4/17/2003 - OpenTV (NASDAQ and Euronext Amsterdam: OPTV), one of the world's leading interactive television companies, announced its financial results for the quarter and year ended December 31, 2002. OpenTV filed its Annual Report on Form 10-K for the year ended December 31, 2002 with the Securities and Exchange Commission on Friday, April 11, 2003.
For the quarter ended December 31, 2002, OpenTV's revenue totaled $13.2 million compared to $25.1 million for the quarter ended December 31, 2001. OpenTV had a loss from operations for the quarter ended December 31, 2002 of $43.3 million, compared to a loss from operations of $926.3 million for the quarter ended December 31, 2001. The loss from operations for the quarter ended December 31, 2002 included a restructuring charge of $18.2 million principally associated with a reduction of the Company's worldwide workforce by approximately 150 employees and a reduction or closing of facilities in California, Massachusetts, Germany and United Kingdom. The loss from operations for the quarter ended December 31, 2001 included $98.6 million of goodwill amortization and an impairment charge of $816.2 million. In connection with the Company's adoption of Statement of Financial Accounting Standards (SFAS) No. 142 on January 1, 2002, goodwill is no longer being amortized. Including these charges, OpenTV's net loss for the quarter ended December 31, 2002 was $43.0 million, or $0.60 per share, compared to a net loss of $931.9 million, or $13.20 per share, for the quarter ended December 31, 2001.
For the year ended December 31, 2002, OpenTV reported a loss from operations of $658.6 million on revenues of $59.7 million compared to a loss from operations of $1,281.9 million on revenues of $86.9 million for the year ended December 31, 2001. The net loss for the year ended December 31, 2002 was $802.6 million, or $11.17 per share, compared to $1,304.3 million, or $19.20 per share for the year ended December 31, 2001. The net loss in 2002 included impairment charges on goodwill and other intangible assets of $539.3 million and a charge of $129.9 million from the adoption of SFAS No. 142 on January 1, 2002. The net loss in 2001 included $394.5 million of goodwill amortization and an impairment charge of $816.2 million.
The operating results for the nine months ended September 30, 2002 and for the year ended December 31, 2001 have been restated to correct the method in which the Company accounted for certain share exchange transactions that occurred during 2000, 2001 and 2002 with minority shareholders of its subsidiary, OpenTV, Inc., by accounting for the exchanges at fair value rather than at historical cost. As a result, additional amounts of goodwill and related increases in amortization expense were recorded in periods that exchange transactions occurred. Under generally accepted accounting principles, the existence of this additional goodwill recorded in these prior periods caused the Company to accelerate the recognition of an impairment charge of approximately $816.2 million to the fourth quarter of 2001, where previously no such charge was required, and to reduce the impairment charge recorded in the first quarter of 2002 upon the adoption of SFAS No. 142 from $931.3 million to $129.9 million. In addition, consistent with the provisions of EITF 01-09, "Accounting for Consideration Given by a Vendor to a Customer or Reseller of the Vendor's Products", which was adopted effective January 1, 2002, the Company reclassified approximately $8.4 million of marketing expenses incurred in the first quarter of 2001 against previously reported revenues. The Company's Annual Report on Form 10-K for the year ended December 31, 2002 should be reviewed for more information on the restatements and the impacts of such on operating results reported in previous periods.
As of December 31, 2002, OpenTV had cash, cash equivalents and marketable debt securities totaling $87.7 million compared to $162.7 million as of September 30, 2002. The primary uses of cash during the quarter were the acquisition of Wink Communications, which was acquired on October 4, 2002, and to fund operations, including the Company's restructuring initiatives.
"In the fourth quarter of 2002, we continued to restructure the Company in an attempt to better position it for future success," said OpenTV Chief Executive Officer, James Ackerman. "Now, in 2003, we continue to focus on our most important goals: expansion of our business relationships and revenues, maintenance of a cost efficient organization to target achieving cash flow breakeven, resolution of our delisting risk with the Nasdaq and completion of our pending acquisition of ACTV."
One of the world's leading interactive television companies, OpenTV provides a comprehensive suite of technology, content, applications, and professional services that enable network operators in over 60 countries to deliver and manage iTV services on all major digital TV platforms. OpenTV is headquartered in Mountain View, California, with regional offices in the United States, Europe and Asia/Pacific. For more information, please visit www.opentv.com.
OpenTV and the OpenTV logo are trademarks or registered trademarks of OpenTV, Inc. in the United States and other countries.
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