8x8 2012 Annual Report Download - page 37

INTEREST INCOME (LOSS) AND OTHER, NET
2012 2011 2010
Interest income (loss) and other, ne
t
$ (305) $ 138 $ 53 $ (443) -321.0% $ 85 160.4%
Percentage of total revenue -0.4% 0.2% 0.1%
Year-over-Year ChangeYears Ended March 31,
2011 to 2012
(dollar amounts in thousands)
2010 to 2011
Our interest income (loss) and other, net, primarily consists of an impairment charge to write down the strategic investment in
Stonyfish, Inc. and interest and investment income earned on our cash, cash equivalents and investment balances. This item
primarily consisted of capital gains distribution and interest income in fiscal 2011 and 2010.
The decrease in other income (loss) for fiscal 2012 from fiscal 2011 consists primarily of the impairment charge due to the
write down of our strategic investment of $0.4 million offset by capital gain distributions earned on our mutual funds and
interest income earned on our cash, cash equivalents and investment balances of $0.1 million.
The increase in other income for fiscal 2011 from fiscal 2010 consists primarily of an increase in capital gain distributions due
on mutual funds purchased in the third quarter of fiscal 2011.
INCOME (LOSS) ON CHANGE IN FAIR VALUE OF WARRANT LIABILITY
2012 2011 2010
Income (loss) on change in fair
value of warrant liability $ - $ 167 $ (146) $ (167) -100.0% $ 313 -214.4%
Percentage of total revenue 0.0% 0.2% -0.2%
2011 to 2012
Years Ended March 31, Year-over-Year Change
(dollar amounts in thousands)
2010 to 2011
In connection with the sale of shares of our common stock in fiscal 2005 and 2006, we issued warrants in three different equity
financings. The change in income on change in fair value of the warrant liability for fiscal 2012 compared to fiscal 2011 is due
to the partial exercise and expiration of all remaining warrants in the third quarter of fiscal 2011.
The change in income on change in fair value of the warrant liability for fiscal 2011 compared to fiscal 2010 is due to the
partial exercise and expiration of all remaining warrants in the third quarter of fiscal 2011.
PROVISION (BENEFIT) FOR INCOME TAXES
2012 2011 2010
Provision (benefit) for income taxe
s
$ (62,354) $55 $ 3 $ (62,409) -113470.9% $ 52 1733.3%
Percentage of total revenue -72.7% 0.1% 0.0%
2011 to 2012 2010 to 2011
Year-over-Year Change
(dollar amounts in thousands)
Years Ended March 31,
We recorded an income tax benefit of $62.4 million in fiscal 2012, primarily related to the release of $62.1 million of our
valuation allowance in the fourth quarter of fiscal 2012 and the release of $0.4 million of our valuation allowance due to the
acquisition of Zerigo in the first fiscal quarter of 2012 partially offset by $0.1 million of state income tax expense. As of March
31, 2011, we provided a full valuation allowance related to our net deferred tax assets as we believed the objective and
verifiable evidence of our historical pre-tax net losses outweighed the existing positive evidence regarding our ability to realize
our deferred tax assets. During the fourth quarter of fiscal 2012, we reassessed the need for a valuation allowance against our
net deferred tax assets and concluded that it was more likely than not that we would be able to realize our deferred tax assets
primarily as a result of continued profitability and forecasted future results. Accordingly, in the fourth quarter of fiscal 2012,
we released a portion of our valuation allowance related to our net deferred tax assets. As a result of the release of a portion of
our valuation allowance, we expect our tax rate will increase in the future. However, we intend to use our net operating loss
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