form10-q_sept302009.htm
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
 
(Mark One)
 
þ  
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended September 30, 2009
 
or
 
q  
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _____________ to _____________
 
Commission File Number:  000-30111
 
Lexicon Pharmaceuticals, Inc.
(Exact Name of Registrant as Specified in its Charter)
 
Delaware
76-0474169
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification Number)

8800 Technology Forest Place
The Woodlands, Texas 77381
(Address of Principal Executive Offices and Zip Code)

(281) 863-3000
(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
 
Yes
ü
 
No
 
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
 
Yes
   
No
 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer             Accelerated filer     ü    Non-accelerated filer             Smaller reporting company          
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Yes
   
No
ü
 
As of October 27, 2009, 175,704,880 shares of the registrant’s common stock, par value $0.001 per share, were outstanding.
 


 

 
Lexicon Pharmaceuticals, Inc.
 
Table of Contents
 
   
Page
 
3
Item 1.
3
 
Consolidated Balance Sheets – September 30, 2009 (unaudited) and December 31, 2008
3
 
Consolidated Statements of Operations (unaudited) – Three and Nine Months Ended September 30, 2009 and 2008
4
 
Consolidated Statements of Stockholders’ Equity (unaudited) – Nine Months Ended September 30, 2009 and 2008
5
 
Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 30, 2009 and 2008
6
 
7
Item 2.
17
Item 3.
26
Item 4.
26
28
Item 1.
28
Item 1A.
28
Item 4.
31
Item 6.
31
 
32
     

The Lexicon name and logo, LexVision® and OmniBank® are registered trademarks and Genome5000, e-Biology and 10TO10 are trademarks of Lexicon Pharmaceuticals, Inc.
 
——————

Factors Affecting Forward Looking Statements
 
This quarterly report on Form 10-Q contains forward-looking statements.  These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks outlined under “Part II, Item 1A. – Risk Factors,” that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements.
 
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are not under any duty to update any of the forward-looking statements after the date of this quarterly report on Form 10-Q to conform these statements to actual results, unless required by law.
 
Part I  –  Financial Information
 
Item 1.        Financial Statements
 
Lexicon Pharmaceuticals, Inc.
 
Consolidated Balance Sheets
(In thousands, except par value)
 
   
As of September 30,
   
As of December 31,
 
   
2009
   
2008
 
Assets
 
(unaudited)
       
Current assets:
           
Cash and cash equivalents
 
$
62,736
   
$
85,873
 
Short-term investments, including restricted investments of $430
   
56,727
     
629
 
Short-term investments held by Symphony Icon, Inc.
   
5,683
     
16,610
 
Accounts receivable, net of allowances of $35
   
1,347
     
568
 
Prepaid expenses and other current assets
   
7,217
     
5,487
 
Total current assets
   
133,710
     
109,167
 
Long-term investments
   
     
55,686
 
Property and equipment, net of accumulated depreciation and amortization of $74,510 and $71,102, respectively
   
60,090
     
65,087
 
Goodwill
   
25,798
     
25,798
 
Other assets
   
4,086
     
5,770
 
Total assets
 
$
223,684
   
$
261,508
 
                 
Liabilities and Equity
               
                 
Current liabilities:
               
Accounts payable
 
$
3,413
   
$
7,926
 
Accrued liabilities
   
6,812
     
6,615
 
Current portion of deferred revenue
   
1,081
     
5,672
 
Current portion of long-term debt
   
38,860
     
963
 
Total current liabilities
   
50,166
     
21,176
 
Deferred revenue, net of current portion
   
14,212
     
14,212
 
Long-term debt
   
28,754
     
29,529
 
Other long-term liabilities
   
653
     
764
 
Total liabilities
   
93,785
     
65,681
 
                 
Commitments and contingencies
               
                 
Equity:
               
Lexicon Pharmaceuticals, Inc. stockholders’ equity:
               
Preferred stock, $.01 par value; 5,000 shares authorized; no shares issued and outstanding
   
     
 
Common stock, $.001 par value; 900,000 and 300,000 shares authorized, respectively; 137,452 and 136,797 shares issued, respectively
   
137
     
137
 
Additional paid-in capital
   
677,546
     
672,838
 
Accumulated deficit
   
(548,170
)
   
(487,395
)
Accumulated other comprehensive loss
   
(1
)
   
 
Treasury stock at cost, 80 and no shares, respectively
   
(88
   
 
Total Lexicon Pharmaceuticals, Inc. stockholders’ equity
   
129,424
     
185,580
 
Noncontrolling interest in Symphony Icon, Inc.
   
