(Mark One) |
DELAWARE
|
|
48-1100390
|
(State
or other jurisdiction of incorporation or
organization)
|
|
(IRS
employer identification number)
|
|
|
|
Six
Concourse Parkway, Suite 1900
Atlanta,
Georgia
|
|
30328
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
|
|
|
Registrant’s
telephone number, including area code:
|
||
(678)
987-1700
|
Title
of Each Class
|
|
Number
of Shares Outstanding
at November
1, 2005
|
|
||
Common
Stock, $0.01 Par Value
|
|
28,582,312
|
Form
10-Q Item
|
|
Page
|
||
|
|
|
||
|
|
|
||
|
|
|||
|
|
|
3
|
|
|
|
|
||
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
13
|
||
|
|
|
|
|
|
|
20
|
||
|
|
|
|
|
|
|
20
|
||
|
|
|
|
|
|
20
|
|||
|
|
|
|
|
|
|
20
|
||
|
|
|
|
|
|
|
20
|
||
|
|
|
|
|
|
|
21
|
||
|
|
|
|
|
|
|
21
|
||
|
|
|
|
|
|
|
21
|
||
|
|
|
|
|
|
|
21
|
||
|
|
|
|
|
|
|
|
22
|
|
|
September
30,
2005
|
|
December
31,
2004
|
|
||
|
|
|
|
|
|
||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
46,656
|
|
$
|
12,942
|
|
Restricted cash
|
|
|
--
|
|
|
3,196
|
|
Accounts
receivable, net of allowance of $186 and $197
|
|
|
8,578
|
|
|
9,542
|
|
Other receivables
|
|
|
2,052
|
|
|
43
|
|
Inventory,
net
|
|
|
11,732
|
|
|
8,155
|
|
Prepaid
expenses
|
|
|
501
|
|
|
426
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
|
69,519
|
|
|
34,304
|
|
|
|
|
|
|
|
|
|
Property
and equipment, net
|
|
|
6,476
|
|
|
2,678
|
|
Developed
technology, net of accumulated amortization of $1,098 and
$493
|
|
|
6,972
|
|
|
7,577
|
|
Goodwill
|
|
|
5,934
|
|
|
5,808
|
|
Covenant
not-to-compete
|
1,991
|
--
|
|
||||
Other
assets
|
|
|
318
|
|
|
389
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
91,210
|
|
$
|
50,756
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
5,853
|
|
$
|
8,401
|
|
Other
payables
|
|
|
1,445
|
|
|
1,445
|
|
Accrued
expenses
|
|
|
3,548
|
|
|
3,135
|
|
Deferred
revenue
|
|
|
1,668
|
|
|
1,338
|
|
Accrued
warranty and upgrade costs
|
|
|
5,302
|
|
|
2,586
|
|
Deferred
rent, current
|
|
|
247
|
|
|
--
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
|
18,063
|
|
|
16,905
|
|
Deferred
rent, non-current
|
|
|
1,524
|
|
|
--
|
|
Other
liabilities
|
|
|
77
|
|
|
72
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
19,664
|
|
|
16,977
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred
stock, $1 par value, authorized 5,000,000 shares, 0 shares
issued
|
|
|
--
|
|
|
--
|
|
Preferred
membership units exchangeable for shares of TurboChef common
stock
|
|
|
967
|
|
|
6,351
|
|
Common
stock, $.01 par value, authorized 100,000,000 shares,
issued
28,581,212 and 24,313,158 shares at September 30, 2005 and
December
31, 2004, respectively
|
|
|
286
|
|
|
243
|
|
Additional
paid-in capital
|
|
|
143,630
|
|
|
79,508
|
|
Accumulated
deficit
|
|
|
(73,337
|
)
|
|
(52,277
|
)
|
Notes
receivable for stock issuances
|
|
|
--
|
|
|
(46
|
)
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
71,546
|
|
|
33,779
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
|
$
|
91,210
|
|
$
|
50,756
|
|
|
|
|
Three
Months Ended
September
30,
|
|
|
Nine
Months Ended
September
30,
|
|
||||||
|
|
|
2005
|
|
|
2004
|
|
|
2005
|
|
|
2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
|
11,413
|
|
$
|
30,335
|
|
$
|
41,366
|
|
$
|
33,390
|
|
Royalties
and services
|
|
|
401
|
