UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from ________to____________
Commission file number 0-22904
-------
PARKERVISION, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 59-2971472
(State or other jurisdiction of I.R.S. Employer ID No.
incorporation or organization)
8493 BAYMEADOWS WAY
JACKSONVILLE, FLORIDA 32256
(904) 737-1367
(Address of principal executive offices)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ].
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [ ] No [ ].
APPLICABLE ONLY TO CORPORATE ISSUERS
As of November 10, 2001, 13,898,306 shares of the Issuer's Common Stock, $.01
par value, were outstanding.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PARKERVISION, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
September 30,
2001 December 31,
ASSETS (unaudited) 2000
------ ------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 19,890,386 $ 31,371,904
Investments available for sale 15,149,251 7,947,120
Accounts receivable, net of allowance for
doubtful accounts of $87,674 and $103,199 at
September 30, 2001 and December 31, 2000 1,352,559 2,343,916
Inventories, net 4,675,860 3,993,009
Prepaid expenses and other 3,178,148 3,391,595
------------ ------------
Total current assets 44,246,204 49,047,544
PROPERTY AND EQUIPMENT, net 7,340,252 7,522,645
OTHER ASSETS, net 7,137,451 7,037,705
------------ ------------
Total assets $ 58,723,907 $ 63,607,894
============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
2
PARKERVISION, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
September 30,
2001 December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY (unaudited) 2000
------------------------------------ ------------ ------------
CURRENT LIABILITIES:
Accounts payable $ 1,169,066 $ 893,406
Accrued expenses:
Salaries and wages 902,048 697,675
Warranty reserve 200,298 198,140
Sales tax payable 15,679 110,720
Other accrued expenses 294,988 564,735
Deferred revenue 1,139,185 983,044
------------ ------------
Total current liabilities 3,721,264 3,447,720
DEFERRED INCOME TAXES 139,769 139,769
COMMITMENTS AND CONTINGENCIES
(Notes 5, 7 and 8)
------------ ------------
Total liabilities 3,861,033 3,587,489
SHAREHOLDERS' EQUITY:
Preferred stock, $1 par value, 5,000,000
shares authorized, 27,356 and 114,019 shares
issued and outstanding at September 30, 2001
and December 31, 2000, respectively 27,356 114,019
Common stock, $.01 par value, 100,000,000 shares
authorized, 13,898,306 and 13,445,675 shares
issued and outstanding at September 30, 2001
and December 31, 2000, respectively 138,983 134,457
Warrants outstanding 16,807,505 15,659,035
Additional paid-in capital 89,564,034 83,937,839
Accumulated other comprehensive income (loss) 265,966 (52,880)
Accumulated deficit (51,940,970) (39,772,065)
------------ ------------
Total shareholders' equity 54,862,874 60,020,405
------------ ------------
Total liabilities and shareholders' equity $ 58,723,907 $ 63,607,894
============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
3
PARKERVISION, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended Nine months ended
September 30, September 30,
----------------------------- -----------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Revenues, net $ 2,319,025 $ 5,581,440 $ 6,963,429 $ 11,343,290
Cost of goods sold 1,584,764 2,464,620 4,520,629 6,561,106
------------ ------------ ------------ ------------
Gross margin 734,261 3,116,820 2,442,800 4,782,184
------------ ------------ ------------ ------------
Research and development expenses 3,052,520 3,254,384 9,292,526 9,031,599
Marketing and selling expenses 1,000,746 1,324,536 3,055,029 3,919,161
General and administrative expenses 1,229,159 1,117,127 3,614,443 3,660,080
Other expense 539 0 2,563 44,216
------------ ------------ ------------ ------------
Total operating expenses 5,282,964 5,696,047 15,964,561 16,655,056
------------ ------------ ------------ ------------
Loss from operations (4,548,703) (2,579,227) (13,521,761) (11,872,872)
Interest income 420,111 570,916 1,352,856 1,161,283
------------ ------------ ------------ ------------
Net loss $ (4,128,592) $ (2,008,311) $(12,168,905) $(10,711,589)
============ ============ ============ ============
Basic and diluted net loss per
common share $ (0.30) $ (0.15) $ (0.89) $ (0.86)
============ ============ ============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
4
