x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
New Jersey
(State
or other jurisdiction of incorporation or organization)
|
22-2746503
(I.R.S.
Employer Identification No.)
|
10420 Research Road, SE, Albuquerque, New
Mexico
(Address
of principal executive offices)
|
87123
(Zip
Code)
|
PAGE
|
|||
Part I
|
Financial
Information
|
||
Item
1.
|
Financial
Statements
|
4
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
29
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
37
|
|
Item
4.
|
Controls
and Procedures
|
38
|
|
|
|||
Part II
|
Other
Information
|
||
Item
1.
|
Legal
Proceedings
|
39
|
|
Item
1A.
|
Risk
Factors
|
41
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
42
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
42
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
42
|
|
Item
5.
|
Other
Information
|
42
|
|
Item
6.
|
Exhibits
|
43
|
|
|
|||
SIGNATURES
|
44
|
PART
I.
|
FINANCIAL
INFORMATION
|
ITEM
I.
|
Financial
Statements
|
For
the Three Months
Ended
December 31,
|
||||||||
2009
|
2008
|
|||||||
Product
revenue
|
$
|
40,939
|
$
|
51,554
|
||||
Service
revenue
|
1,462
|
2,502
|
||||||
Total
revenue
|
42,401
|
54,056
|
||||||
Cost
of product revenue
|
33,229
|
50,772
|
||||||
Cost
of service revenue
|
1,168
|
1,695
|
||||||
Total
cost of revenue
|
34,397
|
52,467
|
||||||
Gross
profit
|
8,004
|
1,589
|
||||||
Operating
expenses:
|
||||||||
Selling,
general, and administrative
|
12,423
|
12,159
|
||||||
Research
and development
|
7,513
|
8,110
|
||||||
Impairments
|
-
|
33,781
|
||||||
Total
operating expenses
|
19,936
|
54,050
|
||||||
Operating
loss
|
(11,932
|
)
|
(52,461
|
)
|
||||
Other
(income) expense:
|
||||||||
Interest
income
|
(2
|
)
|
(50
|
)
|
||||
Interest
expense
|
116
|
195
|
||||||
Foreign
exchange loss
|
232
|
472
|
||||||
Loss
from financing derivative instrument
|
1,360
|
-
|
||||||
Impairment
of investment
|
-
|
367
|
||||||
Total
other expense
|
1,706
|
984
|
||||||
Net
loss
|
$
|
(13,638
|
)
|
$
|
(53,445
|
)
|
||
Foreign
exchange translation adjustment
|
79
|
108
|
||||||
Comprehensive
loss
|
$
|
(13,559
|
)
|
$
|
(53,337
|
)
|
||
Per
share data:
|
||||||||
Net
loss per basic and diluted share
|
$
|
(0.17
|
)
|
$
|
(0.69
|
)
|
||
Weighted-average
number of basic and diluted shares outstanding
|
81,113
|
77,816
|
As
of
December
31,
2009
|
As
of
September
30,
2009
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
15,138
|
$
|
14,028
|
||||
Restricted
cash
|
4
|
1,521
|
||||||
Available-for-sale
securities
|
1,350
|
1,350
|
||||||
Accounts
receivable, net of allowance of $6,640 and $7,125,
respectively
|
40,726
|
39,417
|
||||||
Inventory,
net
|
31,454
|
34,221
|
||||||
Prepaid
expenses and other current assets
|
4,550
|
4,712
|
||||||
Total
current assets
|
93,222
|
95,249
|
||||||
Property,
plant and equipment, net
|
52,719
|
55,028
|
||||||
Goodwill
|
20,384
|
20,384
|
||||||
Other
intangible assets, net
|
12,424
|
12,982
|
||||||
Long-term
restricted cash
|
163
|
163
|
||||||
Other
non-current assets, net
|
720
|
753
|
||||||
Total
assets
|
$
|
179,632
|
$
|
184,559
|
||||
LIABILITIES
and SHAREHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Borrowings
from credit facility
|
$
|
10,678
|
$
|
10,332
|
||||
Short-term
debt
|
843
|
842
|
||||||
Accounts
payable
|
28,632
|
24,931
|
||||||
Accrued
expenses and other current liabilities
|
21,042
|
21,687
|
||||||
Total
current liabilities
|
61,195
|
57,792
|
||||||
Warrant
liability
|
1,132
|
-
|
||||||
Other
long-term liabilities
|
103
|
104
|
||||||
Total
liabilities
|
62,430
|
57,896
|
||||||
Commitments
and contingencies
|
||||||||
Shareholders’
equity:
|
||||||||
Preferred
stock, $0.0001 par, 5,882 shares authorized; no shares
outstanding
|
-
|
-
|
||||||
Common
stock, no par value, 200,000 shares authorized;
81,900
shares issued and 81,741 shares outstanding as of December 31,
2009;
80,982
shares issued and 80,823 shares outstanding as of September 30,
2009
|
692,942
|
688,844
|
||||||
Accumulated
deficit
|
(574,471
|
)
|
(560,833
|
)
|
||||
Accumulated
other comprehensive income
|
814
|
735
|
||||||
Treasury
stock, at cost; 159
shares as of December 31, 2009 and September 30, 2009
|
(2,083
|
)
|
(2,083
|
)
|
||||
Total
shareholders’ equity
|
117,202
|
126,663
|
||||||
Total
liabilities and shareholders’ equity
|
$
|
179,632
|
$
|
184,559
|
For
the Three Months Ended December 31,
|
|||||||||
2009
|
2008
|
||||||||
Cash
flows from operating activities:
|
|||||||||
Net
loss
|
$
|
(13,638
|
)
|
$
|
(53,445
|
)
|
|||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
|||||||||
Impairments
|
-
|
33,781
|
|||||||
Stock-based
compensation expense
|
3,186
|
2,150
|
|||||||
Depreciation
and amortization expense
|
3,117
|
4,293
|
|||||||
Provision
for inventory
|
(378
|
)
|
4,362
|
||||||
Provision
for doubtful accounts
|
(434
|
)
|
922
|
||||||
Provision
for product warranty
|
340
|
-
|
|||||||
Impairment
of investment
|
-
|
366
|
|||||||
Loss
on disposal of equipment
|
-
|
97
|
|||||||
Compensatory
stock issuances
|
200
|
18
|
|||||||
Loss
from financing derivative instrument
|
1,360
|
-
|
|||||||
Total
non-cash adjustments
|
7,391
|
45,989
|
|||||||
Changes
in operating assets and liabilities:
|
|||||||||
Accounts
receivable
|
(1,004
|
)
|
(1,938
|
)
|
|||||
Inventory
|
3,143
|
(4,337
|
)
|
||||||
Other
assets
|
173
|
225
|
|||||||
Accounts
payable
|
3,682
|
(6,806
|
)
|
||||||
Accrued
expenses and other current liabilities
|
(987
|
)
|
(832
|
)
|
|||||
Total
change in operating assets and liabilities
|
5,007
|
(13,688
|
)
|
||||||
Net
cash used in operating activities
|
(1,240
|
)
|
(21,144
|
)
|
|||||
Cash
flows from investing activities:
|
|||||||||
Purchase
of plant and equipment
|
(87
|
)
|
(597
|
)
|
|||||
Investments
in patents
|
(158
|
)
|
-
|
||||||
Sale
of available-for-sale securities
|
-
|
1,700
|
|||||||
Release
of restricted cash
|
1,517
|
27
|
|||||||
Net
cash provided by investing activities
|
$
|
1,272
|
$
|
1,130
|
|||||
(Continued
from previous page)
|
For
the Three Months Ended December 31,
|
||||||||
2009
|
2008
|
||||||||
Cash
flows from financing activities:
|
|||||||||
Proceeds
from borrowings from credit facility
|
$
|
58,227
|
$
|
15,443
|
|||||
Payments
on borrowings from credit facility
|
(57,881
|
)
|