|
|
671
|
|
|
1,601
|
|
|
982
|
|
Total
revenues
|
|
|
11,814
|
|
|
31,006
|
|
|
42,967
|
|
|
34,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost
of product sales
|
|
|
14,519
|
|
|
19,302
|
|
|
36,540
|
|
|
20,923
|
|
Research
and development expenses
|
|
|
953
|
|
|
308
|
|
|
3,125
|
|
|
816
|
|
Purchased
research and development
|
|
|
6,285
|
|
|
--
|
|
|
6,285
|
|
|
--
|
|
Selling,
general and administrative expenses
|
|
|
7,187
|
|
|
4,965
|
|
|
19,036
|
|
|
10,442
|
|
Total
costs and expenses
|
|
|
28,944
|
|
|
24,575
|
|
|
64,986
|
|
|
32,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Operating
(loss) income
|
|
|
(17,130
|
)
|
|
6,431
|
|
(22,019
|
)
|
|
2,191
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
Other
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest
income
|
|
|
484
|
|
|
3
|
|
|
1,153
|
|
|
43
|
|
Interest
expense and other
|
|
|
(69
|
)
|
|
(15
|
)
|
|
(194
|
)
|
|
(22
|
)
|
|
|
|
415
|
|
|
(12
|
)
|
|
959
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net
(loss) income
|
|
$
|
(16,715
|
)
|
$
|
6,419
|
$
|
(21,060
|
)
|
$
|
2,212
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
Per
share data:
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic
|
|
$
|
(0.59
|
)
|
$
|
0.64
|
$
|
(0.76
|
)
|
$
|
0.24
|
||
Diluted
|
|
$
|
(0.59
|
)
|
$
|
0.24
|
$
|
(0.76
|
)
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common
shares
outstanding:
|
|||||||||||||
Basic
|
28,525,088
|
9,987,607
|
27,814,518
|
9,295,864
|
|||||||||
Diluted
|
28,525,088
|
26,676,983
|
27,814,518
|
25,626,925
|
|||||||||
|
|||||||||||||
|
|
|
Nine
Months Ended
September
30,
|
|
||||
|
|
2005
|
|
2004
|
|
||
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
Net
(loss) income
|
|
$
|
(21,060
|
)
|
$
|
2,212
|
|
Adjustments
to reconcile net (loss) income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Purchased
research and development
|
|
|
6,285
|
|
|
--
|
|
Depreciation
and amortization
|
|
|
1,802
|
|
|
699
|
|
Amortization
of deferred rent
|
|
|
(56
|
)
|
|
--
|
|
Amortization
of deferred loan costs
|
|
|
104
|
|
|
--
|
|
Non-cash
compensation expense
|
|
|
100
|
|
|
113
|
|
Provision
for doubtful accounts
|
|
|
53
|
|
|
28
|
|
Other
|
|
|
53
|
|
|
18
|
|
Changes
in operating assets and liabilities, net of effects of
acquisition:
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
3,196
|
|
|
--
|
|
Accounts
receivable
|
|
|
977
|
|
|
(15,885
|
)
|
Inventories
|
|
|
(4,051
|
)
|
|
(5,252
|
)
|
Prepaid
expenses and other assets
|
|
|
(2,111
|
)
|
|
(179
|
)
|
Accounts
payable
|
|
|
(2,601
|
)
|
|
6,365
|
|
Accrued
expenses and warranty
|
|
|
3,129
|
|
5,744
|
|
|
Deferred
revenue
|
|
|
330
|
|
(32
|
)
|
|
Net
cash used in operating activities
|
|
|
(13,850
|
)
|
|
(6,169
|
)
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
Acquisition
of business, net of cash acquired
|
|
|
(192
|
)
|
|
(7,278
|
)
|
Acquisition
of intangible assets
|
|
|
(7,292
|
)
|
|
--
|
|
Purchases
of property and equipment, net
|
|
|
(2,649
|
)
|
|
(2,363
|
)
|
Other
|
|
|
119
|
|
|
(100
|
)
|
Net
cash used in investing activities
|
|
|
(10,014
|
)
|
|
(9,741
|
)
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
Issuance
of common stock, net
|
|
|
54,839
|
|
|
10,007
|
|
Proceeds
