8x8 2007 Annual Report Download - page 29

ITEM 6. SELECTED FINANCIAL DATA
The information presented in the following table of Selected Financial Data for the years ended March 31, 2006 and 2005 has
been restated to reflect the restatement of our financial results that is described in Note 2 “Restatement” to the consolidated
financial statements included in Item 8 “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.
2007 2006 2005 2004 2003 (1)
(Restated) (Restated)
Total revenues $ 53,130 $ 31,892 $ 11,475 $ 9,308 $ 11,003
Net loss $ (9,930) $ (23,253) $ (15,348) $ (3,039) $ (11,403)
Net loss per share:
Basic $ (0.16) $ (0.42) $ (0.35) $ (0.09) $ (0.40)
Diluted $ (0.16) $ (0.42) $ (0.35) $ (0.09) $ (0.40)
Total assets $ 19,958 $ 31,120 $ 39,080 $ 15,571 $ 6,705
Fair value of warrant liability $ 3,387 $ 7,123 $ 4,837 $ - $ -
Contingently redeemable common stock $ - $ - $ - $ - $ 669
Accumulated deficit $ (200,249) $ (190,319) $ (167,066) $ (151,718) $ (148,679)
Total stockholders' equity $ 5,377 $ 12,970 $ 24,907 $ 12,786 $ 2,164
(in thousands, except per share amounts)
Years Ended March 31,
__________________
(1) Net loss and net loss per share include restructuring and other charges of $3.4 million.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESTATEMENT OF FINANCIAL STATEMENTS
The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” reflects the
restatement discussed below and in Note 2 of the Notes to the Consolidated Financial Statements.
In this Annual Report on Form 10-K, we have included the restated Consolidated Balance Sheet as of March 31, 2006,
Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the 2005 and 2006 fiscal years, and
selected financial data for each of the seven quarters ended in the period ended December 31, 2006. See “Item 6 – Selected
Financial Data”, ITEM 8 – CONSOLIDATED QUARTERY FINANCIAL DATA and Note 2 (Restatement of Financial
Statements) of the Notes to the Consolidated Financial Statements for more detailed information regarding the restatement and
the changes to the previously issued financial statements. The previously issued financial statements are being restated because
we have determined that they contain errors in accounting for warrants issued to three investors in three equity financings
consummated in fiscal 2005 and 2006. We have concluded that, under accounting principles generally accepted in the United
States of America (“GAAP”), the warrants should have been accounted for as liabilities. Our restated financial statements
reflect a liability in the consolidated balance sheets for the warrants. The effect of the change is that we must reflect income or
loss in the consolidated statement of operations for the change in the fair value of the warrant from period-to-period.
Previously, we had treated these warrants as equity. The restatement also reflects the effect of other unrecorded adjustments
that were previously determined to be immaterial.
OVERVIEW
We were founded in 1987 and completed an initial public offering of common stock in 1997. We develop and market
telecommunication services for Internet protocol, or IP, telephony and video applications. We offer the Packet8 broadband
VoIP and video communications service, Packet8 Virtual Office service and videophone equipment and services. We shipped
our first VoIP product in 1998, launched our Packet8 service in November 2002 and launched the Packet8 Virtual Office
business service offering in March 2004. As of March 31, 2007, we had more than 100,000 Packet8 residential and
videophone lines and approximately 7,000 business subscribers to our Packet8 Virtual Office service. Since fiscal 2004,
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