|
|
 | | | |
- close
- close
- close
- close
These excerpts taken from the FIRE 10-K filed Feb 28, 2008. Liquidity
and Capital Resources
Cash
Flows
At December 31, 2007, we had cash, cash equivalents and
held-to-maturity
investments of $107.0 million, as compared to
$26.3 million at December 31, 2006.
Net cash provided by operating activities of $2.9 million
for the year ended December 31, 2007 was primarily
comprised of $2.8 million of net non-cash related expenses,
a $6.9 million increase in deferred revenue, a
$4.4 million increase in accounts payable and accrued
expenses and $2.9 million of in-process research and
development costs, offset by a $5.6 million net loss, a
$4.1 million increase in accounts receivable, a
$2.8 million increase in inventory and a $2.0 million
increase in prepaid expenses and other assets.
Net cash used in investing activities of $66.9 million for
the year ended December 31, 2007 was primarily comprised of
a $125.1 million cash outlay for the purchase of
held-to-maturity
investments, a $3.1 million cash outlay for capital
additions and a $4.6 million cash outlay for the
acquisition of ClamAV, $1.0 million of which was paid into
escrow, offset by $65.9 million of proceeds from the
maturities of
held-to-maturity
investments. The capital additions were used for leasehold
improvements to our U.K. office space and computer and network
equipment for additional personnel.
Net cash provided by financing activities of $84.0 million
for the year ended December 31, 2007 was primarily
comprised of $84.9 million of net cash proceeds of our IPO
offset by a $1.4 million debt repayment.
Liquidity
Requirements
We manufacture and distribute our products through contract
manufacturers and OEMs. This approach provides us with the
advantage of relatively low capital investment and significant
flexibility in scheduling production and managing inventory
levels. The majority of our products are delivered to our
customers directly from our contract manufacturers. Accordingly,
our contract manufacturers are responsible for purchasing and
stocking the components required for the production of our
products, and they invoice us when the finished goods are
shipped. By leasing our office facilities, we also minimize the
cash needed for expansion. Our capital spending is generally
limited to leasehold improvements, computers, office furniture
and product-specific test equipment.
Our short-term liquidity requirements through December 31,
2008 consist primarily of the funding of capital expenditures
and working capital requirements. We believe that cash flow from
operations will be sufficient to meet
these short-term requirements. In the event that cash flow from
operations is not sufficient, we expect to fund these amounts
through the use of existing cash and investment resources.
Our long-term liquidity requirements consist primarily of
obligations under our operating leases. We believe that cash
flow from operations will be sufficient to meet these long-term
requirements.
In addition, we may utilize cash resources, equity financing or
debt financing to fund acquisitions or investments in
complementary businesses, technologies or product lines.
Contractual
Obligations
Our principal commitments consist of obligations under our
equipment facility, leases for office space and minimum
contractual obligations for services. The following table
describes our commitments to settle contractual obligations in
cash as of December 31, 2007 (in thousands):
Liquidity and Capital Resources Cash Flows At December 31, 2007, we had cash, cash equivalents and held-to-maturity investments of $107.0 million, as compared to $26.3 million at December 31, 2006. Net cash provided by operating activities of $2.9 million for the year ended December 31, 2007 was primarily comprised of $2.8 million of net non-cash related expenses, a $6.9 million increase in deferred revenue, a $4.4 million increase in accounts payable and accrued expenses and $2.9 million of in-process research and development costs, offset by a $5.6 million net loss, a $4.1 million increase in accounts receivable, a $2.8 million increase in inventory and a $2.0 million increase in prepaid expenses and other assets. Net cash used in investing activities of $66.9 million for the year ended December 31, 2007 was primarily comprised of a $125.1 million cash outlay for the purchase of held-to-maturity investments, a $3.1 million cash outlay for capital additions and a $4.6 million cash outlay for the acquisition of ClamAV, $1.0 million of which was paid into escrow, offset by $65.9 million of proceeds from the maturities of held-to-maturity investments. The capital additions were used for leasehold improvements to our U.K. office space and computer and network equipment for additional personnel. Net cash provided by financing activities of $84.0 million for the year ended December 31, 2007 was primarily comprised of $84.9 million of net cash proceeds of our IPO offset by a $1.4 million debt repayment. Liquidity Requirements We manufacture and distribute our products through contract manufacturers and OEMs. This approach provides us with the advantage of relatively low capital investment and significant flexibility in scheduling production and managing inventory levels. The majority of our products are delivered to our customers directly from our contract manufacturers. Accordingly, our contract manufacturers are responsible for purchasing and stocking the components required for the production of our products, and they invoice us when the finished goods are shipped. By leasing our office facilities, we also minimize the cash needed for expansion. Our capital spending is generally limited to leasehold improvements, computers, office furniture and product-specific test equipment. Our short-term liquidity requirements through December 31, 2008 consist primarily of the funding of capital expenditures and working capital requirements. We believe that cash flow from operations will be sufficient to meet
these short-term requirements. In the event that cash flow from operations is not sufficient, we expect to fund these amounts through the use of existing cash and investment resources. Our long-term liquidity requirements consist primarily of obligations under our operating leases. We believe that cash flow from operations will be sufficient to meet these long-term requirements. In addition, we may utilize cash resources, equity financing or debt financing to fund acquisitions or investments in complementary businesses, technologies or product lines. Contractual Obligations Our principal commitments consist of obligations under our equipment facility, leases for office space and minimum contractual obligations for services. The following table describes our commitments to settle contractual obligations in cash as of December 31, 2007 (in thousands):
This excerpt taken from the FIRE 10-Q filed Aug 6, 2007. Liquidity
and Capital Resources
At June 30, 2007 our principal sources of liquidity were
cash and cash equivalents of $50.3 million,
held-to-maturity investments of $59.3 million and accounts
receivable of $10.8 million. At June 30, 2007, we had
working capital of approximately $105.8 million.