PARKERVISION, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- -----------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (4,128,592) $ (2,008,311) $(12,168,905) $(10,711,589)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 731,805 516,640 2,073,380 1,320,752
Amortization of premium (discounts) on
investments 13,153 0 13,153 (93,512)
Provision for obsolete inventories 130,000 30,000 190,000 290,000
Stock compensation 333,270 414,171 1,445,298 1,088,636
Loss on disposal of property and equipment 0 0 0 44,216
Changes in certain operating assets and
liabilities:
Accounts receivable, net 125,301 (1,368,656) 991,357 (1,301,879)
Inventories (248,043) 286,057 (872,851) (266,149)
Prepaid expenses and other (362,335) (267,285) 213,447 255,236
Accounts payable and accrued expenses 83,188 81,990 117,403 1,952,446
Deferred revenue 239,890 713,572 156,141 547,421
------------ ------------ ------------ ------------
Total adjustments 1,046,229 406,489 4,327,328 3,837,167
------------ ------------ ------------ ------------
Net cash used in operating activities (3,082,363) (1,601,822) (7,841,577) (6,874,422)
------------ ------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturity of investments 0 4,000,000 4,000,000 10,000,000
Proceeds from sale of investments 1,002,141 0 1,002,141 0
Purchase of investments (11,898,579) 0 (11,898,579) 0
Purchase of property and equipment (992,014) (2,314,573) (1,703,108) (3,620,042)
Payment for patent costs (142,357) (517,721) (1,287,435) (1,999,466)
------------ ------------ ------------ ------------
Net cash (used in) provided by
investing activities (12,030,809) 1,167,706 (9,886,981) 4,380,492
------------ ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 0 0 2,500,000 29,963,001
Proceeds from exercise of options and warrants 436,932 1,773,077 3,747,040 4,044,177
------------ ------------ ------------ ------------
Net cash provided by financing activities 436,932 1,773,077 6,247,040 34,007,178
NET CHANGE IN CASH AND CASH EQUIVALENTS (14,676,240) 1,338,961 (11,481,518) 31,513,248
CASH AND CASH EQUIVALENTS, beginning of period 34,566,626 32,303,029 31,371,904 2,128,742
------------ ------------ ------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 19,890,386 $ 33,641,990 $ 19,890,386 $ 33,641,990
============ ============ ============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
5
PARKERVISION, INC. AND SUBSIDIARY
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. ACCOUNTING POLICIES
-------------------
The accompanying unaudited consolidated financial statements of ParkerVision,
Inc. and subsidiary (the "Company") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. All
adjustments which, in the opinion of management, are necessary for a fair
presentation of the financial condition and results of operations have been
included. Operating results for the three and nine month periods ended September
30, 2001 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2001.
These interim consolidated financial statements should be read in conjunction
with the Company's latest Annual Report on Form 10-K for the year ended December
31, 2000. There have been no changes in accounting policies from those stated in
the Annual Report on Form 10-K for the year ended December 31, 2000.
COMPREHENSIVE INCOME. The Company's other comprehensive income is comprised of
unrealized gains on investments available-for-sale which are included in
accumulated other comprehensive income in the consolidated balance sheets. The
Company's other comprehensive income for the three-month periods ended September
30, 2001 and 2000 was $222,206 and $117,520, respectively. The Company's total
comprehensive loss for the three-month periods ended September 30, 2001 and 2000
was $(3,906,386) and $(1,890,791), respectively. The Company's other
comprehensive income for the nine-month periods ended September 30, 2001 and
2000 was $318,846 and $228,492, respectively. The Company's total comprehensive
loss for the nine-month periods ended September 30, 2001 and 2000 was
$(11,850,059) and $(10,483,097), respectively.
STATEMENTS OF CASH FLOWS. In March 2000, the Company issued Preferred Stock for
the acquisition of substantially all of the assets of Signal Technologies, Inc.
("STI") valued at $1,996,700 (see Note 8). In addition, the Company issued
Preferred Stock and restricted common stock under its 1993 Stock Option Plan
("1993 Plan") as signing bonuses and prepaid compensation totaling approximately
$3,600,000.
