JACKSONVILLE, Fla., Feb. 10, 2009 (GLOBE NEWSWIRE) -- Web.com (Nasdaq:WWWW), a leading provider of online marketing for small businesses, today announced results for the fourth quarter and full year ended December 31, 2008.
"During 2008, Web.com continued to make great strides towards establishing itself as the premier provider of integrated, end-to-end online marketing solutions for the small- and medium-sized business market," said David Brown, Chairman and CEO of Web.com. "We enter 2009 with over a quarter of a million subscribers, a debt-free balance sheet, and a strong cash flow track record. We believe we have proven the operating leverage potential inherent in our business model, and we continue to put in place strategic partnerships and initiatives that we believe will provide Web.com with an enhanced growth profile when the environment improves."
Summary of Fourth Quarter 2008 Results:
* Total revenue, calculated in accordance with U.S. generally
accepted accounting principles (GAAP), was $29.0 million for the
fourth quarter of 2008, a decrease of 6% compared to $30.9
million for the fourth quarter of 2007.
* For the fourth quarter, GAAP operating loss was $100 million,
representing a negative GAAP operating margin of 346%. GAAP net
loss per diluted share was $3.74, as a result of a $103
million goodwill and asset impairment charge resulting from a
combination of factors including a change in the Company's market
capitalization. For the fourth quarter of 2007, GAAP operating
loss was $0.6 million and GAAP net loss per diluted share was
$0.01.
* Non-GAAP operating income was a record $6.4 million for the
fourth quarter of 2008, representing a non-GAAP operating margin
of 22% and an increase of 84% compared to $3.5 million for the
fourth quarter of 2007.
* Non-GAAP net income was a record $6.5 million for the fourth
quarter of 2008, an increase of 72% compared to $3.8 million for
the fourth quarter of 2007. Non-GAAP net income per diluted share
exceeded the high end of guidance at $0.23 for the fourth quarter
of 2008, an increase of 77% compared to $0.13 for the fourth
quarter of 2007.
* Adjusted EBITDA, which excludes the impact of stock-based
compensation, restructuring charges, and goodwill and asset
impairment, was $7.2 million for the fourth quarter of 2008, an
increase of 91% compared to $3.8 million for the fourth quarter
of 2007.
* Cash flows from operations were $4.8 million for the fourth
quarter of 2008, an increase of 234% compared to $1.4 million for
the fourth quarter of 2007.
Brown added, "Web.com's fourth quarter results were highlighted by strong non-GAAP profitability, margin expansion and cash flow. Despite the non-cash goodwill and asset impairment charge that impacted our GAAP results, for the first time in the company's history, we delivered a non-GAAP operating margin of over 22%, which was a primary driver to another quarter of strong cash flows from operations enabling the company to finish the full year with non-GAAP earnings per share growth of 44%."
Other Highlights:
* Web.com's total net subscribers were approximately 265,000 at the
end of the fourth quarter of 2008, an increase from 263,000 at
the end of the fourth quarter of 2007.
* Customer churn matched an all-time low of 3.9% in the fourth
quarter, down from 4.0% in the third quarter of 2008.
Financial Results for the Full Year 2008
* Total revenue for the full year 2008 was $122.5 million, an
increase of 48% compared to $82.5 million for the full year 2007.
* For the full year 2008, GAAP operating loss was $97 million and
GAAP net loss per diluted share was $3.51, as a result of the $103
million goodwill and asset impairment charge mentioned above. For
the full year 2007, GAAP operating income was $1.5 million and
GAAP net income per diluted share was $0.06.
* For the full year 2008, the Company reported record non-GAAP
operating income of $21.8 million, representing a non-GAAP
operating margin of 18%. Non-GAAP net income per diluted share
was a record $0.75 for the full year 2008, an increase of 44%
compared to $0.52 for the full year 2007.
* The Company generated adjusted EBITDA, excluding the impact of
stock-based compensation, restructuring charges, and goodwill and
asset impairment of $24.7 million for the full year 2008, an
increase of 129% compared to $10.8 million for the full year
2007. The Company generated record cash flows from operations of
$15 million for the full year 2008, an increase of 46% compared
to the full year 2007.
