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Table of Contents
The following selected consolidated financial data are qualified in their entirety, and should be read in
conjunction with, the consolidated financial statements and related notes thereto, and “Management’
s Discussion and
Analysis of Financial Condition and Results of Operations” included elsewhere in this Form 10-K.
We derived the selected consolidated statement of operations data for the years ended December 2004, 2005,
and 2006 and the selected consolidated balance sheet data as of December 31, 2005 and 2006 from our audited
consolidated financial statements appearing elsewhere in this Form 10-K. We derived the selected consolidated
statement of operations data for the years ended December 31, 2002 and 2003 and the selected consolidated balance
sheet data as of December 31, 2002, 2003 and 2004 from our audited consolidated financial statements, which are
not included in this Form 10-K.
24
Item 6.
Selected Consolidated Financial Data
Year Ended December 31,
2002
2003
2004
2005
2006
(In thousands, except per share data)
Consolidated Statement of Operations Data:
Net revenue
$
237,331
$
299,302
$
383,139
$
449,610
$
573,570
Cost of revenue(2)
177,116
215,460
260,318
297,911
379,911
Gross profit
60,215
83,842
122,821
151,699
193,659
Operating expenses:
Research and development(2)
7,665
8,674
10,316
12,837
18,443
Sales and marketing(2)
32,968
49,678
62,247
71,345
91,881
General and administrative(2)
8,970
9,453
14,905
14,559
20,905
In
-
process research and development
—
—
—
—
2,900
Litigation reserves
—
—
—
802
—
Total operating expenses
49,603
67,805
87,468
99,543
134,129
Income from operations
10,612
16,037
35,353
52,156
59,530
Interest income
119
364
1,593
4,104
6,974
Interest expense
(1,240
)
(901
)
—
—
—
Extinguishment of debt
—
(
5,868
)
—
—
—
Other income (expense)
(19
)
(59
)
(560
)
(1,770
)
2,495
Income before taxes
9,472
9,573
36,386
54,490
68,999
Provision for (benefit from) income taxes
1,333
(3,524
)
12,921
20,867
27,867
Net income
8,139
13,097
23,465
33,623
41,132
Deemed dividend on preferred stock
(17,881
)
—
—
—
—
Net income (loss) attributable to common
stockholders
$
(9,742
)
$
13,097
$
23,465
$
33,623
$
41,132
Net income (loss) per share attributable to common
stockholders:
Basic(1)
$
(0.46
)
$
0.55
$
0.77
$
1.04
$
1.23
Diluted(1)
$
(0.46
)
$
0.49
$
0.72
$
0.99
$
1.19
(1)
Information regarding calculation of per share data is described in Note 4 of the Notes to Consolidated
Financial Statements.