NEW ACCOUNTING PRONOUNCEMENTS. The Financial Accounting Standards Board ("FASB")
recently issued Statements of Financial Accounting Standards ("FAS") No. 141,
FAS No. 142, FAS No. 143 and FAS No. 144. FAS 141, "Business Combinations"
provides guidance on business acquisitions subsequent to June 30, 2001. Adoption
of this Statement will have no effect on the Company's consolidated results of
operations, financial position or cash flows. FAS No. 142, FAS No. 143,
"Accounting for Asset Retirement Obligations" addresses financial accounting and
reporting obligations associated with the retirement of tangible, long-lived
assets and the associated asset retirement costs. FAS No. 144, Accounting for
the Impairment or Disposal of Long-Lived Assets" addresses financial accounting
and reporting for the impairment or disposal of long-lived assets. "Goodwill and
Other Intangible Assets" addresses accounting for goodwill and intangible
assets. Fas No. 142, 142 and 144 are effective for the Company's financial
statements beginning January 1, 2002. The Company has not yet quantified the
impact of adopting these statements.
RECLASSIFICATIONS. Certain reclassifications have been made to the 2000
financial statements in order to conform to the 2001 presentation.
6
2. LOSS PER SHARE
--------------
Basic loss per share is determined based on the weighted average number of
common shares assumed to be outstanding during each period. Dilutive loss
per share is the same as basic loss per share as all common share
equivalents are excluded from the calculation, as their effect is
anti-dilutive. The weighted average number of common shares outstanding for
the three month periods ended September 30, 2001 and 2000 was 13,890,327
and 13,149,558, respectively. The weighted average number of common shares
outstanding for the nine-month periods ended September 30, 2001 and 2000
was 13,745,004 and 12,464,378, respectively.
3. INVENTORIES:
------------
Inventories consist of the following:
September 30, December 31,
2001 2000
------------ ------------
Purchased materials $ 2,752,871 $ 2,970,724
Work in process 88,641 161,447
Finished goods 1,211,635 486,525
Demonstration inventory 1,508,835 1,142,598
------------ ------------
5,561,982 4,761,294
Less allowance for inventory
obsolescence (886,122) (768,285)
------------ ------------
$ 4,675,860 $ 3,993,009
============ ============
4. OTHER ASSETS
------------
Other assets consist of the following:
September 30, December 31,
2001 2000
------------ ------------
Patents and copyrights, net $ 6,454,108 $ 5,066,915
Prepaid compensation 272,512 1,272,322
Noncompete 68,750 181,250
Other intangible assets 177,351 268,557
Deposits and other 164,730 248,661
------------ ------------
$ 7,137,451 $ 7,037,705
============ ============
5. CONCENTRATIONS OF RISK
----------------------
For the quarter ended September 30, 2001, one broadcast ownership group
accounted for approximately 17% of the Company's total revenues. For the
quarter ended September 30, 2000, Vtel Corporation ("VTEL") and The
Ackerley Group ("Ackerley") accounted for approximately 14% and 39%,
respectively of the Company's total revenues. For the nine months ended
September 30, 2001, no one customer accounted for over 10% of the Company's
total revenues. For the nine months ended September 30, 2000, VTEL and
Ackerley accounted for approximately 20% and 25% of total revenues,
respectively. VTEL and Ackerley accounted for approximately 30% of the
Company's accounts receivable at September 30, 2001. The Company closely
monitors extensions of credit and has never experienced significant credit
losses.
7
6. BUSINESS SEGMENT INFORMATION
----------------------------
The Company's segments include the Video Products Division ("Video
Division") and the Wireless Technology Division ("Wireless Division").
