Digital River 2006 Annual Report Download - page 106

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2005
As Previously
Reported Adjustments As Restated(1)
As Previously
Reported Adjustments As Restated(1)
September 30 December 31
Quarter Ended
Statement of Operations Data:
Revenue. . .................. $53,179 $ — $53,179 $61,557 $ — $61,557
Costs and expenses
Direct cost of services . ........ 1,050 15 1,065 1,475 4 1,479
Network and infrastructure . . . . . . 4,983 — 4,983 5,614 — 5,614
Sales and marketing . . ........ 16,713 21 16,734 20,428 11 20,439
Product research and
development . ............. 5,210 34 5,244 5,779 7 5,786
General and administrative . . . . . . 5,294 2 5,296 5,264 2 5,266
Depreciation and amortization . . . . 2,308 — 2,308 2,028 — 2,028
Amortization of acquisition related
intangibles . . ............. 2,089 — 2,089 2,135 — 2,135
Total costs and expenses ....... 37,647 72 37,719 42,723 24 42,747
Income (loss) from operations . . . . . 15,532 (72) 15,460 18,834 (24) 18,810
Other income, net ............. 1,526 — 1,526 1,395 — 1,395
Income (loss) before income tax
expense .................. 17,058 (72) 16,986 20,229 (24) 20,205
Income tax expense ............ 4,700 (27) 4,673 2,507 (418) 2,089
Net income (loss) ............. $12,358 $ (45) $12,313 $17,722 $ 394 $18,116
Net income (loss) per share —
basic . . .................. $ 0.35 $ — $ 0.35 $ 0.50 $ 0.01 $ 0.52
Net income (loss) per share —
diluted . .................. $ 0.31 $ — $ 0.31 $ 0.44 $ 0.01 $ 0.45
Shares used in per-share
calculation — basic . . . ........ 34,824 34,824 34,824 35,112 35,112 35,112
Shares used in per-share
calculation — diluted . . ........ 41,972 41,972 41,972 41,244 41,244 41,244
(1) See Note 2, “Restatement of Consolidated Financial Statements,” in Notes to Consolidated Financial
Statements.
102
DIGITAL RIVER, INC.
Notes to Consolidated Financial Statements — (Continued)