Netgear 2006 Annual Report Download - page 49

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Table of Contents
NETGEAR, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
The accompanying notes are an integral part of these consolidated financial statements.
45
Year Ended December 31,
2004
2005
2006
(In thousands)
Cash flows from operating activities:
Net income
$
23,465
$
33,623
$
41,132
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
2,593
3,069
7,078
Amortization (accretion) of investment purchase premiums (discounts)
210
(1,373
)
(1,835
)
Non
-
cash stock
-
based compensation
1,688
1,064
4,505
Income tax benefit associated with stock option exercises
11,773
7,101
4,163
Excess tax benefit from stock
-
based compensation
—
—
(
3,806
)
Deferred income taxes
(2,419
)
(356
)
(3,252
)
Changes in assets and liabilities, net of effect of acquisition:
Accounts receivable
(8,037
)
(22,066
)
(15,332
)
Inventories
(14,291
)
1,684
(26,059
)
Prepaid expenses and other current assets
(2,492
)
(1,358
)
(6,582
)
Accounts payable
21,850
(13,830
)
906
Accrued employee compensation
1,663
2,209
4,060
Other accrued liabilities
19,667
15,313
9,497
Deferred revenue
(237
)
2,160
3,911
Income taxes payable
1,894
(604
)
4,682
Net cash provided by operating activities
57,327
26,636
23,068
Cash flows from investing activities:
Purchases of short
-
term investments
(451,287
)
(124,471
)
(173,191
)
Proceeds from maturities of short
-
term investments
420,494
117,873
149,036
Purchase of property and equipment
(2,546
)
(4,193
)
(5,918
)
Payments made in connection with business acquisition
—
—
(
7,600
)
Net cash used in investing activities
(33,339
)
(10,791
)
(37,673
)
Cash flows from financing activities:
Proceeds from exercise of stock options
12,968
8,103
7,433
Proceeds from issuance of common stock under employee stock purchase
plan
381
1,002
1,100
Excess tax benefit from stock
-
based compensation
—
—
3,806
Net cash provided by financing activities
13,349
9,105
12,339
Net increase (decrease) in cash and cash equivalents
37,337
24,950
(2,266
)
Cash and cash equivalents, at beginning of period
27,715
65,052
90,002
Cash and cash equivalents, at end of period
$
65,052
$
90,002
$
87,736
Supplemental cash flow information:
Cash paid for income taxes
$
3,297
$
14,728
$
22,284