-----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, SY8fa01Ed/skkxqfUrZlAKHgcA3wUxFKNCThLRTj6fcPKw0TvjBser9ClCk0EtBr g1PZuPTR6PyKESwCb44h8g== 0000950135-03-005267.txt : 20031023 0000950135-03-005267.hdr.sgml : 20031023 20031023080520 ACCESSION NUMBER: 0000950135-03-005267 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031023 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031023 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: 03953013 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 b48243lie8vk.txt FORM 8-K LIGHTBRIDGE, INC. 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) OCTOBER 23, 2003 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 October 23, 2003, entitled "Lightbridge Reports Third Quarter 2003 Financial Results." ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 23, 2003, Lightbridge, Inc., a Delaware corporation ("Lightbridge" or the "Company"), announced its results of operations for the quarter ended September 30, 2003. A copy of the press release issued by Lightbridge on October 23, 2003, entitled "Lightbridge Reports Third Quarter 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 October 23, 2003 EX-99.1 3 b48243liexv99w1.txt PRESS RELEASE DATED OCTOBER 23, 2003 Exhibit 99.1 LIGHTBRIDGE REPORTS THIRD QUARTER 2003 FINANCIAL RESULTS Company exceeds revenue and earnings guidance Revenue of $29.6 million, loss per share of ($0.07) Cash and short-term investments of $131.1 million, or $4.87 per share BURLINGTON, MA - OCTOBER 23, 2003 -- Lightbridge, Inc. (Nasdaq: LTBG), a global enabler of mobile and online business solutions, today reported financial results for the third quarter of 2003. Revenues for the quarter were $29.6 million, versus $31.6 million in the third quarter of 2002. Revenue performance in the quarter reflects stronger transaction volume and increased consulting activity over the preceding quarter. The Company reported a net loss of $1.9 million, or ($0.07) per share, during the third quarter of 2003, versus net income of $1.7 million, or $0.06 per share, in the same period last year, and versus breakeven performance sequentially. The loss of $1.9 million for the third quarter of 2003 includes restructuring charges of $3.4 million. For the nine months ended September 30, 2003, the Company reported revenue of $89.3 million, versus $102.8 million in the first nine months of 2002. These results reflect lower revenue in the Company's three major segments: Transaction, Software Licensing, and Consulting Services. The Company reported a net loss of $2.3 million, or ($0.09) per share, in the first nine months of 2003, versus net income of $2.5 million, or $0.09 per share, in the same period last year. Pamela D.A. Reeve, Chief Executive Officer of Lightbridge, stated, "We exceeded our revenue and earnings expectations due in great measure to improvement in our Transaction business, as well as strength in our Consulting Services segment. Along with our revenue and earnings performance, I am pleased with our progress in extending the product functionality and the channel support of our PrePay applications. Our recent announcements with Nortel and Sentori, along with our strategic partnership with Ericsson, now enable us to deploy our PrePay solution on major wireless networks in any market around the globe. We are excited to be working with the people at each of these organizations and believe their decision to partner with Lightbridge demonstrates the strength of our Company, technology and product strategy." Ms. Reeve concluded, "We continue to invest judiciously in areas important to our growth strategy so we can be well positioned as the economic cycle improves. We believe our leadership and experience in the wireless arena, as well as our strong balance sheet, position us to expand our business and build shareholder value." FOURTH QUARTER 2003 GUIDANCE In light of market conditions, the Company continues to be cautious regarding near term results. The Company estimates revenue to be in the range of $28.5 to $31.0 million in the fourth quarter of 2003 and earnings per share to be in the range of ($0.01) to $0.01. SELECT FINANCIAL HIGHLIGHTS FROM THE THIRD QUARTER - CASH AND SHORT-TERM INVESTMENTS - At September 30, 2003, the Company had $131.1 million in cash and short-term investments, equal to $4.87 per share of outstanding common stock. -more- - STOCK REPURCHASE PROGRAM - During the quarter ended September 30, 2003, Lightbridge repurchased approximately 65,000 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 1.7 million shares of its common stock and retains authorization to purchase up to an additional 2.3 million shares