x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Delaware
|
22-2267658
|
(State
or other jurisdiction of incorporation or organization )
|
(I.R.S.
Employer Identification No.)
|
|
|
2121
Avenue of the Stars, Suite 2550, Los Angeles, CA
|
90067
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
Accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
(do
not check if a smaller reporting company)
|
Smaller
reporting company x
|
Page
|
||
PART
I - FINANCIAL INFORMATION
|
||
Item
1.
|
Financial
Statements
|
3
|
|
Consolidated
Balance Sheets as of September 30, 2008 (Unaudited) and March 31,
2008
|
4
|
|
Consolidated
Statement of Operations (Unaudited) For the Three Month and the Six
Month
Periods Ended September 30, 2008 and 2007
|
5
|
Consolidated Statements of Stockholders’ Equity and Comprehensive Loss (Unaudited) for the Period Ended September 30, 2008 | 6 | |
|
Consolidated
Statements of Cash Flows (Unaudited) For the Three Month and the
Six Month
Periods Ended September 30, 2008 and 2007
|
7
|
|
Notes
to Unaudited Consolidated Financial Statements
|
8
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
31
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
37
|
Item
4T.
|
Controls
and Procedures
|
38
|
PART
II - OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
38
|
Item 1A.
|
Risk
Factors
|
38
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
38
|
Item
3.
|
Defaults
Upon Senior Securities
|
38
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
39
|
Item
5.
|
Other
Information
|
39
|
Item
6.
|
Exhibits
|
39
|
40
|
Page(s)
|
||||
Consolidated
Balance Sheets as of September 30, 2008 (Unaudited) and March 31,
2008
|
4
|
|||
Consolidated
Statements of Operations (Unaudited) for the three months and the
six
months ended September 30, 2008 and September 30, 2007
|
5
|
|||
Consolidated
Statements of Stockholders’ Equity and Comprehensive Loss (Unaudited) for
the period ended September 30, 2008
|
6
|
|||
Consolidated
Statements of Cash Flows (Unaudited) for the six months ended September
30, 2008 and September 30, 2007
|
7
|
|||
Notes
to Unaudited Consolidated Financial Statements
|
8-30
|
September 30,
|
March 31,
|
||||||
2008
|
2008
|
||||||
(Unaudited)
|
|
||||||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
and cash equivalents
|
$
|
7,122
|
$
|
10,936
|
|||
Accounts
receivable, net of allowances
|
6,203
|
6,162
|
|||||
Prepaid
expenses and other current assets
|
648
|
531
|
|||||
Total
current assets
|
13,973
|
17,629
|
|||||
Property
and equipment, net
|
993
|
1,037
|
|||||
Other
long-term assets
|
206
|
301
|
|||||
Intangible
assets, net
|
19,303
|
19,780
|
|||||
Goodwill
|
61,436
|
61,377
|
|||||
TOTAL
ASSETS
|
$
|
95,911
|
$
|
100,124
|
|||
LIABILITIES
AND STOCKHOLDERS EQUITY
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
4,325
|
$
|
2,399
|
|||
Accrued
license fees
|
2,813
|
3,833
|
|||||
Accrued
compensation
|
746
|
688
|
|||||
Current
portion of long term debt
|
254
|
248
|
|||||
Other
current liabilities
|
2,001
|
2,087
|
|||||
Total
currrent liabilities
|
10,139
|
9,255
|
|||||
Accrued
license fees, long term portion
|
668
|
1,337
|
|||||
Long
term debt, net of current portion
|
16,483
|
16,483
|
|||||
Total
liabilities
|
$
|
27,290
|
27,075
|
||||
Commitments
and contingencies (Note 15)
|
