Support.com 2011 Annual Report Download - page 31

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
 General and administrative expense consists primarily of compensation costs and related overhead costs for
administrative personnel and professional fees for legal, accounting and other professional services. The increase of $1.0 million in general and
administrative expense for the year ended December 31, 2011 compared to 2010 resulted from an increase in acquisition-related costs of $543,000 and
an increase in stock-based compensation expense of $212,000. The decrease of $3.2 million in general and administrative expense for the year ended
December 31, 2010 compared to 2009 result from a decrease in salary and related expenses of $300,000, a decrease in professional services of
$870,000, a decrease in office related expense of $210,000 and a decrease in restructuring expense of $1.1 million associated with the sale of our
Enterprise business in 2009. In 2012, we expect general and administrative spending to increase modestly in order to support our growing business.
 Restructuring and impairment charges consist of charges related to reductions in our work force and
related facilities costs. For the year ended December 31, 2011, we recorded restructuring and impairment charges of $470,000 including $92,000 for
cost of service, $310,000 for sales and marketing and $68,000 for general and administrative. There were no restructuring and impairment charges
recorded in 2010. For the year ended December 31, 2009, we recorded restructuring charges of $1.7 million including $62,000 for cost of service,
$196,000 for research and development, $295,000 for sales and marketing and $1.1 million for general and administrative. We expect to pay the
remaining balance of $210,000 through 2012. The details of our restructuring charges are presented in Note 7 to the Consolidated Financial
Statements.
Amortization of intangible assets
   

  

  
Amortization of intangible assets $ 866 138% $ 364 106% $ 177
 Amortization of intangible assets in 2011, 2010 and 2009 was $866,000, $364,000 and $177,000,
respectively. The increase in amortization of intangible assets in 2011 was due to the acquisition of SUPERAntiSpyware in 2011. The increase in
amortization of intangible assets in 2010 was due to the full-year amortization of intangible assets acquired from Xeriton Corporation in December
2009.
Interest income and other, net
   

    

  
Interest income and other, net $ 455 (16)% $ 540 26% $ 428
 Interest and other income consist primarily of interest income on our cash, cash equivalents and
investments. The decrease in interest income and other, net from 2010 to 2011 was primarily due to lower cash, cash equivalents and investment in
2011 compared to 2010. The increase in interest income and other, net in 2010 as compared to 2009 was a result of realized foreign currency losses
of $189,000 related to the Enterprise business in the first quarter of 2009 that did not recur in 2010.
Income tax provision (benefit)
       
Income tax provision (benefit) $ 401 $ 88 $ (4,941)
 Generally, the amount of tax expense or benefit allocated to continuing operations is determined without regard
to the tax effects of other categories of income or loss, such as income from discontinued operations. However, an exception is provided in ASC 740,
, when there is a pre-tax loss from continuing operations and pre-tax income from other categories in the current year. As a result, the
Company recorded a tax expense of $401,000 in continuing operations primarily related to India income tax, deferred tax expenses of goodwill
amortization, and state income taxes with an offsetting tax benefit of $133,000 in discontinued operations during the current year. For the period
ended December 31, 2010, the income tax provision of $88,000 was primarily comprised of a gain on sale of the Company’s Enterprise business
offset by $31,000 benefit of discontinued operations. For the period ended December 31, 2009, the income tax benefit of $4.9 million was primarily
comprised of the utilization of continuing operations tax attributes offset by the tax on the gain on sale from discontinued operations.
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