Shutterfly 2014 Annual Report Download - page 111

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believes that these transactions are at arms length and on similar terms as would have been obtained from
unaffiliated third parties.
Note 15 — Quarterly Financial Data (Unaudited)
Summarized quarterly financial data for the years ended December 31, 2014 and 2013 are as follows
(in thousands, except per share amounts):
Year Ended December 31, 2014
First Second Third Fourth
Quarter Quarter Quarter Quarter
Net revenues .......................... $ 137,099 $ 159,148 $ 142,008 $ 483,325
Gross profit ........................... $ 60,756 $ 75,813 $ 52,282 $ 280,009
Net income/(loss) ....................... $ (34,214) $ (27,052) $ (46,244) $ 99,650
Net income/(loss) per common share:
Basic ................................ $ (0.89) $ (0.70) $ (1.20) $ 2.59
Diluted .............................. $ (0.89) $ (0.70) $ (1.20) $ 2.51
Year Ended December 31, 2013
First Second Third Fourth
Quarter Quarter Quarter Quarter
Net revenues .......................... $ 116,708 $ 133,461 $ 122,685 $ 410,788
Gross profit ........................... $ 54,855 $ 61,745 $ 51,377 $ 246,072
Net income/(loss) ....................... $ (12,405) $ (11,811) $ (10,148) $ 43,649
Net income/(loss) per common share:
Basic ................................ $ (0.33) $ (0.31) $ (0.27) $ 1.15
Diluted .............................. $ (0.33) $ (0.31) $ (0.27) $ 1.10
Note 16 — Subsequent Event
Share Repurchase Program
On February 9, 2015, the Company’s Board of Directors approved an increase to the share repurchase
program up to $300.0 million in addition to amounts remaining under the previous share repurchase
authorization. The share repurchase authorization, which is effective immediately, permits the Company to
effect repurchases for cash from time to time through open market, privately negotiated or other
transactions, including pursuant to trading plans established in accordance with Rules 10b5-1 and 10b-18 of
the Securities Exchange Act of 1934, as amended, or by a combination of such methods. The share
repurchase program is subject to prevailing market conditions and other considerations; does not require
the Company to repurchase any dollar amount or number of shares; and may be suspended or
discontinued at any time.
Restructuring
In February 2015, the Company announced its plans to discontinue the Treat brand and migrate the
one-to-one greeting offering to the Shutterfly brand by the end of the first quarter of 2015. Shutterfly also
announced plans to close its manufacturing facility located in Elmsford, New York and redirect all
production and customer service operations throughout the Shutterfly manufacturing network by the end
of the third quarter of 2015. Shutterfly expects to incur certain restructuring costs during 2015 related to
these events.
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