Prior to our IPO in March 2007, we funded our operations
primarily through private sales of our convertible preferred
stock and collections from our customers and, to a lesser
extent, borrowings under a credit facility. In March 2007, we
completed our IPO which provided us with aggregate net proceeds
of $83.8 million.
We manufacture and distribute our products through contract
manufacturers and OEMs. We believe that this approach gives us
the advantages of relatively low capital investment and
significant flexibility in scheduling production and managing
inventory levels. By leasing our office facilities, we also
minimize the cash needed for expansion. Our capital spending is
generally limited to leasehold improvements, computers, office
furniture and product-specific test equipment. The majority of
our products are delivered to our customers directly from our
contract manufacturers. Accordingly, our contract manufacturers
are responsible for purchasing and stocking the components
required for the production of our products and they invoice us
when the finished goods are shipped.
Our product sales are, and are expected to continue to be,
highly seasonal. This seasonality typically results in a
significant amount of cash provided by our operating activities
during the first half of the year with lower to negative cash
flow during the second half of the year. We believe that our
current cash reserves are sufficient for any short-term cash
needs resulting from the seasonality of our business.
Operating
Activities
The decrease of $461,000 in net cash provided by operating
activities during the six months ended June 30, 2007, as
compared to the same period in 2006, was primarily due to an
increase of cash used to purchase inventory
of long lead time items, an increase of our net loss, a payment
of $855,000 under an agreement to license and distribute
database software used in our products and an increase in
pre-payments by us for service contracts and marketing events.
These uses of cash were offset partially by cash provided by an
increase in deferred revenue and an increase in cash collections
as a result of the increased volume of customer invoices in the
fourth quarter of 2006.
Investing
Activities
The increase of $48.8 million in net cash used in investing
activities during the six months ended June 30, 2007, as
compared to the same period in 2006, was primarily due to an
increase in purchases of short- and long-term held-to-maturity
investments, an increase in leasehold improvements for our new
office space in the U.K. and computer and network equipment for
additional personnel.
Financing
Activities
The increase of $61.0 million in net cash provided by
financing activities during the six months ended June 30,
2007, as compared to the same period in 2006, was primarily due
to the $83.8 million net cash proceeds of our IPO, offset
by the retirement of indebtedness in 2007 in the amount of
$1.4 million and proceeds received from a private equity
financing of $23.0 million in May and June of 2006.
Credit Facility. During the quarter ended
March 31, 2007 all borrowings under the Company’s
credit agreements were repaid and such agreements were
terminated.
Working
Capital and Capital Expenditure Needs
We believe that the anticipated net proceeds from our future
operations, together with our cash balance at June 30, 2007
will be sufficient to fund our projected operating requirements
for at least the next 12 months. Except as disclosed in the
Contractual Obligations table below, we currently have no
material cash commitments, except for normal recurring trade
payables and expense accruals. In addition, we do not currently
anticipate significant investment in property, plant and
equipment, and we believe that our outsourced approach to
manufacturing provides us with significant flexibility in both
managing inventory levels and financing our inventory. In the
event that our revenue plan does not meet our expectations, we
may be required to eliminate or curtail expenditures to mitigate
the impact on our working capital. Our future capital
requirements will depend on many factors, including our rate of
revenue growth, the expansion of our marketing and sales
activities, the timing and extent of spending to support product
development efforts, the timing of introductions of new products
and enhancements to existing products, the acquisition of new
capabilities or technologies, and the continuing market
acceptance of our products and services. Moreover, to the extent
that existing cash, cash equivalents, held-to-maturity
investments and cash from operations are insufficient to fund
our future activities, we may need to raise additional funds
through public or private equity or debt financing.