through September 2005. RECENT BUSINESS HIGHLIGHTS - PREPAY GSM WIN-Barbados-based Sunbeach Communications Inc. selected Lightbridge(R) PrePay(TM) as its prepaid billing and call rating system in Barbados and the Eastern Caribbean markets. - LIGHTBRIDGE HELPS GUIDE WIRELESS CARRIERS THROUGH WLNP TRANSITION - Lightbridge outlined solutions that wireless carriers can deploy to reduce risk and capitalize on opportunities presented by Wireless Local Number Portability (WLNP) - a major event that challenges wireless carriers to implement new management processes and software solutions to increase customer lifetime value. - MULTI-MILLION DOLLAR WIN WITH RETAIL MANAGEMENT SYSTEM AND CONSULTING SERVICES - Dobson Communications Corporation licensed the Lightbridge(R) Retail Management System(TM) (RMS(TM)), a point-of-sale and inventory control application. The deal also included consulting services to integrate RMS with Dobson's business software infrastructure. -more- CONFERENCE CALL INFORMATION Lightbridge will conduct a conference call on Thursday, October 23, 2003 at 9:00 a.m. (EDT) 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 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 877-519-4471 and entering pass code number: 4175014. The replay will be available until October 30, 2003. 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 applying that carrier-grade reliability and scalability to global e-businesses that want to minimize 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 and the Lightbridge logo are registered trademarks and PrePay, Retail Management System and RMS are trademarks of Lightbridge, Inc. All other trademarks or registered trademarks are the properties of their respective owners. -more- 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 develop alliances, expand the Company's business and build shareholder value, the Company's market position, the impact of the Company's alliances with other businesses, and the financial guidance for the fourth quarter of 2003 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, (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. -more- LIGHTBRIDGE, INC. AND SUBSIDIARIES UNAUDITED TABLE 1: FINANCIAL HIGHLIGHTS (QUARTERLY COMPARISON) (In millions, except per share data and %)
Q3 2003 Q2 2003 % CHANGE Q3 2002 % CHANGE Revenues Transaction $20.0 $19.1 5.0% $21.1 (5.2%) Software Licensing 1.4 4.4 (68.3%) 1.8 (20.1%) Consulting & Services 8.0 6.7 18.5% 8.1 (1.6%) Hardware .2 1.1 (81.5%) 0.6 (67.4%) ------- ------- -------- ------ ------- Total Revenues $29.6 $31.3 (5.5%) $31.6 (6.3%) Net Income (Loss) ($1.9) ($0.1) (2180.7%) $1.7 (208.7%) EPS (Loss) ($0.07) ($0.00) (2388.6%) $0.06 (213.0%) Diluted Shares (for EPS) 26.9 27.0 (0.3%) 28.3 (4.8%) Total Cash and Short-Term $131.1 $130.3 0.6% $117.6 11.5% Investments
-more- 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 $ % SEPT.30, 2003 REVENUE SEPT. 30, 2002 REVENUE DIFFERENCE DIFFERENCE ------------------------------------------------------------------------------- Revenues: Transaction $20,029 67.7% $21,117 66.9% $ (1,088) (5.2%) Software licensing 1,413 4.8% 1,769 5.6% (356) (20.1%) Consulting & Services 7,922 26.8% 8,048 25.5% (126) (1.6%) Hardware 202 0.7% 620 2.0% (418) (67.4%) --------------------- ------------------ -------------------- Total revenues 29,566 100.0% 31,554 100.0% (1,988) (6.3%) --------------------- ------------------ -------------------- Cost of revenues: Transaction 11,398 38.6% 11,760 37.3% (362) (3.1%) Software licensing 349 1.2% 315 1.0% 34 10.8% Consulting & Services 3,544 12.0% 2,898 9.2% 646 22.3% Hardware 123 0.4% 485 1.5% (362) (74.6%) --------------------- ------------------ -------------------- Total cost of revenues 15,414 52.2% 15,458 49.0% (44) (0.3%) --------------------- ------------------ -------------------- Gross margin: Transaction 8,631 29.1% 9,357 29.6% (726) (7.8%) Software licensing 1,064 3.6% 1,454 4.6% (390) (26.8%) Consulting & Services 4,378 14.8% 5,150 16.3% (772) (15.0%) Hardware 79 0.3% 135 0.5% (56) (41.5%) --------------------- ------------------ -------------------- Total gross margin 14,152 47.8% 16,096 51.0% (1,944) (12.1%) --------------------- ------------------ -------------------- Operating expenses: Development costs 6,878 23.3% 7,095 22.5% (217) (3.1%) Sales and marketing 3,339 11.3% 3,103 9.8% 236 7.6% General and administrative 3,240 11.0% 4,083 12.9% (843) (20.6%) Restructuring costs 3,438 11.6% - 0.0% 3,438 - --------------------- ------------------ -------------------- Total operating expenses 16,895 57.2% 14,281 45.2% 2,614 18.3% --------------------- ------------------ -------------------- Income (loss) from operations (2,743) (9.4%) 1,815 5.8% (4,558) (251.1%) Other income, net 377 1.3% 607 1.9% (230) (37.9%) --------------------- ------------------ -------------------- Income (loss) before taxes (2,366) (8.1%) 2,422 7.7% (4,788) (197.7%) Provision (benefit) for income taxes (473) (1.6%) 681 2.2% (1,154) (169.5%) --------------------- ------------------ -------------------- Net income (loss) $(1,893) (6.5%) $ 1,741 5.5% $ (3,634) (208.7%) ===================== ================== ==================== Weighted average shares 26,912 28,278 ======= ======= Diluted earnings (loss) per share $ (0.07) $ 0.06 ======= =======
