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 15, 2004
IPIX CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE 000-26363 52-2213841
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(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 15, 2004
ITEM 12: RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following information is furnished pursuant to Item 12, "Disclosure of
Results of Operations and Financial Condition" and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it
be deemed incorporated by reference in any filing under the Securities Act of
1933.
On April 15, 2004, IPIX Corporation issued a press release announcing its
financial results for the quarter ended March 31, 2004. 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 16, 2004
/s/ Paul Farmer
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Paul Farmer
Chief Financial Officer
Exhibit Index
Exhibit
Number Description
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99.1 Press Release dated April 15, 2004
IR Contact:
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Paul Farmer, CFO
(925) 242- 4002
CFO@ipix.com
IPIX REPORTS RESULTS FOR first quarter 2004
OAK RIDGE, TN/SAN RAMON, CA - April 15, 2004 - IPIX Corporation (NASDAQ: IPIX),
a leader in mission-critical imaging solutions, today announced financial
results for the quarter ended March 31, 2004. For the quarter, revenue was $0.7
million, net loss available for common shareholders was $3.6 million and fully
diluted loss per common share was $0.41. A comparison of 2004 financial results
to prior periods is not useful since prior periods reflect revenue from the
Company's commercial agreement with eBay which ended in 2003.
"During the first quarter, we focused on bringing new products to market and
developing our sales channels. I am very pleased with the results," Don
Strickland, IPIX(TM) president and CEO said. "At the end of March 2004 we
launched IPIX Security with the introduction of the award winning
CommandView(TM) family of video surveillance cameras."
IPIX finished the first quarter of 2004 with approximately $9 million in cash
reserves (cash and cash equivalents, short-term restricted investments,
long-term restricted cash and short-term investments) and began the second
quarter by generating approximately $8 million in cash from the sale of its
common stock (from previously disclosed April 5, 2004 private investments and
from stock option exercises). The Company has three business units all at
different stages in their development. Management expects to continue to make
significant investments in the development, sale and marketing of new products
for the security market and in the image management (Ad Technologies) business.
About IPIX
IPIX Corporation is a leader in mission-critical imaging solutions for three
core markets: Full-360 degree government and commercial video security;
360-degree panoramic photography and movies; and self service on-line and
off-line advertising. IPIX's extensive intellectual property covers patents for
immersive imaging, video and surveillance applications. IPIX is headquartered in
Oak Ridge, Tennessee, with co-headquarters in San Ramon, California.
www.ipix.com
# # #
IPIX and CommandView are trademarks and service marks of IPIX Corporation.
This press release may contain 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) our loss of existing, or an inability to attract new customers,
(ii) changes in the demand for our products and services,
(iii) our rate of revenue growth,
(iv) our ability to control or affect reductions in costs,
(v) our ability to design, manufacture and deliver high quality products
in a timely fashion,
(vi) uncertainty regarding our ability to continue as a going concern,
(vii) our third-party supplier's ability to deliver high quality components
to us in a timely fashion,
(viii) technological changes,
(ix) general economic, financial or market changes or developments and
(x) the conversion of our Series B Preferred Stock into common stock.
The matters discussed in this press release also involve risks and uncertainties
described from time to time in documents filed with the Securities and Exchange
Commission, including but not limited to Form 10-Ks, Form 10-K/As, Form 10-Qs
and Form 8-Ks (www.sec.gov).
IPIX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, March 31,
2003 2004
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(1) (unaudited)
(In thousands)
ASSETS
Cash and cash equivalents......................................................................... $ 10,241 $ 6,981
Restricted short term investments................................................................. 1,100 1,100
Short term investments............................................................................ 331 331
Accounts receivable, net.......................................................................... 261 364
Inventory, net.................................................................................... 398 503
Prepaid expenses and other current assets......................................................... 1,523 1,760
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Total current assets........................................................................ 13,854 11,039
Computer hardware, software and other, net........................................................ 1,578 1,327
Restricted cash and other long term assets........................................................ 852 718
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Total assets................................................................................ $ 16,284 $ 13,084
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable.................................................................................. $ 612 $ 402
Accrued liabilities............................................................................... 3,342 3,279
Deferred revenue.................................................................................. 76 69
Current portion of obligations under capital leases............................................... 608 390
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Total current liabilities................................................................... 4,638 4,140
Other long term liabilities....................................................................... 181 70
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Total liabilities........................................................................ 4,819 4,210
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STOCKHOLDERS' EQUITY:
Preferred stock (Aggregate liquidation value: $23,716 in 2003 and $24,116 in 2004)................
1 1
Common stock...................................................................................... 9 9
Class B common stock.............................................................................. -- --
Additional paid-in capital........................................................................ 515,186 515,805
Accumulated deficit............................................................................... (503,731) (506,941)
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Total stockholders' equity.................................................................. 11,465 8,874
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Total liabilities and stockholders' equity.................................................. $ 16,284 $ 13,084
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(1) The December 31, 2003 balances were derived from the audited financial
statements.
IPIX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
March 31,
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2003 2004
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(In thousands, except per share data) (unaudited)
Revenue:
Ad Technologies.................................................. $ 5,602 $ 246
InfoMedia........................................................ 784 474
Security......................................................... 5 2
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Total revenue................................................. 6,391 722
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Cost of revenue:
Ad Technologies.................................................. 1,782 678
InfoMedia........................................................ 338 297
Security......................................................... 4 1
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Total cost of revenue......................................... 2,124 976
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Gross profit (loss)........................................... 4,267 (254)
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Operating expenses:
Sales and marketing.............................................. 1,761 1,342
Research and development......................................... 1,260 925
General and administrative....................................... 829 693
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Total operating expenses...................................... 3,850 2,960
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Income (loss) from operations.................................... 417 (3,214)
Other............................................................ (49) 4
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Net income (loss)................................................ $ 368 $ (3,210)
Preferred stock dividends........................................ (440) (400)
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Net loss available to common stockholders........................ $ (72) $ (3,610)
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Loss per common share, basic and diluted ........................ $ (0.01) $ (0.41)
Weighted average common shares, basic and diluted................ 6,813 8,901