|||||||
Stockholders
equity
|
|||||||
Preferred
stock, 1,000 shares authorized
|
|||||||
Series
A Convertible Preferred Stock, 100,000 shares; authorized at $0.0001
par
value; 100,000 shares issued and outstanding
|
100
|
100
|
|||||
Common
stock, $0.0001 par value: 100,000,000 shares authorized;
|
|||||||
32,449,449
issued and outstanding at September 30, 2008;
32,149,089
issued and outstanding at March 31, 2008;
|
3
|
3
|
|||||
Additional
paid-in capital
|
78,220
|
76,154
|
|||||
Accumulated
other comprehensive income/(loss)
|
(55
|
)
|
61
|
||||
Accumulated
deficit
|
(9,647
|
)
|
(3,269
|
)
|
|||
Total
stockholders' equity
|
68,621
|
73,049
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS EQUITY
|
$
|
95,911
|
$
|
100,124
|
3 Months Ended
|
3 Months Ended
|
6 Months Ended
|
6 Months Ended
|
||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
Revenues
|
$
|
5,003
|
$
|
-
|
$
|
10,349
|
$
|
-
|
|||||
Cost
of revenues
|
|||||||||||||
License
fees
|
1,785
|
-
|
3,934
|
-
|
|||||||||
Other
direct cost of revenues
|
102
|
-
|
204
|
-
|
|||||||||
Total
cost of revenues
|
1,887
|
-
|
4,138
|
-
|
|||||||||
Gross
profit
|
3,116
|
-
|
6,211
|
-
|
|||||||||
Operating
expenses
|
|||||||||||||
Product
development
|
1,800
|
-
|
3,567
|
-
|
|||||||||
Sales
and marketing
|
1,004
|
-
|
2,283
|
-
|
|||||||||
General
and administrative
|
2,559
|
544
|
5,372
|
911
|
|||||||||
Amortization
of intangible assets
|
137
|
-
|
274
|
-
|
|||||||||
Total
operating expenses
|
5,500
|
544
|
11,496
|
911
|
|||||||||
Loss
from operations
|
(2,384
|
)
|
(544
|
)
|
(5,285
|
)
|
(911
|
)
|
|||||
Interest
and other income/(expense)
|
|||||||||||||
Interest
income
|
44
|
89
|
121
|
165
|
|||||||||
Interest
(expense)
|
(468
|
)
|
-
|
(952
|
)
|
-
|
|||||||
Foreign
exchange transaction gain (loss)
|
(57
|
)
|
-
|
73
|
-
|
||||||||
Other
(expense)
|
(102
|
)
|
-
|
(187
|
)
|
-
|
|||||||
Interest
and other income/(expense)
|
(583
|
)
|
89
|
(945
|
)
|
165
|
|||||||
Loss
before income taxes
|
(2,967
|
)
|
(455
|
)
|
(6,230
|
)
|
(746
|
)
|
|||||
Income
tax provision
|
(74
|
)
|
1
|
(148
|
)
|
1
|
|||||||
Net
Loss attributable to Common Shareholders
|
$
|
(3,041
|
)
|
$
|
(454
|
)
|
$
|
(6,378
|
)
|
$
|
(745
|
)
|
|
Basic
and Diluted net loss per common share
|
$
|
(0.09
|
)
|
$
|
(0.02
|
)
|
$
|
(0.20
|
)
|
$
|
(0.04
|
)
|
|
Weighted
average common shares outstanding, basic and diluted
|
32,423
|
20,480
|
32,377
|
18,588
|
Additional
|
Accumulated
Other
|
|||||||||||||||||||||||||||
Common Stock
|
Preferred Stock
|
Paid-In
|
Comprehensive
|
Accumulated
|
Comprehensive
|
|||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Income/(Loss)
|
Deficit
|
Total
|
Loss
|
||||||||||||||||||||
Balance
at March 31, 2008
|
32,149,089
|
$
|
3
|
100,000
|
$
|
100
|
$
|
76,154
|
$
|
61
|
$
|
(3,269
|
)
|
$
|
73,049
|
|||||||||||||
Net
Loss
|
(3,337
|
)
|
(3,337
|
)
|
(3,337
|
)
|
||||||||||||||||||||||
Issuance
of common stock in satisfaction of amount payable
|
25,000
|
0
|
100
|
100
|
||||||||||||||||||||||||
Issuance
of common stock on cashless exercise of warrants
|
241,688
|
0
|
0
|
|||||||||||||||||||||||||
Foreign
currency translation gain/(loss)
|
(10
|
)
|
(10
|
)
|
(10
|
)
|
||||||||||||||||||||||
Deferred
stock-based compensation
|
1,222
|
1,222
|
||||||||||||||||||||||||||
