WebEx 2002 Annual Report Download - page 45

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WEBEX COMMUNICATIONS, INC.
December 31, 2002, 2001 and 2000
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands except share and per share amounts)
shares of common stock issuable upon the exercise of warrants and stock options computed using the treasury
stock method.
The following table sets forth the components used in the computation of basic and diluted net income (loss)
per common share as follows:
Year ended December 31,
2002 2001 2000
Numerator:
Netincome(loss)...................................... $16,395 $(27,632) $(80,426)
Denominator:
Denominator for basic net income (loss) per common share .... 39,687 36,418 21,111
Effect of dilutive securities:
Restricted common shares subject to repurchase ......... 688 — —
Stock options outstanding ........................... 1,978 — —
Denominator for diluted net income (loss) per common share . . . 42,353 36,418 21,111
Basic net income (loss) per common share .................. $ 0.41 $ (0.76) $ (3.81)
Dilutednetincome(loss)percommonshare ................ $ 0.39 $ (0.76) $ (3.81)
The following potential common shares have been excluded from the computation of diluted net loss per
share for the years ended December 31, 2002, 2001 and 2000 because their effect would have been antidilutive:
Year ended December 31,
2002 2001 2000
Shares issuable under stock options ................................. 4,016 7,160 4,686
Shares of restricted stock subject to repurchase ........................ — 1,247 3,243
Shares issuable pursuant to warrants ................................ — — 340
The weighted-average exercise price of antidilutive stock options outstanding as of December 31, 2002,
2001 and 2000 was $23.06, $15.21, and $9.84, respectively. The exercise price of the warrants outstanding as of
December 31, 2000 was $12.50. The weighted-average repurchase price of restricted common shares outstanding
as of December 31, 2001 and 2000 were $0.89 and $0.92, respectively.
(r) Advertising Costs
Advertising costs are expensed as incurred. WebEx’s advertising and promotion expense was $10,789,
$6,556, and $23,852 for the years ended December 31, 2002, 2001 and 2000 respectively. As of December 31,
2002 and 2001, included in prepaid expenses were $0 and $530, respectively, of prepaid advertising expense paid
to a distribution partner.
(s) Reclassifications
Certain reclassifications have been made to the prior years’ financial statements to conform to the current
year presentation.
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