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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, except Per Share data
3 Months Ended9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2011
Sep. 30, 2010
Net revenue$ 84,414[1]$ 86,432[1]$ 255,467[1]$ 303,916[1]
Cost of revenue31,816[2]30,710[2]94,548[2]109,018[2]
Gross profit52,59855,722160,919194,898
Operating expenses:    
Research and development16,49619,51754,20081,775
Sales and marketing28,62526,32185,95891,530
Advertising with related party0001,065
General and administrative10,52212,64027,01842,151
Restructuring and other charges4381,0807,85011,487
Loss (gain) on excess office facilities0314(174)7,396
Total operating expenses56,08159,872174,852235,404
Operating loss(3,483)(4,150)(13,933)(40,506)
Other income (expenses):    
Interest income, net6721,0741,3622,005
Equity in net loss of Rhapsody and other equity method investments(1,440)(6,142)(5,739)(11,569)
Loss on sale of equity investments, net000(50)
Gain on deconsolidation of Rhapsody00010,929
Other income (expense), net(228)(206)(661)887
Total other income (expenses), net(996)(5,274)(5,038)2,202
Loss before income taxes(4,479)(9,424)(18,971)(38,304)
Income tax benefit (expense)(703)33,947(5,365)37,238
Net income(loss)(5,182)24,523(24,336)(1,066)
Net income (loss) attributable to noncontrolling interest in Rhapsody0002,910
Net income (loss) attributable to common shareholders(5,182)24,523(24,336)1,844
Basic net income (loss) per share available to common shareholders$ (0.15)$ 0.72$ (0.71)$ 0.16
Diluted net income (loss) per share available to common shareholders$ (0.15)$ 0.71$ (0.71)$ 0.16
Shares used to compute basic net income (loss) per share available to common shareholders34,19933,90534,08133,826
Shares used to compute diluted net income (loss) per share available to common shareholders34,19934,44234,08134,558
Comprehensive income (loss):    
Net income (loss)(5,182)24,523(24,336)(1,066)
Unrealized holding gains (losses) on short-term and equity investments, net of income taxes12,4011,53911,014(70)
Foreign currency translation gains (losses)(4,335)4,513(425)(1,841)
Comprehensive income (loss)2,88430,575(13,747)(2,977)
Net income (loss) attributable to noncontrolling interest in Rhapsody000(2,910)
Comprehensive income (loss) attributable to common shareholders$ 2,884$ 30,575$ (13,747)$ (67)
[1]Components of net revenue: License fees $ 15,344 $ 15,584 $ 50,576 $ 56,400 Service revenue 69,070 70,848 204,891 247,516 $ 84,414 $ 86,432 $ 255,467 $ 303,916
[2]Components of cost of revenue: License fees $ 3,458 $ 3,650 $ 13,504 $ 16,867 Service revenue 28,358 27,060 81,044 92,151 $ 31,816 $ 30,710 $ 94,548 $ 109,018