Classmates.com 2004 Annual Report Download - page 91

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Simpli.com, Inc.
In August 2000, the Company acquired Simpli.com, Inc. ("Simpli") in a stock and cash transaction. Simpli was a targeted marketing
infrastructure and search technology company. In April 2002, the Company sold the remaining assets related to the Simpli acquisition for a 9.9%
equity interest in the acquiring company, which was valued at $0.8 million and resulted in a loss of $0.7 million. In June 2003, the Company's
equity interest in the acquiring company was sold for $0.8 million.
3. RESTRUCTURING CHARGES
Immediately following the Merger, United Online reduced Juno's workforce by 49 employees and recorded employee termination benefit
charges of $3.8 million. Of the 49 employees terminated, 35 were in general and administrative, 11 were in sales and marketing and the
remaining 3 were in product development functions. Early contract termination fees relate to costs incurred to exit redundant contracts with no
future benefits to the combined operations. At June 30, 2002, all employee termination benefits, investment banking, accounting and legal fees
and contractual termination fees had been paid with no related liabilities remaining.
During the year ended June 30, 2002, the Company recorded $4.2 million in restructuring costs, which consisted of $0.8 million in
employee termination benefits, $0.5 million for early contractual termination fees and $2.9 million in lease exit related costs, which included a
charge of approximately $1.4 million to write off leasehold improvements associated with the Company's former offices in New York and Rhode
Island.
In an effort to streamline its operations in response to changing market conditions, the Company reduced its workforce by approximately
101 employees during the year ended June 30, 2002. Of the 101 employees terminated, 43 were in sales and marketing, 26 were in general and
administrative, 23 were in product development, 6 employees were at the Company's former RocketCash subsidiary, and 3 were in network
operations. In addition, the Company closed its regional offices in San Francisco, California and Providence, Rhode Island and combined
NetZero's and Juno's New York offices into one facility. At June 30, 2003, all acquisition and restructuring costs were paid.
4. BALANCE SHEET COMPONENTS
Short-Term Investments
Short-term investments consist of the following (in thousands):
F-22
December 31, 2004
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
U.S. corporate notes
$
10,055
$
110
$
—
$
10,165
Government agencies
166,250
(210
)
166,116
Total
$
176,305
$
186
$
(210
)
$
176,281
December 31, 2003
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized Losses
Estimated
Fair Value
U.S. corporate notes
$
39,321
$
917
$
(5
)
$
40,233
Government agencies
153,406
1,186
(10
)
154,582
Total
$
192,727
$
2,103
$
(15
)
$
194,815