8x8 2013 Annual Report Download - page 40

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At March 31, 2013 and 2012, we had net deferred tax assets before valuation allowances of approximately $55.6 million and
$63.8 million, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2013, we had $52.3 million of cash and cash equivalents and investments. By comparison, at March 31, 2012,
we had $24.4 million in cash and cash equivalents. We currently have no borrowing arrangements. We believe we have
sufficient liquidity to fund operations for the foreseeable future. In addition, we have a shelf registration statement that would
allow us to raise up to $250 million from the sale of new securities of ours. Please refer to Part I, Item 1A, Risk Factors “We
may need to raise additional capital to support our future operations.”
2013 to 2012
Net cash provided by operating activities for fiscal 2013 was $31.8 million, compared with $9.2 million provided by operating
activities for fiscal 2012. The increase in cash provided by operating activities was primarily due to the sale of patent under our
patent purchase agreement ($13.0 million) and use of our deferred tax assets to reduce our cash taxes due ($9.3 million). Cash
provided by operating activities has historically been affected by:
the amount of net income;
sales of subscriptions;
changes in working capital accounts, particularly in deferred revenue due to timing of annual plan renewals;
add-backs of non-cash expense items such as depreciation and amortization; and
the expense associated with stock-based awards.
Net cash used in investing activities was $5.9 million in fiscal 2013, compared with $3.0 million used in investing activities in
fiscal 2012. The increase in cash used in investing activities during fiscal 2013 is primarily related to the purchase of
additional equipment and leasehold improvements related to our new facility ($3.4 million) offset by a reduction in cash used
to purchase businesses in fiscal 2012 ($0.7 million).
Net cash provided by financing activities was $2.0 million in fiscal 2013, compared with net cash used of $0.3 million in
financing activities in fiscal 2012. Our financing activities for fiscal 2013 provided cash of $2.5 million due to issuance of
common stock under our employee stock purchase plan and the issuance of shares related to the exercise of options. The cash
provided by financing activities in fiscal 2013 was partially offset by $0.5 million due to repurchase of restricted shares and
payment of capital leases.
2012 to 2011
Net cash provided by operating activities for fiscal 2012 was $9.2 million, compared with $8.6 million provided by operating
activities for fiscal 2011. Cash used in or provided by operating activities has historically been affected by:
the amount of net income;
sales of subscriptions;
changes in working capital accounts, particularly in deferred revenue due to timing of annual plan renewals;
add-backs of non-cash expense items such as depreciation and amortization; and
the expense associated with stock options and stock-based awards.
Net cash used in investing activities was $3.0 million in fiscal 2012, compared with $5.4 million used in investing activities in
fiscal 2011. The decrease in cash used in investing activities during fiscal 2012 was primarily related to the purchase of
investments in December 2010 ($2.0 million), the acquisition of a strategic investment in Stonyfish in April 2010 ($0.3
million) and a net decrease in cash used in the acquisition of businesses ($0.3 million). The decrease in cash used in investing
activities during fiscal 2012 was partially offset by an increase in the cash used to purchase equipment in fiscal 2012 ($0.2
million).