Digital River 2006 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2006 Digital River annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

The following table presents the effects of the stock-based compensation and related tax adjustments
made to the Company’s previously reported consolidated statements of operations (in thousands, except per
share amounts).
As Previously
Reported Adjustments
As
Restated(1)
As Previously
Reported Adjustments
As
Restated(1)
2005 2004
Statement of Operations Data:
Revenue . . . . . . . . . . . . . . . . . . . . . . . $220,408 $ — $220,408 $154,130 $ — $154,130
Costs and expenses (exclusive of
depreciation and amortization
expense shown separately below)
Direct cost of services . . . . . . . . . . . 5,013 50 5,063 5,013 154 5,167
Network and infrastructure . . . . . . . . 19,814 3 19,817 15,143 21 15,164
Sales and marketing . . . . . . . . . . . . . 69,256 115 69,371 51,749 334 52,083
Product research and development . . . 20,575 115 20,690 14,097 196 14,293
General and administrative . . . . . . . . 21,474 10 21,484 16,894 112 17,006
Depreciation and amortization . . . . . . 8,833 — 8,833 8,203 — 8,203
Amortization of acquisition related
intangibles . . . . . . . . . . . . . . . . . . 8,730 — 8,730 8,269 — 8,269
Total costs and expenses. . . . . . . . . . 153,695 293 153,988 119,368 817 120,185
Income (loss) from operations . . . . . . . 66,713 (293) 66,420 34,762 (817) 33,945
Other income, net . . . . . . . . . . . . . . . . 4,967 — 4,967 1,641 — 1,641
Income (loss) before income tax
expense . . . . . . . . . . . . . . . . . . . . . 71,680 (293) 71,387 36,403 (817) 35,586
Income tax expense . . . . . . . . . . . . . . . 17,337 (2,462) 14,875 1,079 — 1,079
Net income (loss) . . . . . . . . . . . . . . . . $ 54,343 $ 2,169 $ 56,512 $ 35,324 $ (817) $ 34,507
Net income (loss) per share — basic . . . $ 1.57 $ 0.06 $ 1.64 $ 1.09 $ (0.02) $ 1.07
Net income (loss) per share — diluted . . $ 1.36 $ 0.05 $ 1.41 $ 0.96 $ (0.02) $ 0.94
Shares used in per-share calculation —
basic . . . . . . . . . . . . . . . . . . . . . . . 34,536 34,536 34,536 32,328 32,328 32,328
Shares used in per-share calculation —
diluted . . . . . . . . . . . . . . . . . . . . . . 41,448 41,448 41,448 38,532 38,532 38,532
(1) See Note 2, “Restatement of Consolidated Financial Statements,” in Notes to Consolidated Financial
Statements.
82
DIGITAL RIVER, INC.
Notes to Consolidated Financial Statements — (Continued)