 b49235ere8vk.txt LIGHTBRIDGE, INC. FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) JANUARY 22, 2004 LIGHTBRIDGE, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) DELAWARE 000-21319 04-3065140 (STATE OR OTHER JURISDIC- (COMMISSION (IRS EMPLOYER TION OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.) 67 SOUTH BEDFORD STREET, BURLINGTON, MASSACHUSETTS 01803 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (781) 359-4000 NOT APPLICABLE (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) EXHIBITS. 99.1 Press Release dated January 22, 2004, entitled "Lightbridge Reports Fourth Quarter and 2003 Financial Results." ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On January 22, 2004, Lightbridge, Inc., a Delaware corporation ("Lightbridge" or the "Company"), announced its results of operations for the quarter and year ended December 31, 2003. A copy of the press release issued by Lightbridge on January 22, 2004, entitled "Lightbridge Reports Fourth Quarter and 2003 Financial Results" is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. ----------- 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 hereunto duly authorized. LIGHTBRIDGE, INC. By: /s/ Harlan Plumley ---------------------- Harlan Plumley Vice President, Finance and Administration, Chief Financial Officer and Treasurer January 22, 2004 EX-99.1 3 b49235erexv99w1.txt LIGHTBRIDGE, INC. PRESS RELEASE Exhibit 99.1 LIGHTBRIDGE REPORTS FOURTH QUARTER AND 2003 FINANCIAL RESULTS Company meets revenue and exceeds earnings guidance; Cash balances continue to grow; Agreements renewed with three of its largest clients BURLINGTON, MA - JANUARY 22, 2004 -- Lightbridge, Inc. (Nasdaq: LTBG), a global enabler of mobile and online business solutions, today reported financial results for the fourth quarter and full year 2003. Revenues for the fourth quarter were $30.7 million versus $29.6 in the third quarter of 2003 and $30.6 million in the fourth quarter of 2002. Revenue performance in the quarter reflected modestly stronger Transaction volume and increased activity in Consulting and Services when compared with the fourth quarter of 2002. The Company reported net income of $884,000, or $0.03 per share, during the fourth quarter of 2003, versus net income of $1.2 million, or $0.04 per share, in the same period last year. Fourth quarter 2003 net income included a tax benefit of $194,000 and $92,000 of restructuring costs. For the twelve months ended December 31, 2003, the Company reported revenue of $120.0 million, versus $133.4 million in 2002. These results reflected lower revenue in the Company's principal business segments. For 2003, the Company reported a net loss of $1.4 million, or $0.05 per share, versus net income of $3.6 million, or $0.13 per share, in 2002. Net loss for 2003 included restructuring costs of $5.1 million. Net income for 2002 included restructuring costs of $3.6 million. Pamela D.A. Reeve, President and Chief Executive Officer of Lightbridge stated, "We are pleased with the results for the period particularly in our Transaction and Consulting and Services businesses. We are equally pleased with our success in signing multi-year agreements extending our longstanding relationships with Nextel and Sprint. At the same time, we extended our equally significant and longstanding relationship with AT&T Wireless. These are very important clients and their decision to renew their contracts with Lightbridge reflects a continuing confidence in our solutions." Ms. Reeve concluded, "As we enter 2004, we plan to continue leveraging our expertise by investing in areas we perceive to have strong growth opportunities and which benefit from our technological and