Conference Call Information
Management will host a conference call to discuss Web.com's results and other matters related to the Company's business, including guidance related to future results, today, February 10, 2009, at 5:00 p.m. (Eastern Time). To access this call, dial 888-215-6955 (domestic) or 913-312-1304 (international). A replay of this conference call will be available for a limited time at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 1667480. A webcast of this conference call will also be available for a limited time on the "Investor Relations" page of the Company's website, http://www.web.com.
All per share numbers for non-GAAP net income per share are expressed on a weighted-average diluted per share basis. Non-GAAP net income excludes stock-based compensation expense, amortization expense related to acquisitions, restructuring charges, the deferred revenue adjustment due to purchase accounting, income tax expense, and includes an estimated cash tax rate to be paid during 2008. Non-GAAP operating income excludes stock-based compensation expense, amortization expense related to acquisitions, restructuring charges and the deferred revenue adjustment related to purchase accounting. A reconciliation of GAAP financial measures to non-GAAP financial measures results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."
About Web.com
Web.com Group, Inc. (Nasdaq:WWWW) is a leading provider of online marketing for small businesses. Web.com offers a full range of online services, including Internet marketing and advertising, local search, search engine marketing, search engine optimization, lead generation, home contractor specific leads, website design and publishing, logo and brand development and eCommerce solutions, meeting the needs of small businesses anywhere along their lifecycle. For more information on the company, please visit http://www.web.com/ or call 1-800-GETSITE.
Note to Editors: Web.com is a registered trademark of Web.com Group, Inc.
Use of Non-GAAP Financial Measures
Some of the measures in this press release are non-GAAP financial measures within the meaning of the SEC Regulation G. Web.com believes presenting non-GAAP net income attributable to common stockholders, non-GAAP net income per share attributable to common stockholders and non-GAAP operating income is useful to investors, because it describes the operating performance of the company and helps investors gauge the company's ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Company management uses these non-GAAP measures as important indicators of the company's past performance and in planning and forecasting performance in future periods. The non-GAAP financial information Web.com presents may not be comparable to similarly-titled financial measures used by other companies, and investors should not consider non-GAAP financial measures in isolation from, or in substitution for, financial information presented in compliance with GAAP. You are encouraged to review the reconciliation of non-GAAP financial measures to GAAP financial measures included elsewhere in this press release.
Relative to each of the non-GAAP measures the company presents above, management further sets forth its rationale as follows:
* Non-GAAP Operating Income. The Company excludes from non-GAAP
operating income amortization of intangibles, fair value
adjustment to deferred revenue, restructuring charges and stock
based compensation charges. Management believes that excluding
these non-cash charges assists investors in evaluating
period-over-period changes in the Company's operating income
without the impact of items that are not a result of the
Company's day-to-day business and operations.
* Non-GAAP Net Income and Non-GAAP Net Income Per Share. The
Company excludes from non-GAAP net income and non-GAAP net income
per share amortization of intangibles, income tax expense, fair
value adjustment to deferred revenue, restructuring charges and
stock based compensation, and includes cash income tax expense,
because management believes that excluding such measures helps
investors better understand the Company's operating activities.
* Adjusted EBITDA. The Company excludes from Adjusted EBITDA
depreciation expense, amortization of intangibles, income tax,
interest expense, interest income, goodwill impairment, and stock
based compensation, because management believes that excluding
such items helps investors better understand the Company's
operating activities.
In respect of the foregoing, Web.com provides the following supplemental information to provide additional context for the use and consideration of the non-GAAP financial measures used elsewhere in this press release:
* Stock-based compensation. These expenses consist of expenses for
employee stock options and employee stock purchases under SFAS
123(R). The Company excludes stock-based compensation expenses
from our non-GAAP measures primarily because they are non-cash
expenses. Prior to the adoption of SFAS 123(R) in fiscal 2006,
the Company did not include expenses related to employee stock
options and employee stock purchases directly in its financial
statements, but elected, as permitted by SFAS 123, to disclose
such expenses in the footnotes to its financial statements. As
the Company applies SFAS 123(R), it believes that it is useful to
its investors to understand the impact of the application of SFAS
123(R) to its operational performance, liquidity and its ability
to invest in research and development and fund acquisitions and
capital expenditures. While stock-based compensation expense
calculated in accordance with SFAS 123(R) constitutes an ongoing
and recurring expense, such expense is excluded from non-GAAP
results because it is not an expense that typically requires or
will require cash settlement by the Company and because such
expense is not used by management to assess the core
profitability of the Company's business operations. The Company
further believes these measures are useful to investors in that
they allow for greater transparency to certain line items in our
financial statements. In addition, excluding this item from
various non-GAAP measures facilitates comparisons to the
Company's competitors' operating results.
