UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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Washington, DC 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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October 24, 2012
Date of report (Date of earliest event reported)
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SUPPORT.COM, INC.
(Exact Name of Registrant as Specified in Charter)
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Delaware
(State or Other
Jurisdiction
of Incorporation)
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000-30901
(Commission File No.)
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94-3282005
(I.R.S. Employer Identification No.)
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1900 Seaport Blvd., Third Floor, Redwood City, CA 94063
(Address of Principal Executive Offices) (Zip Code)
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(650) 556-9440
(Registrant’s telephone number, including area code)
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N/A
(Former Name or Former Address, if Changed Since Last Report)
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q
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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q
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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q
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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q
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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SUPPORT.COM, INC.
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By:
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/s/ Shelly Schaffer
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Name:
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Shelly Schaffer
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Title:
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Executive Vice President and Chief Financial Officer
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Exhibit No.
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Description
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99.1
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Press Release, dated October 24, 2012
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·
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Revenue growth of 47% year-over-year
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Non-GAAP earnings of $0.04 per share
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Cash and cash equivalents increase of $3.1 million sequentially
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Non-GAAP services gross margin of 41%
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Reached agreement with leading Canadian communications provider for SMB program
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Business model extended to provide service delivery platform on a standalone basis; first agreement signed
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5 Star “Spectacular” review from CNET for SUPERAntiSpyware product
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SUPPORT.COM, INC.
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GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands)
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(unaudited)
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September 30,
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December 31,
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2012
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(1) | 2011 | (2) | |||||||||||||
Assets
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Current assets:
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Cash, cash equivalents and short-term investments
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$ | 51,587 | $ | 51,902 | ||||||||||||
Accounts receivable, net
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9,785 | 10,284 | ||||||||||||||
Prepaid expenses and other current assets
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1,565 | 1,068 | ||||||||||||||
Total current assets
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62,937 | 63,254 | ||||||||||||||
Long-term investment
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- | 1,111 | ||||||||||||||
Property and equipment, net
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670 | 461 | ||||||||||||||
Purchased technology, net
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82 | 143 | ||||||||||||||
Goodwill
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14,240 | 13,621 | ||||||||||||||
Intangible assets, net
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5,126 | 5,670 | ||||||||||||||
Other assets
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940 | 736 | ||||||||||||||
Total assets
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$ | 83,995 | $ | 84,996 | ||||||||||||
Liabilities and Stockholders' Equity
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Current liabilities:
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Accounts payable and accrued compensation
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$ | 3,011 | $ | 2,872 | ||||||||||||
Other accrued liabilities
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4,477 | 4,491 | ||||||||||||||
Short-term deferred revenue
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5,971 | 4,723 | ||||||||||||||
Total current liabilities
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13,459 | 12,086 | ||||||||||||||
Long-term deferred revenue
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139 | 489 | ||||||||||||||
Other long-term liabilities
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1,422 | 1,086 | ||||||||||||||
Total liabilities
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15,020 | 13,661 | ||||||||||||||
Stockholders' equity:
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Common stock
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5 | 5 | ||||||||||||||
Additional paid-in-capital
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237,984 | 233,977 | ||||||||||||||
Accumulated other comprehensive loss
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(1,343 | ) | (1,698 | ) | ||||||||||||
Accumulated deficit
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(167,671 | ) | (160,949 | ) | ||||||||||||
Total stockholders' equity
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68,975 | 71,335 | ||||||||||||||
Total liabilities and stockholders' equity
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$ | 83,995 | $ | 84,996 |
SUPPORT.COM, INC. | ||||||||||||||||||||||||
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2012
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(3) | 2011 | 2012 | (3) | 2011 | |||||||||||||||||||
Revenue:
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Services
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$ | 14,769 | $ | 8,532 | $ | 42,278 | $ | 26,124 | ||||||||||||||||
Software and other
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$ | 3,407 | 3,818 | 10,799 | 12,711 | |||||||||||||||||||
Total revenue
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18,176 | 12,350 | 53,077 | 38,835 | ||||||||||||||||||||
Cost of revenue:
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Cost of services (4)
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8,815 | 7,917 | 28,696 | 21,334 | ||||||||||||||||||||
Cost of software and other (4)
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312 | 458 | 1,142 | 1,295 | ||||||||||||||||||||
Total cost of revenue
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9,127 | 8,375 | 29,838 | 22,629 | ||||||||||||||||||||
Gross profit
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9,049 | 3,975 | 23,239 | 16,206 | ||||||||||||||||||||
Operating expenses:
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Amortization of intangible assets and other
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397 | 330 | 1,155 | 536 | ||||||||||||||||||||
Research and development (4)
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1,643 | 1,577 | 5,121 | 4,458 | ||||||||||||||||||||
Sales and marketing (4)
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3,789 | 5,954 | 14,908 | 16,282 | ||||||||||||||||||||
General and administrative (4)
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2,897 | 3,074 | 8,661 | 9,300 | ||||||||||||||||||||
