Stamps.com 2007 Annual Report Download - page 56

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TABLE OF CONTENTS
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
10. Employee Stock Plans – (continued)
Upon adoption of the plan, 150,000 shares of common stock were reserved for issuance. This reserve automatically increases
on the first trading day in January each year, beginning in calendar year 2000, by an amount equal to 1% of the total number of
outstanding shares of our common stock on the last trading day in December in the prior year. In no event will any annual
increase exceed 260,786 shares.
Total shares of common stock issued pursuant to the ESPP during 2007, 2006 and 2005 were approximately 43,000, 56,000
and 43,000, respectively.
Savings Plan
During 1999, we implemented a savings plan for all eligible employees, which qualifies under Section 401(k) of the Internal
Revenue Code. Participating employees may contribute up to 15% of their pretax salary, but not more than statutory limits. We
match 50% of the first 4% a participant contributes. We expensed approximately $200,000, $187,000 and $150,000 in 2007,
2006 and 2005, respectively, related to this plan.
15. Legal Proceedings
In addition to the legal proceedings described in Item 3 of our 2007 Annual Report on form 10-K, we are a party to various
other legal actions, claims and proceedings incidental to our business. Litigation is uncertain, and the outcome of individual
cases is not predictable with any assurance. We have established loss provisions only for matters in which losses are probable
and can be reasonably estimated. Some of the matters pending against us involve potential compensatory, punitive or treble
damage claims, or sanctions, that if granted, could require us to pay damages or make other expenditures in amounts that could
have a material adverse effect on our financial position or results of operations. At this time we have not reached a determination
that any of our litigation proceedings are expected to result in liabilities that will have a material adverse effect on our financial
position, cash flows, or results of operations.
F-55
TABLE OF CONTENTS
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
16. Quarterly Information (Unaudited)
Quarter Ended
March
June
September
December
(In Thousands Except per Share Data)
Fiscal Year 2007:
Revenues
$
20,022
$
21,407
$
20,284
$
24,098
Gross profit
14,656
14,962
14,565
16,322
Income from operations
1,933
1,741
1,434
1,484
Net income
3,054
2,800
2,446
2,366
Net income per share:
Basic
$
0.14
$
0.13
$
0.12
$
0.12
Diluted
$
0.14
$
0.13
$
0.12
$
0.12