-
|
||||||
Proceeds
from borrowings on short-term debt
|
3
|
910
|
|||||||
Payments
on borrowings on short-term debt
|
(2
|
)
|
-
|
||||||
Proceeds
from exercise of stock options
|
-
|
32
|
|||||||
Proceeds
from employee stock purchase plan
|
505
|
613
|
|||||||
Payments
on capital lease obligations
|
(2
|
)
|
-
|
||||||
Net
cash provided by financing activities
|
850
|
16,998
|
|||||||
Effect
of foreign currency
|
228
|
107
|
|||||||
Net
increase (decrease) in cash and cash equivalents
|
1,110
|
(2,909
|
)
|
||||||
Cash
and cash equivalents at beginning of period
|
14,028
|
18,227
|
|||||||
Cash
and cash equivalents at end of period
|
$
|
15,138
|
$
|
15,318
|
|||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|||||||||
Cash
paid during the period for interest
|
$
|
76
|
$
|
132
|
|||||
Cash
paid during the period for income taxes
|
$
|
-
|
$
|
-
|
|||||
NON-CASH
INVESTING AND FINANCING ACTIVITIES
|
|||||||||
Acquisition
of equipment under capital lease
|
$
|
-
|
$
|
-
|
|||||
Issuance
of common stock under financing derivative instrument
|
$
|
228
|
$
|
-
|
|||||
-
|
valuation
of inventory, goodwill, intangible assets, warrants, and stock-based
compensation;
|
-
|
assessment
of recovery of long-lived assets;
|
-
|
revenue
recognition associated with the percentage of completion method;
and,
|
-
|
allowance
for doubtful accounts and warranty
accruals.
|
ASC 805 – Business
Combinations. On
October 1, 2009, the Company adopted new authoritative guidance within ASC
805 which requires an acquirer to recognize the assets acquired, the
liabilities assumed, including those arising from contractual
contingencies, any contingent consideration, and any noncontrolling
interest in the acquiree at the acquisition date, measured at their fair
values as of that date, with limited exceptions specified in the
statement. It also requires the acquirer in a business
combination achieved in stages (sometimes referred to as a step
acquisition) to recognize the identifiable assets and liabilities, as well
as the noncontrolling interest in the acquiree, at the full amounts of
their fair values (or other amounts determined in accordance with this
accounting principle). In addition, the accounting principle’s
requirement to measure the noncontrolling interest in the acquiree at fair
value will result in recognizing the goodwill attributable to the
noncontrolling interest in addition to that attributable to the acquirer.
ASC 805 also requires the acquirer to recognize changes in the amount of
its deferred tax benefits that are recognizable because of a business
combination either in income from continuing operations in the period of
the combination or directly in contributed capital, depending on the
circumstances. It also provides guidance on the impairment testing of
acquired research and development intangible assets and assets that the
acquirer intends not to use. ASC 805 applies prospectively to
business combinations for which the acquisition date is on or after
October 1, 2009, therefore, the adoption of ASC 805 did not have any
impact on the Company’s historical financial
statements.
