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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, 2010, 2009 and 2008 and the selected
consolidated balance sheet data as of December 31, 2010 and 2009 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, 2007 and 2006 and the
selected consolidated balance sheet data as of December 31, 2008, 2007 and 2006 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.
36
Item 6.
Selected Consolidated Financial Data
Year Ended December 31,
2010
2009
2008
2007
2006
(In thousands, except per share data)
Consolidated Statement of Operations Data:
Net revenue
$
902,052
686,595
743,344
727,787
573,570
Cost of revenue(2)
602,805
480,195
502,320
485,180
379,911
Gross profit
299,247
206,400
241,024
242,607
193,659
Operating expenses:
Research and development(2)
39,972
30,056
33,773
28,070
18,443
Sales and marketing(2)
131,570
106,162
121,687
117,938
91,881
General and administrative(2)
36,220
32,727
31,733
27,220
20,905
Restructuring
(88
)
809
1,929
—
—
In
-
process research and development
—
—
1,800
4,100
2,900
Technology license arrangements
—
2,500
—
—
—
Litigation reserves, net
211
2,080
711
167
—
Total operating expenses
207,885
174,334
191,633
177,495
134,129
Income from operations
91,362
32,066
49,391
65,112
59,530
Interest income, net
426
629
4,336
8,426
6,974
Other income (expense), net
(564
)
(128
)
(8,384
)
3,298
2,495
Income before income taxes
91,224
32,567
45,343
76,836
68,999
Provision for income taxes
40,315
23,234
27,293
30,882
27,867
Net income
$
50,909
9,333
18,050
45,954
41,132
Net income per share:
Basic(1)
$
1.44
0.27
0.51
1.32
1.23
Diluted(1)
$
1.41
0.27
0.51
1.28
1.19
(1)
Information regarding calculation of per share data is described in Note 6 of the Notes to Consolidated Financial Statements.
(2)
Stock
-
based compensation expense was allocated as follows:
Cost of revenue
913
$
959
$
864
633
430
Research and development
2,271
1,973
3,218
2,391
1,119
Sales and marketing
4,710
4,147
3,406
3,013
1,405
General and administrative
4,307
3,945
3,835
2,842
1,551