Segment results are as follows (in thousands):
Three months ended Nine months ended
------------------------- -------------------------
September September September September
30, 2001 30, 2000 30, 2001 30, 2000
---------- ---------- ---------- ----------
NET SALES:
Video Division $ 2,319 $ 5,581 $ 6,963 $ 11,343
Wireless Division 0 0 0 0
---------- ---------- ---------- ----------
Total net sales $ 2,319 $ 5,581 $ 6,963 $ 11,343
========== ========== ========== ==========
INCOME (LOSS) FROM
OPERATIONS:
Video Division $ (975) $ 1,729 $ (2,222) $ (1,399)
Wireless Division (3,574) (4,308) (11,300) (10,474)
---------- ---------- ---------- ----------
Total loss from operations $ (4,549) $ (2,579) $ (13,522) $ (11,873)
========== ========== ========== ==========
DEPRECIATION:
Video Division $ 139 $ 101 $ 411 $ 374
Wireless Division 360 241 1,041 506
---------- ---------- ---------- ----------
Total depreciation $ 499 $ 342 $ 1,452 $ 880
========== ========== ========== ==========
AMORTIZATION OF INTANGIBLES AND
OTHER ASSETS:
Video Division $ 26 $ 18 $ 68 $ 52
Wireless Division 206 155 553 389
---------- ---------- ---------- ----------
Total amortization $ 232 $ 173 $ 621 $ 441
========== ========== ========== ==========
CAPITAL EXPENDITURES:
Video Division $ 72 $ 17 $ 250 $ 262
Wireless Division 920 2,275 1,439 3,314
Other 0 23 14 44
---------- ---------- ---------- ----------
Total capital expenditures $ 992 $ 2,315 $ 1,703 $ 3,620
========== ========== ========== ==========
September December
30, 2001 31, 2000
---------- ----------
ASSETS:
Video Division $ 7,841 $ 8,208
Wireless Division 14,175 14,302
---------- ----------
Segment assets $ 22,016 $ 22,510
========== ==========
8
A reconciliation of segment assets to total assets reported in the
accompanying balance sheets is as follows:
September 30, December 31,
2001 2000
---------- ----------
Business segment assets $ 22,016 $ 22,510
Corporate assets:
Cash and investments 35,040 39,319
Prepaid expenses and other 1,008 1,067
Property and equipment, net 577 680
Other assets 83 32
---------- ----------
Total assets $ 58,724 $ 63,608
========== ==========
7. STOCK OPTIONS AND WARRANTS
--------------------------
For the three month period ended September 30, 2001, the Company granted
stock options under the 2000 Performance Equity Plan (the "2000 Plan") to
purchase an aggregate of 98,300 shares of its common stock at exercise
prices ranging from $18 to $26 per share in connection with hiring and
retention of employees. These options vest ratably over five years and
expire five years from the date they become vested. As of September 30,
2001, options to purchase 544,182 and 3,524,100 shares of common stock were
available for future grants under the 1993 Plan and the 2000 Plan,
respectively.
In March 2001, in connection with a private placement transaction (see note
8), the Company issued warrants for the purchase of 83,451 shares of the
Company's common stock to Texas Instruments, Inc. These warrants are
immediately vested with exercise prices ranging from $29.96 to $39.84 per
share and expire ten years from the date of grant. The warrants have an
estimated fair market value of $16.88 per share, or approximately $1.4
million. The fair value was estimated as of the date of grant using the
Black-Scholes option pricing model with the following weighted average
assumptions: risk free interest rate of 6.3%, no expected dividend yield,
expected life of five years and expected volatility of 63%.
8. STOCK AUTHORIZATION AND ISSUANCE
--------------------------------
In March 2001, the Company issued 83,451 shares of its Common Stock to
Texas Instruments, Inc. in a private placement transaction. The shares
represent less than 1% of the Company's outstanding common stock and were
sold at a price of $29.96 per share for net proceeds of approximately $2.5
million.
In March 2000, the Company issued 79,868 shares of Series D Preferred
Stock, $1.00 par value, for the acquisition of substantially all of the
assets of Signal Technologies, Inc., a subchapter S corporation
specializing in radio-frequency design services. These assets, which
include property and equipment, accounts receivable and intangible assets,
were acquired for a purchase price of $1,996,700 which was fully paid in
Series D Preferred Stock. Also in connection with the acquisition, the
Company issued an aggregate of 34,151 shares of Class A, B and C Preferred
Stock and 92,112 shares of restricted stock under its 1993 Plan as signing
bonuses and prepaid compensation for certain employees of STI. In March
2001, the Series A and D preferred shares were converted, pursuant to the
terms of the original agreement, into approximately 90,000 shares of Common
Stock.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
- --------------------------
When used in this Form 10-Q and in future filings by the Company with the
Securities and Exchange Commission, the words or phrases "will likely result",
"management expects" or "Company expects", "will continue", "is anticipated",
"estimated" or similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Readers are cautioned not to place undue reliance on such
forward-looking statements, each of which speak only as of the date made. Such
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical earnings and those presently
anticipated or projected, including the timely development and acceptance of new
products, sources of supply and concentration of customers. The Company has no
obligation to publicly release the results of any revisions which may be made to
any forward-looking statements to reflect anticipated events or circumstances
occurring after the date of such statements.