business proficiency. We plan to continue utilizing our strong balance sheet, managing costs and focusing the organization to capitalize on marketplace opportunities that will enhance shareholder value." FIRST QUARTER 2004 GUIDANCE In light of seasonality, the Company continues to be cautious regarding near term results. At this time, the Company estimates revenue for the first quarter of 2004 to be in the range of $26.5 to $29.0 million and earnings per share to be in the range of ($0.06) to ($0.02). SELECT FINANCIAL HIGHLIGHTS FROM THE FOURTH QUARTER - - Cash and short-term investments -- At December 31, 2003, the Company had $133.5 million in cash and short-term investments, equating to nearly $5.00 per share of outstanding common stock. - - Day Sales Outstanding (DSO) -- DSO for the fourth quarter of 2003 was 59 days. LIGHTBRIDGE REPORTS FOURTH QUARTER 2003 FINANCIAL RESULTS - PAGE 2 - - Stock Repurchase Program -- During the quarter ended December 31, 2003, Lightbridge repurchased approximately 145,200 shares of its common stock under the terms of its Stock Repurchase Program. Since the program's inception in September 2001, the Company has repurchased more than 1.9 million shares of its common stock and retains authorization to purchase up to an additional 1.1 million shares through September 2005. RECENT BUSINESS HIGHLIGHTS - - Renewed contracts with existing clients -- The Company recently signed multi-year contracts with Nextel and Sprint. The Company also extended the term of its agreement with AT&T Wireless. - - Lightbridge(R) ProFile(R) passes the $6 billion mark in fraud and bad write-offs -- ProFile, the industry leading and largest database of wireless customer write-offs, reached a milestone of $6 billion in recorded fraud and bad debt during the fourth quarter. The ProFile database helps many of the world's largest and most successful carriers reduce bad debt and fraud loss during customer acquisition and post activation management. - - Board of Directors elects two new members -- Robert Donahue and David Turner were recently elected to the Lightbridge Board of Directors. Mr. Donahue, with more than twenty years of experience in the technology industry, is currently the Chief Financial Officer of KO Instruments. Mr. Donahue has previously held positions with MSL, as President and Chief Operating Officer and Stratus Computer, as V.P. Finance and Administration, Chief Financial Officer. Mr. Turner brings more than eighteen years of experience in the technology industry and is currently the Senior Executive Vice President at MBNA America, the world's largest independent credit card issuer. Mr. Turner has previously held positions with Gateway as Executive V.P, V.P. of Marketing and Senior V.P. of Sales and Marketing. - - Company signs lease for new headquarters building -- In an effort to streamline operations and lower long-term operating costs, the Company plans to move its corporate headquarters to a new 80,000 square foot location in Burlington, Massachusetts during the second quarter of 2004. CONFERENCE CALL INFORMATION Lightbridge will conduct a conference call on Thursday, January 22, 2004 at 9:00 a.m. (Eastern) to discuss the information contained in this news release. Investors wishing to listen to a webcast of the conference call should link to the "Investor Relations" section of www.lightbridge.com at least 15 minutes prior to the broadcast and follow the instructions provided to assure the necessary audio applications are downloaded and installed. The call will be available online at the Company's website for one week. The call can also be accessed live over the phone by dialing 1-888-802-8576 or for international