Support.com 2009 Annual Report Download - page 30

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Table of Contents
Our income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. Support.com’s tax filings, however, are
subject to audit by the respective tax authorities. Accordingly, we recognize tax liabilities based upon our estimate of whether, and the extent to which, additional
taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50%
likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases are recorded as
income tax expense or benefit in the consolidated statements of operations.
Results of Operations
The following table presents certain Consolidated Statements of Operations data for the periods indicated as a percentage of total revenue:
Years Ended December 31,
2009 2008 2007
Revenue:
Services 96% 95% 95%
Software and other 4 5 5
Total revenue 100 100 100
Cost of revenue:
Cost of services 95 151 420
Cost of software and other — — —
Total cost of revenue 95 151 420
Gross profit (loss) 5 (51) (320)
Operating expenses:
Research and development 33 103 483
Sales and marketing 44 133 484
General and administrative 81 214 1,323
Amortization of intangible assets 1 2 —
Total operating expenses 159 452 2,290
Loss from operations (154) (503) (2,610)
Interest income and other, net 2 37 622
Loss from continuing operations, before income taxes (152) (466) (1,988)
Income taxes (benefit) (28) — —
Loss from continuing operations, after income taxes (124) (466) (1,988)
Income (loss) from discontinued operations, after income taxes 40 185 (46)
Net loss (84)% (281)% (2,034)%
Years Ended December 31, 2009, 2008, and 2007
Revenue
($ in thousands)
2009
% Change
2008 to 2009 2008
% Change
2007 to 2008 2007
Service $ 16,770 159% $ 6,468 551% $ 994
Software and other 725 111% 343 513% 56
Total revenue $ 17,495 157% $ 6,811 549% $ 1,050
29
Source: Support.com, Inc., 10-K, March 12, 2010 Powered by Morningstar® Document Research℠