8x8 2015 Annual Report Download - page 50

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Net cash used in investing activities was $12.2 million in fiscal 2015, compared with $136.5 million used in investing activities in fiscal 2014.
The decrease in cash used in investing activities during fiscal 2015 was primarily related to the purchase of investments ($106.0 million) and the
acquisition of property and equipment ($5.8 million). The increase in cash used in investing activities during fiscal 2015 was partially offset by
the sale and maturities of investments in fiscal 2015 ($100.3 million).
Net cash used in financing activities was $14.9 million in fiscal 2015, compared with $130.5 million provided by financing activities in fiscal
2014. Our financing activities for fiscal 2015 provided cash of $4.5 million due to issuance of common stock under our employee stock purchase
plan and the issuance of shares related to the exercise of options, which was offset by approximately $19.2 million used in stock repurchase
programs.
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 deferred income tax, 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) and proceeds from disposition of discontinued operations, net of transaction costs ($3.0 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.
Contractual Obligations
Future operating lease payments, capital lease payments and purchase obligations at March 31, 2015 for the next five years were as follows (in
thousands):
We lease our headquarters facility in San Jose, California under an operating lease agreement that expires in October 2019. The lease is an
industrial net lease with monthly base rent of $130,821 for the first 15 months with a 3% increase each year thereafter, and requires us to pay
property taxes, utilities and normal maintenance costs.
45
Year Ending March 31,
2016
2017
2018
2019
2020
Thereafter
Total
Capital leases
$
25
$
-
$
-
$
-
$
-
$
-
$
25
Office leases
1,913
1,977
1,872
1,926
1,100
-
8,788
Purchase obligations
Third party customer support provider
2,158
-
-
-
-
-
2,158
Third party network service providers
3,014
2,452
891
-
-
-
6,357
Open purchase orders
48
-
-
-
-
-
48
$
7,158
$
4,429
$
2,763
$
1,926
$
1,100
$
-
$
17,376