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j2 GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARIES
See Notes to Consolidated Financial Statements
38
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31, 2008, 2007 and 2006
(In thousands, except share and per share data)
2008 2007 2006
Revenues:
Subscriber $ 236,841 $ 212,329 $ 175,171
Other 4,672 8,368 5,908
241,513 220,697 181,079
Cost of revenues (including share-based compensation of $901, $668 and $316 in
2008, 2007 and 2006, respectively) 46,250 43,987 36,723
Gross profit 195,263 176,710 144,356
Operating expenses:
Sales and marketing (including share-based compensation of $1,268,
$1,187and $1,038 in 2008, 2007 and 2006, respectively) 41,270 38,768 30,792
Research, development and engineering (including share-based compensation
of $803, $771, and $556 in 2008, 2007 and 2006, respectively) 12,031 11,833 8,773
General and administrative (including share-based compensation of $5,014,
$4,788 and $3,782 in 2008, 2007 and 2006, respectively) 44,028 39,683 38,754
Total operating expenses 97,329 90,284 78,319
Operating earnings 97,934 86,426 66,037
Other income (expenses):
Interest and other income 4,778 9,272 7,269
Interest and other expense (559) (237) (74)
Total other income and expenses 4,219 9,035 7,195
Earnings before income taxes 102,153 95,461 73,232
Income tax expense 29,591 27,000 20,101
Net earnings $ 72,562 $ 68,461 $ 53,131
Net earnings per common share:
Basic $ 1.63 $ 1.40 $ 1.08
Diluted $ 1.58 $ 1.35 $ 1.04
Weighted average shares outstanding:
Basic 44,609,174 48,953,483 49,209,129
Diluted 45,937,506 50,762,007 51,048,995