|
|
Number
of Shares
|
Weighted
Average Exercise Price
|
Weighted
Average
Remaining
Contractual Life
(in
years)
|
|||||||||||||||||||||||||
Outstanding
as of September 30, 2009
|
10,788,174
|
$
|
4.85
|
|||||||||||||||||||||||||
Granted
|
24,000
|
1.02
|
||||||||||||||||||||||||||
Exercised
|
-
|
-
|
||||||||||||||||||||||||||
Forfeited
|
(95,913
|
)
|
3.37
|
|||||||||||||||||||||||||
Cancelled
|
(762,494
|
)
|
5.57
|
|||||||||||||||||||||||||
Outstanding
as of December 31, 2009
|
9,953,767
|
$
|
4.78
|
7.78
|
||||||||||||||||||||||||
Exercisable
as of December 31, 2009
|
3,625,721
|
$
|
5.92
|
5.92
|
||||||||||||||||||||||||
Vested
and expected to vest as of December 31, 2009
|
5,883,866
|
$
|
5.05
|
7.10
|
Number
of Stock Options Outstanding
|
Options
Exercisable
|
|||||||||
Exercise
Price of Stock Options
|
Number
Outstanding
|
Weighted
Average Remaining Contractual Life (years)
|
Weighted-
Average Exercise Price
|
Number
Exercisable
|
Weighted-
Average Exercise Price
|
|||||
<$5.00
|
5,104,908
|
8.02
|
$1.90
|
1,496,845
|
$2.98
|
|||||
>=$5.00
to <$10.00
|
4,729,939
|
7.66
|
7.55
|
2,035,056
|
7.41
|
|||||
>$10.00
|
118,920
|
2.64
|
18.53
|
93,820
|
20.47
|
|||||
TOTAL
|
9,953,767
|
7.78
|
$4.78
|
3,625,721
|
$5.92
|
(in
thousands, except per share data)
|
For
The Three Months
Ended
December 31,
|
|||||||
2009
|
2008
|
|||||||
Stock-based
compensation expense by award type:
|
||||||||
Employee
stock options
|
$
|
3,006
|
$
|
1,995
|
||||
Employee
stock purchase plan
|
180
|
155
|
||||||
Total
stock-based compensation expense
|
$
|
3,186
|
$
|
2,150
|
||||
Net
effect on net loss per basic and diluted share
|
$
|
(0.04
|
)
|
$
|
(0.02
|
)
|
Black-Scholes
Weighted-Average Assumptions
Stock
Options
|
For
the Three Months
Ended
December 31,
|
||||||||
2009
|
2008
|
||||||||
Expected
dividend yield
|
-
|
%
|
-
|
%
|
|||||
Expected
stock price volatility
|
96.4
|
%
|
92.4
|
%
|
|||||
Risk-free
interest rate
|
2.5
|
%
|
3.5
|
%
|
|||||
Expected
term (in years)
|
3.8
|
6.1
|
|||||||
Estimated
pre-vesting forfeitures
|
32.6
|
%
|
25.1
|
%
|
Number
of Common Stock Shares
|
Purchase
Price per Share of
Common
Stock
|
|||||||
Amount
of shares reserved for the ESPP
|
4,500,000
|
|||||||
Number
of shares issued for calendar years 2000 through
2007
|
(1,123,857
|
)
|
$1.87
- $40.93
|
|||||
Number
of shares issued for calendar year 2008
|
(592,589
|
)
|
$0.88
- $ 5.62
|
|||||
Number
of shares issued for calendar year 2009
|
(1,073,405
|
)
|
$0.88
- $ 0.92
|
|||||
Remaining
shares reserved for the ESPP
|
1,710,149
|
Number
of Common Stock Shares Available
|
||||
For
exercise of outstanding common stock options
|
9,953,767
|
|||
For
future issuances to employees under the ESPP
|
1,710,149
|
|||
For
future common stock option awards
|
2,252,014
|
|||
For
future exercise of warrants
|
3,000,003
|
|||
Total
reserved
|
16,915,933
|
-
|
a
warrant, pursuant to which Commerce Court may purchase up to 666,667
shares of common stock at an exercise price of $1.69, which is equal to
125% of the average of the volume weighted average price of common stock
for the three trading days immediately preceding the execution date of the
Purchase Agreement,
|
-
|
a
warrant, pursuant to which Commerce Court may purchase from up to 666,667
shares of common stock at an exercise price of $2.02, which is equal to
150% of the average of the volume weighted average price of common stock
for the three trading days immediately preceding the execution date of the
Purchase Agreement, and
|
-
|
a
warrant, pursuant to which Commerce Court may purchase up to 266,666
shares of common stock at an exercise price of $2.36, which is equal to
175% of the average of the volume weighted average price of common stock
for the three trading days immediately preceding the execution date of the
Purchase Agreement.