* Amortization of intangibles. The Company incurs amortization of
acquired intangibles under SFAS 141. Acquired intangibles
primarily consist of customer relationships, non-compete
agreements, trade names, and developed technology. The Company
expects to amortize for accounting purposes the fair value of the
acquired intangibles based on the pattern in which the economic
benefits of the intangible assets will be consumed as revenue is
generated. Although the intangible assets generate revenue for
the Company, the item is excluded because this expense is
non-cash in nature and because the Company believes the non-GAAP
financial measures excluding this item provide meaningful
supplemental information regarding the Company's operational
performance, liquidity and its ability to invest in research and
development and fund acquisitions and capital expenditures. In
addition, excluding this item from various non-GAAP measures
facilitates management's internal comparisons to the Company's
historical operating results and comparisons to the Company's
competitors' operating results.
* Restructuring charges. The Company has recorded restructuring
charges. The Company excludes the impact of these expenses from
its non-GAAP measures, because such expense is not used by
management to assess the core profitability of the Company's
business operations.
* Income tax expense. Due to the magnitude of the Company's
historical net operating losses and related deferred tax asset,
the Company excludes income tax expense from its non-GAAP
measures primarily because they are not indicative of the cash
tax paid by the Company and therefore are not reflective of
ongoing operating results. Further, excluding this non-cash item
from non-GAAP measures facilitates management's internal
comparisons to the Company's historical operating results.
* Fair value adjustment to deferred revenue. The Company has
recorded a fair value adjustment to acquired deferred revenue in
accordance with SFAS 141. The Company excludes the impact of this
adjustment from its non-GAAP measures, because doing so results
in non-GAAP revenue and non-GAAP net income which are reflective
of ongoing operating results and more comparable to historical
operating results, since the majority of the Company's revenue is
recurring subscription revenue. Excluding the fair value
adjustment to deferred revenue therefore facilitates management's
internal comparisons to the Company's historical operating
results.
* Goodwill impairment. The Company has recorded a goodwill asset
impairment in accordance with SFAS 142. The Company excludes the
impact of this adjustment from its non-GAAP measures, because
doing so results in non-GAAP operating income and net income
which are more reflective of ongoing operating results and more
comparable to historical operating results. Excluding the
goodwill asset impairment therefore facilitates management's
internal comparisons to the Company's historical operating
results.
Forward-Looking Statements
This press release includes certain "forward-looking statements" including, without limitation, statements regarding Web.com's expectations about its future financial performance and market position, that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. As a result of the ultimate outcome of such risks and uncertainties, Web.com's actual results could differ materially from those anticipated in these forward-looking statements. These statements are based on our current beliefs or expectations, and there are a number of important factors that could cause the actual results or outcomes to differ materially from those indicated by these forward-looking statements. Certain risk factors are set forth under the caption "Risk Factors" in Web.com's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, as filed with the Securities and Exchange Commission, which is available on a website maintained by the Securities and Exchange Commission at www.sec.gov. Web.com expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein as a result of new information, future events or otherwise.
Web.com Group, Inc.