475
     
10,247
 
Total equity
   
129,899
     
195,827
 
Total liabilities and equity
 
$
223,684
   
$
261,508
 

The accompanying notes are an integral part of these consolidated financial statements.
 
Lexicon Pharmaceuticals, Inc.
 
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
 

   
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
   
2009
   
2008
   
2009
   
2008
 
Revenues:
                       
Collaborative research
 
$
1,650
   
$
7,202
   
$
8,042
   
$
22,789
 
Subscription and license fees 
   
481
     
310
     
1,246
     
3,182
 
Total revenues 
   
2,131
     
7,512
     
9,288
     
25,971
 
Operating expenses:
                               
Research and development, including stock-based compensation of $733, $836, $2,328, and $2,913, respectively
   
19,320
     
27,344
     
62,404
     
84,868
 
General and administrative, including stock-based compensation of $547, $583, $1,750, and $1,868, respectively
   
4,568
     
4,990
     
14,993
     
16,749
 
Total operating expenses
   
23,888
     
32,334
     
77,397
     
101,617
 
Loss from operations 
   
(21,757
)
   
(24,822
)
   
(68,109
)
   
(75,646
)
Gain (loss) on investments, net
   
185
     
(3,322
   
1,008
     
(3,322
)
Interest income 
   
103
     
956
     
669
     
5,155
 
Interest expense 
   
(785
)
   
(675
)
   
(2,180
)
   
(2,020
)
Other expense, net
   
(516
)
   
(535
)
   
(2,037
)
   
(1,621
)
Consolidated net loss before taxes
   
(22,770
)
   
(28,398
)
   
(70,649
)
   
(77,454
)
Income tax benefit
   
102
     
     
102
     
 
Consolidated net loss
   
(22,668
)
   
(23,398
)
   
(70,547
)
   
(77,454
)
Less: Net loss attributable to noncontrolling interest in Symphony Icon, Inc. 
   
3,526
     
4,939
     
9,772
     
16,011
 
Net loss attributable to Lexicon Pharmaceuticals, Inc.
 
$
(19,142
)
 
$
(23,459
)
 
$
(60,775
)
 
$
(61,443
)
                                 
Net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted
 
$
(0.14
)
 
$
(0.17
)
 
$
(0.44
)
 
$
(0.45
)
Shares used in computing net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted  
   
137,313
     
136,796
     
137,240
     
136,796
 


The accompanying notes are an integral part of these consolidated financial statements.

 
Lexicon Pharmaceuticals, Inc.
 
Consolidated Statements of Stockholders’ Equity
(In thousands)
(Unaudited)


   
Lexicon Pharmaceuticals, Inc. Stockholders
             
               
Additional Paid-In
Capital
   
Accumulated Deficit
   
Accumulated Other Comprehensive Loss
   
Treasury Stock
   
Total
   
Noncontrolling Interest
   
Total Equity
 
   
Common Stock
 
   
Shares
   
Par Value
 
Balance at December 31, 2007
   
136,796
   
$
137
   
$
666,702
   
$
(410,535
)
 
$
(4
)
 
$
   
$
256,300
   
$
30,271
   
$
286,571
 
Stock-based compensation
   
     
     
4,781
     
     
     
     
4,781
     
     
4,781
 
Exercise of common stock options
   
     
     
1
     
     
     
     
1
     
     
1
 
Net loss
   
     
     
     
(61,443
)
   
     
     
(61,443
)
   
(16,011
)
   
(77,454
)
Unrealized loss on investments
   
     
     
     
     
42
     
     
42
     
     
42
 
Comprehensive loss
                                                   
(61,401
)
           
(77,412
)
Balance at September 30, 2008
   
136,796
   
$
137
   
$
671,484
   
$
(471,978
)
 
$
38
   
$
   
$
199,681
   
$
14,260
   
$
213,941
 
                                                                         
Balance at December 31, 2008
   
136,797
   
$
137
   
$
672,838
   
$
(487,395
)
 
$
   
$
   
$
185,580
   
$
10,247
   
$
195,827
 
Stock-based compensation
   
     
     
4,443
     
     
     
     
4,443
     
     
4,443
 
Grant of restricted stock
   
534
     
     
     
     
     
     
     
     
 
Exercise of common stock options
   
121
     
     
265
     
     
     
     
265
     
     
265
 
Repurchase of common stock
   
— 
     
— 
     
— 
     
— 
     
— 
     
(88
)
   
(88
)
   
     
(88
)
Net loss
   
     
     
     
(60,775
)
   
     
— 
     
(60,775
)
   
(9,772
)
   
(70,547
)
Unrealized loss on investments
   
     
     
     
     
(1
)
   
— 
     
(1
)
   
     
(1
)
Comprehensive loss
                                                   
(60,776
)
           
(70,548
)
Balance at September 30, 2009
   
137,452
   
$
137
   
$
677,546
   
$
(548,170
)
 
$
(1
)
 
$
(88
)
 
$
129,424
   
$
475
   
$
129,899
 


The accompanying notes are an integral part of these consolidated financial statements.


