Classmates.com 2005 Annual Report Download - page 74

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UNITED ONLINE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
The accompanying notes are an integral part of these consolidated financial statements.
F- 5
Year Ended December 31,
Six Months Ended
December 31,
Year Ended
June 30,
2005
2004
2003
2003
Revenues:
Billable services
$
465,980
$
410,821
$
167,639
$
247,790
Advertising and commerce
59,081
37,796
18,099
29,505
Total revenues
525,061
448,617
185,738
277,295
Operating expenses:
Cost of billable services (including stock-
based compensation, see Note 8)
98,157
94,999
46,182
89,293
Cost of free services
12,515
7,393
3,953
12,603
Sales and marketing (including stock-based
compensation, see Note 8)
209,292
178,981
70,526
86,623
Product development (including stock-based
compensation, see Note 8)
40,009
27,454
10,488
23,054
General and administrative (including stock
-
based
compensation, see Note 8)
56,729
39,894
14,022
27,805
Amortization of intangible assets
21,799
20,403
7,928
16,411
Restructuring charges
—
—
—
(
215
)
Total operating expenses
438,501
369,124
153,099
255,574
Operating income
86,560
79,493
32,639
21,721
Interest and other income, net
6,885
5,138
2,994
5,025
Interest expense
(6,073
)
(1,202
)
(587
)
(735
)
Income before income taxes
87,372
83,429
35,046
26,011
Provision (benefit) for income taxes
40,245
(34,051
)
1,719
(1,781
)
Net income
$
47,127
$
117,480
$
33,327
$
27,792
Net income per share
—basic
$
0.77
$
1.91
$
0.52
$
0.45
Net income per share
—diluted
$
0.74
$
1.81
$
0.48
$
0.41
Shares used to calculate basic net income per share
61,135
61,404
64,163
61,688
Shares used to calculate diluted net income per share
63,815
65,012
69,504
67,074