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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 31, 2008, 2007 and 2006 and the selected
consolidated balance sheet data as of December 31, 2008 and 2007 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, 2005 and 2004 and the
selected consolidated balance sheet data as of December 31, 2006, 2005 and 2004 from our audited consolidated financial statements, which are
not included in this Form 10-K. Historical results are not necessarily indicative of results to be expected for future periods.
31
Item 6.
Selected Consolidated Financial Data
Year Ended December 31,
2008
2007
2006
2005
2004
(In thousands, except per share data)
Consolidated Statement of Operations Data:
Net revenue
$
743,344
$
727,787
$
573,570
$
449,610
$
383,139
Cost of revenue(2)
502,320
485,180
379,911
297,911
260,318
Gross profit
241,024
242,607
193,659
151,699
122,821
Operating expenses:
Research and development(2)
33,773
28,070
18,443
12,837
10,316
Sales and marketing(2)
121,687
117,938
91,881
71,345
62,247
General and administrative(2)
31,733
27,220
20,905
14,559
14,905
Restructuring
1,929
—
—
—
—
In
-
process research and development
1,800
4,100
2,900
—
—
Litigation reserves, net
711
167
—
802
—
Total operating expenses
191,633
177,495
134,129
99,543
87,468
Income from operations
49,391
65,112
59,530
52,156
35,353
Interest income, net
4,336
8,426
6,974
4,104
1,593
Other income (expense), net
(8,384
)
3,298
2,495
(1,770
)
(560
)
Income before income taxes
45,343
76,836
68,999
54,490
36,386
Provision for income taxes
27,293
30,882
27,867
20,867
12,921
Net income
$
18,050
$
45,954
$
41,132
$
33,623
$
23,465
Net income per share:
Basic(1)
$
0.51
$
1.32
$
1.23
$
1.04
$
0.77
Diluted(1)
$
0.51
$
1.28
$
1.19
$
0.99
$
0.72
(1)
Information regarding calculation of per share data is described in Note 5 of the Notes to Consolidated Financial Statements.
(2)
Stock
-
based compensation expense was allocated as follows:
Cost of revenue
$
864
$
633
$
430
$
147
$
163
Research and development
3,218
2,391
1,119
293
400
Sales and marketing
3,406
3,013
1,405
375
733
General and administrative
3,835
2,842
1,551
249
391