Consolidated Statements of Operations
(in thousands except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- ----------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (audited)
----------- ----------- ----------- ---------
Revenue:
Subscription $ 28,033 $ 29,670 $117,256 $ 77,676
License 346 342 2,474 2,437
Professional
services 665 869 2,758 2,408
----------- ----------- ----------- ---------
Total revenue 29,044 30,881 122,488 82,521
Cost of revenue
(excluding
depreciation and
amortization shown
separately below):
Subscription (a) 9,868 11,156 42,585 32,381
License 95 85 528 751
Professional
services 316 351 1,310 1,299
----------- ----------- ----------- ---------
Total cost of
revenue 10,279 11,592 44,423 34,431
----------- ----------- ----------- ---------
Gross profit 18,765 19,289 78,065 48,090
Operating expenses:
Sales and
marketing (a) 6,510 6,894 28,923 19,308
Research and
development (a) 2,037 2,438 9,862 5,075
General and
administrative (a) 4,334 7,167 19,391 16,513
Restructuring
charges 307 1 836 243
Depreciation and
amortization 3,431 3,341 13,408 5,454
Goodwill and asset
impairment 102,552 -- 102,552 --
----------- ----------- ----------- ---------
Total operating
expenses 119,171 19,841 174,972 46,593
----------- ----------- ----------- ---------
(Loss) Income from
operations (100,406) (552) (96,907) 1,497
Other income:
Interest, net 187 397 822 1,938
----------- ----------- ----------- ---------
(Loss) Income
before income
taxes (100,219) (155) (96,085) 3,435
Income tax expense 30 66 125 2,077
----------- ----------- ----------- ---------
Net (loss) income $(100,249) $ (221) $ (96,210) $ 1,358
=========== =========== =========== =========
Net (loss) income
per common share
Basic $ (3.74) $ (0.01) $ (3.51) $ 0.07
=========== =========== =========== =========
Diluted $ (3.74) $ (0.01) $ (3.51) $ 0.06
=========== =========== =========== =========
Weighted-average
number of shares
used in per share
amounts:
Basic 26,784 26,428 27,398 19,802
=========== =========== =========== =========
Diluted 26,784 29,709 27,398 22,224
=========== =========== =========== =========
(a) Stock based
compensation
included above:
Subscription
(cost of
revenue) $ 100 $ 76 $ 357 $ 244
Sales and
marketing 238 266 933 774
Research and
development 119 104 441 312
General and
administration 830 519 3,058 2,238
----------- ----------- ----------- ---------
Total $ 1,287 $ 965 $ 4,789 $ 3,568
=========== =========== =========== =========
Web.com Group, Inc.
Consolidated Balance Sheets
(in thousands except per share data)
December 31, 2008 December 31, 2007
(unaudited) (audited)
------------------ ------------------
Assets
Current assets:
Cash and cash equivalents $ 34,127 $ 29,746
Restricted investments -- 4,805
Accounts receivable, net
of allowance $645 and
$791 thousand,
respectively 5,019 6,204
Inventories, net of
reserves of $78 and $67,
respectively 39 26
Prepaid expenses 1,430 4,248
Prepaid marketing fees 665 793
Deferred taxes 1,786 1,723
Other current assets 133 759
------------------ ------------------
Total current assets 43,199 48,304
Restricted investments 316 1,675
Property and equipment, net 8,204 7,153
Goodwill 9,000 107,933
Intangible assets, net 62,085 69,422
Other assets 383 526
------------------ ------------------
Total assets $ 123,187 $ 235,013
================== ==================
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $ 1,650 $ 2,034
Accrued expenses 6,284 9,097
Accrued restructuring
costs and other reserves 2,375 10,484
Deferred revenue 7,831 8,501
Accrued marketing fees 263 279
Notes payable, current 59 1,186
Obligations under capital
lease, current -- 1
Other liabilities 127 197
------------------ ------------------
Total current liabilities 18,589 31,779
Accrued rent expense 535 105
Deferred revenue 180 147
Notes payable, long term -- 59
Accrued restructuring costs
and other reserves, long
term 1,214 3,116
Deferred tax liabilities,
long term 3,351 3,351
Other long term liabilities 25 25
------------------ ------------------
Total liabilities 23,894 38,582