Comprehensive
loss
|
$
|
(3,347
|
)
|
|||||||||||||||||||||||||
Balance
at June 30, 2008
|
32,415,777
|
$
|
3
|
100,000
|
$
|
100
|
$
|
77,476
|
$
|
51
|
$
|
(6,606
|
)
|
$
|
71,024
|
|||||||||||||
Net
Loss
|
(3,041
|
)
|
(3,041
|
)
|
(3,041
|
)
|
||||||||||||||||||||||
Issuance
of common stock on cashless exercise of warrants
|
33,672
|
0
|
0
|
|||||||||||||||||||||||||
Foreign
currency translation gain/(loss)
|
(106
|
)
|
(106
|
)
|
(106
|
)
|
||||||||||||||||||||||
Deferred
stock-based compensation
|
744
|
744
|
||||||||||||||||||||||||||
Comprehensive
loss
|
$
|
(3,147
|
)
|
|||||||||||||||||||||||||
Balance
at September 30, 2008
|
32,449,449
|
$
|
3
|
100,000
|
$
|
100
|
$
|
78,220
|
$
|
(55
|
)
|
$
|
(9,647
|
)
|
$
|
68,621
|
6 Months Ended
|
6 Months Ended
|
||||||
September 30,
|
September 30,
|
||||||
2008
|
2007
|
||||||
Cash
flows from operating activities
|
|||||||
Net
loss
|
$
|
(6,378
|
)
|
$
|
(745
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
|||||||
Depreciation
and amortization
|
642
|
-
|
|||||
Allowance
for doubtful accounts
|
(45
|
)
|
-
|
||||
Stock-based
compensation
|
1,966
|
-
|
|||||
(Increase)
/ decrease in assets:
|
|||||||
Accounts
receivable
|
4
|
-
|
|||||
Prepaid
expenses and other
|
(22
|
)
|
(9
|
)
|
|||
Increase
/ (decrease) in liabilities:
|
|||||||
Accounts
payable
|
2,022
|
223
|
|||||
Accrued
license fees
|
(1,020
|
)
|
-
|
||||
Accrued
compensation
|
58
|
-
|
|||||
Other
liabilities
|
(750
|
)
|
-
|
||||
Net
cash used in operating activities
|
(3,523
|
)
|
(531
|
)
|
|||
Cash
flows from investing activities
|
|||||||
Purchase
of property and equipment
|
(120
|
)
|
-
|
||||
Transaction
costs related to merger with Twistbox
|
(59
|
)
|
|||||
Net
cash used in investing activities
|
(179
|
)
|
-
|
||||
Cash
flows from financing activities
|
|||||||
Proceeds
from the sale of common stock
|
-
|
2,493
|
|||||
Net
cash provided by financing activities
|
-
|
2,493
|
|||||
Effect
of exchange rate changes on cash and cash equivalents
|
(112
|
)
|
-
|
||||
Net
increase/(decrease) in cash and cash equivalents
|
(3,814
|
)
|
1,962
|
||||
Cash
and cash equivalents, beginning of period
|
10,936
|
5,418
|
|||||
Cash
and cash equivalents, end of period
|
$
|
7,122
|
$
|
7,380
|
|||
Supplemental
disclosure of cash flow information:
|
|||||||
Taxes
paid
|
(148
|
)
|
-
|
1.
|
Organization
|
2.
|
Summary
of Significant Accounting
Policies
|
• |
wireless
subscribers directly contract with the carriers, which have most
of the
service interaction
and are generally viewed as the primary obligor by the
subscribers;
|
• |
carriers
generally have significant control over the types of content that
they
offer to their subscribers;
|
• |
carriers
are directly responsible for billing and collecting fees from their
subscribers, including the resolution of billing
disputes;
|
• |
carriers
generally pay Twistbox a fixed percentage of their revenues or a
fixed fee
for each
game;
|
• |
carriers
generally must approve the price of Twistbox’s content in advance of their
sale to subscribers, and Twistbox’s more significant carriers generally
have the ability to set the ultimate price charged to their subscribers;
and
|
• |
Twistbox
has limited risks, including no inventory risk and limited credit
risk
|
3.
|
Liquidity
|
4.
