8x8 1998 Annual Report Download - page 42

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8X8, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 2 -- BALANCE SHEET COMPONENTS:
NOTE 3 -- TRANSACTIONS WITH RELATED PARTIES:
During the fiscal year ended March 31, 1997, the Company's product revenues included $106,000 in sales to Sanyo Semiconductor Corporation
(Sanyo) which is one of the Company's stockholders. Additionally, the Company purchased $3.8 million and $408,000 of raw materials
inventory from Sanyo and an affiliate during fiscal 1998 and 1997, respectively. An executive of Sanyo is also on the Company's Board of
Directors.
A representative of National Semiconductor Corporation (National) was a member of the Company's Board of Directors until May 19, 1997.
The Company subleased to National a portion of its facilities under a month to month sublease arrangement until August 1, 1997. Proceeds
from the sublease were recorded as a reduction to operating expenses and aggregated $149,000, $276,000 and $205,000 during the fiscal years
ended March 31, 1998, 1997 and 1996, respectively.
During the fiscal years ended March 31, 1998, 1997 and 1996, the Company's product revenues included $355,000, $2,415,000 and
$2,037,000, respectively, in sales to ASCII Corporation (ASCII). The Company terminated its distribution relationship with ASCII effective
June 30, 1997. An executive of ASCII was a member of the Company's Board of Directors until May 27, 1997.
During fiscal 1996, the Company licensed certain technologies to VideoCore Technology (VideoCore), a company founded by one of 8x8's
former officers, in exchange for cash and an equity interest in VideoCore. This license agreement also provided for potential future license fees
and royalty fees payable to the Company. VideoCore, including the Company's equity interest, was subsequently acquired by another entity.
During fiscal 1996, the Company licensed certain technologies to Enable Semiconductor, a company founded by another of 8x8's former
officers, in exchange for cash and an equity interest in that company.
During fiscal 1997, the Company and certain of its employees formed VidUs, Inc. (VidUs). At March 31, 1998, the Company owned 67% of
VidUs and Company employees owned the remaining 33%.
37
MARCH 31,
------------------
1998 1997
------- -------
(IN THOUSANDS)
Accounts receivable...................................... $ 5,137 $ 1,208
Less: allowance for doubtful accounts.................. (610) (374)
------- -------
$ 4,527 $ 834
======= =======
Inventories:
Raw materials.......................................... $ 3,864 $ 418
Work-in-process........................................ 5,337 613
Finished goods......................................... 3,557 147
------- -------
$12,758 $ 1,178
======= =======
Property and equipment:
Machinery and computer equipment....................... $ 3,837 $ 3,254
Furniture and fixtures................................. 691 671
Licensed software...................................... 2,268 2,137
Leasehold improvements................................. 600 554
------- -------
7,396 6,616
Less: accumulated depreciation and amortization.......... (6,026) (5,272)
------- -------
$ 1,370 $ 1,344
======= =======