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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) May 8, 2000
AETHER SYSTEMS, INC.
(Exact name of registrant)
Delaware 52-2186634
(State of organization) (I.R.S. Employer Identification Number)
11460 Cronridge Drive, Owings Mills, Maryland 21117
(Address of principal executive offices and zip code)
(410) 654-6400
(Registrant's telephone Number)
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ITEM 5 OTHER EVENTS
The registrant reported preliminary financial results for the quarter
ended March 31, 2001 on May 8, 2001. The results as reported are set forth
below.
AETHER SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited)
Three months ended
March 31,
-----------------------------------
2001 2000
---- ----
(in thousands except per share data)
Subscriber revenue $ 10,400 $ 2,794
Engineering services revenue 2,363 1,403
Software and related services 11,797 1,069
Device sales 6,099 135
----------- -----------
Total revenue 30,659 5,401
Cost of subscriber revenu 6,234 1,059
Cost of engineering services revenue 1,300 614
Cost of software and related services 4,082 678
Cost of device sales 8,217 673
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Total cost of revenue 19,833 3,024
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Gross profit 10,826 2,377
Operating expenses:
Research and development 17,171 2,031
General and administrative 25,804 4,931
Selling and marketing 20,216 5,812
In process research and development
related to acquisitions -- 2,100
Depreciation and amortization 91,795 17,410
Option and warrant expense 4,580 2,445
Impairment of goodwill associated
with acquisitions 959,369 --
----------- -----------
1,118,935 34,729
----------- -----------
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Operating loss (1,108,109) (32,352)
Other income (expense):
Interest income (expense), net 6,406 2,189
Equity in losses of investment (14,516) (3,107)
Investment loss, including
impairments (94,744) --
Minority Interest 3,664 --
----------- -----------
Loss before income taxes (1,207,299) (33,270)
Income tax benefit 435 --
----------- -----------
Net loss before cumulative effect of
a change in accounting principle ($1,206,864) ($33,270)
Cumulative effect of a change in accounting
principle relating to adoption of SFAS 133,
accounting for Derivatives 6,564 --
----------- -----------
Net loss ($1,200,300) ($33,270)
=========== ===========
Net loss per share - basic and diluted - before
cumulative effect of a change in accounting
principle ($29.83) ($1.13)
Cumulative effect of a change in accounting
principle relating to adoption of SFAS 133,
accounting for Derivatives 0.16 --
----------- -----------
Net loss per share - basic and diluted ($29.67) ($1.13)
=========== ===========
Weighted average shares outstanding - basic and
diluted 40,452 29,451
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AETHER SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
MARCH 31, DECEMBER 31,
2001 2000
-------------------- -----------------
(in thousands)
(unaudited)
Current assets:
Cash and cash equivalents $729,410 $872,747
Short-term investments 2,618 2,648
Trade accounts receivable 32,087 30,263
Inventory 32,331 19,130
Prepaid expenses and other current assets 20,588 17,081
-------------------- -----------------
Total current assets 817,034 941,869
Furniture, computers, and equipment, net 64,546 53,223
Intangibles and other assets 534,705 1,682,283
-------------------- -----------------
$1,416,285 $2,677,375
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $13,921 $9,747
Accrued expenses 35,078 66,949
Accrued employee compensation and benefits 16,702 12,566
Deferred revenue 16,631 14,170
Notes payable 112 18,813
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Total current liabilities 82,444 122,245
Long-term liabilities:
Convertible subordinated notes payable and other notes payable 320,690 321,201
Deferred tax liability 10,259 10,694
Minority interest in net assets of subsidiary 51,873 55,537
Stockholders' equity 951,019 2,167,698
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Commitments and contingencies
$1,416,285 $2,677,375
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SIGNATURE
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.
AETHER SYSTEMS, INC.
BY: /s/ David C. Reymann
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David C. Reymann
Chief Financial Officer