-----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, Vnq8AnCpP04RlxK6tLJgI5y1YH5MQPCZPxUP3dpuPWWOpNRLkIkH3aPx6g6fYjK6 FGcwUcAL2ozv6Vs9r20TRg== 0001005794-03-000336.txt : 20031106 0001005794-03-000336.hdr.sgml : 20031106 20031106143804 ACCESSION NUMBER: 0001005794-03-000336 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031106 ITEM INFORMATION: FILED AS OF DATE: 20031106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNET PICTURES CORP CENTRAL INDEX KEY: 0001088022 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 522213841 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26363 FILM NUMBER: 03982015 BUSINESS ADDRESS: STREET 1: 1009 COMMERCE PARK DR STREET 2: SUITE 400 CITY: OAK RIDGE STATE: TN ZIP: 37830 BUSINESS PHONE: 8654823000 MAIL ADDRESS: STREET 1: 1009 COMMERCE PARK DR STREET 2: SUITE 400 CITY: OAK RIDGE STATE: TN ZIP: 37830 FORMER COMPANY: FORMER CONFORMED NAME: BAMBOO COM INC DATE OF NAME CHANGE: 19990604 8-K 1 ipixform8k110603.txt CURRENT REPORT 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): November 6, 2003 INTERNET PICTURES CORPORATION ----------------------------- (Exact name of registrant as specified in its charter) DELAWARE 000-26363 52-2213841 -------- --------- ---------- (State or other (Commission (IRS Employer jurisdiction of incorporation) File Number) Identification Number) 3160 CROW CANYON ROAD, SAN RAMON, CALIFORNIA 94583 - ----------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (925) 242-4002 - --------------------------------------------------- -------------- N/A ------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits Exhibit Number Description - ------- -------------------------- 99.1 Press Release dated November 6, 2003 ITEM 12: RESULTS OF OPERATIONS AND FINANCIAL CONDITION The following information is furnished pursuant to Item 12, "Disclosure of Results of Operations and Financial Condition" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933. On November 6, 2003, Internet Pictures Corporation issued a press release announcing its financial results for the quarter ended September 30, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. SIGNATURES 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. INTERNET PICTURES CORPORATION Dated: November 6, 2003 /s/ Paul Farmer -------------------------------- Paul Farmer Chief Financial Officer Exhibit Index Exhibit Number Description - -------- ---------------------- 99.1 Press Release dated November 6, 2003 EX-99.1 2 ipixform8kex991110603.txt PRESS RELEASE DATED NOVEMBER 6, 2003 Exhibit 99.1 IR Contact: ----------- Paul Farmer Internet Pictures Corporation (925) 242- 4002 paul.farmer@ipix.com IPIX REPORTS RESULTS FOR THIRD QUARTER 2003 OAK RIDGE, TN/SAN RAMON, CA - November 6, 2003 - Internet Pictures Corporation (Nasdaq: IPIX; "iPIX") announces third quarter 2003 highlights: * Revenues of $6.6 million * Gross margins of 65% * Net income of $0.2 million * $10.2 million of cash, short-term investments and restricted cash Third Quarter Financial Results (See attachments) iPIX, a global leader in mission critical imaging solutions, today announced financial results for the quarter ended September 30, 2003. iPIX reported revenue for the quarter ended September 30, 2003 was $6.6 million compared to $6.0 million for the quarter ended September 30, 2002. iPIX's gross margin was 65% in the quarter ended September 30, 2003, compared to 62% in the same period of 2002. iPIX reported $0.2 million of net income for the quarter ended September 30, 2003, compared to net income of $0.6 million in the same period of 2002. Net income in the quarter ended September 30, 2002 included $1.4 million, including interest income, from a favorable jury verdict for infringement of iPIX's patents. As announced in June 2003, iPIX and eBay amended their then current commercial agreement which was scheduled to expire on September 30, 2003. Under the terms of the amended agreement (see SEC filings) iPIX licensed technology to eBay for a licensing fee and iPIX granted eBay the right to extend the agreement. eBay elected not to extend the agreement past October 31, 2003. eBay will pay iPIX $450 thousand for the delivery of the October services. Under the amendment, iPIX completed certain fourth quarter final migration services and eBay paid iPIX the remaining sums due as licensing fees. Once all of the obligations under the amendment are completed, iPIX will recognize the entire license fee (expected to be the quarter ending December 31, 2003). For the quarter ended September 30, 2003, the fully diluted loss per common share was $0.04, compared to a fully diluted net income per common share of $0.01 in the comparable year-ago quarter. For additional information, please refer to the filings made by iPIX with the Securities and Exchange Commission. About iPIX Internet Pictures Corporation (iPIX(R)) is a leader in mission-critical imaging solutions for eCommerce, classified advertising, security and online marketing. The Company's range of imaging technologies create, process and manage a rich variety of media including still images, immersive images, video, text and audio. iPIX's extensive intellectual property covers patents for immersive imaging, video and surveillance applications. iPIX is headquartered in Oak Ridge, Tennessee, with co-headquarters in San Ramon, California. www.ipix.com ### Internet Pictures and iPIX are trademarks and service marks of Internet Pictures Corporation. All other copyrights and trademarks remain the property of their respective owners. This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors under those sections. In some cases, you can identify forward-looking statements by terminology such as "expect," "believe," "may," "will," "plans" and "anticipate," or the negative of such terms or comparable terminology. Forward-looking statements appearing herein include statements concerning operating and profitability plans and goals and restructuring efforts, and are based on current expectations. Actual results may differ materially from those projected in the forward-looking statements based upon a number of factors including: (i) our loss of existing, or an inability to attract new customers, (ii) changes in the demand for our products and services, (iii) our rate of revenue growth, (iv) our ability to control or affect reductions in costs, (v) our ability to design, manufacture and deliver high quality products in a timely fashion, (vi) our third-party supplier's ability to deliver high quality components to us in a timely fashion, (vii) technological changes, (viii) general economic, financial or market changes or developments and (ix) the conversion of our Series B Preferred Stock into common stock. The matters discussed in this press release also involve risks and uncertainties described from time to time in Internet Pictures Corporation's filings with the Securities and Exchange Commission. These risks and uncertainties are included from time to time in documents iPIX files with the Securities and Exchange Commission, including but not limited to its Form 10-Ks, Form 10-K/As, Form 10-Qs and Form 8-Ks (www.sec.gov). INTERNET PICTURES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended Nine months ended September 30, September 30, ---------------------- ------------------------- 2002 2003 2002 2003 --------- -------- ---------- ----------- (unaudited) (unaudited) (In thousands, except per share data) (restated) (restated) Revenue: Transaction services............................................. $ 4,242 $ 5,811 $ 11,619 $ 17,471 Immersive still solutions........................................ 