2023 Q2 Form 10-K Financial Statement

#000073326923000024 Filed on May 24, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2023
Revenue $154.1M $148.6M $596.6M
YoY Change 8.31% 4.87% 12.85%
Cost Of Revenue $45.62M $43.47M $170.1M
YoY Change 11.21% 10.12% 15.37%
Gross Profit $108.4M $105.2M $426.5M
YoY Change 7.14% 2.84% 11.87%
Gross Profit Margin 70.39% 70.75% 71.49%
Selling, General & Admin $71.54M $90.34M $327.8M
YoY Change -8.77% 6.87% 14.07%
% of Gross Profit 65.97% 85.91% 76.86%
Research & Development $34.52M $52.22M $189.2M
YoY Change -27.57% 14.77% 19.79%
% of Gross Profit 31.83% 49.66% 44.36%
Depreciation & Amortization $4.039M $4.226M $20.79M
YoY Change -29.65% -29.77% -14.27%
% of Gross Profit 3.72% 4.02% 4.87%
Operating Expenses $106.2M $142.6M $552.3M
YoY Change -16.28% 9.63% 23.62%
Operating Profit $2.270M -$37.40M -$125.8M
YoY Change -108.87% 34.61% 91.95%
Interest Expense -$28.00K $0.00 $0.00
YoY Change -100.0%
% of Operating Profit -1.23%
Other Income/Expense, Net $4.849M $4.735M $6.946M
YoY Change 593.71% -10174.47% -77.2%
Pretax Income $7.119M -$42.39M -$118.9M
YoY Change -128.59% 51.31% 238.86%
Income Tax $8.705M -$6.460M $5.252M
% Of Pretax Income 122.28%
Net Earnings -$1.586M -$31.36M -$118.7M
YoY Change -94.17% 6.71% 250.85%
Net Earnings / Revenue -1.03% -21.1% -19.9%
Basic Earnings Per Share -$0.02 -$1.79
Diluted Earnings Per Share -$0.02 -$0.48 -$1.79
COMMON SHARES
Basic Shares Outstanding 66.40M shares 64.71M shares 66.35M shares
Diluted Shares Outstanding 66.50M shares 66.35M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $503.9M $497.3M $497.3M
YoY Change -0.86% -17.15% -17.15%
Cash & Equivalents $470.8M $464.4M $464.4M
Short-Term Investments $33.10M $32.81M $32.81M
Other Short-Term Assets $29.09M $31.03M $31.03M
YoY Change -11.99% -16.08% -16.08%
Inventory
Prepaid Expenses $16.28M $18.92M
Receivables $173.1M $157.4M $157.4M
Other Receivables $0.00 $28.90M $28.90M
Total Short-Term Assets $706.0M $714.6M $714.6M
YoY Change -2.59% -12.41% -12.41%
LONG-TERM ASSETS
Property, Plant & Equipment $6.055M $7.085M $31.69M
YoY Change -53.58% -38.56% -55.36%
Goodwill $363.2M $363.1M
YoY Change 0.05% -0.2%
Intangibles $6.578M $9.868M
YoY Change -70.17% -63.07%
Long-Term Investments $2.100M
YoY Change
Other Assets $45.13M $41.05M $53.47M
YoY Change -43.82% -51.83% -5.11%
Total Long-Term Assets $457.9M $458.1M $458.1M
YoY Change -10.11% -11.54% -11.54%
TOTAL ASSETS
Total Short-Term Assets $706.0M $714.6M $714.6M
Total Long-Term Assets $457.9M $458.1M $458.1M
Total Assets $1.164B $1.173B $1.173B
YoY Change -5.7% -12.07% -12.07%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $74.08M $86.57M $86.57M
YoY Change 10.88% 4.05% 4.05%
Accrued Expenses $63.25M $69.17M $69.17M
YoY Change 2.89% -18.87% -18.87%
Deferred Revenue $27.27M $19.09M
YoY Change 84.71% 18.47%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $172.4M $174.8M $174.8M
YoY Change 20.51% -5.28% -5.28%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $73.02M $71.80M $71.50M
YoY Change -14.56% -16.62% -16.97%
Total Long-Term Liabilities $73.02M $71.80M $71.50M
YoY Change -14.56% -16.62% -16.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $172.4M $174.8M $174.8M
Total Long-Term Liabilities $73.02M $71.80M $71.50M
Total Liabilities $245.4M $246.6M $246.6M
YoY Change 7.39% -8.88% -8.88%
SHAREHOLDERS EQUITY
Retained Earnings $1.301B $1.302B
YoY Change -6.68% -8.35%
Common Stock $1.889B $1.871B
YoY Change 6.83% 7.79%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $918.5M $926.1M $926.1M
YoY Change
Total Liabilities & Shareholders Equity $1.164B $1.173B $1.173B
YoY Change -5.7% -12.07% -12.07%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2023
OPERATING ACTIVITIES
Net Income -$1.586M -$31.36M -$118.7M
YoY Change -94.17% 6.71% 250.85%
Depreciation, Depletion And Amortization $4.039M $4.226M $20.79M
YoY Change -29.65% -29.77% -14.27%
Cash From Operating Activities $25.69M $35.23M $39.85M
YoY Change -177.0% -40.23% -48.97%
INVESTING ACTIVITIES
Capital Expenditures $53.00K $103.0K $4.696M
YoY Change -96.96% -105.48% 4.38%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities -$500.0K -$24.20M -$24.30M
YoY Change 177.21% -301.23%
Cash From Investing Activities -$553.0K -$24.31M -$29.00M
YoY Change -68.24% 129.06% -482.67%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $143.7M
YoY Change 174.54%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$18.52M -214.0K -$146.0M