from the exercise of stock options and warrants
|
|
|
2,852
|
|
|
861
|
|
Proceeds from notes receivable for stock issuances
|
|
|
46
|
|
|
--
|
|
Payment of deferred loan costs
|
|
|
(156
|
)
|
|
--
|
|
Payment
of notes payable
|
|
|
--
|
|
|
(380
|
)
|
Other
|
|
|
(3
|
)
|
|
2
|
|
Net
cash provided by financing activities
|
|
|
57,578
|
|
|
10,490
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
|
|
33,714
|
|
|
(5,420
|
)
|
Cash
and cash equivalents at beginning of period
|
|
|
12,942
|
|
|
8,890
|
|
Cash
and cash equivalents at end of period
|
|
$
|
46,656
|
|
$
|
3,470
|
|
|
|
|
|
|
|
|
|
NON
CASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landlord
funded leasehold improvements
|
|
$
|
1,832
|
|
$
|
--
|
|
Issuance
of preferred membership units exchangeable for TurboChef
common stock in connection with Enersyst acquisition
|
|
|
--
|
|
|
6,351
|
|
Issuance
of common stock in exchange for Enersyst preferred membership
units
|
|
|
5,384
|
|
|
--
|
|
Issuance
of common stock in exchange for acquisition of intangible
assets
|
|
|
993
|
|
|
--
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
Cash
paid for income taxes
|
|
$
|
201
|
|
$
|
--
|
|
Cash
paid for interest
|
|
|
35
|
|
|
--
|
|
|
|
|
|
|
|||||||||
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||
|
2005
|
2004
|
2005
|
2004
|
|||||||||
Numerator
for basic and diluted earnings per share:
|
|||||||||||||
Net
(loss) income
|
$
|
(16,715
|
)
|
$
|
6,419
|
$
|
(21,060
|
)
|
$
|
2,212
|
|||
Denominator:
|
|||||||||||||
Denominator
for basic income (loss) per share available to common
stockholders
|
|||||||||||||
Weighted
average common shares outstanding
|
28,525
|
9,988
|
27,815
|
9,296
|
|||||||||
Effect
of potentially dilutive securities
|
|||||||||||||
Convertible
preferred stock
|
--
|
14,132
|
--
|
14,189
|
|||||||||
Preferred
membership interests exchangeable for common stock
|
--
|
611
|
--
|
299
|
|||||||||
Dilutive
stock options and warrants
|
--
|
1,946
|
--
|
1,843
|
|||||||||
Shares
applicable to diluted income (loss) per share available to common
stockholders
|
28,525
|
26,677
|
27,815
|
25,627
|
|||||||||
|
|
Three
Months Ended
September
30,
|
|
Nine
Months Ended
September
30,
|
|
||||||||
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
Net
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
$
|
(16,715
|
)
|
$
|
6,419
|
|
$
|
(21,060
|
)
|
$
|
2,212
|
|
Total
stock-based compensation expense
|
|
|
(1,512
|
)
|
|
(679
|
)
|
|
(3,857
|
)
|
|
(2,439
|
)
|
Pro
forma
|
|
$
|
(18,227
|
)
|
$
|
5,740
|
$
|
(24,917
|
)
|
$
|
(227
|
)
|
|
Net
(loss) income per share:
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic:
|
|||||||||||||
As
reported
|
$
|
(0.59
|
)
|
$
|
0.64
|
$
|
(0.76
|
)
|
$
|
0.24
|
|||
Pro
forma
|
(0.64
|
)
|
0.57
|
(0.90
|
)
|
(0.02
|
)
|
||||||
Diluted:
|
|
|
|||||||||||
As
reported
|
|
$
|
(0.59
|
)
|
$
|
0.24
|
$
|
(0.76
|
)
|
$
|
0.09
|
||
Pro
forma
|
|
(0.64
|
)
|
|
0.22
|
(0.90
|
)
|
|
(0.02
|
)
|
|
|
|
September
30,
2005
|
|
|
December 31,
2004
|
|
|
|
|
|
|
|
|
|
Parts
inventory, net
|
|
$
|
8,115
|
|
$
|
4,349
|
|
Finished
goods - ovens
|
|
|
3,074
|
|
|
3,547
|
|
Demonstration
inventory, net
|
|
|
543
|
|
|
259
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,732
|
|
$
|
8,155
|