RESULTS OF OPERATIONS FOR EACH OF THE THREE AND NINE-MONTH PERIODS ENDED
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2001 AND 2000
- ---------------------------
Revenues
- --------
Revenues for the three months ended September 30, 2001 decreased by $3,262,415
as compared to the same period in 2000 and revenues for the nine-month period
ended September 30, 2001 decreased by $4,379,861 from the same period in 2000.
These decreases are due to declines in both camera and studio system sales. The
number of camera and studio systems sold and the average selling price per
system for the three and nine month periods are as follows:
Average Selling
Number of Systems Sold Price per System
------------------------ ------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2001 2000 2001 2000
---------- ---------- ---------- ----------
STUDIO SYSTEMS:
Three month period 3 5 $ 222,000 $ 505,000
Nine month period 7 8 $ 209,000 $ 409,000
CAMERA SYSTEMS:
Three month period 204 454 $ 6,800 $ 6,300
Nine month period 653 1,205 $ 7,400 $ 6,400
The decrease in camera sales for the three and nine-month periods is primarily
due to decreased sales to VTEL. In May 2001, VTEL announced its intention to
sell its products business unit, a significant customer of the Company, which,
subject to shareholder approval and execution, would become a privately owned
business. In October 2001, VTEL reported its products business as a discontinued
operation, showing a 47%, or $41.7 million decline in revenues for its year
ended July 2001 compared to the previous year. The Company's management does not
anticipate increased sales to VTEL for the remainder of 2001. The generation of
future sales to VTEL will depend largely on the sales efforts of the surviving
VTEL products business and cannot be determined at this time.
10
The decrease in revenues due to declining camera unit sales is somewhat offset
by an increase in average selling price per camera system. This increase is
largely due to an increase in percentage of three-chip analog and digital camera
sales which carry a higher selling price per system than the single-chip
systems.
The Company's decreased revenues are also due to a decline in PVTV Studio sales
in the third quarter of 2001 compared to the same period in 2000. This decline
is largely due to the timing of broadcast group sales and installations as well
as differences in the mix of systems sold. During the third quarter of 2000, the
Company recognized the sale of four PVTV studio systems to The Ackerley Group
("Ackerley"). Two of these represented dual systems resulting in a higher
average selling price per system. During the quarter ended September 30, 2001,
the three PVTV studio systems sold include one learning system and one broadcast
beta system which carry a much lower selling price per system than the typical
broadcast news systems.
The decrease in revenues from camera and PVTV studio sales is somewhat offset by
an increase in training, service and support revenue. Training, service and
support revenue increased by approximately $92,000 from $189,000 in the third
quarter of 2000 to $281,000 for the same period in 2001. Training, service and
support revenues increased by approximately $345,000 on a year to date basis,
from $369,000 for the nine month period ended September 30, 2000 to $714,000 for
the same period in 2001. The increase in training, service and support revenue
is primarily due to the increased installed base of PVTV studio systems with
annually renewable service and support contracts.
Gross Margin
- ------------
For the three-month periods ended September 30, 2001 and 2000, gross margins as
a percentage of sales were 32% and 56%, respectively. For the nine-month periods
ended September 30, 2001 and 2000, gross margins as a percentage of sales were
35% and 42%, respectively. The decrease in margin as a percentage of sales is
primarily due to the mix of products sold, as well as increases in inventory
obsolescence reserves.
Research and Development Expenses
- ---------------------------------
The Company's research and development expenses were $3,052,520 and $3,254,384
for the three months ended September 30, 2001 and 2000, respectively, and
$9,292,526 and $9,031,599 for the nine-month periods ended September 30, 2001
and 2000, respectively.
The decrease in research and development expenses on a quarter to quarter basis
of $201,864 is primarily due to a reduction in staffing in the Company's
California facility in March and April 2001, offset somewhat by increases in the
Orlando and Jacksonville wireless design centers.
On a year to date basis, research and development expenses increased by $260,927
due to increased research and development efforts in the Wireless Division. The
increase in wireless research and development expenses is primarily due to
increased personnel and overhead related to the expansion of the Company's
Orlando and Jacksonville design centers. These increases are somewhat offset by
decreases in personnel and other costs related to the Company's California
facility.