|
Black-Scholes
Assumptions
As
of October 1, 2009
|
Warrant 1
|
Warrant 2
|
Warrant 3
|
TOTAL
|
Grant
date
|
10/1/09
|
10/1/09
|
10/1/09
|
|
Stock
price
|
$1.23
|
$1.23
|
$1.23
|
|
Exercise
price
|
$1.69
|
$2.02
|
$2.36
|
|
Expected
term
|
5.5
years
|
5.5
years
|
5.5
years
|
|
Dividend
yield
|
0%
|
0%
|
0%
|
|
Volatility
|
95%
|
95%
|
95%
|
|
Risk-free
interest rate
|
2.2%
|
2.2%
|
2.2%
|
|
Black-Scholes
value
|
$0.87
|
$0.84
|
$0.81
|
|
Number
of warrants issued
|
666,667
|
666,667
|
266,666
|
1,600,000
|
Value
of warrants
|
$580,000
|
$560,000
|
$216,000
|
$1,356,000
|
Black-Scholes
calculation
As
of December 31, 2009
|
Warrant 1
|
Warrant 2
|
Warrant 3
|
TOTAL
|
Grant
date
|
10/1/09
|
10/1/09
|
10/1/09
|
|
Stock
price
|
$1.07
|
$1.07
|
$1.07
|
|
Exercise
price
|
$1.69
|
$2.02
|
$2.36
|
|
Expected
term
|
5.25
years
|
5.25
years
|
5.25
years
|
|
Dividend
yield
|
0%
|
0%
|
0%
|
|
Volatility
|
95%
|
95%
|
95%
|
|
Risk-free
interest rate
|
2.7%
|
2.7%
|
2.7%
|
|
Black-Scholes
value
|
$0.73
|
$0.70
|
$0.67
|
|
Number
of warrants issued
|
666,667
|
666,667
|
266,666
|
1,600,000
|
Value
of warrants
|
$486,667
|
$466,667
|
$178,666
|
$1,132,000
|
(in
thousands)
|
As
of
December
31, 2009
|
As
of
September
30, 2009
|
|||||
Accounts
receivable
|
$
|
42,168
|
$
|
40,474
|
|||
Accounts
receivable – unbilled
|
5,198
|
6,068
|
|||||
Accounts
receivable, gross
|
47,366
|
46,542
|
|||||
Allowance
for doubtful accounts
|
(6,640
|
)
|
(7,125
|
)
|
|||
Total
accounts receivable, net
|
$
|
40,726
|
$
|
39,417
|
(in
thousands)
|
For
the Three Months Ended
December 31,
|
||||||||
2009
|
2008
|
||||||||
Balance
at beginning of period
|
$
|
7,125
|
$
|
2,377
|
|||||
Provision
adjustment – (recovery) expense
|
(434
|
)
|
922
|
||||||
Write-offs
- deductions against receivables
|
(51
|
)
|
-
|
||||||
Balance
at end of period
|
$
|
6,640
|
$
|
3,299
|
(in
thousands)
|
As
of
December
31,2009
|
As
of
September
30, 2009
|
|||||
Raw
materials
|
$
|
28,237
|
$
|
27,607
|
|||
Work-in-process
|
7,057
|
6,496
|
|||||
Finished
goods
|
7,374
|
9,998
|
|||||
Inventory,
gross
|
42,668
|
44,101
|
|||||
Less:
valuation allowance
|
(11,214
|
)
|
(9,880
|
)
|
|||
Total
inventory, net
|
$
|
31,454
|
$
|
34,221
|
(in
thousands)
|
For
the Three Months
Ended
December 31,
|
||||||||
2009
|
2008
|
||||||||
Balance
at beginning of period
|
$
|
9,880
|
$
|
12,625
|
|||||
Provision
adjustment – (recovery) expense
|
(378
|
)
|
5,507
|
||||||
Adjustments
against inventory or provisions
|
1,712
|
(780
|
)
|
||||||
Balance
at end of period
|
$
|
11,214
|
$
|
17,352
|
(in
thousands)
|
As
of
December
31, 2009
|
As
of
September
30, 2009
|
|||||
Land
|
$
|
1,502
|
$
|
1,502
|
|||
Building
and improvements
|
34,922
|
34,922
|
|||||
Equipment
|
98,711
|
98,693
|
|||||
Furniture
and fixtures
|
3,065
|
3,065
|
|||||
Computer
hardware and software
|
2,655
|
2,660
|
|||||
Leasehold
improvements
|
1,055
|
1,094
|
|||||
Construction
in progress
|
3,144
|
3,031
|
|||||
Property,
plant and equipment, gross
|
145,054
|
144,967
|
|||||
Less:
accumulated depreciation and amortization
|
(92,335
|
)
|
(89,939
|
)
|
|||
Total
property, plant and equipment, net
|
$
|
52,719
|
$
|
55,028
|
(in
thousands)
|
As of December 31,
