Stamps.com 2009 Annual Report Download - page 37

TABLE OF CONTENTS
Liquidity and Capital Resources
As of December 31, 2009 and 2008, we had $72 million and $74 million in cash, restricted cash and short-term and long-
term investments, respectively. We invest available funds in short-term and long-term money market funds, commercial paper,
asset-backed securities, corporate notes and bonds and municipal securities and do not engage in hedging or speculative
activities.
In November 2003, we entered into a facility lease agreement commencing in March 2004 for our corporate headquarters
with aggregate lease payments of $4.0 million through March 2010. In December 2009, we amended our lease agreement
extending the term for 26 months commencing in April 2010 through May 2012. In addition to extending our lease term, we also
added lease space of approximately 5,000 square feet. The total remaining aggregate lease payments as of December 31, 2009
under the original and amended lease agreement are $2.4 million.
The following table is a schedule of our significant contractual obligations and commercial commitments, which consists
only of the future minimum lease payments under operating leases at December 31, 2009 (in thousands):
During 2009, we repurchased 1.6 million shares of our common stock for $13.7 million. During 2010, subject to limitations
that may be imposed by applicable securities laws and regulations and the rules of The NASDAQ Stock Market, we may
consider repurchasing stock by evaluating such factors as the price of the stock, the daily trading volume and the availability of
large blocks of stock and any additional constraints related to material inside information we may possess. We have no
commitments to make any such purchases.
On March 4, 2010 we announced that we entered into a transaction on February 27, 2010 to repurchase 1,267,952 shares of
our stock for a total cost of $11.4 million. This repurchase transaction was authorized by our board of directors and was
independent of our existing share repurchase plan, which remains in effect through August 2010.
Net cash provided by operating activities was $9.9 million and $11.7 million for 2009 and 2008, respectively. The decrease
in net cash provided by operating activities is primarily attributable to lower interest income.
Net cash used in investing activities was $4.2 million in 2009. Net cash provided by investing activities was $23.4 million in
2008. The increase in net cash used in investing activities primarily resulted from the purchase of long-term investments.
Net cash used by financing activities was $13.3 million and $26.2 million for 2009 and 2008, respectively. The decrease in
net cash used in financing activities resulted primarily from lower shares repurchased of our Company’s common stock in 2009
compared with 2008.
We believe our available cash and marketable securities, together with the cash flow from operations, will be sufficient to
fund our business for at least the next twelve months.
Critical Accounting Policies
General . The discussion and analysis of our financial condition and results of operations are based on our financial
statements, which have been prepared in accordance with US generally accepted accounting principles. The preparation of these
financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues
and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates,
including those related to patents,
Operating
Years ended:
2010
954
2011
1,005
2012
419
Thereafter
—
$
2,378
31