Classmates.com 2008 Annual Report Download - page 150

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. COMMITMENTS AND CONTINGENCIES (Continued)
Court of the State of California, County of Los Angeles, against NetZero containing substantially similar allegations to the Piercy case. Plaintiffs
in both cases are seeking injunctive and declaratory relief and damages. NetZero filed a response to both lawsuits denying the material
allegations of the complaints. Both Messrs. Piercy and Ewart subsequently withdrew from the actions as class representatives. On March 16,
2007, Barbara Rasnake and Robert Du Verger were substituted as purported class representatives. On May 25, 2007, the court consolidated the
actions under the caption Rasnake v. NetZero, Inc., Case No. BC348461. On July 13, 2007, the plaintiffs filed a consolidated amended class
action complaint at which time Peter Chrisler was also substituted as a purported class representative. A settlement agreement was entered into
by all parties in this case and was granted final approval by the court on November 6, 2008.
The Company's 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 the Company does not believe the outcome of its outstanding legal proceedings, claims and
litigation will have a material adverse effect on its business, financial position, results of operations or cash flows, the results of litigation are
inherently uncertain and the Company can provide no assurance that it will not be materially and adversely impacted by the results of such
proceedings. At December 31, 2008, the Company had not established allowances for losses relating to any of the matters described above, with
the exception of the Rasnake v. NetZero matter.
The Company is subject to various other legal proceedings and claims that arise in the ordinary course of business. Management believes
the amount and ultimate liability, if any, with respect to these actions will not materially affect the Company's business, financial position, results
of operations or cash flows. There can be no assurance, however, that such actions will not materially and adversely affect the Company's
business, financial position, results of operations or cash flows.
16. QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share data)
F-55
Quarter Ended
December 31,
September 30,
June 30,
March 31,
Year ended December 31, 2008:
Revenues
$
256,162
$
169,157
$
122,273
$
121,811
Operating income (loss)
$
(133,801
)
$
28,799
$
21,960
$
20,363
Net income (loss)
$
(137,563
)
$
16,166
$
13,738
$
13,002
Basic net income (loss) per share
$
(1.68
)
$
0.22
$
0.20
$
0.19
Diluted net income (loss) per share
$
(1.68
)
$
0.21
$
0.19
$
0.19
Quarter Ended
December 31,
September 30,
June 30, March 31,
Year ended December 31, 2007:
Revenues
$
125,410
$
126,825
$
131,417
$
129,851
Restructuring charges
$
2,991
$
34
$
394
$
—
Operating income
$
22,181
$
23,263
$
24,733
$
22,124
Net income
$
14,572
$
13,969
$
16,208
$
13,028
Basic net income per share
$
0.22
$
0.21
$
0.24
$
0.20
Diluted net income per share
$
0.21
$
0.20
$
0.23
$
0.19