Exhibit 99.1
Item 6. Selected Financial Data
The following selected financial data have been derived from the Company’s audited historical consolidated financial statements, certain of which are included elsewhere in the 2006 Annual Report. The following selected financial data should be read in conjunction with the Company’s consolidated financial statements and related notes thereto set forth in Exhibit 99.3 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in Exhibit 99.2 .
Results may not be comparable due to acquisitions and/or dispositions that have occurred in the periods presented. The selected financial data for all periods presented below has been prepared reflecting discontinued operations in accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets.” Accordingly, all revenues and expenses associated with discontinued operations have been excluded from income from continuing operations in the selected financial data.
The following selected financial data includes the results of operations from the date of acquisition of Authorize.Net Corp., which the Company acquired on March 31, 2004 and is the Company’s only remaining continuing operations. Accordingly, the Company had no activity from continuing operations for the years ended December 31, 2003 and 2002.
Years Ended December 31, | ||||||||||||||||||||
2006 | 2005 | 2004 (a) | 2003 | 2002 | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Revenues | $ | 57,549 | $ | 45,328 | $ | 26,836 | $ | — | $ | — | ||||||||||
Cost of revenues | 12,479 | 9,902 | 7,256 | — | — | |||||||||||||||
Gross profit | 45,070 | 35,426 | 19,580 | — | — | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Engineering and development costs | 5,614 | 4,719 | 3,226 | — | — | |||||||||||||||
Sales and marketing | 18,451 | 16,445 | 12,962 | — | — | |||||||||||||||
General and administrative | 17,085 | 15,484 | 14,374 | — | — | |||||||||||||||
Purchased in-process research and development | — | — | 679 | — | — | |||||||||||||||
Restructuring costs | 173 | 1,259 | 1,375 | — | — | |||||||||||||||
Total operating expenses | 41,323 | 37,907 | 32,616 | — | — | |||||||||||||||
Income (loss) from operations | 3,747 | (2,481 | ) | (13,036 | ) | — | — | |||||||||||||
Interest income | 4,883 | 1,937 | 935 | — | — | |||||||||||||||
Income (loss) from continuing operations before provision for income taxes | 8,630 | (544 | ) | (12,101 | ) | — | — | |||||||||||||
(Benefit) provision for income taxes | (18,114 | ) | 1,848 | 8,033 | — | — | ||||||||||||||
Income (loss) from continuing operations | $ | 26,744 | (2,392 | ) | (20,134 | ) | — | — | ||||||||||||
Discontinued operations, net of income taxes: | ||||||||||||||||||||
Gain on sale of Fraud Centurion assets | — | — | 2,673 | — | — | |||||||||||||||
Gain on sale of INS business | — | 12,689 | — | — | — | |||||||||||||||
Income (loss) from discontinued operations, net of income tax | (1,986 | ) | 8,715 | 2,056 | (1,449 | ) | 3,630 | |||||||||||||
Total discontinued operations, net of income taxes | (1,986 | ) | 21,404 | 4,759 | (1,449 | ) | 3,630 | |||||||||||||
Net income (loss) | 24,758 | 19,012 | (15,405 | ) | (1,449 | ) | 3,630 | |||||||||||||
Net income (loss) per common share (basic): | ||||||||||||||||||||
From continuing operations | 0.98 | (0.09 | ) | (0.76 | ) | — | — | |||||||||||||
From discontinued operations | (0.07 | ) | 0.80 | 0.18 | (0.05 | ) | 0.13 | |||||||||||||
Net income (loss) per common share (basic) | 0.91 | 0.71 | (0.58 | ) | (0.05 | ) | 0.13 | |||||||||||||
Net income (loss) per common share (diluted): | ||||||||||||||||||||
From continuing operations | 0.95 | (0.09 | ) | (0.76 | ) | — | — | |||||||||||||
From discontinued operations | (0.07 | ) | 0.80 | 0.18 | (0.05 | ) | 0.13 | |||||||||||||
Net income (loss) per common share (diluted) | 0.88 | 0.71 | (0.58 | ) | (0.05 | ) | 0.13 | |||||||||||||
Basic weighted shares | 27,248 | 26,670 | 26,643 | 27,015 | 28,030 | |||||||||||||||
Diluted weighted shares | 28,245 | 26,670 | 26,643 | 27,015 | 28,433 |
(a): | The Company acquired Authorize.Net Corp. on March 31, 2004. The year ended December 31, 2004 includes the operating results of Authorize.Net Corp. for the period March 31, 2004 through December 31, 2004. In addition, the year ended December 31, 2004 includes other general and administrative expenses for the full year. |
December 31, | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 116,172 | $ | 83,120 | $ | 39,036 | $ | 69,685 | $ | 90,664 | ||||||||||
Short-term investments | $ | — | $ | 1,688 | $ | 12,589 | $ | 63,803 | $ | 42,806 | ||||||||||
Working capital | $ | 103,966 | $ | 74,156 | $ | 42,997 | $ | 137,684 | $ | 136,501 | ||||||||||
Total assets | $ | 222,474 | $ | 189,535 | $ | 170,486 | $ | 177,836 | $ | 180,672 | ||||||||||
Long-term obligations, less current portion | $ | 700 | $ | 700 | $ | 149 | $ | 33 | $ | 259 | ||||||||||
Stockholders’ equity | $ | 190,315 | $ | 156,953 | $ | 135,667 | $ | 154,503 | $ | 159,641 |