 
Lexicon Pharmaceuticals, Inc.
 
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
   
Nine Months Ended September 30,
 
   
2009
   
2008
 
Cash flows from operating activities:
           
Consolidated net loss
 
$
(70,547
)
 
$
(77,454
)
Adjustments to reconcile consolidated net loss to net cash used in operating activities:
               
Depreciation
   
4,760
     
6,057
 
Impairment of fixed assets
   
445
     
 
Amortization of Symphony Icon, Inc. purchase option
   
1,606
     
1,606
 
Stock-based compensation
   
4,078
     
4,781
 
(Gain) loss on investments
   
(2,396
)
   
3,322
 
Loss on ARS Rights
   
1,388
     
 
Gain on disposal of property and equipment
   
(15
)
   
 
Changes in operating assets and liabilities:
               
(Increase) decrease in accounts receivable
   
(779
)
   
993
 
Increase in prepaid expenses and other current assets
   
(1,730
)
   
(2,957
)
Decrease in other assets
   
78
     
55
 
Increase (decrease) in accounts payable and other liabilities
   
(4,062
)
   
961
 
Decrease in deferred revenue
   
(4,591
)
   
(13,274
)
Net cash used in operating activities
   
(71,765
)
   
(75,910
)
Cash flows from investing activities:
               
Purchases of property and equipment
   
(303
)
   
(1,672
)
Proceeds from disposal of property and equipment
   
110
     
 
Purchases of investments held by Symphony Icon, Inc.
   
(1,500
)
   
 
Maturities of investments held by Symphony Icon, Inc.
   
12,427
     
15,519
 
Purchases of investments
   
(59,955
)
   
(39,847
)
Maturities of investments
   
60,550
     
179,830
 
Net cash provided by investing activities
   
11,329
     
153,830
 
Cash flows from financing activities:
               
Proceeds from exercise of stock options
   
265
     
1
 
Repurchase of common stock
   
(88
)
   
 
Proceeds from debt borrowings
   
38,592
     
 
Repayment of debt borrowings
   
(1,470
)
   
(650
)
Net cash provided by (used in) financing activities
   
37,299
     
(649
)
Net increase (decrease) in cash and cash equivalents
   
(23,137
)
   
77,271
 
Cash and cash equivalents at beginning of period
   
85,873
     
22,938
 
Cash and cash equivalents at end of period
 
$
62,736
   
$
100,209
 
                 
Supplemental disclosure of cash flow information:
               
Cash paid for interest
 
$
1,897
   
$
1,962
 
                 
Supplemental disclosure of non-cash investing and financing activities:
               
Unrealized gain (loss) on investments
 
$
(1
)
 
$
42
 

The accompanying notes are an integral part of these consolidated financial statements.
 
Lexicon Pharmaceuticals, Inc.
 
Notes to Consolidated Financial Statements
(Unaudited)
 
1.        Basis of Presentation
 
The accompanying unaudited consolidated financial statements of Lexicon Pharmaceuticals, Inc. (“Lexicon” or the “Company”) have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
 
In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine-month period ended September 30, 2009 are not necessarily indicative of the results that may be expected for the year ended December 31, 2009.
 
The accompanying consolidated financial statements include the accounts of Lexicon and its wholly-owned subsidiaries, as well as one variable interest entity, Symphony Icon, Inc. (“Symphony Icon”), for which the Company is the primary beneficiary and therefore has consolidated the financial condition and results of operations of Symphony Icon.  Intercompany transactions and balances are eliminated in consolidation.
 
Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year presentation.  These include the reclassification of $298,000 and $925,000 of patent-related legal costs from research and development expense to general and administrative expense on the consolidated statements of operations for the three and nine months ended September 30, 2008, respectively.
 
For further information, refer to the financial statements and footnotes thereto included in Lexicon’s annual report on Form 10-K for the year ended December 31, 2008, as filed with the SEC.
 
