Stamps.com 2011 Annual Report Download - page 78

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STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
14. Quarterly Information (Unaudited)
Quarterly and year-to-
date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters
may not agree with per share amounts for the year shown elsewhere in our Annual Report on Form 10-K.
(1) In the second quarter of 2010 we incurred a legal settlement totaling $5.2 million in connection with our settlement agreement with Kara
Technology Incorporated and Mr. Salim Kara to resolve all outstanding litigation among the parties.
(2) During the fourth quarter of 2010, we completed a $2.00 per share special dividend to shareholders. The total amount of cash distributed in
the dividend payment was $28.9 million based on 14.5 million shares outstanding as of the November 11, 2010 record date. The Company
incurred compensation expense of $3.4 million in the fourth quarter related to the special dividend as described in Note 2 “
Summary of
Significant Accounting Policies – Stock Based Compensation”.
(
3) During the second quarter of 2011 we recognized $2.2 million of retail box breakage revenue, of which $2.1 million related to a cumulative
catch-
up for previously sold and unredeemed PhotoStamps retail boxes originally recorded as deferred revenue. The retail box breakage revenue
recognized was recorded in PhotoStamps revenue.
Table of Contents
Quarter Ended
March
June
September
December
(in thousands except per share data)
Fiscal Year 2011:
Revenues
$
22,817
$
26,630
(3)
$
24,918
$
27,220
Gross profit
16,593
19,945
18,596
20,239
Income from operations
2,584
5,627
4,434
4,583
Net income
2,675
5,677
4,528
13,385
Net income per share:
Basic
$
0.18
$
0.40
$
0.31
$
0.85
Diluted
$
0.18
$
0.39
$
0.30
$
0.81
Weighted average shares outstanding:
Basic
14,484
14,321
14,556
15,694
Diluted
14,613
14,450
15,059
16,551
Fiscal Year 2010:
Revenues
$
20,989
$
21,189
$
20,689
$
22,677
Gross profit
15,175
15,365
15,185
16,135
Income (loss) from operations
2,054
(3,211
)
(1)
2,592
30
(2)
Net income (loss)
2,145
941
2,729
(283
)
Net income per share:
Basic
$
0.14
$
0.07
$
0.19
$
(0.02
)
Diluted
$
0.14
$
0.07
$
0.19
$
(0.02
)
Weighted average shares outstanding:
Basic
15,142
14,290
14,280
14,417
Diluted
15,272
14,450
14,452
14,417
F
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28