|
Balance
Sheet Components
|
September 30,
2008
(Unaudited)
|
March 31,
2008
|
||||||
Accounts
receivable
|
$
|
6,326
|
$
|
6,330
|
|||
Less:
allowance for doubtful accounts
|
(123
|
)
|
(168
|
)
|
|||
$
|
6,203
|
$
|
6,162
|
September 30,
2008
(Unaudited)
|
March 31,
2008
|
||||||
Equipment
|
$
|
758
|
$
|
654
|
|||
Equipment
subject to capitalized lease
|
81
|
71
|
|||||
Furniture
& fixtures
|
234
|
228
|
|||||
Leasehold
improvements
|
140
|
140
|
|||||
1,213
|
1,093
|
||||||
Accumulated
depreciation
|
(220
|
)
|
(56
|
)
|
|||
$
|
993
|
$
|
1,037
|
5.
|
Description
of Stock Plans
|
Number of
Shares
|
Weighted Average
Exercise Price
|
||||||
Outstanding
at December 31, 2005
|
|||||||
Granted
|
|||||||
Canceled
|
|||||||
Exercised
|
|||||||
Outstanding
at December 31, 2006
|
-
|
-
|
|||||
Granted
|
1,600,000
|
$
|
2.64
|
||||
Canceled
|
-
|
-
|
|||||
Exercised
|
-
|
-
|
|||||
Outstanding
at December 31, 2007
|
1,600,000
|
$
|
2.64
|
||||
Granted
|
2,751,864
|
$
|
4.57
|
||||
Transferred
in from Twistbox
|
2,462,090
|
$
|
0.64
|
||||
Canceled
|
(11,855
|
)
|
$
|
0.81
|
|||
Outstanding
at March 31, 2008
|
6,802,099
|
$
|
2.70
|
||||
Granted
|
1,860,558
|
$
|
2.67
|
||||
Canceled
|
(74,692
|
)
|
$
|
0.48
|
|||
Exercised
|
(27,050
|
)
|
$
|
0.48
|
|||
Outstanding
at September 30, 2008
|
8,560,915
|
$
|
2.72
|
||||
Exercisable
at September 30, 2008
|
4,418,144
|
$
|
2.02
|
Options Granted
Three Months Ended
September 30, 2008
|
Options Granted
|
Options transferred
from Twistbox
|
||||||||
Expected
life (years)
|
4
|
4
to
6
|
3
to
7
|
|||||||
Risk-free
interest rate
|
3.89
|
2.7% to 3.89
|
%
|
2.03% to 5.03
|
%
|
|||||
Expected
volatility
|
75.20
|
%
|
70%
to 75.2
|
%
|
70%
to 75
|
%
|
||||
Expected
dividend yield
|
0
|
%
|
0
|
%
|
0
|
%
|
Range of
Exercise Price
|
Weighted
Average
Remaining
Contractual Life
(Years)
|
Number
Outsanding
September 30, 2008
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
||||||||||
|
$0
- $1.00
|
7.84
|
2,359,053
|
$
|
0.64
|
$
|
4,149,322
|
|||||||
|
$2.00
- $3.00
|
9.41
|
3,450,000
|
$
|
2.66
|
$
|
-
|
|||||||
|
$3.00
- $4.00
|
-
|
-
|
$
|
-
|
$
|
-
|
|||||||
|
$4.00
- $5.00
|
9.40
|
2,751,864
|
$
|
4.57
|
$
|
-
|
|||||||
8.97
|
8,560,917
|
$
|
2.72
|
$
|
4,149,322
|
Range of
Exercise Price
|
Weighted
Average
Remaining
Contractual Life
(Years)
|
Options
Exercisable
September 30, 2008
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
||||||||||
|
$0
- $1.00
|
7.80
|
2,183,736
|
$
|
0.63
|
$
|
3,863,862
|
|||||||
|
$2.00 - $3.00
|
9.32
|
1,418,708
|
$
|
2.66
|
$
|
-
|
|||||||
|
$3.00
- $4.00
|
-
|
-
|
$
|
-
|
$
|
-
|
|||||||
|
$4.00
- $5.00
|
9.39
|
815,700
|
$
|
4.61
|
$
|
-
|
|||||||
8.58
|
4,418,144
|
$
|
2.02
|
3,863,862
|
6.
