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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July 31, 2013
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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900 Chesapeake Drive, Second 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 July 31, 2013
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·
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Overall non-GAAP gross margin of 55%, non-GAAP operating margin of 19%
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·
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Cash, cash equivalents and investments increase by $5.5 million sequentially
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·
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Hiring commenced for anticipated Comcast support bundle; model to be discussed on today’s conference call
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·
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RadioShack agreement for Nexus® platform pilot signed
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DISH Network premium support program launched
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Nexus platform enhanced with new Android support capabilities
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SUPPORT.COM, INC.
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GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands)
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(unaudited)
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June 30,
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December 31,
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2013 (1)
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2012 (2)
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Assets
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Current assets:
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Cash, cash equivalents and short-term investments
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$ | 65,006 | $ | 56,350 | ||||
Accounts receivable, net
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9,581 | 9,689 | ||||||
Prepaid expenses and other current assets
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1,665 | 1,359 | ||||||
Total current assets
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76,252 | 67,398 | ||||||
Property and equipment, net
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478 | 591 | ||||||
Purchased technology, net
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21 | 62 | ||||||
Goodwill
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14,240 | 14,240 | ||||||
Intangible assets, net
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4,105 | 4,775 | ||||||
Other assets
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1,103 | 1,193 | ||||||
Total assets
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$ | 96,199 | $ | 88,259 | ||||
Liabilities and Stockholders' Equity
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Current liabilities:
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Accounts payable and accrued compensation
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$ | 2,199 | $ | 2,053 | ||||
Other accrued liabilities
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5,423 | 3,969 | ||||||
Short-term deferred revenue
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4,892 | 6,618 | ||||||
Total current liabilities
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12,514 | 12,640 | ||||||
Long-term deferred revenue
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71 | 35 | ||||||
Other long-term liabilities
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1,561 | 1,421 | ||||||
Total liabilities
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14,146 | 14,096 | ||||||
Stockholders' equity:
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Common stock
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5 | 5 | ||||||
Additional paid-in-capital
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250,730 | 242,954 | ||||||
Treasury stock
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(5,036 | ) | (922 | ) | ||||
Accumulated other comprehensive loss
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(1,750 | ) | (1,501 | ) | ||||
Accumulated deficit
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(161,896 | ) | (166,373 | ) | ||||
Total stockholders' equity
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82,053 | 74,163 | ||||||
Total liabilities and stockholders' equity
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$ | 96,199 | $ | 88,259 |
SUPPORT.COM, INC.
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GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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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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Six Months Ended
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June 30,
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June 30,
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2013
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(1) | 2012 | 2013 | (1) | 2012 | |||||||||||||||||||
Revenue:
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Services
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$ | 16,128 | $ | 13,744 | $ | 32,574 | $ | 27,509 | ||||||||||||||||
Software and other
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3,996 | 3,569 | 7,752 | 7,392 | ||||||||||||||||||||
Total revenue
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20,124 | 17,313 | 40,326 | 34,901 | ||||||||||||||||||||
Cost of revenue:
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Cost of services (3)
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8,838 | 9,591 | 18,148 | 19,881 | ||||||||||||||||||||
Cost of software and other (3)
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271 | 360 | 578 | 830 | ||||||||||||||||||||
Total cost of revenue
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9,109 | 9,951 | 18,726 | 20,711 | ||||||||||||||||||||
Gross profit
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11,015 | 7,362 | 21,600 | 14,190 | ||||||||||||||||||||
Operating expenses:
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Amortization of intangible assets and other
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335 | 391 | 670 | 758 | ||||||||||||||||||||
Research and development (3)
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1,282 | 1,708 | 2,870 | 3,478 | ||||||||||||||||||||
Sales and marketing (3)
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4,375 | 4,989 | 8,311 | 11,119 | ||||||||||||||||||||
General and administrative (3)
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2,354 | 2,850 | 5,117 | 5,764 | ||||||||||||||||||||
Total operating expenses
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8,346 | 9,938 | 16,968 | 21,119 | ||||||||||||||||||||
Income (loss) from operations
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2,669 | (2,576 | ) | 4,632 | (6,929 | ) | ||||||||||||||||||
Interest income and other, net
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108 | 59 | 181 | 134 | ||||||||||||||||||||
Income (loss) from continuing operations, before income taxes
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2,777 | (2,517 | ) | 4,813 | (6,795 | ) | ||||||||||||||||||
Income tax provision
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177 | 116 | 326 | 235 | ||||||||||||||||||||
Income (loss) from continuing operations, after income taxes
