Shutterfly 2009 Annual Report Download - page 58

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Net income increased by $4.3 million, or 74%, for 2007 as compared to 2006. As a percentage of net revenue, net income was flat at 5% in
both 2007 and 2006. Overall, our net income growth in absolute dollars is attributable to our revenue growth year-over-
year; with all other
income statement items increasing in-proportion to net revenue increases.
Liquidity and Capital Resources
We anticipate that our current cash and cash equivalents balances, cash generated from operations, and our line of credit will be sufficient
to meet our working capital requirements, capital lease obligations, expansion plans and technology development projects for at least the
next twelve months. Whether these resources are adequate to meet our liquidity needs beyond that period will depend on our growth, operating
results and the capital expenditures required to meet possible increased demand for our products. If we require additional capital resources to
grow our business internally or to acquire complementary technologies and businesses at any time in the future, we may seek to sell additional
debt or equity. The sale of additional equity could result in additional dilution to our stockholders. Financing arrangements may not be available
to us, or may not be in amounts or on terms acceptable to us.
Year Ended December 31,
2007
2006
$ Change
% Change
(In thousands)
Income before income taxes
$16,397
$9,740
$ 6,657
68%
Net income
$10,095
$5,798
$ 4,297
74%
Percentage of net revenues
5%
5%
—
—
Year Ended December 31,
2008
2007
2006
(In thousands)
Consolidated Statement of Cash Flows Data:
Purchases of property and equipment
$
18,220
$
31,881
19,330
Capitalization of software and website development costs
4,527
3,112
1,351
Acquisition of business and intangibles, net of cash acquired
10,097
2,858
—
Depreciation and amortization
26,038
17,796
10,747
Cash flows from operating activities
47,040
42,192
23,485
Cash flows from investing activities
(82,086
)
(40,823
)
(20,681
)
Cash flows from financing activities
628
2,162
77,094
56