callers by dialing +01-973-935-8515. A replay of the call will be available one hour after the call and can be accessed by dialing 1-877-519-4471 and entering pass code number: 4414617. The replay will be available until January 30th, 2004. LIGHTBRIDGE REPORTS FOURTH QUARTER 2003 FINANCIAL RESULTS - PAGE 3 ABOUT LIGHTBRIDGE Lightbridge is a global enabler of mobile and online business solutions, offering software and services designed to maximize the lifetime value of customers, minimize risk and increase profitability. Lightbridge real-time applications qualify customers, assess credit, screen for fraud, authenticate individuals, monitor transaction behavior and manage identity theft. Since 1989, Lightbridge has helped wireless carriers reduce the risks associated with `faceless transactions.' Today, Lightbridge is also offering that carrier-grade reliability and scalability to global e-businesses that want to reduce online customer risk with effective, efficient, automated processes. Its combined solutions and services create a trusted environment for customers, while safeguarding business information and transactions. Businesses supported by Lightbridge have the competitive ability to translate prospects into profitable lifetime customers, whether transactions are completed on wired, wireless or Internet devices. Visit the Company at http://www.lightbridge.com or call 800-LIGHTBR. ### CONTACTS: SUSAN GRIFFIN GLEN ZIMMERMAN BRAD COHEN/ASHLEY M. AMMON Investor Relations Media Relations IR Counsel to Lightbridge Lightbridge, Inc. Lightbridge, Inc. ICR, Inc. 781/359-4854 781/359-4705 203/222-9013 sgriffin@lightbridge.com gzimmerman@lightbridge.com bcohen@icr-online.com LIGHTBRIDGE, the Lightbridge logo and ProFile are registered trademarks of Lightbridge, Inc. All other trademarks or registered trademarks are the properties of their respective owners. FORWARD-LOOKING STATEMENTS Certain statements in this news release that are not historical facts, including, without limitation, those relating to the business outlook and trends in the future, the Company's plans and strategies for the future including, without limitation, plans to invest in areas with growth opportunities and build shareholder value, and the financial guidance for the first quarter of 2004 are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, (i) dependence on a limited number of clients, (ii) the Company's revenue concentration in the wireless telecommunications business and the declining subscriber growth rate in that business, (iii) continuing rapid change in the telecommunications industry, including, without limitation, the advent of wireless local number portability, and other markets in which the Company does business that may affect both the Company and its clients, (iv) current and future economic conditions generally and particularly in the telecommunications industry including, without limitation, decreases or delays in capital spending by carriers and global economic recession, (v) uncertainties about the Company's ability to execute on, and about the impact on the Company's business and operations of, its objectives, plans or strategies as a result of potential technological, market or competitive factors, or strategic alliances, (vi) the impact of restructuring and other charges on the Company's business and operations, and (vii) the factors disclosed in the Company's filings with the U.S. Securities and Exchange Commission including, without limitation, its 2002 Annual Report on Form 10-K. The Company undertakes no obligation to update any forward-looking statements. LIGHTBRIDGE REPORTS FOURTH QUARTER 2003 FINANCIAL RESULTS - PAGE 4 LIGHTBRIDGE, INC. AND SUBSIDIARIES UNAUDITED TABLE 1: FINANCIAL HIGHLIGHTS (QUARTERLY COMPARISON) (In millions, except per share data and %)
