Support.com 2011 Annual Report Download - page 32

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Total cash, cash equivalents and investments at December 31, 2011 and 2010 were $53.0 million and $74.2 million, respectively. The decrease
in cash, cash equivalents and investments in fiscal year 2011 was primarily due to $11.1 million of cash used in operating activities and acquisition of
a business of $8.4 million.

Net cash used in operating activities was $11.1 million for the year ended December 31, 2011, $13.4 million for the year ended December 31,
2010, and $24.0 million for the year ended December 31, 2009. Amounts included in net loss, which do not require the use of cash, primarily include
stock-based compensation expenses, realized gain/loss on our ARS and corresponding gain/loss on the ARS put option. The sum of these items
totaled $6.9 million, $5.2 million, and $5.2 million in 2011, 2010 and 2009, respectively. Net cash used in operating activities during 2011 was the
result of the net loss of $18.6 million, an increase in accounts receivable, net of $5.1 million, partially offset by non-cash items of $6.9 million and an
increase in deferred revenue of $3.1 million. Net cash used in operating activities during 2010 was the result of the net loss of $18.1 million, an
increase in accounts receivable, net of $1.9 million, partially offset by non-cash items of $5.2 million. Net cash used in operating activities during
2009 was the result of the net loss of $14.6 million, a reduction in other accrued liabilities of $10.0 million, a reduction in deferred revenue for
discontinued operations of $1.1 million and a gain on the sale of the Enterprise business of $4.2 million, partially offset by non-cash items of $5.2
million.

Net cash provided by (used in) investing activities was $14.5 million for the year ended December 31, 2011, $3.8 million for the year ended
December 31, 2010, and $(17.3) million for the year ended December 31, 2009. Net cash provided by investing activities in 2011 was primarily due
to sales and maturities of $74.0 million in marketable securities offset by the purchase of $50.8 million in marketable securities, $8.4 million for the
acquisition of SUPERAntiSpyware and $279,000 in property and equipment purchases. Net cash provided by investing activities in 2010 was
primarily due to sales and maturities of $69.8 million in marketable securities offset by the purchase of $65.5 million in marketable securities and
$498,000 in property and equipment purchases. The amount of net cash used in investing activities for the year ended December 31, 2009 resulted
primarily from the net proceeds we received from the sale of the Enterprise business of $20.5 million and sales and maturities of $15.7 million in
marketable securities offset by the purchase of $44.9 million in marketable securities, and $7.9 million used for the acquisition of substantially all of
the assets of Xeriton Corporation and expenditures of $584,000 for property and equipment and developed technology.

Net cash generated by financing activities was $516,000 for the year ended December 31, 2011, $4.5 million for the year ended December 31,
2010, and $485,000 for the year ended December 31, 2009. In 2011 and 2009, cash generated by financing activities was primarily attributable to the
exercise of employee stock options and the purchase of common stock under employee stock purchase plans. In 2010, cash generated by financing
activities was primarily attributable to the exercise of employee stock options.

At December 31, 2011, we had stockholders’ equity of $71.3 million and working capital of $51.2 million. We believe that our existing cash
balances will be sufficient to meet our working capital requirements for at least the next 12 months. In 2012, we expect our capital expenditures to
remain relatively consistent with 2011.
If we require additional capital resources to grow our business internally or to acquire complementary technologies and businesses at any time
in the future, we may seek to sell additional equity or debt securities. The sale of additional equity could result in more dilution to our stockholders.
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