|
Acquisitions/Purchase
Price Accounting
|
Cash
|
$
|
6,679
|
||
Accounts
receivable
|
4,966
|
|||
Prepaid
expenses and other current assets
|
1,138
|
|||
Property
and equipment
|
1,062
|
|||
Other
long-term assets
|
361
|
|||
Accounts
Payable, accrued license fees and accruals
|
(6,882
|
)
|
||
Other
current liabilities
|
(814
|
)
|
||
Accrued
license fees, long term portion
|
(2,796
|
)
|
||
Long
term debt
|
(16,483
|
)
|
||
Identified
Intangibles
|
19,905
|
|||
Merger
related restructuring reserves
|
(1,034
|
)
|
||
Goodwill
|
61,436
|
|||
$
|
67,538
|
3 months ended
September 30, 2007
|
6 months ended
September 30, 2007
|
||||||
(unaudited)
|
(unaudited)
|
||||||
Revenues
|
$
|
3,356
|
$
|
7,064
|
|||
Cost
of revenues
|
1,649
|
3,487
|
|||||
Gross
profit/(loss)
|
1,707
|
3,577
|
|||||
Operating
expenses net of interest income
and other expense
|
5,595
|
11,353
|
|||||
Income
tax expense
|
-
|
-
|
|||||
Net
loss
|
(3,888
|
)
|
(7,776
|
)
|
|||
Basic
and Diluted net loss per common share
|
$
|
(0.19
|
)
|
$
|
(0.42
|
)
|
7.
|
Other
Intangible Assets
|
September 30,
2008
(Unaudited)
|
March 31,
2008
|
||||||
Software
|
$
|
1,611
|
$
|
1,611
|
|||
Trade
Name / Trademark
|
13,030
|
13,030
|
|||||
Customer
list
|
4,378
|
4,378
|
|||||
License
agreements
|
886
|
886
|
|||||
19,905
|
19,905
|
||||||
Accumulated
amortization
|
(602
|
)
|
(125
|
)
|
|||
$
|
19,303
|
$
|
19,780
|
12 Months ended September 30,
|
|||||||||||||||||||
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
||||||||||||||
Software
|
$
|
230
|
$
|
230
|
$
|
230
|
$
|
230
|
$
|
230
|
$
|
315
|
|||||||
Customer
List
|
547
|
547
|
547
|
547
|
547
|
1,298
|
|||||||||||||
License
Agreements
|
177
|
177
|
177
|
177
|
65
|
-
|
|||||||||||||
$
|
954
|
$
|
954
|
$
|
954
|
$
|
954
|
$
|
842
|
$
|
1,613
|
8.
|
Debt
|
September 30,
2008
(Unaudited)
|
March 31,
2008
|
||||||
Short
Term Debt
|
|||||||
Capitalized
lease liabilities, current portion
|
$
|
6
|
$
|
20
|
|||
Senior
secured note, accrued interest
|
248
|
228
|
|||||
$
|
254
|
$
|
248
|
September 30,
2008
(Unaudited)
|
March 31,
2008
|
||||||
Long
Term Debt
|
|||||||
Senior
Secured Note, long term portion, net of discount
|
$
|
16,483
|
$
|
16,483
|
9.
|
Related
Party Transactions
|
10.
|
Capital
Stock Transactions
|
Series
A Preferred Stock
|
100
|
|||
Options
under the Plan
|
7,000
|
|||
Warrants
not under the Plan
|
100
|
|||
Warrants
issued with units
|
6,205
|
|||
|
||||
|
13,405
|
11.
|
Employee
Benefit Plans
|
12.
|
Income
Taxes
|
13.
|
Segment
and Geographic information
|
North
America
|
Europe
|
South
America
|
Other
Regions
|
Consolidated
|
||||||||||||
Three
Months ended September 30, 2008
|
||||||||||||||||
Net
sales to unaffiliated customers
|
460
|
4,208
|
167
|
168
|
5,003
|
|||||||||||
Six
Months ended September 30, 2008
|
||||||||||||||||
Net
sales to unaffiliated customers
|
1,671
|
7,813
|
352
|
514
|
10,350
|
|||||||||||
Property
and equipment, net at September 30, 2008
|
833
|
160
|
-
|
-
|
993
|
14.