Total operating expenses
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8,726 | 10,935 | 29,845 | 30,576 | ||||||||||||||||||||
Income (loss) from operations
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323 | (6,960 | ) | (6,606 | ) | (14,370 | ) | |||||||||||||||||
Interest income and other, net
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93 | 96 | 227 | 371 | ||||||||||||||||||||
Income (loss) from continuing operations, before income taxes
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416 | (6,864 | ) | (6,379 | ) | (13,999 | ) | |||||||||||||||||
Income tax provision
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118 | 264 | 353 | 295 | ||||||||||||||||||||
Income (loss) from continuing operations, after income taxes
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298 | (7,128 | ) | (6,732 | ) | (14,294 | ) | |||||||||||||||||
Income (loss) from discontinued operations, net of income taxes
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(7 | ) | 18 | 10 | 3 | |||||||||||||||||||
Net income (loss)
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$ | 291 | $ | (7,110 | ) | $ | (6,722 | ) | $ | (14,291 | ) | |||||||||||||
Income (loss) from continuing operations, after income taxes
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Basic
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$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||||||||||
Diluted
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$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes
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Basic
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$ | (0.00 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||||||
Diluted
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$ | (0.00 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||||||
Shares used in computing per share amounts:
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Basic
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48,707 | 48,326 | 48,571 | 48,267 | ||||||||||||||||||||
Diluted
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50,326 | 48,326 | 48,571 | 48,267 |
Three Months Ended
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Nine Months Ended
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September 30, 2012
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September 30, 2011
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September 30, 2012
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September 30, 2011
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Cost of revenue:
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Cost of services
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$ | 86 | $ | 116 | $ | 270 | $ | 263 | ||||||||
Cost of software and other
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3 | 7 | 24 | 13 | ||||||||||||
Operating expenses:
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Research and development
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252 | 202 | 820 | 545 | ||||||||||||
Sales and marketing
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94 | 456 | 511 | 757 | ||||||||||||
General and administrative
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634 | 714 | 1,734 | 2,241 | ||||||||||||
Total
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$ | 1,069 | $ | 1,495 | $ | 3,359 | $ | 3,819 |
SUPPORT.COM, INC.
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RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP FINANCIAL MEASURES
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(in thousands, except per share amounts)
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(unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2012
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2011
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2012
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2011
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GAAP cost of revenue
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$ | 9,127 | $ | 8,375 | $ | 29,838 | $ | 22,629 | ||||||||
Stock-based compensation expense (Cost of revenue portion only)
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(89 | ) | (68 | ) | (295 | ) | (183 | ) | ||||||||
Restructuring and impairment charges (Cost of revenue portion only)
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- | (55 | ) | - | (93 | ) | ||||||||||
Non-GAAP cost of revenue
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$ | 9,038 | $ | 8,252 | $ | 29,543 | $ | 22,353 | ||||||||
GAAP operating expenses
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$ | 8,726 | $ | 10,935 | $ | 29,845 | $ | 30,576 | ||||||||
Stock-based compensation expense (Excl. cost of revenue portion)
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(822 | ) | (869 | ) | (2,643 | ) | (2,628 | ) | ||||||||
Amortization of intangible assets and other
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(397 | ) | (330 | ) | (1,155 | ) | (536 | ) | ||||||||
Restructuring and impairment charges (Excl. cost of revenue portion)
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(72 | ) | (313 | ) | (244 | ) | (377 | ) | ||||||||
Acquisition expense
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(1 | ) | (190 | ) | (36 | ) | (538 | ) | ||||||||
Other non-recurring items
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(86 | ) | - | (143 | ) | - | ||||||||||
Non-GAAP operating expenses
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$ | 7,348 | $ | 9,233 | $ | 25,624 | $ | 26,497 | ||||||||
GAAP income tax provision
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$ | 118 | $ | 264 | $ | 353 | $ | 295 | ||||||||
Tax expense associated with acquired goodwill
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(69 | ) | (270 | ) | (206 | ) | (270 | ) | ||||||||
Non-GAAP income tax provision
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$ | 49 | $ | (6 | ) | $ | 147 | $ | 25 | |||||||
GAAP income (loss) from continuing operations, after income taxes
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$ | 298 | $ | (7,128 | ) | $ | (6,732 | ) | $ | (14,294 | ) | |||||
Stock-based compensation expense
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911 | 937 | 2,938 | 2,811 | ||||||||||||
Amortization of intangible assets and other
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397 | 330 | 1,155 | 536 | ||||||||||||
Restructuring and impairment charges
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72 | 368 | 244 | 470 | ||||||||||||
Acquisition expense
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1 | 190 | 36 | 538 | ||||||||||||
Other non-recurring items
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86 | - | 143 | - | ||||||||||||
Tax expense associated with acquired goodwill
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69 | 270 | 206 | 270 | ||||||||||||
Total impact of Non-GAAP exclusions
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1,536 | 2,095 | 4,722 | 4,625 | ||||||||||||
Non-GAAP income (loss) from continuing operations, after income taxes
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$ | 1,834 | $ | (5,033 | ) | $ | (2,010 | ) | $ | (9,669 | ) | |||||
Income (loss) from continuing operations, after income taxes
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Basic -GAAP
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$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Basic - Non-GAAP
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$ | 0.04 | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.20 | ) | |||||
Diluted - GAAP
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$ | 0.01 | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | |||||
Diluted - Non-GAAP
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$ | 0.04 | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.20 | ) | |||||
Shares used in computing per share amounts (GAAP)
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Basic
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48,707 | 48,326 | 48,571 | 48,267 | ||||||||||||
Diluted
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50,326 | 48,326 | 48,571 | 48,267 | ||||||||||||
Shares used in computing per share amounts (Non-GAAP)
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Basic
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48,707 | 48,326 | 48,571 | 48,267 | ||||||||||||
Diluted
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50,326 | 48,326 | 48,571 | 48,267 |