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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November 7, 2018
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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1200 Crossman Ave., Suite 210,
Sunnyvale, CA 94089
(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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By:
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/s/ Richard A.
Bloom
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Name:
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Richard A. Bloom
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Title:
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President and Chief Executive Officer
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Exhibit No.
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Description
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Press Release of the Company, dated November 7, 2018
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Sept
30,
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December
31,
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2018
(1)
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2017
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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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$47,918
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$49,233
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Accounts
receivable, net
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12,539
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11,951
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Prepaid expenses
and other current assets
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980
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802
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Total
current assets
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61,437
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61,986
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Property and
equipment, net
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846
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1,133
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Intangible assets,
net
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250
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250
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Other
assets
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725
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984
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Total
assets
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$63,258
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$64,353
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Liabilities
and Stockholders' Equity
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Current
liabilities:
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Accounts payable
and accrued compensation
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$2,854
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$3,661
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Other accrued
liabilities
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1,212
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1,330
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Acrued legal
settlement
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10,000
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-
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Short-term deferred
revenue
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1,244
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2,006
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Total
current liabilities
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15,310
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6,997
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Long-term deferred
revenue
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-
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13
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Other long-term
liabilities
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725
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885
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Total
liabilities
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16,035
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7,895
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Stockholders'
equity:
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Common
stock
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2
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2
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Additional
paid-in-capital
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268,600
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267,857
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Treasury
stock
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(5,297)
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(5,297)
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Accumulated other
comprehensive loss
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(2,568)
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(2,108)
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Accumulated
deficit
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(213,514)
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(203,996)
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Total
stockholders' equity
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47,223
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56,458
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Total
liabilities and stockholders' equity
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$63,258
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$64,353
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Three
Months Ended
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Nine
Months Ended
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Sept
30,
2018
(1)
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June
30,
2018
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Sept
30,
2017
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Sept
30,
2018
(1)
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Sept
30,
2017
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Revenue:
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Services
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$16,759
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$16,220
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$13,682
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$48,179
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$39,744
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Software and
other
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1,258
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1,248
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1,350
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3,828
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4,085
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Total
revenue
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18,017
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17,468
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15,032
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52,007
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43,829
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Cost
of revenue:
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Cost of services
(2)
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14,412
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14,462
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11,559
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42,985
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33,760
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Cost of software
and other (2)
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51
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46
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66
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152
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252
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Total
cost of revenue
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14,463
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14,508
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11,625
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43,137
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34,012
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Gross
profit
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3,554
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2,960
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3,407
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8,870
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9,817
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Operating
expenses:
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Research and
development (2)
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690
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681
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631
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2,082
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2,429
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Sales and marketing
(2)
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424
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409
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621
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1,383
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2,011
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General and
administrative (2)
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1,800
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1,677
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1,996
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5,623
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6,847
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Amortization of
intangible assets and other
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-
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-
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-
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-
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16
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Restructuring
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-
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-
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128
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-
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128
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Legal
Settlement
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10,000
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-
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-
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10,000
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-
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Total
operating expenses
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12,914
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2,767
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3,376
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19,088
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11,431
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Income
(loss) from operations
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(9,360)
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193
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31
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(10,218)
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(1,614)
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Interest income and
other, net
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241
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230
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164
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676
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451
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Income
(loss) before income taxes
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(9,119)
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423
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195
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(9,542)
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(1,163)
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Income
tax provision (benefit)
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29
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27
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(36)
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(24)
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57
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Net
income (loss)
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$(9,148)
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$396
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$231
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$(9,518)
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$(1,220)
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Net
earnings (loss) per share (3)
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Basic
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$(0.49)
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$0.02
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$0.01
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$(0.51)
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$(0.07)
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Diluted
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$(0.49)
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$0.02
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$0.01
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$(0.51)
