SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 30, 2003
INTERNET PICTURES CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE 000-26363 52-2213841
(State or other (Commission (IRS Employer
jurisdiction of incorporation) File Number) Identification Number)
3160 Crow canyon road, san ramon, california 94583
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (925) 242-4002
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N/A
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(Former name or former address, if changed since last report)
ITEM 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS.
(c) Exhibits
Exhibit
Number Description
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99.1 Press Release dated April 30, 2003
ITEM 9: REGULATION FD DISCLOSURE
The information contained in this Item 9 of this Current Report is being
furnished pursuant to "Item 12. Results of Operations and Financial Condition"
of Form 8-K in accordance with SEC Release Nos. 33-8216; 34-47583 (March 27,
2003).
The information in this Current Report is being furnished and shall not be
deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934, as amended, or otherwise subject to the liabilities of that Section. The
information in this Current Report shall not be incorporated by reference into
any registration statement or other document pursuant to the Securities Act of
1933, as amended.
On April 30, 2003, Internet Pictures Corporation issued a press release
announcing its financial results for the quarter ended March 31, 2003. A copy of
the press release is attached hereto as Exhibit 99.1 and is incorporated herein
by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INTERNET PICTURES CORPORATION
Dated: April 30, 2003 /s/Don Strickland
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Don Strickland
President and Chief Executive Officer
Exhibit Index
Exhibit
Number Description
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99.1 Press Release dated April 30, 2003
Exhibit 99.1
IR Contact:
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Paul Farmer
(925) 242- 4002
paul.farmer@ipix.com
iPIX REPORTS RESULTS FOR first quarter 2003
Third consecutive profitable quarter
OAK RIDGE, TN/SAN RAMON, CA - April 30, 2003 - Internet Pictures Corporation
(Nasdaq: IPIX; "iPIX") announces first quarter 2003 highlights:
o Revenues 33% higher than prior year
o Gross margins 67%
o Net income of $0.4 million
First Quarter Financial Results (See attachments)
iPIX, the global leader in mission critical imaging solutions, today announced
financial results for the quarter ended March 31, 2003. iPIX reported revenue
for the quarter ended March 31, 2003 increased to $6.4 million compared to $4.8
million for the quarter ended March 31, 2002. iPIX's focus on generating
recurring revenues and operating efficiencies led to gross margins of 67% in the
quarter ended March 31, 2003, compared to 56% in the first quarter of 2002. iPIX
recorded $0.4 million of net income in the first quarter of 2003, compared to a
net loss of $1.5 million in the first quarter of 2002. First quarter 2003 fully
diluted earnings per share was $0.02, compared to a loss per share of $0.22 in
the comparable year-ago quarter.
"I am pleased that we have now been profitable for three consecutive quarters,"
said Don Strickland, iPIX CEO and president. "This reflects the value we bring
to our customers and operational efficiencies due to economies of scale. Our
focus will continue to be on profitability."
"We ended the quarter with $6.1 million of total cash," said Paul Farmer, iPIX
CFO. "During the quarter we generated $2.7 million of cash from operations and
spent $0.3 million on computer hardware and software and $0.7 million on paying
capital lease obligations. In addition, $1.6 million of restricted cash was
utilized for payments made against December 31, 2002 accruals."
For additional information, please refer to the filings made by iPIX with the
Securities and Exchange Commission.
About iPIX
Internet Pictures Corporation (iPIX(R)) provides mission-critical imaging
solutions for commerce, communication and security applications. The Company's
solutions create, process and manage a rich variety of media including still
images, 360-degree by 360-degree immersive images, video, text and audio. iPIX
is the largest online image management and distribution company in the world
serving over a billion image views and two million image submissions daily for
customers such as eBay(R), Homestore(tm) and Los Angeles Times(R). IPIX's
extensive intellectual property covers patents for immersive imaging, video and
surveillance applications. The Company is headquartered in Oak Ridge, Tennessee,
with co-headquarters in San Ramon, California. www.ipix.com
Internet Pictures and iPIX are trademarks and service marks of Internet Pictures
Corporation. All other copyrights and trademarks remain the property of their
respective owners.
This press release contains forward-looking information within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, and is subject to the safe harbors under those sections.
In some cases, you can identify forward-looking statements by terminology such
as "expect," "believe," "may," "will," "plans" and "anticipate," or the negative
of such terms or comparable terminology. Forward-looking statements appearing
herein include statements concerning operating and profitability plans and goals
and restructuring efforts, and are based on current expectations. Actual results
may differ materially from those projected in the forward-looking statements
based upon a number of factors including (i) the loss of existing, or an
inability to attract new iPIX customers (ii) changes in the demand for iPIX
products and services, (iii) technological changes and (iv) general economic,
financial or market changes or developments. The matters discussed in this press
release also involve risks and uncertainties described from time to time in
Internet Pictures Corporation's filings with the Securities and Exchange
Commission. In particular, see "Risk Factors" in the Company's annual report on
Form 10-K filed with the SEC on March 31, 2003 (www.sec.gov).
INTERNET PICTURES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31,
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2002 2003
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(unaudited)
(In thousands, except per share data)
Revenue:
Transaction services.......................... $ 3,575 $ 5,602
Immersive still solutions .................... 1,219 784
Immersive video solutions..................... -- 5
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Total revenues....................... 4,794 6,391
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Cost of revenues:
Transaction services.......................... 1,669 1,782
Immersive still solutions..................... 455 338
Immersive video solutions..................... -- 4
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Total cost of revenues............... 2,124 2,124
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Gross profit......................... 2,670 4,267
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Operating expenses:
Sales and marketing........................... 2,040 1,761
Research and development...................... 1,281 1,260
General and administrative.................... 904 829
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Total operating expenses............. 4,225 3,850
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Income (loss) from operations................. (1,555) 417
Interest expense.............................. (17) (64)
Interest income............................... 55 21
Other ........................................ 5 (6)
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Net income (loss)............................. $ (1,512) $ 368
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Net income (loss) per common share:
Basic....................................... $ (0.22) $ 0.05
Diluted..................................... $ (0.22) $ 0.02
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INTERNET PICTURES CORPORATION
CONDENSED BALANCE SHEETS
December 31, March 31,
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2002 2003
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(1) (unaudited)
(In thousands)
ASSETS
Cash and cash equivalents............................ $ 3,020 $ 4,729
Restricted cash and short term investments........... 2,972 1,400
Accounts receivable, net............................. 3,535 2,195
Inventory, net....................................... 181 227
Prepaid expenses and other current assets............ 984 1,250
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Total current assets........................ 10,692 9,801
Computer hardware, software and other, net........... 4,631 4,412
Other long term assets............................... 70 31
Goodwill ............................................ 3,042 3,042
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Total assets................................ $ 18,435 $ 17,286
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable..................................... $ 360 $ 996
Accrued liabilities.................................. 5,426 3,996
Deferred revenue..................................... 85 122
Current portion of obligations under capital leases.. 2,403 2,259
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Total current liabilities................... 8,274 7,373
Obligations under capital leases,
net of current portion 1,459 918
Other long term liabilities.......................... 310 230
STOCKHOLDERS' EQUITY:
Preferred stock ..................................... 1 1
Common stock ........................................ 65 65
Class B common stock ................................ -- --
Additional paid-in capital........................... 513,937 513,937
Accumulated deficit.................................. (505,117) (504,749)
Accumulated other comprehensive loss................. (494) (489)
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Total stockholders' equity.................. 8,392 8,765
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Total liabilities and stockholders' equity.. $ 18,435 $ 17,286
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(1) The December 31, 2002 balances were derived from the audited financial
statements.