2.        Net Loss Per Share
 
Net loss per share is computed using the weighted average number of shares of common stock outstanding during the applicable period. Shares associated with stock options and warrants are not included because they are antidilutive.  There are no differences between basic and diluted net loss per share for all periods presented.
 
In October 2009, Lexicon completed the public offering and sale of 38,333,332 shares of its common stock (see note 12).  Net loss per share would have decreased if this offering would have been completed prior to September 30, 2009 as the weighted average number of shares would have increased.
 
3.        Stock-Based Compensation
 
The Company recorded $1.3 million and $1.4 million of stock-based compensation expense for the three months ended September 30, 2009 and 2008, respectively, and $4.1 million and $4.8 million of stock-based compensation expense for the nine months ended September 30, 2009 and 2008, respectively.  The Company utilized the Black-Scholes valuation model for estimating the fair value of the stock compensation granted, with the following weighted-average assumptions for options granted in the nine months ended September 30, 2009 and 2008:
 
 
   
Expected Volatility
   
Risk-free Interest Rate
   
Expected Term
   
Estimated Forfeitures
   
Dividend
Rate
 
September 30, 2009:
                             
Employees
   
78
%
   
1.9
%
   
5
     
24
%
   
0
%
Officers and non-employee directors
   
77
%
   
2.7
%
   
8
     
7
%
   
0
%
September 30, 2008:
                                       
Employees
   
66
%
   
2.9
%
   
6
     
22
%
   
0
%
Officers and non-employee directors
   
66
%
   
3.8
%
   
9
     
6
%
   
0
%

The following is a summary of option activity under Lexicon’s stock option plans for the nine months ended September 30, 2009:
 
   
Options
   
Weighted Average Exercise Price
   
(in thousands)
     
Outstanding at December 31, 2008
   
16,898
   
$
5.13
Granted
   
4,852
     
1.44
Exercised
   
(121
   
2.18
Expired
   
(2,199
   
6.11
Forfeited
   
(903
)
   
2.48
Outstanding at September 30, 2009
   
18,527
     
4.20
Exercisable at September 30, 2009
   
11,212
   
$
5.70

During the nine months ended September 30, 2009, Lexicon granted its officers restricted stock bonus awards under the Equity Incentive Plan in lieu of cash bonus awards.  The shares subject to the awards vest in two installments over the one-year period following the date of grant.  The following is a summary of restricted stock activity under Lexicon’s stock option plans for the nine months ended September 30, 2009:
 
   
Shares
   
Weighted Average Grant Date
Fair Value
   
(in thousands)
     
Outstanding at December 31, 2008
   
   
$
Granted
   
534
     
1.45
Vested
   
(267
)
   
1.45
Forfeited
   
(12
)
   
1.45
Nonvested at September 30, 2009
   
255
   
  $
1.45

4.        Recent Accounting Pronouncements
 
In September 2006, the Financial Accounting Standards Board (“FASB”) issued a new accounting pronouncement regarding fair value measurements (formerly Statement of Financial Standards (“SFAS”) No. 157, “Fair Value Measurements”).  The pronouncement, found under FASB Accounting Standards Codification (“ASC”) Topic 820, defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.  This pronouncement applies under other accounting pronouncements that require or permit fair value measurements, the FASB having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute.  Accordingly, this pronouncement does not require any new fair value measurements.  More specifically, this pronouncement emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and sets out a fair value hierarchy, which ranks the quality and reliability of the information used to determine fair values.  This pronouncement was effective January 1, 2008 for financial assets and liabilities and January 1, 2009 for non-financial assets and liabilities.  The adoption of this pronouncement did not have an effect on the Company’s financial position or results of operations.
 
In December 2007, the FASB issued a new accounting pronouncement regarding business combinations (formerly SFAS No. 141(Revised), “Business Combinations”), which requires an acquirer to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date, with limited exceptions. This pronouncement, found under FASB ASC Topic 805, also requires the acquirer in a business combination achieved in stages to recognize the identifiable assets and liabilities, as well as the non-controlling interest in the acquiree, at the full amounts of their fair values. This pronouncement makes various other amendments to authoritative literature intended to provide additional guidance or to confirm the guidance in that literature to that provided in this pronouncement. This pronouncement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The adoption of this pronouncement did not have an effect on the Company’s financial position or results of operations.
 
