Bitstream Inc.

CIK:0000818813|SEC Filings

Condensed Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenue:
Software licenses	$ 5,207	$ 4,739	$ 16,021	$ 13,075
Services	1,601	1,243	4,919	3,550
Total revenue	6,808	5,982	20,940	16,625
Cost of revenue:
Software licenses	2,936	2,346	8,598	6,644
Services	666	518	1,822	1,472
Total cost of revenue	3,602	2,864	10,420	8,116
Gross profit	3,206	3,118	10,520	8,509
Operating expenses:
Marketing and selling	1,129	945	3,215	2,647
Research and development	2,128	2,057	6,402	5,076
General and administrative	1,760	1,207	5,073	2,994
Total operating expenses	5,017	4,209	14,690	10,717
Operating loss	(1,811)	(1,091)	(4,170)	(2,208)
Interest and other income (expense), net	(62)	45	143	109
Loss before provision for income taxes	(1,873)	(1,046)	(4,027)	(2,099)
Provision for income taxes	77	128	208	158
Net loss	$ (1,950)	$ (1,174)	$ (4,235)	$ (2,257)
Basic and diluted net loss per share	$ (0.19)	$ (0.12)	$ (0.41)	$ (0.23)
Basic and diluted weighted average shares outstanding	10,394	9,921	10,242	9,878

Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,235)	$ (2,257)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation	488	778
Depreciation and amortization	207	213
Amortization of intangible assets	312	149
Amortization of purchased premiums on long-term investments in marketable securities	77	59
Unrealized foreign currency loss		30
Realized gain on sale of marketable securities	(123)	(8)
Changes in operating assets and liabilities, net of the effects of the acquisition:
Accounts receivable	808	501
Prepaid expenses and other current assets	(14)	245
Accounts payable	748	23
Accrued payroll and other compensation	315	693
Other accrued expenses	77	36
Deferred revenue	457	169
Long-term deferred rent	(17)	(3)
Net cash provided by (used in) operating activities	(900)	628
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(266)	(112)
Additions to capitalized software development costs	(554)
Additions to restricted cash	(55)
Acquisition of Press-sense Ltd		(6,528)
Additions to intangible assets	(15)	(22)
Purchase of investments in marketable securities		(8,990)
Proceeds from sale of marketable securities	1,785	1,450
Net cash provided by (used in) investing activities	895	(14,202)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	861	336
Net cash provided by financing activities	861	336
Net increase (decrease) in Cash and Cash Equivalents	856	(13,238)
Cash and Cash Equivalents, beginning of period	3,057	17,915
Cash and Cash Equivalents, end of period	$ 3,913	$ 4,677

Condensed Consolidated Balance Sheets (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 3,913	$ 3,057
Accounts receivable, net of allowance of $39 and $33 at September 30, 2011 and December 31, 2010, respectively.	1,259	1,999
Prepaid expenses and other current assets	696	750
Investments	114	114
Total current assets	5,982	5,920
Property and equipment, net	665	606
Capitalized software development costs	554
Goodwill	3,526	3,526
Intangible assets, net	3,182	3,479
Long-term investments	6,478	8,097
Restricted cash	191	144
Other	51	43
Total assets	20,629	21,815
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	1,903	1,155
Accrued payroll and other compensation	1,061	746
Other accrued expenses	744	667
Deferred revenue	2,533	2,413
Total current liabilities	6,241	4,981
Long-term deferred revenue	442	105
Long-term deferred rent	513	530
Total liabilities	7,196	5,616
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock: $0.01 par value: 6,000 shares authorized; no shares issued or outstanding
Additional paid-in capital	36,957	35,612
Accumulated deficit	(23,945)	(19,710)
Accumulated other comprehensive income	314	194
Total stockholders' equity	13,433	16,199
Total liabilities and stockholders' equity	20,629	21,815
Common Class A [Member]
Stockholders' equity:
Common stock	107	103
Common Class B [Member]
Stockholders' equity:
Common stock