Stockholders' equity
Common stock, $0.001 par
value; 150,000,000 shares
authorized; 28,093,759 and
27,472,686 shares issued
and 26,633,436 and
27,472,686 shares
outstanding at December
31, 2008 and 2007,
respectively. 27 27
Additional paid-in capital 256,763 254,208
Treasury Stock, at cost,
1,460,323 and 0 shares at
December 31, 2008 and 2007,
respectively. (3,483) --
Accumulated deficit (154,014) (57,804)
------------------ ------------------
Total stockholders' equity 99,293 196,431
------------------ ------------------
Total liabilities and
stockholders' equity $ 123,187 $ 235,013
================== ==================
Web.com Group, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Reconciliation of
GAAP revenue to
non-GAAP revenue
GAAP revenue $ 29,044 $ 30,881 $122,488 $ 82,521
Fair value
adjustment to
deferred revenue 15 459 282 564
---------- ---------- ---------- ----------
Non-GAAP revenue $ 29,059 $ 31,340 $ 122,770 $ 83,085
========== ========== ========== ==========
Reconciliation of
GAAP net (loss)
income to non-GAAP
net income
GAAP net (loss)
income $(100,249) $ (221) $ (96,210) $ 1,358
Amortization of
intangibles 2,632 2,618 10,252 3,940
Goodwill and asset
impairment 102,552 -- 102,552 --
Loss on disposal of
fixed assets 44 -- 44 --
Income tax expense 30 66 125 2,077
Cash income tax
expense (113) (97) (270) (189)
Fair value adjustment
to deferred revenue 15 459 282 564
Restructure expense 307 1 836 243
Stock based
compensation 1,287 965 4,789 3,568
---------- ---------- ---------- ----------
Non-GAAP net income $ 6,505 $ 3,791 $ 22,400 $ 11,561
========== ========== ========== ==========
Reconciliation of
GAAP basic net
(loss) income per
share to non-GAAP
basic net income per
share
Basic GAAP net
(loss) income per
share $ (3.74) $ (0.01) $ (3.51) $ 0.07
Amortization of
intangibles per
share 0.10 0.09 0.38 0.20
Goodwill and asset
impairment per
share 3.82 -- 3.75 --
Loss on disposal of
fixed assets per
share 0.00 -- 0.00 --
Income tax expense
per share 0.00 0.00 0.00 0.10
Cash income tax
expense per share (0.00) (0.00) (0.01) (0.01)
Fair value adjustment
to deferred revenue
per share 0.00 0.02 0.01 0.03
Restructure expense
per share 0.01 0.00 0.03 0.01
Stock based
compensation per
share 0.05 0.04 0.17 0.18
---------- ---------- ---------- ----------
Basic Non-GAAP net
income per share $ 0.24 $ 0.14 $ 0.82 $ 0.58
========== ========== ========== ==========
Reconciliation of
GAAP diluted net
(loss) income per
share to non-GAAP
net income per share
Fully diluted shares:
Common stock 26,784 26,428 27,398 19,802
Diluted stock
options 976 2,936 2,136 1,983
Warrants 12 206 142 196
Escrow shares -- 139 104 243
---------- ---------- ---------- ----------
Total 27,772 29,709 29,780 22,224
========== ========== ========== ==========
Diluted GAAP net
(loss) income per
share $ (3.74) $ (0.01) $ (3.51) $ 0.06
Dilutive equity and
warrants per share 0.13 -- 0.28 --
Amortization of
intangibles per
share 0.09 0.09 0.34 0.18
Goodwill and asset
impairment per share 3.69 -- 3.45 --
Loss on disposal of
fixed assets per
share 0.00 -- 0.00 --
Income tax expense
per share (0.00) 0.00 0.00 0.09
Cash income tax
expense per share (0.00) (0.00) (0.01) (0.01)
Fair value
adjustment to
deferred revenue
per share 0.00 0.02 0.01 0.03
Restructure expense
per share 0.01 0.00 0.03 0.01
Stock based
compensation per
share 0.05 0.03 0.16 0.16
---------- ---------- ---------- ----------
Diluted Non-GAAP
net income per
share $ 0.23 $ 0.13 $ 0.75 $ 0.52
========== ========== ========== ==========
Reconciliation of
GAAP operating
(loss) income to
non-GAAP operating
income
GAAP operating
(loss) income $(100,406) $ (552) $ (96,907) $ 1,497
Amortization of
intangibles 2,632 2,618 10,252 3,940
Goodwill and asset
impairment 102,552 -- 102,552 --
Loss on disposal of
fixed assets 44 -- 44 --
Fair value
adjustment to
deferred revenue 15 459 282 564
Restructuring
charges 307 1 836 243
Stock based
compensation 1,287 965 4,789 3,568
---------- ---------- ---------- ----------
Non-GAAP operating