Although we are currently not a party to any binding commitments
with respect to potential investments in, or acquisitions of,
businesses, services or technologies, we may enter into these
types of arrangements in the future, which could also require us
to seek additional equity or debt financing. Additional funds
may not be available on terms favorable to us or at all.
This excerpt taken from the FIRE 10-Q filed May 4, 2007. Liquidity
and Capital Resources
At March 31, 2007 our principal sources of liquidity were
cash and cash equivalents of $99.3 million,
held-to-maturity
investments of $12.2 million and accounts receivable of
$11.0 million. At March 31, 2007, we had working
capital of approximately $107.3 million.
Prior to our IPO in March 2007, we funded our operations
primarily through private sales of our convertible preferred
stock and collections from our customers and, to a lesser
extent, borrowings under a credit facility. In March 2007, we
completed our IPO which provided us with aggregate net proceeds
of $83.8 million.
We manufacture and distribute our products through contract
manufacturers and OEMs. We believe that this approach gives us
the advantages of relatively low capital investment and
significant flexibility in scheduling production and managing
inventory levels. By leasing our office facilities, we also
minimize the cash needed for expansion. Our capital spending is
generally limited to leasehold improvements, computers, office
furniture and product-specific test equipment. The majority of
our products are delivered to our customers directly from our
contract manufacturers. Accordingly, our contract manufacturers
are responsible for purchasing and stocking the components
required for the production of our products and they invoice us
when the finished goods are shipped.
Our product sales are, and are expected to continue to be,
highly seasonal. This seasonality typically results in a
significant amount of cash provided by our operating activities
during the first half of the year with lower to negative cash
flow during the second half of the year. We believe that our
current cash reserves are sufficient for any short-term cash
needs resulting from the seasonality of our business.
Operating
Activities
The decrease of $525,000 in net cash provided by operating
activities during the three months ended March 31, 2007, as
compared to the same period in 2006, was primarily due to an
increase of cash used to purchase inventory of long lead time
items, a payment of $855,000 under an agreement to license
database software and an increase in pre-payments by us for
service contracts and marketing events; these uses of cash were
offset partially by cash provided by an increase in deferred
revenue due to increased support services provided to customers
and an increase in cash collections as a result of the increased
volume of invoices billed in the fourth quarter of 2006.
Investing
Activities
The increase of $1.8 million in net cash used in investing
activities during the three months ended March 31, 2007, as
compared to the same period in 2006, was primarily due to an
increase in purchases of short- and long-term investments and an
increase in leasehold improvements due to the build-out of our
new lease space in the U.K.
Financing
Activities
The increase of $84.0 million in net cash provided by
financing activities during the three months ended
March 31, 2007, as compared to the same period in 2006, was
primarily due to the $83.8 million net cash proceeds of our
IPO, offset by the retirement of indebtedness in 2007 in the
amount of $1.4 million.
Credit Facility. During the quarter ended
March 31, 2007 all borrowings under the Company’s
credit agreements were repaid and such agreements were
terminated.
Working
Capital and Capital Expenditure Needs
We believe that the anticipated net proceeds from our future
operations, together with our cash balance at March 31,
2007 will be sufficient to fund our projected operating
requirements for at least the next 12 months. Except as
disclosed in the Contractual Obligations table below, we
currently have no material cash commitments, except for normal
recurring trade payables and expense accruals. In addition, we
do not currently anticipate significant investment in property,
plant and equipment, and we believe that our outsourced approach
to manufacturing provides us with significant flexibility in
both managing inventory levels and financing our inventory. In
the event that our revenue plan does not meet our expectations,
we may be required to eliminate or curtail expenditures to
mitigate the impact on our working capital. Our future capital
requirements will depend on many factors, including our rate of
revenue growth, the expansion of our marketing and sales
activities, the timing and extent of spending to support product
development efforts, the timing of introductions of new products
and enhancements to existing products, the acquisition of new
capabilities or technologies, and the continuing market
acceptance of our products and services. Moreover, to the extent
that existing cash, cash equivalents and cash from operations
are insufficient to fund our future activities, we may need to
raise additional funds through public or private equity or debt
financing.
Although we are currently not a party to any agreement or letter
of intent with respect to potential investments in, or
acquisitions of, businesses, services or technologies, we may
enter into these types of arrangements in the future, which
could also require us to seek additional equity or debt
financing. Additional funds may not be available on terms
favorable to us or at all. We currently have no plans, proposals
or arrangements with respect to any specific acquisition.
| EXCERPTS ON THIS PAGE:
RELATED TOPICS for FIRE: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
