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March 31 June 30 September 30 December 31
Quarter Ended
As Restated(1) As Restated(1) As Restated(1) As Restated(1)
(In thousands, except per share data)
2005
Revenue .............................. $54,529 $51,143 $53,179 $61,557
Income from operations .................. 17,661 14,489 15,460 18,810
Net income............................ 15,905 10,178 12,313 18,116
Net income per share — basic .............. $ 0.47 $ 0.30 $ 0.35 $ 0.52
Net income per share — diluted ............ $ 0.39 $ 0.26 $ 0.31 $ 0.45
(1) See Note 2, “Restatement of Consolidated Financial Statements,” and Note 13, “Selected Quarterly
2005
As Previously
Reported Adjustments As Restated(1)
As Previously
Reported Adjustments As Restated(1)
March 31 June 30
Quarter Ended
Statement of Operations Data:
Revenue. . .................. $54,529 $ — $54,529 $51,143 $ — $51,143
Costs and expenses
Direct cost of services . ........ 1,301 16 1,317 1,187 15 1,202
Network and infrastructure . . . . . . 4,479 2 4,481 4,738 1 4,739
Sales and marketing . . ........ 16,376 61 16,437 15,740 23 15,763
Product research and
development . ............. 4,458 39 4,497 5,127 35 5,162
General and administrative . . . . . . 5,615 3 5,618 5,301 2 5,303
Depreciation and amortization . . . . 2,122 — 2,122 2,375 — 2,375
Amortization of acquisition related
intangibles . . ............. 2,396 — 2,396 2,110 — 2,110
Total costs and expenses ....... 36,747 121 36,868 36,578 76 36,654
Income (loss) from operations . . . . . 17,782 (121) 17,661 14,565 (76) 14,489
Other income, net ............. 1,155 — 1,155 891 — 891
Income (loss) before income tax
expense .................. 18,937 (121) 18,816 15,456 (76) 15,380
Income tax expense ............ 4,900 (1,989) 2,911 5,230 (28) 5,202
Net income (loss) ............. $14,037 $ 1,868 $15,905 $10,226 $ (48) $10,178
Net income (loss) per share —
basic . . .................. $ 0.41 $ 0.06 $ 0.47 $ 0.30 $ — $ 0.30
Net income (loss) per share —
diluted . .................. $ 0.35 $ 0.04 $ 0.39 $ 0.26 $ — $ 0.26
Shares used in per-share
calculation — basic . . . ........ 33,932 33,932 33,932 34,176 34,176 34,176
Shares used in per-share
calculation — diluted . . ........ 41,454 41,454 41,454 41,154 41,154 41,154
(1) See Note 2, “Restatement of Consolidated Financial Statements,” in Notes to Consolidated Financial
Statements.
101
DIGITAL RIVER, INC.
Notes to Consolidated Financial Statements — (Continued)