8x8 2014 Annual Report Download - page 45

GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS, NET OF INCOME TAXES
For the year ended March 31, 2014, we recorded a gain on disposal of our dedicated server hosting business of $1.1 million, net of a tax
provision of $0.5 million.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2014, we had $178.4 million of cash and cash equivalents and investments. By comparison, at March 31, 2013, we had $52.3
million in cash and cash equivalents and investments. 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 an additional
$123.7 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."
2014 to 2013
Net cash provided by operating activities for fiscal 2014 was $14.9 million, compared with $31.8 million provided by operating activities for
fiscal 2013. Cash used in or provided by operating activities has historically been affected by:
4 the amount of net income;
4 sales of subscriptions;
4 changes in working capital accounts, particularly in deferred revenue due to timing of annual plan renewals;
4 add-backs of non-cash expense items such as depreciation and amortization; and
4 the expense associated with stock options and stock-based awards.
Net cash used in investing activities was $136.5 million in fiscal 2014, compared with $5.9 million used in investing activities in fiscal 2013.
The increase in cash used in investing activities during fiscal 2014 was primarily related to the purchase of investments ($141.6 million) and the
acquisition of a business ($18.5 million). The increase in cash used in investing activities during fiscal 2014 was partially offset by the sale of
investments in fiscal 2014 ($24.2 million).
Net cash provided by financing activities was $130.5 million in fiscal 2014, compared with $2.0 million in financing activities in fiscal 2013.
Our financing activities for fiscal 2014 provided cash of approximately $125.8 million, net of issuance costs of $0.6 million, related to
underwritten registered offering of common stock in which we sold 14,375,000 shares and $5.2 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
2014 was partially offset by $0.5 million due to repurchase of restricted shares and payment of capital leases.
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:
4 the amount of net income;
4 sales of subscriptions;
4 changes in working capital accounts, particularly in deferred revenue due to timing of annual plan renewals;
4 add-backs of non-cash expense items such as depreciation and amortization; and
4 the expense associated with stock-based awards.
41
Years Ended March 31,
Year
-
over
-
Year Change
2014
2013
2012
2013 to 2014
2012 to 2013
(dollar amounts in thousands)
Gain on disposal of discontinued operations,
net of income tax provision
$
596
$
-
$
-
$
596
N/A
$
-
N/A
Percentage of total revenue
0.5%
0.0%
0.0%