WebEx 2002 Annual Report Download - page 14

Holders of Record
As of February 28, 2003, there were approximately 186 holders of record (not including beneficial holders
of stock held in street name) of our common stock.
Dividend Policy
We have never declared nor paid any cash dividends on our capital stock and currently have no plans to do
so. Any future determination with respect to the payment of dividends will be at the discretion of the Board of
Directors and will depend upon, among other things, our operating results, financial condition and capital
requirements, the terms of then-existing indebtedness, general business conditions and such other factors as the
Board of Directors deems relevant.
Item 6. Selected Financial Data
The following selected financial information has been derived from audited consolidated financial
statements contained in Item 8. The information set forth below is not necessarily indicative of results of future
operations and should be read together with “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and the consolidated financial statements and related notes included in Items 7 and 8 of
Part II of this Form 10-K.
Years ended December 31,
2002 2001 2000 1999 1998
(in thousands, except per share data)
Consolidated Statement of Operations Data:
Netrevenue ................................... $139,861 $ 81,186 $ 25,389 $ 2,607 $ 1,987
Costofrevenue................................. 25,064 21,527 10,081 688 484
Grossprofit.................................... 114,797 59,659 15,308 1,919 1,503
Operating expenses:
Sales and marketing ......................... 58,026 47,207 50,807 9,319 2,244
Research and development .................... 22,788 16,284 12,168 3,361 1,406
General and administrative ................... 14,447 10,301 6,553 1,732 198
Equity-based compensation* .................. 2,966 13,688 28,039 2,005 92
Total operating expenses ................. 98,227 87,480 97,567 16,417 3,940
Operating income (loss) .......................... 16,570 (27,821) (82,259) (14,498) (2,437)
Interest and other income, net ..................... 339 189 1,833 127 102
Netincome(loss)beforeincometax ................ 16,909 (27,632) (80,426) (14,371) (2,335)
Provision for income tax ......................... 514 — — — —
Netincome(loss) ............................... $ 16,395 $(27,632) $(80,426) $(14,371) $ (2,335)
Net income (loss) per share:
Basic ......................................... $ 0.41 $ (0.76) $ (3.81) $ (1.34) $ (0.23)
Diluted ....................................... $ 0.39 $ (0.76) $ (3.81) $ (1.34) $ (0.23)
Shares used to compute net income (loss) per share:
Basic ......................................... 39,687 36,418 21,111 10,700 10,103
Diluted ....................................... 42,353 36,418 21,111 10,700 10,103
*Equity-based compensation:
Sales and marketing ......................... $ 1,133 $ 6,602 $ 9,916 $ 720 $ 33
Research and development .................... 528 2,871 6,404 113 49
General and administrative ................... 1,305 4,215 11,719 1,172 10
$ 2,966 $ 13,688 $ 28,039 $ 2,005 $ 92
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