Support.com 2006 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2006 Support.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 96

  • 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
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 7. Stockholders’ Equity (Continued)
value of SupportSoft’s common stock at the beginning of the applicable offering period or the end of the applicable purchase period.
Beginning August 1, 2006, the offering period for all new participants in the 2000 Purchase Plan was reduced to six months. Prior to
August 1, 2006, all participants were enrolled in offering periods which could last up to 24 months and contained up to four separate
purchase periods.
As of December 31, 2006, we had approximately 1.9 million shares of common stock reserved for future issuance under this ESPP
plan.
Note 8. Income Taxes
The components of our net income (loss) before income taxes are as follows (in thousands):
Years Ended December 31,
2006 2005 2004
United States $ (9,514) $ 3,870 $ 9,839
Foreign 1,766 957 625
Total $ (7,748) $ 4,827 $ 10,464
The provision for (benefit from) income taxes consisted of the following (in thousands):
Years Ended December 31,
2006 2005 2004
Current:
Federal $ — $ — $ —
State — (3) 120
Foreign 395 263 190
Total current 395 260 310
Deferred:
Foreign 92 142 —
Total provision for income taxes $ 487 $ 402 $ 310
The reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows (in thousands):
Years Ended December 31,
2006 2005 2004
Provision at federal statutory rate $ (2,712) $ 1,689 $ 3,662
State taxes — (3) 120
Permanent differences/other 35 72 134
Stock−based compensation (4) (472) (1,060)
Federal valuation allowance
(utilized)/provided 3,089 (954) (2,736)
Foreign rate differential 79 70 190
Provision for income taxes $ 487 $ 402 $ 310
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax
67
Source: SUPPORTSOFT INC, 10−K, March 16, 2007