2009
|
As
of September 30, 2009
|
|||||||||||||||||
Gross
Assets
|
Accumulated
Amortization
|
Net
Assets
|
Gross
Assets
|
Accumulated
Amortization
|
Net
Assets
|
||||||||||||||
Fiber
Optics
|
$
|
24,522
|
$
|
(12,993
|
)
|
$
|
11,529
|
$
|
24,494
|
$
|
(12,341
|
)
|
$
|
12,153
|
|||||
Photovoltaics
|
1,589
|
(694
|
)
|
895
|
1,459
|
(630
|
)
|
829
|
|||||||||||
Total
|
$
|
26,111
|
$
|
(13,687
|
)
|
$
|
12,424
|
$
|
25,953
|
$
|
(12,971
|
)
|
$
|
12,982
|
(in
thousands)
|
Estimated
Future Amortization Expense
|
|||
Nine
months ended September 30, 2010
|
$
|
2,133
|
||
Fiscal
year ended September 30, 2011
|
2,463
|
|||
Fiscal
year ended September 30, 2012
|
2,139
|
|||
Fiscal
year ended September 30, 2013
|
1,804
|
|||
Fiscal
year ended September 30, 2014
|
1,269
|
|||
Thereafter
|
2,616
|
|||
Total
future amortization expense
|
$
|
12,424
|
(in
thousands)
|
As
of
December
31, 2009
|
As
of
September
30, 2009
|
||||||
Compensation-related
|
$
|
4,521
|
$
|
5,861
|
||||
Warranty
|
4,417
|
4,287
|
||||||
Loss
on firm commitments
|
-
|
3,821
|
||||||
Professional
fees
|
2,046
|
1,839
|
||||||
Royalty
|
2,113
|
1,937
|
||||||
Self
insurance
|
1,431
|
1,272
|
||||||
Deferred
revenue and customer deposits
|
3,858
|
886
|
||||||
Income
and other taxes
|
685
|
625
|
||||||
Accrued
program loss
|
15
|
51
|
||||||
Restructuring
accrual
|
342
|
395
|
||||||
Other
|
1,614
|
713
|
||||||
Total
accrued expenses and other current liabilities
|
$
|
21,042
|
$
|
21,687
|
(in
thousands)
|
For
the Three Months
Ended
December 31,
|
||||||||
2009
|
2008
|
||||||||
Balance
at beginning of period
|
$
|
4,287
|
$
|
4,640
|
|||||
Provision
adjustment – expense (recovery)
|
340
|
(133
|
)
|
||||||
Utilization
of warranty accrual
|
(210
|
)
|
(395
|
)
|
|||||
Balance
at end of period
|
$
|
4,417
|
$
|
4,112
|
(in
thousands)
|
For
the Three Months
Ended
December 31,
|
||||||||
2009
|
2008
|
||||||||
Employee
severance-related expense
|
$
|
8
|
$
|
617
|
|||||
Other
restructuring-related expense
|
-
|
-
|
|||||||
Total
restructuring charges
|
$
|
8
|
$
|
617
|
(in
thousands)
|
Severance-related
Accrual
|
Restructuring-related
Accrual
|
Total
|
|||||||||
Balance
as of September 30, 2009
|
$
|
226
|
$
|
395
|
$
|
621
|
||||||
Additional
accruals
|
8
|
-
|
8
|
|||||||||
Cash
payments or otherwise settled
|
(223
|
)
|
(53
|
)
|
(276
|
)
|
||||||
Balance
as of December 31, 2009
|
$
|
11
|
$
|
342
|
$
|
353
|
(in
thousands)
|
Estimated
Future Minimum Lease Payments
|
|||
Nine
months ended September 30, 2010
|
$
|
1,444
|
||
Fiscal
year ended September 30, 2011
|
1,814
|
|||
Fiscal
year ended September 30, 2012
|
1,072
|
|||
Fiscal
year ended September 30, 2013
|
799
|
|||
Fiscal
year ended September 30, 2014
|
76
|
|||
Thereafter
|
2,699
|
|||
Total
minimum lease payments
|
$
|
7,904
|
-
|
SEC
Communications. On or about August 15, 2008, the Company
received a letter from the Denver office of the Enforcement Division of
the Securities and Exchange Commission wherein it sought the Company's
voluntary production of documents relating to, among other things, the
Company's business relationship with Green and Gold Energy, Inc., its
licensees, and the Photovoltaics segment backlog the Company reported to
