Shutterfly 2008 Annual Report Download - page 46

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SHUTTERFLY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
The accompanying notes are an integral part of these consolidated financial statements.
December 31,
2007
2006
2005
Net revenues
$
186,727
$
123,353
$
83,902
Cost of net revenues(1)
84,111
55,491
36,941
Gross profit
102,616
67,862
46,961
Operating expenses(1):
Technology and development
28,635
19,087
13,152
Sales and marketing
33,363
21,940
15,252
General and administrative
29,557
19,216
13,657
91,555
60,243
42,061
Income from operations
11,061
7,619
4,900
Interest expense
(179
)
(266
)
(367
)
Other income (expense), net
5,515
2,387
(103
)
Income before income taxes and cumulative effect of change in accounting principle
16,397
9,740
4,430
(Provision) benefit for income taxes
(6,302
)
(3,942
)
24,060
Net income before cumulative effect of change in accounting principle
10,095
5,798
28,490
Cumulative effect of change in accounting principle, net of tax benefit
—
—
442
Net income
$
10,095
$
5,798
$
28,932
Net income per share
—
basic and diluted:
Before cumulative effect of change in accounting principle
$
0.42
$
0.67
$
1.31
Cumulative effect of change in accounting principle, net of tax benefit
—
—
0.14
Basic
$
0.42
$
0.67
$
1.45
Diluted
$
0.38
$
0.56
$
1.02
Weighted average shares:
Basic
24,295
8,622
3,255
Diluted
26,273
10,331
4,609
______________
(1) Stock
-
based compensation is allocated as follows (Notes 2 and 7):
Cost of net revenues
$
189
$
96
$
28
Technology and development
880
736
826
Sales and marketing
877
521
239
General and administrative
2,055
947
2,217
31