YoY Change -66.95% -97.8% 117.99%
NET CHANGE
Cash From Operating Activities $25.69M 35.23M 39.85M
Cash From Investing Activities -$553.0K -24.31M -$29.00M
Cash From Financing Activities -$18.52M -214.0K -$146.0M
Net Change In Cash $6.325M 10.71M -$135.7M
YoY Change -106.88% -72.25% -834.58%
FREE CASH FLOW
Cash From Operating Activities $25.69M $35.23M $39.85M
Capital Expenditures $53.00K $103.0K $4.696M
Free Cash Flow $25.64M $35.13M $35.15M
YoY Change -173.03% -42.24% -52.23%

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CY2023 us-gaap Use Of Estimates
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<div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Use of Estimates -</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In preparing consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, we must make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used in determining, among other items, revenue recognition criteria, allowance for credit losses, operating lease assets and liabilities, including the incremental borrowing rate and terms and provision of each lease, the fair value of acquired assets and assumed liabilities, restructuring and impairment accruals, litigation and facilities lease loss accruals, stock-based compensation, and the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions. Actual results could differ from those estimates.</span></div>As of March 31, 2023, the impacts to the Company's business due to COVID-19, geopolitical developments and macroeconomic factors, such as rising interest rates, inflation, bank failures, changes in foreign currency exchange rates and supply chain disruptions, continue to evolve. As a result, many of the Company's estimates and assumptions, including the allowance for credit losses, consider macroeconomic factors in the market, which require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company's estimates may change materially in future periods.
CY2023 us-gaap Number Of Operating Segments
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CY2023 us-gaap Number Of Operating Segments
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66352000 shares
CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2023 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2022 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2021 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2023 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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-1.36
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CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2023 ramp Impairment Losses On Strategic Investment
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CY2022Q1 us-gaap Allowance For Doubtful Accounts Receivable
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CY2023 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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<div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Concentration of Credit Risk and Significant Customers -</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company's cash and cash equivalents are held in federally insured financial institutions. Although the Company's deposits may exceed federally insured limits, management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company has no significant off-balance sheet risk such as foreign exchange contracts, options contracts, or other hedging arrangements.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s trade accounts receivables are from a large number of customers. Accordingly, the Company’s credit risk is affected by general economic conditions. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">At March 31, 2023, there were no customers that represented more than 10% of the trade accounts receivable balance. Our ten largest clients represented approximately 29% of our revenues in fiscal year 2023. One client, The Interpublic Group of Companies, accounted for 12% of our revenues in fiscal year 2023.</span></div>
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CY2023Q1 us-gaap Purchase Obligation Due In Next Twelve Months
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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CY2023 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
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18.39
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