the public. Since that time, the Company has provided documents
to the staff of the SEC and met with the staff on December 12, 2008 to
address this matter. On June 10, 2009, the SEC staff requested
that the Company voluntarily provide documentary backup for certain
information presented at the December 2008 meeting, which was provided on
July 17, 2009, and arrange for a telephone interview with one former
employee, which has been completed. On August 24, 2009, in a
telephone call with the Company’s counsel, the staff posed certain
questions relating to the material provided on July 17, 2009, which were
answered via the production of additional information and documentation on
October 9, 2009.
|
-
|
NASDAQ
Communication. On or about November 13, 2008, the Company
received a letter from the NASDAQ Listings Qualifications group (“NASDAQ”)
concerning the Company's removal of $79 million in backlog attributable to
GGE which the Company announced on August 8, 2008 and the remaining
backlog exclusive of GGE. The Company advised NASDAQ that it would
cooperate with its inquiry. To date, the Company has received
three additional requests for information from NASDAQ (the latter 2 of
which requested updates on the SEC matter). The Company has
complied with each of NASDAQ’s requests. In early November 2009
the NASDAQ orally requested to be advised of developments in the SEC
matter.
|
(in
thousands)
|
||||
Balance
as of September 30, 2009
|
$
|
374
|
||
Subtractions
based on tax positions related to the current year
|
(17
|
)
|
||
Subtractions
for tax positions of prior years
|
(19
|
)
|
||
Balance
as of December 31, 2009
|
$
|
338
|
Segment
Revenue
(in
thousands)
|
For
the Three Months Ended
December
31,
|
||||||||||||||||
2009
|
2008
|
||||||||||||||||
Revenue
|
%
of Revenue
|
Revenue
|
%
of Revenue
|
||||||||||||||
Fiber
Optics
|
$
|
25,608
|
60
|
%
|
$
|
39,166
|
72
|
%
|
|||||||||
Photovoltaics
|
16,793
|
40
|
14,890
|
28
|
|||||||||||||
Total
revenue
|
$
|
42,401
|
100
|
%
|
$
|
54,056
|
100
|
%
|
Geographic
Revenue
(in
thousands)
|
For
the Three Months Ended
December
31,
|
||||||||||||||||
2009
|
2008
|
||||||||||||||||
Revenue
|
%
of Revenue
|
Revenue
|
%
of Revenue
|
||||||||||||||
United
States
|
$
|
34,361
|
81
|
%
|
$
|
31,715
|
58
|
%
|
|||||||||
Asia
|
6,196
|
15
|
19,208
|
36
|
|||||||||||||
Europe
|
1,277
|
3
|
2,797
|
5
|
|||||||||||||
Other
|
567
|
1
|
336
|
1
|
|||||||||||||
Total
revenue
|
$
|
42,401
|
100
|
%
|
$
|
54,056
|
100
|
%
|
Significant
Market Sectors
As
a percentage of total consolidated revenue
|
For
the Three Months Ended December 31,
|
||||||||
2009
|
2008
|
||||||||
Fiber
Optics – related:
|
|||||||||
Cable
Television Products
|
21
|
%
|
14
|
%
|
|||||
Parallel
Optical Transceiver / Cable Products
|
10
|
%
|
-
|
||||||
Enterprise
Products
|
-
|
15
|
%
|
||||||
Telecom
Optical Products
|
-
|
14
|
%
|
||||||
Photovoltaics
– related:
|
|||||||||
Satellite
Solar Power Generation
|
38
|
%
|
26
|
%
|
Significant
Customers
As
a percentage of total consolidated revenue
|
For
the Three Months Ended December 31,
|
||||||||
2009
|
2008
|
||||||||
Fiber
Optics – related customer:
|
|||||||||
Cisco
Systems, Inc.
