8x8 2009 Annual Report Download - page 62
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The following shares attributable to outstanding stock options and warrants were excluded from the calculation of diluted
earnings per share because their inclusion would have been anti dilutive (in thousands):
2009 2008 2007
Common stock options 10,736 9,038 8,930
Stock purchase rights 100 - -
Warrants 5,445 7,838 8,663
16,281 16,876 17,593
Years Ended March 31,
2. INCOME TAXES
For the year ended March 31, 2009, the Company recorded a provision for income taxes of $45,000, which was attributable to
state tax in several states and foreign withholding tax on royalty revenue offset by federal refund in lieu of bonus depreciation
(in accordance with the Economic Stimulus Act of 2009). There were no income tax provisions for the years ended March 31,
2008 and 2007. The components of the consolidated benefit for income taxes for fiscal 2009 consisted of the following (in
thousands):
Current:
Federal $ (72)
State 64
Foreign 53
$4 5
The Company's income (loss) before income taxes included $38,000, $29,000 and $26,000 of foreign subsidiary income for the
fiscal years ended March 31, 2009, 2008 and 2007, respectively.
Deferred tax assets were comprised of the following (in thousands):
2009 200
8
Research and development credit carryforwards $ 3,510 $ 3,490
Net operating loss carryforwards 57,568 57,411
Inventory valuation 298 256
Reserves and allowances 2,194 1,514
Fixed assets and intangibles 7,783 9,415
71,353 72,086
Valuation allowance (71,353) (72,086)
Total $ - $ -
March 31,
Because of uncertainties regarding the realization of deferred tax assets, management has applied a full valuation allowance as
of March 31, 2009 and 2008.
At March 31, 2009, the Company had net operating loss carryforwards for federal and state income tax purposes of
approximately $153.9 million and $88.1 million, respectively, which expire at various dates beginning in 2013 and continuing
through 2029. The net operating loss carryforwards include approximately $10.0 million resulting from employee exercises of
non-qualified stock options or disqualifying dispositions, the tax benefits of which, when realized, will be accounted for as an
addition to additional paid-in capital rather than as a reduction of the provision for income taxes. In addition, at March 31,
2009, the Company had research and development credit carryforwards for federal and state tax reporting purposes of
approximately $3.4 million and $2.8 million, respectively. The federal credit carryforwards will expire at various dates
beginning in 2010 and continuing through 2029, while the California credits will carry forward indefinitely. Under applicable
tax laws, the amount of and benefits from net operating losses and credits that can be carried forward may be impaired or
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