Marketing and Selling Expenses
- ------------------------------
Marketing and selling expenses decreased $323,790 and $864,132 for the three and
nine month periods ended September 30, 2001 when compared with the same periods
in 2000. On a quarter to quarter basis, the decrease is primarily due to
staffing reductions in the Wireless Division's sales and marketing group. On a
year to date basis, the decrease also includes decreased personnel, advertising,
promotional costs and outside consulting fees relating to the Video Division.
11
General and Administrative Expenses
- -----------------------------------
General and administrative expenses increased by $112,032 for the three month
period ended September 30, 2001 when compared to the same period in 2000 and
decreased by $45,637 on a year to date basis. General and administrative
expenses consist primarily of executive, accounting and administrative personnel
costs, professional fees and insurance costs.
Other Expense
- -------------
Other expense consists of losses on the disposal of out-of-service assets,
primarily trade show booths and computer equipment.
Interest Income
- ---------------
Interest income was $420,111 and $570,916 for the three-month periods ended
September 30, 2001 and 2000, respectively, and $1,352,856 and $1,161,283 for the
nine month periods ended September 30, 2001 and 2000, respectively. Interest
income represents interest earned on the proceeds from the Company's issuance of
common stock in May 2000 and previous offerings, offset by funds used for
operations.
Loss and Loss per Share
- -----------------------
The Company's net loss increased by $2,120,281 or $0.15 per common share from
the three-month period ended September 30, 2000 compared to the same period in
2001. On a year to date basis, the Company's net loss increased by $1,457,316 or
$0.03 per common share. The increase in net losses is primarily due to decreased
sales by the Company's Video Division, offset somewhat by decreased operating
expenses in the Video Division.
Backlog
- -------
The Company had camera backlog of approximately $128,000 at September 30, 2001.
Camera backlog consists of orders received which generally have a specified
delivery schedule within three to five weeks of receipt. In addition, the
Company currently has a backlog of PVTV studio sales and services, excluding
extended support services, of approximately $2.7 million, representing studio
purchase commitments with delivery dates through the first half of 2002.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
At September 30, 2001, the Company had working capital of $40.5 million, a
decrease of $5.1 million from $45.6 million at December 31, 2000. This decrease
in working capital is primarily due to the use of cash to fund operations during
the first nine months of 2001, offset somewhat by the sale of equity securities
and proceeds from the exercise of stock options and warrants. The Company's
principal source of liquidity at September 30, 2001 consisted of $35 million in
cash and investments. Until the Company generates sufficient revenues from
product sales or licensing fees, it will be required to continue to utilize its
working capital to cover the continuing expense of research and development,
marketing and general administration. Based on the Company's current estimates,
it believes its current cash and investments will provide sufficient resources
to meet its cash requirements for the next twelve months as well as on a
longer-term basis.
12
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is subject to legal proceedings and claims which arise in the
ordinary course of its business. Although occasional adverse decisions or
settlements may occur, the Company believes that the final disposition of such
matters will not have a material adverse effect on its financial position,
results of operations or liquidity.
ITEM 2. CHANGES IN SECURITIES
Sales of Unregistered Securities
--------------------------------
Consideration received and Exemption If option, warrant or
description of underwriting or from convertible security,
Date of Number other discounts to market price registration terms of exercise or
sale Title of security sold afforded to purchasers claimed conversion
- -------------------------------------------------------------------------------------------------------------------
7/01-9/01 Options to 98,300 Option granted - no 4(2) Exercisable for
purchase common consideration received by five years from
stock granted Company until exercise the date the
to employees option first
becomes vested,
options vest
ratably over five
years at exercise
prices ranging
from $18 to $25
per share
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable.
ITEM 5. OTHER INFORMATION. Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. None
(b) No reports on Form 8-K were filed during the quarter ended September 30,
2001.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
ParkerVision, Inc.
Registrant
November 14, 2001 By: /s/ Jeffrey L. Parker
----------------------
Jeffrey L. Parker
Chairman and Chief Executive Officer
November 14, 2001 By: /s/ Cynthia L. Poehlman
------------------------
Cynthia L. Poehlman
Chief Accounting Officer
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