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2,600 | (2,633 | ) | 4,487 | (7,030 | ) | ||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes
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(5 | ) | (7 | ) | (10 | ) | 17 | |||||||||||||||||
Net income (loss)
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$ | 2,595 | $ | (2,640 | ) | $ | 4,477 | $ | (7,013 | ) | ||||||||||||||
Basic and diluted earnings per share:
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Earnings (loss) from continuing operations, after income taxes
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$ | 0.05 | $ | (0.05 | ) | $ | 0.09 | $ | (0.14 | ) | ||||||||||||||
Earnings (loss) from discontinued operations, after income taxes
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(0.00 | ) | (0.00 | ) | (0.00 | ) | 0.00 | |||||||||||||||||
Net earnings (loss) per basic and diluted share:
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$ | 0.05 | $ | (0.05 | ) | $ | 0.09 | $ | (0.14 | ) | ||||||||||||||
Shares used in computing per share amounts:
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Basic
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50,792 | 48,584 | 50,476 | 48,521 | ||||||||||||||||||||
Diluted
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52,866 | 48,584 | 52,535 | 48,521 |
Three Months Ended
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Six Months Ended
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June 30, 2013
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June 30, 2012
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June 30, 2013
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June 30, 2012
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Cost of revenue:
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Cost of services
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$ | 65 | $ | 92 | $ | 157 | $ | 185 | ||||||||
Cost of software and other
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2 | 11 | 6 | 21 | ||||||||||||
Operating expenses:
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Research and development
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129 | 282 | 338 | 568 | ||||||||||||
Sales and marketing
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74 | 279 | 182 | 418 | ||||||||||||
General and administrative
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498 | 613 | 882 | 1,099 | ||||||||||||
Total
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$ | 768 | $ | 1,277 | $ | 1,565 | $ | 2,291 |
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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Six Months Ended
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June 30,
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June 30,
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2013
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2012
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2013
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2012
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GAAP cost of revenue
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$ | 9,109 | $ | 9,951 | $ | 18,726 | $ | 20,711 | ||||||||
Stock-based compensation expense (Cost of revenue portion only)
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(67 | ) | (103 | ) | (163 | ) | (206 | ) | ||||||||
Restructuring and impairment charges (Cost of revenue portion only)
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- | - | - | - | ||||||||||||
Non-GAAP cost of revenue
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$ | 9,042 | $ | 9,848 | $ | 18,563 | $ | 20,505 | ||||||||
GAAP operating expenses
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$ | 8,346 | $ | 9,938 | $ | 16,968 | $ | 21,119 | ||||||||
Stock-based compensation expense (Excl. cost of revenue portion)
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(701 | ) | (929 | ) | (1,402 | ) | (1,821 | ) | ||||||||
Amortization of intangible assets and other
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(335 | ) | (391 | ) | (670 | ) | (758 | ) | ||||||||
Restructuring and impairment charges (Excl. cost of revenue portion)
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- | (172 | ) | - | (172 | ) | ||||||||||
Acquisition expense
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- | (16 | ) | - | (35 | ) | ||||||||||
Other non-recurring items
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- | (57 | ) | - | (57 | ) | ||||||||||
Non-GAAP operating expenses
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$ | 7,310 | $ | 8,373 | $ | 14,896 | $ | 18,276 | ||||||||
GAAP income tax provision
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$ | 177 | $ | 116 | $ | 326 | $ | 235 | ||||||||
Tax expense associated with acquired goodwill
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(82 | ) | (68 | ) | (155 | ) | (137 | ) | ||||||||
Non-GAAP income tax provision
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$ | 95 | $ | 48 | $ | 171 | $ | 98 | ||||||||
GAAP income (loss) from continuing operations, after income taxes
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$ | 2,600 | $ | (2,633 | ) | $ | 4,487 | $ | (7,030 | ) | ||||||
Stock-based compensation expense
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768 | 1,032 | 1,565 | 2,027 | ||||||||||||
Amortization of intangible assets and other
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335 | 391 | 670 | 758 | ||||||||||||
Restructuring and impairment charges
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- | 172 | - | 172 | ||||||||||||
Acquisition expense
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- | 16 | - | 35 | ||||||||||||
Other non-recurring items
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- | 57 | - | 57 | ||||||||||||
Tax expense associated with acquired goodwill
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82 | 68 | 155 | 137 | ||||||||||||
Total impact of Non-GAAP exclusions
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1,185 | 1,736 | 2,390 | 3,186 | ||||||||||||
Non-GAAP income (loss) from continuing operations, after income taxes
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$ | 3,785 | $ | (897 | ) | $ | 6,877 | $ | (3,844 | ) | ||||||
Basic income (loss) per share from continuting operations, after income taxes
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GAAP
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$ | 0.05 | $ | (0.05 | ) | $ | 0.09 | $ | (0.14 | ) | ||||||
Non-GAAP
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$ | 0.07 | $ | (0.02 | ) | $ | 0.14 | $ | (0.08 | ) | ||||||
Diluted income (loss) per share from continuting operations, after income taxes
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GAAP
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0.05 | (0.05 | ) | 0.09 | (0.14 | ) | ||||||||||
Non-GAAP
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0.07 | (0.02 | ) | 0.13 | (0.08 | ) | ||||||||||
Shares used in computing per share amounts (GAAP)
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Basic
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50,792 | 48,584 | 50,476 | 48,521 | ||||||||||||
Diluted
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52,866 | 48,584 | 52,535 | 48,521 | ||||||||||||
Shares used in computing per share amounts (Non-GAAP)
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Basic
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50,792 | 48,584 | 50,476 | 48,521 | ||||||||||||
Diluted
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52,866 | 48,584 | 52,535 | 48,521 |