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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES  
Net income$ 3,472$ 2,140
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization2,4822,536
Amortization of intangibles9351,411
Stock-based compensation4,0753,058
Deferred income taxes1(2)
Reserve for returns3,5093,668
Impairment of long-lived assets716 
Realized gain on value of auction rate securities (2)
Allowance for doubtful accounts231285
Inventory write-downs423(10)
Other non-cash charges(9) 
Changes in operating assets and liabilities:  
Increase in accounts receivable(6,970)(6,021)
Increase in inventories(1,056)(1,375)
Decrease (increase) in deferred production and marketing costs94(228)
Decrease (increase) in other current assets1,055(1,024)
Decrease in other assets269238
(Decrease) increase in accounts payable and accrued expenses(1,631)1,666
Increase in deferred revenue2,3911,353
Increase (decrease) in other liabilities2,225(89)
Net cash provided by operating activities12,2127,604
CASH FLOWS FROM INVESTING ACTIVITIES  
Purchases of property and equipment(3,375)(2,147)
Purchase of U.S. Treasury Bills(2,598) 
Redemption of long-term investments 36,500
Investment in equity interest (500)
Loan to foreign intermediaries(400)(165)
Acquisition of business, net of cash aquired(10)(48)
Net cash (used in) provided by investing activities(6,383)33,640
CASH FLOWS FROM FINANCING ACTIVITIES  
Repurchase of common stock(60,259) 
Proceeds from issuance of common stock3071,125
Proceeds from exercise of stock options3996
Surrender of restricted common stock for income tax purposes(1,516)(1,606)
Settlement of WedSnap escrow 6
Net cash used in financing activities(61,429)(379)
(Decrease) increase in cash and cash equivalents(55,600)40,865
Cash and cash equivalents at beginning of period139,58694,993
Cash and cash equivalents at end of period$ 83,986$ 135,858