Revenues Q4 2003 Q3 2003 % CHANGE Q4 2002 % CHANGE Transaction $ 21.7 $ 20.0 8.2% $ 21.4 1.3% Software Licensing 0.5 1.4 (61.9%) 1.7 (67.5%) Consulting & Services 7.8 7.9 (2.0%) 7.2 8.0% Hardware 0.7 0.2 253.5% 0.3 100.0% ------- ------- ------- ------- ------- Total Revenues $ 30.7 $ 29.5 3.8% $ 30.6 0.3% Net Income (Loss) $ 0.9 ($ 1.9) 146.7% $ 1.2 (24.8%) EPS (Loss) $ 0.03 ($ 0.07) 142.9% $ 0.04 (25.0%) Diluted Shares (for EPS) 27.4 26.9 1.8% 27.8 (1.6%) Total Cash and Short-Term Investments $ 133.5 $131.1 1.8% $ 133.5 --
LIGHTBRIDGE REPORTS FOURTH QUARTER 2003 FINANCIAL RESULTS - PAGE 5 LIGHTBRIDGE, INC. AND SUBSIDIARIES UNAUDITED, CONDENSED, CONSOLIDATED TABLE 2: STATEMENT OF OPERATIONS (QUARTER ENDED) (In thousands, except per share data)
QUARTER ENDED % OF TOTAL QUARTER ENDED % OF TOTAL $ % Revenues: DEC. 31, 2003 REVENUE DEC. 31, 2002 REVENUE DIFFERENCE DIFFERENCE ------------- ------- ------------- ------- ---------- ---------- Transaction $ 21,672 70.6% $ 21,395 69.9% $ 277 1.3% Software licensing 538 1.8% 1,657 5.4% (1,119) (67.5%) Consulting and services 7,766 25.3% 7,188 23.5% 578 8.0% Hardware 714 2.3% 357 1.2% 357 100.0% -------- -------- -------- -------- -------- -------- Total revenues 30,690 100.0% 30,597 100.0% 93 0.3% -------- -------- -------- -------- -------- -------- Cost of revenues: Transaction 12,192 39.7% 11,089 36.2% 1,103 9.9% Software licensing 115 0.4% 205 0.7% (90) (43.9%) Consulting and services 3,453 11.3% 2,815 9.2% 638 22.7% Hardware 597 1.9% 311 1.0% 286 92.0% -------- -------- -------- -------- -------- -------- Total cost of revenues 16,357 53.3% 14,420 47.1% 1,937 13.4% -------- -------- -------- -------- -------- -------- Gross margin: Transaction 9,480 30.9% 10,306 33.7% (826) (8.0%) Software licensing 423 1.4% 1,452 4.7% (1,029) (70.9%) Consulting and services 4,313 14.0% 4,373 14.3% (60) (1.4%) Hardware 117 0.4% 46 0.2% 71 154.3% -------- -------- -------- -------- -------- -------- Total gross margin 14,333 46.7% 16,177 52.9% (1,844) (11.4%) -------- -------- -------- -------- -------- -------- Operating expenses: Development costs 6,996 22.8% 6,991 22.8% 5 0.1% Sales and marketing 3,318 10.8% 3,109 10.2% 209 6.7% General and administrative 3,633 11.8% 4,549 14.9% (916) (20.1%) Restructuring costs 92 0.3% -- -- 92 100.0% -------- -------- -------- -------- -------- -------- Total operating expenses 14,039 45.7% 14,649 47.9% (610) (4.2%) -------- -------- -------- -------- -------- -------- Income from operations 294 1.0% 1,528 5.0% (1,234) (80.8%) Other income, net 396 1.3% 616 2.0% (220) (35.7%) Equity in loss of partnership investment -- -- (464) (1.5%) 464 -- -------- -------- -------- -------- -------- -------- Income before taxes 690 2.3% 1,680 5.5% (990) (58.9%) Provision (benefit) for income taxes (194) (0.6%) 504 1.6% (698) (138.5%) -------- -------- -------- -------- -------- -------- Net income $ 884 2.9% $ 1,176 3.9% $ (292) (24.8%) ======== ======== ======== ======== ======== ======== Weighted average shares 27,406 27,844 ======== ======== Diluted earnings per share $ 0.03 $ 0.04 ======== ========
LIGHTBRIDGE REPORTS FOURTH QUARTER 2003 FINANCIAL RESULTS - PAGE 6 LIGHTBRIDGE, INC. AND SUBSIDIARIES UNAUDITED, CONDENSED, CONSOLIDATED TABLE 3: STATEMENT OF OPERATIONS (YEAR ENDED) (In thousands, except per share data)