-more- LIGHTBRIDGE, INC. AND SUBSIDIARIES UNAUDITED, CONDENSED, CONSOLIDATED TABLE 3: STATEMENT OF OPERATIONS (NINE MONTHS ENDED) (In thousands, except per share data)
NINE MONTHS ENDED % OF TOTAL NINE MONTHS ENDED % OF TOTAL $ % SEPT. 30, 2003 REVENUE SEPT. 30, 2002 REVENUE DIFFERENCE DIFFERENCE --------------------------------- -------------------------------- ------------------------ Revenues: Transaction $58,880 65.9% $ 66,981 65.2% $ (8,101) (12.1%) Software licensing 7,474 8.4% 8,555 8.3% (1,081) (12.6%) Consulting & Services 20,900 23.4% 25,303 24.6% (4,403) (17.4%) Hardware 2,034 2.3% 2,002 1.9% 32 1.6% ------- ----- -------- ----- -------- ----- Total revenues 89,288 100.0% 102,841 100.0% (13,553) (13.2%) ------- ----- -------- ----- -------- ----- Cost of revenues: Transaction 33,475 37.5% 38,105 37.1% (4,630) (12.2%) Software licensing 1,136 1.3% 1,042 1.0% 94 9.0% Consulting & Services 9,288 10.4% 10,848 10.5% (1,560) (14.4%) Hardware 1,693 1.9% 1,528 1.4% 165 10.8% ------- ----- -------- ----- -------- ----- Total cost of revenues 45,592 51.1% 51,523 50.0% (5,931) (11.5%) ------- ----- -------- ----- -------- ----- Gross margin: Transaction 25,405 28.4% 28,876 28.1% (3,471) (12.0%) Software licensing 6,338 7.1% 7,513 7.3% (1,175) (15.6%) Consulting & Services 11,612 13.0% 14,455 14.1% (2,843) (19.7%) Hardware 341 0.4% 474 0.5% (133) (28.1%) ------- ----- -------- ----- -------- ----- Total gross margin 43,696 48.9% 51,318 50.0% (7,622) (14.9%) ------- ----- -------- ----- -------- ----- Operating expenses: Development costs 21,430 24.0% 22,278 21.7% (848) (3.8%) Sales and marketing 10,921 12.2% 10,161 9.9% 760 7.5% General and administrative 10,510 11.8% 13,621 13.1% (3,111) (22.8%) Purchased in-process R&D - - 1,618 1.6% (1,618) (100.0%) Restructuring costs 4,987 5.6% 3,616 3.5% 1,371 37.9% ------- ----- -------- ----- -------- ----- Total operating expenses 47,848 53.6% 51,294 49.8% (3,446) (6.7%) ------- ----- -------- ----- -------- ----- Income (loss) from operations (4,152) (4.7%) 24 0.0% (4,176) (17400.0%) Other income, net 1,382 1.5% 1,823 1.8% (441) (24.2%) Equity in loss of partnership investment (471) (0.5%) - 0.0% (471) - ------- ----- -------- ----- -------- ----- Income (loss) before taxes (3,241) (3.7%) 1,847 1.8% (5,088) (275.5%) Provision (benefit) for income taxes (908) (1.0%) (607) (0.6%) (301) 49.6% ------- ----- -------- ----- -------- ----- Net income (loss) $(2,333) (2.7%) $ 2,454 2.4% $ (4,787) (195.1%) ======= ===== ======== ===== ======== ====== Weighted average shares 27,046 28,647 ======= ======== Diluted earnings (loss) per share $ (0.09) $ 0.09 ======= ========
LIGHTBRIDGE, INC. AND SUBSIDIARIES UNAUDITED, CONDENSED, CONSOLIDATED TABLE 4: BALANCE SHEETS (In thousands)
CHANGE FROM ASSETS SEPT. 30, 2003 DEC. 31, 2002 DEC. 31, 2002 ------ -------------- ------------- ------------- Current assets: Cash and cash equivalents $ 72,401 $ 90,664 $(18,263) Short-term investments 58,737 42,806 15,931 -------- -------- -------- Total cash and short-term investments 131,138 133,470 (2,332) Accounts receivable, net 18,774 17,679 1,095 Other current assets 6,456 6,124 332 -------- -------- -------- Total current assets 156,368 157,273 (905) Property and equipment, net 10,226 16,183 (5,957) Other assets, net 6,529 7,216 (687) -------- -------- -------- Total assets $173,123 $180,672 $ (7,549) ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current liabilities: Accounts payable and accrued liabilities $ 11,375 $ 15,145 $ (3,770) Deferred revenues 4,003 4,292 (289) Reserve for restructuring 3,260 1,335 1,925 -------- -------- -------- Total current liabilities 18,638 20,772 (2,134) Long-term liabilities 41 259 (218) -------- -------- -------- Total liabilities 18,679 21,031 (2,352) -------- -------- -------- Stockholders' equity: Total stockholders' equity 154,444 159,641 (5,197) -------- -------- -------- Total liabilities and stockholders' equity $173,123 $180,672 $ (7,549) ======== ======== ========
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