Classmates.com 2003 Annual Report Download - page 43

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REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Stockholders of United Online, Inc.:
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations and comprehensive
income (loss), stockholders' equity and cash flows present fairly, in all material respects, the financial position of United Online, Inc. and its
subsidiaries (the "Company") at December 31, 2003 and June 30, 2003 and 2002, and the results of their operations and their cash flows for the
six months ended December 31, 2003 and each of the three years in the period ended June 30, 2003 in conformity with accounting principles
generally accepted in the United States of America. These financial statements are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements
in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
/s/ PRICEWATERHOUSECOOPERS LLP
Los Angeles, California
February 2, 2004
F-2
UNITED ONLINE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
December 31,
2003
June 30,
2003
June 30,
2002
Assets
Current assets:
Cash and cash equivalents
$
71,234
$
85,838
$
41,543
Short
-
term investments
132,489
106,390
97,812
Restricted cash
—
111
5,880
Accounts receivable, net of allowance for doubtful accounts of
$288 at December 31, 2003 and June 30, 2003 and $333 at
June 30, 2002
14,065
12,420
7,977
Deferred tax assets, net
22,707
8,056
—
Other current assets
9,390
5,314
3,577
Total current assets
249,885
218,129
156,789
Property and equipment, net
13,428
11,535
16,500
Restricted cash
—
700
305
Deferred tax assets, net
3,666
—
—
Goodwill
9,541
10,940
10,940
Intangible assets, net
30,727
38,655
47,179
Other assets
632
717
1,880
Total assets
$
307,879
$
280,676
$
233,593
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
31,388
$
23,041
$
21,575
Accrued liabilities
14,028
17,073
11,212
Deferred revenue
24,639
23,616
18,815