Support.com 2008 Annual Report Download - page 43

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Table of Contents
Restructuring and impairment charges. For the years ended December 31, 2008, 2007 and 2006, we recorded restructuring charges of $1.9 million, $1.2
million and $817,000, respectively. Such charges related to reductions in our work force and related facilities costs. Restructuring charges are reflected in the
applicable cost of revenue or operating expense line items in the Consolidated Statement of Operations, the detail of which is presented in Note 7 to the
Consolidated Financial Statements. We recorded approximately $900,000 of such charges in the first quarter of 2009. We expect to pay approximately $1.5
million of our accrued restructuring liabilities in the first quarter of 2009.
Interest income and other, net
($ in thousands)
2008
% Change
2007 to 2008 2007
% Change
2006 to 2005 2006
Interest income and other, net $ 2,506 (62)% $ 6,526 2% $ 6,383
Interest income and other, net. Interest and other income consist primarily of interest income. Interest income and other, net was $2.5 million for the year
ended December 31, 2008, $6.5 million for the year ended December 31, 2007, and $6.4 million for the year ended December 31, 2006. The decrease in interest
earned during fiscal 2008, compared to fiscal 2007, was due primarily to lower interest rates on our cash invested in money market funds and our lower cash and
investment balances. Higher interest rates and higher cash and investment balances resulted higher interest income on our invested cash and marketable securities
in fiscal 2007 and fiscal 2006.
Provision for income taxes
($ in thousands)
2008 2007 2006
Loss before income taxes $ (18,567) $ (20,698) $ (7,748)
Provision for income taxes (539) (671) (487)
Net Loss $ (19,106) $ (21,369) $ (8,235)
Provision for income taxes. The provisions for income taxes are comprised of estimates of current and deferred taxes due in foreign jurisdictions and
payments of foreign withholding taxes. The 2008, 2007 and 2006 tax provisions varied from our expected tax provision at the U.S. federal statutory rate
primarily due to our inability to use certain net operating losses. The decrease in the provision for income taxes in 2008 from 2007 is due to decreased foreign
income in certain jurisdictions resulting in a reduced tax provision in these locations as well as certain benefits from refundable credits in the US.
Liquidity and Capital Resources
Total cash, cash equivalents, investments and the auction-rate security put option at December 31, 2008 was $95.0 million. This was a $17.9 million
reduction from the balance of $112.9 million at December 31, 2007. As of December 31, 2008, the aggregate value of the auction-rate securities and auction-rate
security put option was $22.9 million, which was approximately 19% of total assets.
Operating Activities
Net cash used in operating activities was $12.3 million for the year ended December 31, 2008, $10.4 million for the year ended December 31, 2007, and
$3.1 million for the year ended December 31, 2006. Amounts included in net loss, which do not require the use of cash, primarily include the depreciation of
fixed assets,
40
Source: SUPPORTSOFT INC, 10-K, March 11, 2009