NAPSTER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(unaudited)
June 30, March 31,
2005 2005
ASSETS
Current assets:
Cash and cash equivalents $88,633 $135,416
Short-term investments 37,997 22,540
Investment in Sonic Shares 12,161 9,840
Accounts receivable, net of allowance for
doubtful accounts of $5 at June 30, 2005
and $6 at March 31, 2005 1,341 1,545
Investment hedge receivable 1,988 4,619
Prepaid expenses and other current assets 2,916 5,156
Total current assets 145,036 179,116
Property and equipment, net 4,829 5,337
Goodwill 34,658 34,658
Identifiable intangible assets, net 843 1,349
Other assets 418 422
Total assets $185,784 $220,882
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,782 $6,547
Income taxes payable 3,796 4,125
Accrued liabilities 11,787 11,381
Deferred revenues 7,596 8,345
Deferred gain on divestiture 2,123 2,073
Short-term debt 113 15,110
Total current liabilities 32,197 47,581
Long term liabilities:
Long-term capital lease obligations -- 30
Deferred income taxes 1,928 1,696
Other long term liabilities 186 182
Total liabilities 34,311 49,489
Stockholders' equity:
Preferred stock, $0.001 par value; Authorized:
10,000,000 shares; Issued and outstanding:
none at June 30, 2005 and none at
March 31, 2005 -- --
Common stock, $0.001 par value; Authorized:
100,000,000 shares; Issued and outstanding:
43,816,000 shares at June 30, 2005
and 42,961,000 at March 31, 2005 44 43
Additional paid-in capital 260,194 256,586
Deferred stock-based compensation (4,013) (533)
Accumulated deficit (106,349) (86,423)
Accumulated other comprehensive income 1,597 1,720
Total stockholders' equity 151,473 171,393
Total liabilities and stockholders' equity $185,784 $220,882
NAPSTER INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2005 2004
Revenues:
Content $20,751 $6,708
Hardware and license 250 1,159
Total revenue 21,001 7,867
Cost of revenues:
Content 14,256 5,316
Hardware and license 118 1,100
Amortization of purchased technologies 31 31
Total cost of revenues 14,405 6,447
Gross margin 6,596 1,420
Content gross margin % 31% 20%
Hardware and license gross margin % 53% 5%
Gross margin % 31% 18%
Operating expenses:
Research and development 3,195 2,887
Sales and marketing 16,272 4,295
General and administrative 6,196 4,863
Amortization of intangible assets 474 514
Total operating expenses 26,137 12,559
Loss from continuing operations (19,541) (11,139)
Other income (expense), net (120) (31)
Loss before provision for income taxes (19,661) (11,170)
Income tax benefit (provision) (265) 3,587
Loss from continuing operations, after income taxes (19,926) (7,583)
Income from discontinued operations, net of tax
effect -- 4,943
Net Loss $(19,926) $(2,640)
Earnings per share:
Net loss per share from continuing operations,
after income taxes
Basic and diluted $(0.46) $(0.22)
Net income per share from discontinued operations
Basic and diluted $-- $0.15
Net loss per share
Basic and diluted $(0.46) $(0.08)
Weighted average shares used in computing net
income (loss) per share
Basic and diluted 42,961 33,726
SOURCE Napster, Inc.
media, Dana M. Harris of Napster, +1-310-281-5073, or dana.harris@napster.com; or investors, Alex Wellins, alex@blueshirtgroup.com, or Jennifer Jarman, jennifer@blueshirtgroup.com, both of The Blueshirt Group, +1-415-217-7722, for Napster
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