In December 2007, the FASB issued a new pronouncement regarding noncontrolling interests (formerly SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements”) to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements. This pronouncement, found under FASB ASC Topic 810, establishes accounting and reporting standards that require the ownership interests in subsidiaries not held by the parent to be clearly identified, labeled and presented in the consolidated statement of financial position within equity, but separate from the parent’s equity. This pronouncement also requires the amount of consolidated net income attributable to the parent and to the non-controlling interest to be clearly identified and presented on the face of the consolidated statement of income. Changes in a parent’s ownership interest while the parent retains its controlling financial interest must be accounted for consistently, and when a subsidiary is deconsolidated, any retained non-controlling equity investment in the former subsidiary must be initially measured at fair value. The gain or loss on the deconsolidation of the subsidiary is measured using the fair value of any non-controlling equity investment. The pronouncement also requires entities to provide sufficient disclosures that clearly identify and distinguish between the interests of the parent and the interests of the non-controlling owners. This pronouncement applies prospectively to all entities that prepare consolidated financial statements and applies prospectively for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. The Company’s adoption of this pronouncement on January 1, 2009 did not materially affect its financial position or results of operations, other than reclassifying the noncontrolling interest in Symphony Icon to equity for all periods presented.
 
In December 2007, the FASB ratified a new pronouncement regarding collaborative arrangements (formerly Emerging Issues Task Force Issue No. 07-01, “Accounting for Collaborative Arrangements”), which provides guidance on how the parties to a collaborative agreement should account for costs incurred and revenue generated on sales to third parties, how sharing payments pursuant to a collaboration agreement should be presented in the income statement and certain related disclosure requirements.  The adoption of this pronouncement, found under FASB ASC Topic 808, did not have an effect on the Company's financial position or results of operations, other than requiring additional disclosures.  Most of the required disclosures were included in the Company’s annual report on Form 10-K for the year ended December 31, 2008.  See note 11, “Collaboration and License Agreements,” for additional required disclosures.
 
In May 2009, the FASB issued a new accounting pronouncement regarding subsequent events (formerly SFAS No. 165, “Subsequent Events”), which provides guidance to establish general standards of accounting for, and disclosures of, events that occur after the balance sheet date but before financial statements are issued or are available to be issued.  The pronouncement, found under FASB ASC Topic 855, also requires disclosure of the date through which subsequent events have been evaluated, as well as whether that date is the date the financial statements were issued or the date the financial statements were available to be issued.  This pronouncement is effective for interim or fiscal periods ending after June 15, 2009.  The Company has evaluated subsequent events through October 30, 2009, which is the date the financial statements were issued.  The Company's adoption of this pronouncement did not have an effect on its financial position or results of operations.
 
In June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R),” which changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated.  The determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design and a company’s ability to direct the activities that most significantly impacts the entity’s economic performance.  This pronouncement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after November 15, 2009.  The Company is currently evaluating the effect, if any, of this statement on its financial condition and results of operations.
 
5.        Cash and Cash Equivalents and Investments
 
The fair value of cash and cash equivalents and investments held at September 30, 2009 and December 31, 2008 are as follows:
 
   
As of September 30, 2009
 
   
Amortized Cost
   
Gross Unrealized Gains
   
Gross Unrealized Losses
   
Estimated Fair Value
 
   
(In thousands)
 
Cash and cash equivalents
 
$
62,737
   
$
   
$
(1
)
 
$
62,736
 
                                 
Securities maturing within one year:
                               
Certificates of deposit
   
508
     
     
     
508
 
ARS Rights
   
     
10,672
     
     
10,672
 
Securities maturing after ten years:
                               
Auction rate securities
   
56,525
     
     
(10,978
)
   
45,547
 
Total short-term investments
 
$
57,033
   
$
10,672
   
$
(10,978
)
 
$
56,727
 
Short-term investments held by Symphony Icon, Inc.:
                               
Cash and cash equivalents
   
5,683
     
     
     
5,683
 
Total short-term investments held by Symphony Icon, Inc.
 
$
5,683
   
$
   
$
   
$
5,683
 
                                 
Total cash and cash equivalents and investments
 
$
125,453
   
$
10,672
   
$
(10,979
)
 
$
125,146
 


   
As of December 31, 2008
 
   
Amortized Cost
   
Gross Unrealized Gains
   
Gross Unrealized Losses
   
Estimated Fair Value
 
   
(In thousands)
 
Cash and cash equivalents  
 
$
85,873
   
$
   
$
   
$
85,873
 
                                 
Securities maturing within one year:
                               
Certificates of deposit
   
629
     
     
     
629
 
Total short-term investments
 
$
629
   
$
   
$
   
$
629
 
Securities maturing after one year through five years:
                               
ARS Rights
   
 —
     
 12,060
     
 —
     
 12,060
 
Securities maturing after ten years:
                               
Auction rate securities 
   
57,000
     
     
(13,374