Nautilus 2002 Annual Report Download - page 37

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of accounting for stock-based employee compensation. This statement is effective for fiscal years ending after December 15, 2002.
Management does not expect that the provisions of SFAS No. 148 will have a material effect on the Company's financial position, results of
operations, or cash flows.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We have primarily invested cash with banks and in liquid debt instruments purchased with maturity dates of less than one year. Our bank
deposits may exceed federally insured limits, and there is risk of loss of the entire principal with any debt instrument. To reduce risk of loss, we
limit our exposure to any one debt issuer and require certain minimum ratings for debt instruments that we purchase.
FOREIGN EXCHANGE RISK
The Company is exposed to foreign exchange risk from currency fluctuations, mainly in Europe. Given the relative size of the Company's
current foreign operations, the Company does not believe the exposure to changes in applicable foreign currencies to be material, such that it
could have a significant impact on our current or near-term financial position, results of operations, or cash flows. Management estimates the
maximum impact on stockholders' equity of a 10% change in any applicable foreign currency to be $1.1 million.
INTEREST RATE RISK
The Company has financed its growth through cash generated from operations. At December 31, 2002, the Company had no outstanding
borrowings and was not subject to any interest rate risk.
The Company invests in liquid debt instruments purchased with maturity dates of less than one year. Due to the short-term nature of those
investments, management believes that any possible near-term changes in related interest rates would not have a material impact on the
Company's financial position, results of operations, or cash flows.
ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Consolidated Financial Statements
Independent Auditors' Report
38
Consolidated Balance Sheets as of December 31, 2002 and 2001
39
Consolidated Statements of Income for the years ended December 31,
2002, 2001, and 2000
40
Consolidated Statements of Stockholders' Equity and Comprehensive
Income for the years ended December 31, 2002, 2001, and 2000
41
Consolidated Statements of Cash Flows for the years ended December 31,
2002, 2001, and 2000
42
Notes to Consolidated Financial Statements
44
-37-
2003. EDGAR Online, Inc.