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2009
During 2009, j2 Global completed two acquisitions, each of which were individually and collectively immaterial to the Company’
s
financial position at the dates of acquisition: (1) the digital faxing business and certain intellectual property of CallWave, Inc., a provider of
Internet unified communications solutions and (2) the email business of Quexion, LLC.
2008
During 2008, the Company completed four acquisitions, each of which were individually immaterial to its financial position at the dates
of acquisition: (1) certain assets of Mediaburst Limited (“Mediaburst”), a UK-
based provider of messaging services, (2) all outstanding shares of
Phone People Holdings Corporation, a U.S.-based provider of voice messaging services, (3) certain assets of Mailwise, LLP, a U.S.-
based
provider of email services, and (4) assets of Mijanda, Inc., a U.S.-
based provider of fax and voice services. Total consideration for these
transactions was $45.6 million in cash, including acquisition costs, plus $0.9 million in assumed liabilities. In connection with certain of these
2008 acquisitions, the Company is obligated to make additional cash payments if certain contractual obligations are met consisting primarily of a
holdback amount of $1.8 million and customer conversion payments, in an immaterial amount in all circumstances, to be paid upon the
successful conversion of customers to the Company’
s product platforms. The excess of the purchase price over the fair value of identifiable net
tangible assets acquired amounted to $44.2 million, of which $8.7 million was allocated to identifiable intangible assets and $35.5 million was
allocated to goodwill.
j2 Global accounted for all of the above transactions using the “purchase method”
and, accordingly, the results of operations related to
these acquisitions have been included in the consolidated results of j2 Global since the date of each respective acquisition.
4. Investments
Short-term investments of $14.0 million consist primarily of corporate bonds and are stated at fair market value.
The following table summarizes j2 Global’s debt securities designated as available-for-
sale classified by the contractual maturity date of
the security (in thousands):
The following table summarizes j2 Global’s investments designated as trading, available-for-sale and held-to-maturity (in thousands):
The following table summarizes the gross unrealized gains and losses and fair values for investments as of December 31, 2010 and
December 31, 2009 aggregated by major security type (in thousands):
Year ended
December 31,
2010
December 31,
2009
(unaudited)
(unaudited)
Revenue
$
332,623
$
325,219
Net Income
$
92,659
$
75,951
EPS
-
Basic
$
2.08
$
1.73
EPS
-
Diluted
$
2.02
$
1.68
December 31,
2010
December 31,
2009
Due within 1 year
$
14,029
$
—
Due within more than 1 year but less than 5 years
7,383
12,833
Due within more than 5 years but less than 10 years
—
—
Due 10 years or after
792
2,054
Total
$
22,204
$
14,887
December 31,
2010
December 31,
2009
Trading
$
6
$
9
Available
-
for
-
sale
22,204
14,887
Held-to-maturity
—
—
Total
$
22,210
$
14,896
Gross
Gross
Amortized
Unrealized
Unrealized
Fair
Cost
Gains
Losses
Value
December 31, 2010
Debt Securities
$
21,882
$
322
$
—
$
22,204