YEAR ENDED % OF TOTAL YEAR ENDED % OF TOTAL $ % Revenues: DEC. 31, 2003 REVENUE DEC. 31, 2002 REVENUE DIFFERENCE DIFFERENCE ------------- ------- ------------- ------- ---------- ---------- Transaction $ 80,552 67.1% $ 88,376 66.2% $ (7,824) (8.9%) Software licensing 8,012 6.7% 10,212 7.7% (2,200) (21.5%) Consulting and services 28,666 23.9% 32,491 24.3% (3,825) (11.8%) Hardware 2,748 2.3% 2,359 1.8% 389 16.5% -------- -------- -------- -------- -------- ------- Total revenues 119,978 100.0% 133,438 100.0% (13,460) (10.1%) -------- -------- -------- -------- -------- ------- Cost of revenues: Transaction 45,667 38.1% 49,194 36.9% (3,527) (7.2%) Software licensing 1,251 1.0% 1,247 0.9% 4 0.3% Consulting and services 12,741 10.6% 13,663 10.2% (922) (6.7%) Hardware 2,290 1.9% 1,839 1.3% 451 24.5% -------- -------- -------- -------- -------- ------- Total cost of revenues 61,949 51.6% 65,943 49.3% (3,994) (6.1%) -------- -------- -------- -------- -------- ------- Gross margin: Transaction 34,885 29.0% 39,182 29.3% (4,297) (11.0%) Software licensing 6,761 5.7% 8,965 6.8% (2,204) (24.6%) Consulting and services 15,925 13.3% 18,828 14.1% (2,903) (15.4%) Hardware 458 0.4% 520 0.5% (62) (11.9%) -------- -------- -------- -------- -------- ------- Total gross margin 58,029 48.4% 67,495 50.7% (9,466) (14.0%) -------- -------- -------- -------- -------- ------- Operating expenses: Development costs 28,426 23.7% 29,269 21.9% (843) (2.9%) Sales and marketing 14,239 11.9% 13,270 9.9% 969 7.3% General and administrative 14,143 11.8% 18,170 13.5% (4,027) (22.2%) Purchased in-process R&D -- -- 1,618 1.2% (1,618) (100.0%) Restructuring costs 5,079 4.2% 3,616 2.7% 1,463 40.5% -------- -------- -------- -------- -------- ------- Total operating expenses 61,887 51.6% 65,943 49.2% (4,056) (6.2%) -------- -------- -------- -------- -------- ------- Income (loss) from operations (3,858) (3.2%) 1,552 1.2% (5,410) (348.6%) Other income, net 1,778 1.5% 2,439 1.8% (661) (27.1%) Equity in loss of partnership investment (471) (0.4%) (464) (0.3%) (7) -- -------- -------- -------- -------- -------- ------- Income (loss) before taxes (2,551) (2.1%) 3,527 2.7% (6,078) (172.3%) Benefit from income taxes (1,102) (0.9%) (103) (0.1%) (999) 969.9% -------- -------- -------- -------- -------- ------- Net income (loss) $ (1,449) (1.2%) $ 3,630 2.8% $ (5,079) (139.9%) ======== ======== ======== ======== ======== ======= Weighted average shares 27,015 28,433 ======== ======== Diluted earnings (loss) per share $ (0.05) $ 0.13 ======== ========
LIGHTBRIDGE REPORTS FOURTH QUARTER 2003 FINANCIAL RESULTS - PAGE 7 LIGHTBRIDGE, INC. AND SUBSIDIARIES UNAUDITED, CONDENSED, CONSOLIDATED TABLE 4: BALANCE SHEETS (In thousands)
CHANGE FROM Assets DEC. 31, 2003 DEC. 31, 2002 DEC. 31, 2002 - ------ ------------- ------------- ------------- Current assets: Cash and cash equivalents $ 69,685 $ 90,664 $(20,979) Short-term investments 63,803 42,806 20,997 -------- -------- -------- Total cash and short-term investments 133,488 133,470 18 Accounts receivable, net 20,071 17,679 2,392 Other current assets 7,425 6,124 1,301 -------- -------- -------- Total current assets 160,984 157,273 3,711 Property and equipment, net 9,408 16,183 (6,775) Other assets, net 7,444 7,216 228 -------- -------- -------- Total assets $177,836 $180,672 $ (2,836) ======== ======== ======== Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 15,205 $ 15,145 $ 60 Deferred revenues 5,461 4,292 1,169 Reserve for restructuring 2,634 1,335 1,299 -------- -------- -------- Total current liabilities 23,300 20,772 2,528 Long-term liabilities 33 259 (226) -------- -------- -------- Total liabilities 23,333 21,031 2,302 -------- -------- -------- Stockholders' equity: Total stockholders' equity 154,503 159,641 (5,138) -------- -------- -------- Total liabilities and stockholders' equity $177,836 $180,672 $ (2,836) ======== ======== ========
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