eBay 1998 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 1998 eBay 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 79

  • 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

eBAY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
69
The acquisition has been structured as a tax free exchange of stock, therefore, the differences between the
recognized fair values of the acquired assets, including tangible assets, and their historical tax bases are not
deductible for tax purposes.
The following unaudited pro forma consolidated financial information reflects the results of operations for the
years ended December 31, 1997 and 1998, as if the acquisition had occurred on January 1, 1997 and 1998,
respectively, and after giving effect to purchase accounting adjustments. These pro forma results have been prepared
for comparative purposes only and do not purport to be indicative of what operating results would have been had the
acquisitions actually taken place on January 1, 1997 or 1998, and may not be indicative of future operating results,
(in thousands, except per share amounts).
Year Ended
December 31,
1997 1998
Net revenues...................................................................................................................... $5,755 $47,364
Income (loss) from operations........................................................................................... (655) 5,361
Net income (loss) .............................................................................................................. (1,199) 1,597
Net income (loss) per share:
Basic.......................................................................................................................... $ (0.05) $ 0.02
Diluted....................................................................................................................... $ (0.05) $ 0.01
Weighted average shares:
Basic.......................................................................................................................... 22,743 88,787
Diluted....................................................................................................................... 22,743 129,491
Note 3—Balance Sheet Components:
December 31,
1997 1998
(in thousands)
Accounts receivable, net:
Accounts receivable .................................................................................................... $1,385 $9,491
Less: Allowance for doubtful accounts ....................................................................... (308) (2,105)
Allowance for authorized credits ..................................................................... (53) (1,017)
$1,024 $6,369
Write-offs against the allowance for doubtful accounts were $0 and $562,000 in the years ended December
31, 1997 and 1998, respectively.
December 31,
1997 1998
(in thousands)
Property and equipment, net:
Computer equipment ................................................................................................... $ 608 $8,897
Furniture and fixtures .................................................................................................. 115 585
Leasehold improvements............................................................................................. 5 113
728 9,595
Less: Accumulated depreciation and amortization.............................................................. (76) (1,764)
$ 652 $7,831