|
Commitments
and Contingencies
|
Year
Ending September 30,
|
||||
2009
|
$
|
376
|
||
2010
|
$
|
272
|
||
2011
|
$
|
18
|
||
Total
minimum lease payments
|
$
|
666
|
Year Ending September 30,
|
Minimum
Guaranteed
Royalties
|
|||
2009
|
1,597
|
|||
2010
|
1,560
|
|||
2011
|
810
|
|||
2012
|
-
|
|||
Total
minimum payments
|
$
|
3,967
|
Year Ending September 30,
|
Commitments
|
|||
2009
|
2,949
|
|||
2010
|
2,115
|
|||
2011
|
805
|
|||
2012
|
-
|
|||
Total
minimum payments
|
$
|
5,869
|
15.
|
Subsequent
Events
|
Three Months Ended September 30,
|
|||||||
|
2008
|
2007
|
|||||
(In thousands)
|
|||||||
|
|||||||
Revenues
by type:
|
|||||||
|
|||||||
Games
|
$
|
1,217
|
$
|
-
|
|||
Other
content
|
3,786
|
-
|
|||||
|
|||||||
Total
|
$
|
5,003
|
-
|
|
Three Months Ended September 30,
|
||||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
||||||
|
|||||||
Cost
of Revenues:
|
|||||||
|
|||||||
License
Fees
|
$
|
1,785
|
$
|
-
|
|||
Other
direct cost of revenues
|
102
|
-
|
|||||
|
|||||||
Total Cost of Revenues
|
$
|
1,887
|
$
|
-
|
|||
|
|||||||
Revenues
|
5,003
|
$
|
-
|
||||
|
|||||||
Gross Margin
|
62.3
|
%
|
N/A
|
|
Three Months Ended September 30,
|
||||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
||||||
|
|||||||
Product
Development Expenses
|
$
|
1,800
|
$
|
-
|
|||
|
|||||||
Sales
and Marketing Expenses
|
1,004
|
-
|
|||||
|
|||||||
General
and Administrative Expenses
|
2,559
|
544
|
|||||
|
|||||||
Amortization
of Intangible Assets
|
137
|
-
|
|
Three Months Ended September 30,
|
||||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
||||||
|
|||||||
Interest
and other income/(expense)
|
$
|
(583
|
)
|
$
|
89
|
|
Six Months Ended September 30,
|
||||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
||||||
|
|||||||
Revenues
by type:
|
|||||||
|
|||||||
Games
|
$
|
2,493
|
$
|
-
|
|||
Other
content
|
7.856
|
-
|
|||||
|
|||||||
Total
|
$
|
10,349
|
-
|
|
Six Months Ended September 30,
|
||||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
||||||
|
|||||||
Cost
of Revenues:
|
|||||||
|
|||||||
License
Fees
|
$
|
3,934
|
$
|
-
|
|||
Other
direct cost of revenues
|
204
|
-
|
|||||
|
|||||||
Total Cost of Revenues
|
$
|
4,138
|
$
|
-
|
|||
|
|||||||
Revenues
|
10,349
|
$
|
-
|
||||
|
|||||||
Gross Margin
|
60.0
|
%
|
N/A
|
|
Six Months Ended September 30,
|
||||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
||||||
|
|||||||
Product
Development Expenses
|
$
|
3,567
|
$
|
-
|
|||
|
|||||||
Sales
and Marketing Expenses
|
2,283
|
-
|
|||||
|
|||||||
General
and Administrative Expenses
|
5,372
|
911
|
|||||
|
|||||||
Amortization
of Intangible Assets
|
274
|
-
|
|
Six Months Ended September 30,
|
||||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
||||||
|
|||||||
Interest
and other income/(expense)
|
$
|
(945
|
)
|
$
|
165
|
|
Six Months
|
Six Months
|
|||||
|
Ended
September 30,
|
Ended
September 30,
|
|||||
|
2008
|
2007
|
|||||
|
(In thousands)
|
(In thousands)
|
|||||
|
|||||||
Consolidated
Statement of Cash Flows Data:
|
|||||||
|
|||||||
Capital
expenditures
|
(120
|
)
|
-
|
||||
Cash
flows used in operating activities
|
(3,254
|
)
|
(531
|
)
|
|||
Cash
flows (used in)/ provided by investing activities
|
(179
|
)
|
-
|
||||
Cash
flows from financing activities
|
-
|
2,493
|