Digital River 2006 Annual Report Download - page 39

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(2) The Selected Financial Data for 2003 and 2002 has been restated to reflect adjustments related to stock
based compensation expense and the associated tax impact as further described in the “Explanatory Note”
immediately preceding Part I, Item 1 of the Form 10-K. As a result of these adjustments, net income was
reduced by $1,241 and $1,679 for the years ended December 31, 2003 and 2002, respectively as follows:
As Previously
Reported Adjustments
As
Restated(1)
As Previously
Reported Adjustments
As
Restated(1)
2003 2002
Statement of Operations Data:
Revenue .................. $101,201 $ — $101,201 $77,783 $ — $77,783
Costs and expenses (exclusive of
depreciation and amortization
expense shown separately
below)
Direct cost of services ...... 3,585 272 3,857 2,357 360 2,717
Network and infrastructure . . . 12,253 42 12,295 11,405 50 11,455
Sales and marketing ........ 37,220 465 37,685 32,437 624 33,061
Product research and
development ............ 9,962 301 10,263 11,454 475 11,929
General and administrative . . . 9,228 161 9,389 9,299 170 9,469
Depreciation and
amortization ............ 7,275 — 7,275 6,009 — 6,009
Amortization of acquisition
related intangibles........ 5,380 — 5,380 5,738 — 5,738
Total costs and expenses ..... 84,903 1,241 86,144 78,699 1,679 80,378
Income (loss) from operations . . 16,298 (1,241) 15,057 (916) (1,679) (2,595)
Other income, net ........... 838 — 838 406 — 406
Income (loss) before income tax
expense ................. 17,136 (1,241) 15,895 (510) (1,679) (2,189)
Income tax expense .......... — — — — — —
Net income (loss)............ $ 17,136 $ (1,241) $ 15,895 $ (510) $ (1,679) $ (2,189)
Net income (loss) per share —
basic ................... $ 0.58 $ (0.04) $ 0.54 $ (0.02) $ (0.06) $ (0.08)
Net income (loss) per share —
diluted .................. $ 0.52 $ (0.04) $ 0.48 $ (0.02) $ (0.06) $ (0.08)
Shares used in per-share
calculation — basic ........ 29,398 29,398 29,398 26,791 26,791 26,791
Shares used in per-share
calculation — diluted ....... 33,051 33,051 33,051 26,791 26,791 26,791
(1) See Note 2, “Restatement of Consolidated Financial Statements,” in Notes to Consolidated Financial
Statements.
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