Stamps.com 2001 Annual Report Download - page 52

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STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
operations. Results of operations for iShip.com, Inc. have been included with those of the Company for periods subsequent to the acquisition
date.
The purchase price was allocated as follows (in thousands):
Goodwill............................... $209,188
Deferred compensation.................. 24,662
Purchased technology................... 11,200
In-process research and development.... 2,000
Tangible assets acquired............... 8,931
Liabilities assumed....................
(7,232)
--------
Purchase price...................... $248,749
========
Presented below is unaudited selected pro forma financial information, presenting the results of operations of the Company as if the acquisition
had taken place on January 1 (in thousands, except per share amounts):
Years Ended
December 31,
-------------------
2000 1999
--------- --------
(unaudited)
Proforma revenues............................................... $ 15,234 $ 358
Proforma net loss............................................... $(215,326)
$(64,728)
Proforma basic and diluted net loss per share................... $ (3.93) $
(2.18)
Proforma weighted average shares used in per share calculation--
basic and diluted............................................. 54,802 29,738
The unaudited pro forma information is not necessarily indicative of the actual results of operations had the acquisition occurred at the
beginning of the periods indicated, nor should it be indicative of operations for any future date or period.
On March 2, 2001, United Parcel Service and Mail Boxes Etc. USA, Inc. (MBE) jointly announced that United Parcel Service would acquire
MBE. MBE represented a significant future source of revenue and market leverage for the Company's enterprise shipping services that were
acquired in the iShip acquisition. United Parcel Service also informed the Company that it is unlikely to have MBE continue to use the
Company's enterprise shipping services in the future. As a result of the March 2001 events, the Company reduced goodwill and other
intangibles associated with the purchase of iShip to estimated net realizable value. This resulted in a non-cash charge of $163.6 million in the
first quarter of 2001.
On May 18, 2001, the Company completed the sale of its iShip multi-carrier shipping service assets to United Parcel Service for $2.8 million.
The difference between the sale price of iShip and the assets value attributed to iShip by the Company resulted in non-cash charge of $9.1
million in the second quarter of 2001. Additional legal costs associated with the sale of iShip in the amount of $0.3 million were charged in the
third quarter of 2001 resulting in a total charge of $9.4 million in 2001.
Change in Ownership and Shut-down of Subsidiary
On November 16, 1999, the Company announced the formation of a subsidiary, EncrypTix, Inc., to develop secure printing opportunities in the
events, travel and financial services industries. In February 2000, the
2002. EDGAR Online, Inc.