Support.com 2011 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2011 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 82

  • 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






Support.com, Inc. (“Support.com,” “the Company,” “We” or “Our”), was incorporated in the state of Delaware on December 3, 1997. We
changed our name from SupportSoft, Inc. to Support.com, Inc. on June 22, 2009. Our common stock trades on the Nasdaq Global Select Market
under the symbol “SPRT.”
We are a leading independent provider of online care for the digital home and small business.
Our premium services and software products install, set up, connect, repair and protect personal computers and related devices that are essential
to our customers. We offer one-time services and subscriptions, and we also license software products to consumers who prefer do-it-yourself
solutions.

Support.com was founded in 1997 under the name SupportSoft, Inc. as an enterprise software provider focused on technical support
organizations. In 2007, we launched our consumer services business, and in 2008 began reporting two operating segments, Enterprise and
Consumer. In June 2009, we sold our Enterprise business and focused our efforts purely on the consumer market. In December 2009, through the
acquisition of substantially all of the assets of Xeriton Corporation, we added software tools marketed under the Sammsoft brand to our Consumer
business.
As a result of the sale of the Enterprise business, our audited consolidated financial statements, accompanying notes and other information
provided in this Form 10-K reflect the Enterprise business as a discontinued operation for all periods presented. After reclassifying the Enterprise
business to discontinued operations, our continuing operations consist solely of our remaining segment, the Consumer business, which includes our
online support services as well as our consumer software products.
The Consolidated Financial Statements include the accounts of Support.com and its wholly owned subsidiaries. All significant intercompany
transactions and balances have been eliminated.

The functional currency of our foreign subsidiaries is generally the local currency. Assets and liabilities of our 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, 2011, 2010, and 2009.

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
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.

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 securities. Except for obligations of the United States government and
securities issued by agencies of the United States government, we diversify our investments by limiting our holdings with any individual issuer. We
are exposed to credit risks in the event of default by the issuers to the extent of the amount recorded on the balance sheet. The credit risk in our trade
accounts receivable is substantially mitigated by our credit evaluation process and reasonably short payment terms.
40
EDGAR Stream is a copyright of Issuer Direct Corporation, all rights reserved.