8x8 2002 Annual Report Download - page 16

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In addition, 8x8 has licensed source code for its service creation environment, or SCE, product to Lucent. The SCE
product was the predecessor of the eSLEE product. Under the agreement, Lucent has licensed the technology for use in
its Enhanced Service Authoring Environment (eSAE), which enables carriers and application developers to design
innovative new services for converged voice and data networks. The Company may continue to license its
communication services platform and video source code to other companies. Such arrangements may enable these
companies to use the technology to produce products that compete with the Company's consumer systems and
communication services products.
The Company expects to continue licensing its technology to others, many of whom may be located outside of the
United States. In addition to licensing its technology to others, the Company from time to time will take a license to
technology owned by third parties and currently relies upon certain technology, including hardware and software,
licensed from third parties.
INFORMATION ABOUT SEGMENTS AND GEOGRAPHIC AREAS
Financial information relating to our segments and information on revenues generated in different geographic areas are
set forth in Note 11 to our consolidated financial statements contained in Part II, Item 8 of this Report. In addition,
information regarding risks attendant to our foreign operations are set forth under the heading "Factors that May Affect
Future Results" later in this Report.
EMPLOYEES
As of March 31, 2002, the Company employed 106 persons, including 6 in manufacturing operations, 60 in research
and development, 17 in sales and marketing, and 23 in general and administrative capacities. None of the Company's
employees are represented by a labor union or are subject to a collective bargaining arrangement. The Company
believes that relations with employees are good.
ITEM 2. PROPERTIES
The Company's principal operations are located in an approximately 45,000 square foot facility in Santa Clara,
California that is leased through May 2003. Design, limited manufacturing, research and development, sales and
marketing, and administrative activities are performed in this facility.
The Company also leases facilities for its sales office and research and development operation in Marlow, United
Kingdom and for its research and development operation in Sophia-
Antipolis, France. The Company believes that its
existing facilities are adequate to meet its current and foreseeable future needs. For additional information regarding the
Company's obligations under leases see Note 8 to the consolidated financial statements contained in Part II, Item 8.
ITEM 3. LEGAL PROCEEDINGS
The Company is involved in various legal claims and litigation that have arisen in the normal course of the Company's
operations. While the results of such claims and litigation cannot be predicted with certainty, the Company believes
that the final outcome of such matters will not have a significantly adverse effect on the Company's financial position
or results of operations. However, should the Company not prevail in any such litigation, its operating results and
financial condition could be adversely impacted.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of fiscal 2002.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED SECURITY HOLDER