|
14
|
%
|
17
|
%
|
|||||
Photovoltaics
– related customer:
|
|||||||||
Loral
Space & Communications
|
15
|
%
|
14
|
%
|
Statement
of Operations Data
(in
thousands)
|
For
the Three Months Ended December 31,
|
||||||||
2009
|
2008
|
||||||||
Operating
loss:
|
|||||||||
Fiber
Optics segment
|
$
|
(8,407
|
)
|
$
|
(48,423
|
)
|
|||
Photovoltaics
segment
|
(3,525
|
)
|
(4,035
|
)
|
|||||
Corporate
division
|
-
|
(3
|
)
|
||||||
Operating
loss
|
$
|
(11,932
|
)
|
$
|
(52,461
|
)
|
Segment
Depreciation and Amortization
(in
thousands)
|
For
the Three Months Ended December 31,
|
||||||||
2009
|
2008
|
||||||||
Fiber
Optics segment
|
$
|
1,764
|
$
|
2,852
|
|||||
Photovoltaics
segment
|
1,353
|
1,441
|
|||||||
Total
depreciation and amortization
|
$
|
3,117
|
$
|
4,293
|
Long-lived
Assets
(in
thousands)
|
As
of December 31, 2009
|
As
of
September
30, 2009
|
||||||
Fiber
Optics segment
|
$
|
35,676
|
$
|
37,399
|
||||
Photovoltaics
segment
|
49,027
|
50,169
|
||||||
Corporate
division
|
824
|
826
|
||||||
Total
long-lived assets
|
$
|
85,527
|
$
|
88,394
|
-
|
Level
1 inputs are unadjusted quoted prices in active markets for identical
assets or liabilities.
|
-
|
Level
2 inputs are quoted prices for similar assets and liabilities in active
markets or inputs that are observable for the asset or liability, either
directly or indirectly through market corroboration, for substantially the
full term of the financial
instrument.
|
-
|
Level
3 inputs are unobservable inputs based on our own assumptions used to
measure assets and liabilities at fair value. A financial asset or
liability’s classification within the hierarchy is determined based on the
lowest level input that is significant to the fair value
measurement.
|
(in
thousands)
|
As
of December 31, 2009
|
|||||||||||||||
Quoted
Prices in Active Markets for Identical Assets
[Level
1]
|
Significant
Other Observable Remaining Inputs
[Level
2]
|
Significant
Unobservable Inputs
[Level
3]
|
Total
|
|||||||||||||
Assets
|
||||||||||||||||
Money
market fund deposits
|
$
|
15,138
|
$
|
-
|
$
|
-
|
$
|
15,138
|
||||||||
Restricted
fund deposits
|
167
|
-
|
-
|
167
|
||||||||||||
Asset-backed
auction rate securities
|
-
|
1,350
|
-
|
1,350
|
||||||||||||
Total
assets measured at fair value
|
$
|
15,305
|
$
|
1,350
|
$
|
-
|
$
|
16,655
|
||||||||
Liabilities
|
||||||||||||||||