1,753 666 4,931 1,858 Immersive video solutions........................................ -- 146 -- 237 --------- -------- ---------- ---------- Total revenue................................................. 5,995 6,623 16,550 19,566 --------- -------- ---------- ---------- Cost of revenue: Transaction services............................................. 1,738 1,876 5,238 5,426 Immersive still solutions........................................ 561 400 1,372 1,025 Immersive video solutions........................................ -- 75 -- 161 --------- -------- ---------- ---------- Total cost of revenue......................................... 2,299 2,351 6,610 6,612 --------- -------- ---------- ---------- Gross profit.................................................. 3,696 4,272 9,940 12,954 --------- -------- ---------- ---------- Operating expenses: Sales and marketing.............................................. 1,881 1,899 6,074 5,704 Research and development......................................... 1,175 1,198 3,686 3,626 General and administrative....................................... 621 1,001 2,418 2,664 Restructuring ................................................... 687 -- 687 -- --------- -------- ---------- ---------- Total operating expenses...................................... 4,364 4,098 12,865 11,994 --------- -------- ---------- ---------- Income (loss) from operations.................................... (668) 174 (2,925) 960 Patent infringement award ....................................... 1,000 -- 1,000 -- Interest income (expense) and other.............................. 244 (20) 297 (103) --------- -------- ---------- ---------- Net income (loss)................................................ 576 154 (1,628) 857 Preferred stock dividends (restated for 2002).................... (451) (454) (1,335) (1,345) Participation of preferred stock (restated for 2002)............. (75) -- -- -- --------- -------- ---------- ---------- Net income (loss) available to common stockholders (restated for 2002)......................................................... $ 50 $ (300) $ (2,963) $ (488) ========= ========= =========== =========== Income (loss) per common share, basic and diluted (restated for 2002) .......................................... $ 0.01 $ (0.04) $ (0.44) $ (0.07) Weighted average common shares, basic............................ 6,798 7,613 6,789 7,147 Weighted average common shares, diluted.......................... 6,798 7,613 6,789 7,147
INTERNET PICTURES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS December 31, September 30, 2002 2003 -------------- ------------- (1) (unaudited) (In thousands) ASSETS Cash and cash equivalents......................................................................... $ 3,020 $ 8,836 Restricted cash and short term investments........................................................ 2,972 1,400 Accounts receivable, net.......................................................................... 3,535 2,263 Inventory, net.................................................................................... 181 207 Prepaid expenses and other current assets......................................................... 984 2,083 ----------- ------------ Total current assets........................................................................ 10,692 14,789 Computer hardware, software and other, net........................................................ 4,631 2,789 Other long term assets............................................................................ 70 11 Goodwill.......................................................................................... 3,042 3,042 ----------- ------------ Total assets................................................................................ $ 18,435 $ 20,631 =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable.................................................................................. $ 360 $ 907 Accrued liabilities............................................................................... 5,426 3,936 Deferred revenue.................................................................................. 85 3,066 Current portion of obligations under capital leases............................................... 2,403 1,856 ----------- ------------ Total current liabilities................................................................... 8,274 9,765 Obligations under capital leases, net of current portion.......................................... 1,459 112 Other long term liabilities....................................................................... 310 84 ----------- ------------ Total liabilities........................................................................ 10,043 9,961 ----------- ------------ STOCKHOLDERS' EQUITY: Preferred stock (Aggregate liquidation value: $24,560 in 2002, $25,633 in 2003)................... 1 1 Common stock...................................................................................... 65 66 Class B common stock.............................................................................. -- -- Additional paid-in capital........................................................................ 513,937 515,354 Accumulated deficit............................................................................... (505,117) (504,260) Accumulated other comprehensive loss.............................................................. (494) (491) ----------- ------------ Total stockholders' equity.................................................................. 8,392 10,670 ----------- ------------ Total liabilities and stockholders' equity.................................................. $ 18,435 $ 20,631 =========== ============
- ---------------------- (1) The December 31, 2002 balances were derived from the audited financial statements. -----END PRIVACY-ENHANCED MESSAGE-----