Nautilus 2001 Annual Report Download - page 22

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ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
The selected consolidated financial data presented below for each year in the five-year period ended December 31, 2001 have been derived
from our audited financial statements. The data presented below should be read in conjunction with our financial statements and notes thereto
and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations."
IN THOUSANDS
(EXCEPT PER SHARE AMOUNTS) 1997 1998 1999 2000 2001
-------------------------------- ---------- ---------- ---------- ---------- ----------
STATEMENT OF OPERATIONS DATA
Net sales $ 21,546 $ 63,171 $ 133,079 $ 223,927 $ 363,862
Cost of sales 6,774 18,316 46,483 75,573 140,699
---------- ---------- ---------- ---------- ----------
Gross profit 14,772 44,855 86,596 148,354 223,164
Operating expenses:
Selling and marketing 9,600 22,643 44,630 73,510 99,814
General and administrative 975 1,701 4,237 8,804 15,574
Royalties 581 1,623 2,897 4,979 7,363
Litigation settlement - - 4,000 - -
Total operating expenses ---------- ---------- ---------- ---------- ----------
11,156 25,967 55,764 87,293 122,751
---------- ---------- ---------- ---------- ----------
Operating income 3,616 18,888 30,832 61,061 100,413
Other income (expense):
Interest income 119 527 1,003 3,632 4,024
Other-net (88) (228) 3 347 381
---------- ---------- ---------- ---------- ----------
Total other income 31 305 1,006 3,979 4,405
---------- ---------- ---------- ---------- ----------
Income before income taxes 3,647 19,193 31,838 65,040 104,818
Income tax expense 1,226 6,708 11,495 23,414 38,235
---------- ---------- ---------- ---------- ----------
Net income $ 2,421 $ 12,485 $ 20,343 $ 41,626 $ 66,583
========== ========== ========== ========== ==========
Basic earnings per share * $ 0.08 $ 0.39 $ 0.59 $ 1.18 $ 1.89
Diluted earnings per share* $ 0.07 $ 0.38 $ 0.58 $ 1.15 $ 1.85
Basic shares outstanding * 30,330 31,511 34,309 35,288 35,184
Diluted shares outstanding * 32,099 32,825 35,185 35,997 35,966
BALANCE SHEET DATA
Cash and short-term investments $ 4,790 $ 18,911 $ 35,703 $ 77,181 $ 51,709
Working capital 4,100 15,682 38,209 72,520 84,366
Total assets 7,922 24,373 67,310 117,126 193,904
Stockholders' equity 4,592 17,651 53,031 92,867 147,414
*Reflects the three-for-two stock splits effective August 2000, January 2001 and August 2001
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CRITICAL ACCOUNTING POLICIES
We have identified the most critical accounting principles upon which our financial status depends. We determined the critical principles by
considering accounting policies that involve the most complex or subjective decisions or assessments. We identified our most critical
accounting policies to be those related to warranty reserves, sales return reserves, and the allowance for doubtful accounts.
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2002. EDGAR Online, Inc.