Classmates.com 2003 Annual Report Download - page 11

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$1.0 million and Juno claiming less than $0.3 million. On April 25, 2003, Juno, the Committee of Unsecured Creditors, WorldCom and
UUNET (allegedly the largest secured creditor) entered into a Stipulation of Settlement. The Stipulation of Settlement provides for the payment
by Juno of $5.5 million in final settlement of all claims against Juno, and we have reserved $5.5 million in connection with this proceeding. On
September 11, 2003, the court issued an order approving the Stipulation of Settlement. On September 12, 2003, the Debtor filed a Notice of
Appeal of the order approving the Stipulation of Settlement.
The pending lawsuits involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of
other resources to defend. Although we do not believe the outcome of the above outstanding legal proceedings, claims and litigation will have a
material adverse effect on our business, financial condition, results of operations or cash flows, the results of litigation are inherently uncertain
and we cannot assure you that we will not be materially and adversely impacted by the results of such proceedings. Other than with respect to
the Consolidated Cases, we have established reserves for the matters discussed above and such reserves are reflected in our consolidated
financial statements. We cannot assure you, however, that the reserves that have been established are sufficient to cover the possible losses
from outstanding litigation.
11
We are subject to various other legal proceedings and claims that arise in the ordinary course of business. We believe the amount, and
ultimate liability, if any, with respect to these actions will not materially affect our business, financial condition, results of operations or cash
flows. We cannot assure you, however, that such actions will not be material and will not adversely affect our business, financial condition,
results of operations or cash flows.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
We did not submit any matters to a vote of security holders during the quarter ended December 31, 2003.
12
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Our common stock has been quoted on the Nasdaq National Market ("NASDAQ") under the symbol "UNTD" since September 26, 2001.
Prior to that, NetZero common stock had been quoted on the NASDAQ under the symbol "NZRO" since September 23, 1999. The following
table sets forth, for the quarters indicated, the high and low prices per share of our common stock since September 26, 2001 and NetZero
common stock (adjusted to reflect the 0.20 shares of our common stock exchanged for each share of NetZero common stock in connection with
the Merger) prior to September 26, 2001 as reported on the NASDAQ. Prices have been adjusted to reflect the 3-for-2 stock dividend that
occurred on October 31, 2003:
On January 31, 2004, there were 870 holders of record of our common stock.
High
Low
Year Ended June 30, 2002
Quarter ended September 30, 2001
$
3.07
$
1.13
Quarter ended December 31, 2001
3.45
1.44
Quarter ended March 31, 2002
5.83
2.67
Quarter ended June 30, 2002
8.47
5.12
Year Ended June 30, 2003
Quarter ended September 30, 2002
9.19
4.75
Quarter ended December 31, 2002
11.69
6.01
Quarter ended March 31, 2003
12.77
8.47
Quarter ended June 30, 2003
18.57
11.41
Six Months Ended December 31, 2003
Quarter ended September 30, 2003
29.09
16.59
Quarter ended December 31, 2003
24.10
15.71
Period from January 1, 2004 through January 31, 2004
20.97
16.94