Support.com 2008 Annual Report Download - page 64

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Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
36 months. The sales commissions are paid in the month following the time an order is consummated or when customer payment is received. The deferred
commission amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. Commissions payments made to sales
personnel are non-refundable unless amounts due from a customer are determined to be uncollectible in which case commissions paid are generally recoverable
by the Company.
Advertising Costs
Advertising costs are recorded as sales and marketing expense in the period in which they are incurred. Advertising expense was $2.0 million, $3.4
million, and $725,000 for the years ended December 31, 2008, 2007, and 2006, respectively.
Net Loss Per Share
Basic net loss per share is computed using the Company’s net loss and the weighted average number of common shares outstanding during the reporting
period. Diluted net loss per share is computed using the Company’s net loss and the weighted average number of common shares outstanding, including the
effect from the potential issuance of common stock such as stock issuable pursuant to the exercise of stock options using the treasury stock method when
dilutive.
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):
Year Ended December 31,
2008 2007 2006
Net loss $ (19,106) $ (21,369) $ (8,235)
Basic:
Weighted-average shares of common stock outstanding 46,098 45,610 44,113
Shares used in computing basic net income per share 46,098 45,610 44,113
Basic net loss per share $ (0.41) $ (0.47) $ (0.19)
Diluted:
Weighted-average shares of common stock outstanding 46,098 45,610 44,113
Add: Common equivalent shares outstanding — — —
Shares used in computing diluted net income per share 46,098 45,610 44,113
Diluted net loss per share $ (0.41) $ (0.47) $ (0.19)
For the years ended December 31, 2008, 2007 and 2006, 12.7 million, 7.7 million and 9.3 million outstanding options were excluded from the computation
of diluted net loss per share since their effect would have been anti-dilutive.
Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss relate entirely to accumulated foreign currency translation losses and unrealized losses on
investments. Accumulated currency translation losses, net of tax effects, were $962,000 and $793,000 as of December 31, 2008 and 2007, respectively, and
accumulated unrealized gains (losses) on investments, net of tax effect, were ($1.6) million and $21,000 as of December 31, 2008 and 2007, respectively.
61
Source: SUPPORTSOFT INC, 10-K, March 11, 2009