|
|
|
|
|
September
30,
2005
|
|
December
31,
2004
|
|
|||
|
|
Estimated
Useful Lives
(Years)
|
|
|
|
|
|
|||
Tooling
and equipment
|
|
|
3-7
|
|
$
|
3,165
|
|
$
|
2,299
|
|
Furniture
and fixtures
|
|
|
5
|
|
|
1,454
|
|
|
579
|
|
Leasehold
improvements
|
|
|
5-7.5
|
|
|
2,859
|
|
|
222
|
|
|
|
|
|
|
|
7,478
|
|
|
3,100
|
|
Less
accumulated depreciation and amortization
|
|
|
|
|
|
(1,002
|
)
|
|
(422
|
)
|
|
|
|
|
|
$
|
6,476
|
|
$
|
2,678
|
|
|
|
Three
Months Ended
September
30,
|
|
|
|
Nine
Months Ended
September
30,
|
|
||||||
|
|
2005
|
|
|
2004
|
|
|
|
2005
|
|
|
2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period
|
$
|
3,345
|
|
$
|
912
|
|
|
$
|
2,586
|
|
$
|
928
|
|
Provision
for warranties
|
|
611
|
|
|
1,972
|
|
|
|
3,207
|
|
|
2,124
|
|
Warranty
expenditures
|
|
(5,463
|
)
|
|
(114
|
)
|
|
|
(10,072
|
)
|
|
(215
|
)
|
Other
adjustments to provision for warranties
|
|
6,809
|
|
|
--
|
|
|
|
9,581
|
|
|
(79
|
)
|
Currency
fluctuations
|
|
--
|
|
|
(2
|
)
|
|
|
--
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Balance
at end of period
|
$
|
5,302
|
|
$
|
2,768
|
|
|
$
|
5,302
|
|
$
|
2,768
|
|
REGION
|
|
|
Three
Months Ended September 30,
|
|
|
Nine
Months Ended September 30,
|
|
||||||
|
|
|
2005
|
|
|
2004
|
|
|
2005
|
|
|
2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
9,573
|
|
$
|
30,676
|
|
$
|
33,595
|
|
$
|
32,988
|
|
Europe
and Asia
|
|
|
2,241
|
|
|
330
|
|
|
9,372
|
|
|
1,384
|
|
Totals
|
|
$
|
11,814
|
|
$
|
31,006
|
|
$
|
42,967
|
|
$
|
34,372
|
|
|
|
|
|
Payments
Due By Period
|
|
||||||||||||||||||||||||||||
|
|
|
|
Total
|
|
October
-
December
2005
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
Thereafter
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Leases
|
|
|
|
$
|
6,202
|
|
|
$
|
270
|
|
|
$
|
1,086
|
|
|
$
|
1,044
|
|
|
$
|
1,008
|
|
|
$
|
927
|
|
|
$
|
1,867
|
|
|
|
|
Other
(a)
|
|
|
|
4,000
|
|
|
--
|
|
|
2,000
|
|
|
2,000
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
||||||||
Total
|
|
|
|
$
|
10,202
|
|
|
$
|
270
|
|
|
$
|
3,086
|
|
|
$
|
3,044
|
|
|
$
|
1,008
|
|
|
$
|
927
|
|
|
$
|
1,867
|
|
|
|
(a)
|
Consists
of installment payments related to the Restrictive Covenants Agreements
in
connection with the Global asset acquisition.
|
|
FOR
|
WITHHELD
|
ABSTAIN
|
Richard
E. Perlman
|
25,918,811
|
150,805
|
125,683
|
James
K. Price
|
26,044,945
|
25,671
|
549
|
James
W. DeYoung
|
26,045,178
|
25,438
|
316
|
Sir
Anthony Jolliffe
|
26,045,329
|
25,287
|
165
|
J.
Thomas Presby
|
26,045,228
|
25,388
|
266
|
William
A. Shutzer
|
26,037,229
|
33,387
|
8,265
|
Raymond
H. Welsh
|
26,036,171
|
34,445
|
9,323
|
FOR
|
AGAINST
|
ABSTAIN
|
BROKER
NON-VOTES
|
|
|
16,419,028
|
984,737
|
7,196
|
8,659,655
|
FOR
|
AGAINST
|
ABSTAIN
|
|
26,048,432
|
19,119
|
3,065
|
|
|
31.1
|
Certification
of Principal Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
|
31.2
|
Certification
of Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
|
32
|
Certification
of Principal Executive Officer and Principal Financial Officer
pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002
|
|
|
|
|
TURBOCHEF
TECHNOLOGIES, INC.
|
|
|
|
|
|
By:
|
/s/
James A. Cochran
|
|
James
A. Cochran
Chief
Financial Officer
(Duly
Authorized Officer and
Principal
Financial Officer)
|