Support.com 2008 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2008 Support.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Organization and Summary of Significant Accounting Policies
Nature of Operations
SupportSoft, Inc. (“SupportSoft,” “the Company,” “We” or “Our”), was incorporated in the state of Delaware on December 3, 1997. SupportSoft provides
software and services designed to make technology work. Our Consumer segment is a technology-enabled services business that was launched in 2007 to provide
consumers with assistance in resolving technology problems. Our Enterprise segment consists of our traditional business in which we license technical support
software to digital service providers (telecommunications and cable companies) and corporate IT departments and IT outsourcers.
Our headquarters is located in Redwood City, California We have international operations in several countries.
Basis of Presentation
The Consolidated Financial Statements include the accounts of SupportSoft and its wholly owned subsidiaries. All significant intercompany transactions
and balances have been eliminated.
Foreign Currency Translation
The functional currency of the Company’s foreign subsidiaries is generally the local currency. Assets and liabilities of SupportSoft’s wholly owned foreign
subsidiaries are translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenues and expenses are
translated at average exchange rates prevailing during the year. Any material resulting translation adjustments are reflected as a separate component of
stockholders’ equity in accumulated other comprehensive income or loss. Realized foreign currency transaction gains and losses were not material during the
years ending December 31, 2008, 2007, and 2006.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. The accounting estimates that
require management’s most significant, difficult and subjective judgments include the valuation and recognition of investments, the valuations of the revenue and
accounts receivable, the assessment of recoverability of intangible assets and their estimated useful lives, the valuations and recognition of stock-based
compensation and the recognition and measurement of current and deferred income tax assets and liabilities. Actual results could differ materially from these
estimates.
Reclassifications
Certain amounts in the Consolidated Financial Statements and Notes to Consolidated Financial Statements for prior years have been reclassified to
conform to current year’s presentation. Specifically, Consumer revenue has been reclassified from services revenue along with the corresponding costs of
Consumer revenue. Net operating results have not been affected by these reclassifications.
Concentrations of Credit Risk
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents, investments and trade accounts
receivable. Our investment portfolio consists of investment grade
52
Source: SUPPORTSOFT INC, 10-K, March 11, 2009