income $ 6,431 $ 3,491 $ 21,848 $ 9,812
========== ========== ========== ==========
Reconciliation of
GAAP operating (loss)
income to Non-GAAP
operating income
excluding goodwill
and asset impairment
charges
GAAP operating (loss)
income $(100,406) $ (552) $ (96,907) $ 1,497
Goodwill and asset
impairment 102,552 -- 102,552 --
---------- ---------- ---------- ----------
Non-GAAP operating
income without
goodwill and asset
impairment charges $ 2,146 $ (552) $ 5,645 $ 1,497
========== ========== ========== ==========
Reconciliation of GAAP
operating margin to
non-GAAP operating
margin
GAAP operating margin -346% -2% -79% 2%
Amortization of
intangibles 9% 8% 8% 5%
Goodwill and asset
impairment 354% 0% 84% 0%
Loss on disposal of
fixed assets 0% 0% 0% 0%
Fair value adjustment
to deferred revenue 0% 1% 0% 1%
Restructuring charges 1% 0% 1% 0%
Stock based
compensation 4% 4% 4% 4%
---------- ---------- ---------- ----------
Non-GAAP operating
margin 22% 11% 18% 12%
========== ========== ========== ==========
Reconciliation of GAAP
operating (loss) income
to adjusted EBITDA
GAAP operating (loss)
income $(100,406) $ (552) $ (96,907) $ 1,497
Goodwill and asset
impairment 102,552 -- 102,552 --
Depreciation and
amortization 3,431 3,341 13,408 5,454
Stock based
compensation 1,287 965 4,789 3,568
Restructuring charges 307 1 836 243
---------- ---------- ---------- ----------
Adjusted EBITDA $ 7,171 $ 3,755 $ 24,678 $ 10,762
========== ========== ========== ==========
Reconciliation of GAAP
net (loss) income per
dilutive share to GAAP
net income per diluted
share excluding
goodwill and asset
impairment charges
Diluted GAAP net (loss)
income per share $ (3.74) $ (0.01) $ (3.51) $ 0.06
Dilutive equity and
warrants per share 0.13 -- 0.28 --
Goodwill and asset
impairment 3.69 -- 3.44 --
---------- ---------- ---------- ----------
Diluted GAAP net income
per share excluding
goodwill and asset
impairment charges $ 0.08 $ (0.01) $ 0.21 $ 0.06
========== ========== ========== ==========
Web.com Group, Inc.
Consolidated Statement of Cash Flows
(in thousands)
Twelve Months Ended December 31,
---------------------------------
2008 2007
(unaudited) (audited)
---------------- -----------------
Cash flows from operating
activities
Net income $ (96,210) $ 1,358
Adjustments to reconcile
net income to net cash
(used in) provided by
operating activities:
Depreciation and amortization 13,408 5,454
Goodwill impairment loss 102,552 --
Loss on disposal of assets 44 --
Stock-based compensation
expense 4,789 3,568
Restructuring charges 836 243
Deferred income tax (63) 1,868
Changes in operating assets
and liabilities:
Accounts receivable 1,275 517
Inventories (13) 43
Prepaid expenses and other
assets 3,270 484
Accounts payable, accrued
expenses and other
liabilities (13,882) (3,514)
Deferred revenue (1,034) 261
---------------- -----------------
Net cash provided by
operating activities 14,972 10,282
Cash flows from investing
activities
Business acquisition, net
of cash received (4,573) (18,380)
Proceeds from sale of
investment 8,500 --
Purchase of investment (3,491) --
Change in restricted
investments 1,194 263
Purchase of property and
equipment (4,321) (3,807)
Investment in intangible
assets (995) (2,109)
---------------- -----------------
Net cash (used in)
investing activities (3,686) (24,033)
Cash flows from financing
activities
Stock issuance costs (23) --
Common stock repurchased (6,866) --
Payment of debt obligations (1,187) (1,437)
Proceeds from exercise of
stock options 1,171 2,779
---------------- -----------------
Net cash (used in) provided
by financing activities (6,905) 1,342
---------------- -----------------
Net increase (decrease) in
cash and cash equivalents 4,381 (12,409)
Cash and cash equivalents,
beginning of period 29,746 42,155
---------------- -----------------
Cash and cash equivalents,
end of period $ 34,127 $ 29,746
================ =================
Supplemental cash flow
information:
Interest paid $ 26 $ 13
================ =================
Income tax paid $ 146 $ 199
================ =================