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December 31, 2008, 2007 and 2006, respectively. Our operating cash flows result primarily from cash received from our subscribers,
offset by cash payments we make to third parties for their services, employee compensation and tax payments. More than two-thirds
of our subscribers pay us via credit cards and therefore our receivables from subscribers generally settle quickly. Our cash and cash
equivalents and short-term investments were $150.8 million, $208.5 million and $179.1 million at December 31, 2008, 2007 and
2006, respectively.
We currently anticipate that our existing cash, cash equivalents, short-term investments and cash generated from operations will
be sufficient to meet our anticipated needs for working capital, capital expenditures, investment requirements, and commitments.
Net cash provided by (used in) investing activities was $14.9 million, $(7.0) million and $(5.0) million for the years ended
December 31, 2008, 2007 and 2006, respectively. Net cash provided by investing activities in 2008 was primarily attributable to the
proceeds of sales of available-for-sale and held to maturity investments, offset by cash acquisitions of businesses. Net cash used in
investing activities in 2007 and 2006 was primarily attributable to purchases of investments, acquisitions of businesses, purchases of
property and equipment and purchases of intangible assets, offset by proceeds from sales and maturities of investments.
Net cash used in financing activities was $104.9 million, $29.9 million and $9.4 million for the years ended 2008, 2007 and
2006, respectively. Net cash used by financing activities in 2008 was primarily attributable to the repurchase of our common stock,
partially offset by proceeds from the exercise of stock options and excess tax benefit from share-based compensation. For 2007, net
cash used by financing activities was primarily comprised of repurchases of our common stock offset by proceeds from the exercise of
stock options and common shares issued under our employee stock purchase plan. For 2006, net cash used in financing activities was
primarily comprised of repurchases of our common stock and repayment of long-term debt, offset by proceeds from the exercise of
stock options and common shares issued under our employee stock purchase plan.
Stock Repurchase Program
In February 2008, j2 Global’s Board of Directors approved a common stock repurchase program (the “Repurchase Program”)
authorizing the repurchase of up to five million shares of our common stock through the end of December 2010. On July 9, 2008, the
Program was completed; five million shares at an aggregated cost of $108.0 million (including commission fees of $0.1 million) were
repurchased. (see Part II, Item 5. Issuer Purchase of Equity Securities included elsewhere in this Annual Report on Form 10-K).
Contractual Obligations and Commitments
The following table summarizes our contractual obligations and commitments as of December 31, 2008:
Payments Due by Period
(In thousands)
Contractual Obligations 1 Year
2-3
Years
4-5
Years
More
than 5
Years Total
Operating leases $ 1,489 $ 629 $ 283 $ 580 $ 2,981
Telecom services and co-location facilities 7,327 6,431 — — 13,758
Computer software and related services 1,300 — — — 1,300
$ 10,116 $ 7,060 $ 283 $ 580 $ 18,039