Stamps.com 2007 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2007 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 70

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

(10)
Incorporated herein by reference to the Company’s Annual Report on Form 10-K, originally filed with the Securities and
Exchange Commission on March 29, 2002 (File No. 000-26427).
(11)
Incorporated herein by reference to the Company’s Form 8-K filed with the Securities and Exchange Commission on
December 22, 2003 (File No. 000-26427).
(12)
Incorporated herein by reference to the Company’s Form 8-
K filed with the Securities and Exchange Commission on July 16,
2004 (File No. 000-26427).
(13)
Filed with the Securities and Exchange Commission with this Annual Report on Form 10-K.
* Previously filed.
+ Confidential treatment requested and received as to certain portions.
++ Confidential treatment has been requested for certain confidential portions of this exhibit pursuant to Rule 24b-2 under the
Exchange Act. In accordance with Rule 24b-2, these confidential portions have been omitted from this exhibit and filed
separately with the Securities and Exchange Commission.
34
TABLE OF CONTENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders of
Stamps.com Inc.
We have audited the accompanying balance sheets of Stamps.com Inc. as of December 31, 2007 and 2006, and the related
consolidated statements of income, stockholders’ equity, and cash flows for each of the three years in the period ended
December 31, 2007. These financial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
Stamps.com Inc. at December 31, 2007 and 2006, and the results of their operations, stockholders’ equity and their cash flows
for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting
principles.
As discussed in Note 2 to the financial statements, Stamps.com Inc. adopted Statement of Financial Accounting Standards
No. 123(R) on January 1, 2006.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
Stamp.com Inc.’s internal control over financial reporting as of December 31, 2007, based on criteria established in Internal
Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our
report dated March 13, 2008 expressed an unqualified opinion thereon.
/s/ ERNST & YOUNG LLP
Los Angeles, California
March 13, 2008
F-35