Earthlink 2008 Annual Report Download - page 264

HELIO, INC. and HELIO LLC
COMBINED STATEMENTS OF OPERATIONS
(In thousands)
The accompanying notes are an integral part of these combined financial statements.
4
Period of Inception
(January 27, 2005) to
December 31,
2005
Year ended
December 31,
2006
Year ended
December 31,
2007
Revenue:
Service revenue
$
13,154
$
32,030
$
115,334
Equipment sales and other revenue
3,211
14,550
55,654
Total revenue
16,365
46,580
170,988
Cost of sales:
Cost of services
9,512
27,903
70,907
Cost of equipment sales
8,474
33,401
96,673
Total cost of sales
17,986
61,304
167,580
Gross (loss) margin
(1,621
)
(14,724
)
3,408
Operating expenses:
Operations and member service
14,283
69,788
99,105
Sales and marketing
8,686
77,319
159,193
General and administrative
21,025
37,466
65,697
Stock compensation
43
1,969
2,065
Impairment charge on intangible assets
—
—
3,131
Restructuring charges
—
—
2,413
Total operating expenses
44,037
186,542
331,604
Operating loss before other expense/income
(45,658
)
(201,266
)
(328,196
)
Other (expense)/income:
Interest expense
—
—
(
3,127
)
Interest income and other
3,635
9,511
4,761
Loss before provision for income taxes
(42,023
)
(191,755
)
(326,562
)
Provision for income taxes
—
—
—
Net loss
$
(42,023
)
$
(191,755
)
$
(326,562
)