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$(0.07)
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Shares
used in computing per share amounts: (3)
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Basic
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18,805
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18,765
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18,692
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18,786
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18,613
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Diluted
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18,805
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18,947
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18,714
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18,786
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18,613
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Three Months Ended
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Nine Months Ended
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Sept 30, 2018
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June 30, 2018
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Sept 30, 2017
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Sept 30, 2018
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Sept 30, 2017
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Cost of revenue:
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Cost
of services
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$11
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$17
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$19
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$38
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$83
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Cost
of software and other
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-
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-
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-
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-
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3
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Operating expenses:
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Research
and development
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9
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10
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(18)
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33
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62
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Sales
and marketing
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14
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7
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12
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40
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34
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General
and administrative
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68
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74
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15
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465
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113
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Total
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$102
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$108
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$28
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$576
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$295
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Three
Months Ended
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Nine
Months Ended
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Sept
30,
2018
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June
30,
2018
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Sept
30,
2017
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Sept
30,
2018
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Sept
30,
2017
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GAAP
cost of revenue
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$14,463
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$14,508
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$11,625
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$43,137
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$34,012
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Stock-based
compensation expense (Cost of revenue portion only)
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(11)
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(17)
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(19)
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(38)
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(86)
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Non-GAAP
cost of revenue
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$14,452
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$14,491
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$11,606
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$43,099
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$33,926
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GAAP
operating expenses
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$12,914
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$2,767
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$3,376
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$19,088
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$11,431
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Stock-based
compensation expense (Excl. cost of revenue portion)
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(91)
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(91)
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(9)
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(538)
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(209)
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Amortization of
intangible assets and other
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-
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-
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-
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-
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(16)
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Restructuring
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-
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-
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(128)
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-
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(128)
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Legal
settlement
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(10,000)
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-
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-
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(10,000)
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-
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Non-GAAP
operating expenses
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$2,823
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$2,676
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$3,239
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$8,550
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$11,078
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GAAP
net income (loss)
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$(9,148)
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$396
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$231
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$(9,518)
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$(1,220)
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Stock-based
compensation expense
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102
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108
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28
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576
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295
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Amortization of
intangible assets and other
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-
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-
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-
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-
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16
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Restructuring
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-
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-
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128
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-
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128
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Legal
settlement
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10,000
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-
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-
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10,000
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-
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Total
impact of Non-GAAP exclusions
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10,102
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108
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156
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10,576
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439
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Non-GAAP
net income (loss)
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$954
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$504
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$387
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$1,058
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$(781)
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Earnings
(loss) per share (3)
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Basic -
GAAP
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$(0.49)
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$0.02
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$0.01
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$(0.51)
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$(0.07)
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Basic -
Non-GAAP
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$0.05
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$0.03
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$0.02
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$0.06
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$(0.04)
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Diluted -
GAAP
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$(0.49)
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$0.02
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$0.01
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$(0.51)
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$(0.07)
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Diluted -
Non-GAAP
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$0.05
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$0.03
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$0.02
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$0.06
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$(0.04)
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Shares
used in computing per share amounts (GAAP)
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Basic
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18,805
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18,765
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18,692
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18,786
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18,613
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Diluted
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18,805
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18,947
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18,714
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18,786
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18,613
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Shares
used in computing per share amounts (Non-GAAP) (3)
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Basic
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18,805
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18,765
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18,692
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18,786
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18,613
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Diluted
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18,974
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18,947
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18,714
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18,965
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18,613
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The
adjustments above reconcile the Company’s GAAP financial
results to the non-GAAP financial measures used by the Company. The
Company’s non-GAAP financial measures exclude stock-based
compensation expense, amortization of intangible assets and other,
restructuring charges, and one-time legal settlement charges. The
Company believes that presentation of these non-GAAP items provides
meaningful supplemental information to investors when viewed in
conjunction with, and not in lieu of, the Company’s GAAP
results. However, the non-GAAP financial measures have not been
prepared under a comprehensive set of accounting rules or
principles. Non-GAAP information should not be considered in
isolation from, or as a substitute for, information prepared in
accordance with GAAP. Moreover, there are material limitations
associated with the use of non-GAAP financial measures. See the
text of this press release for more information on non-GAAP
financial measures.
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2018
amounts are subject to completion of management’s customary
closing and review procedures.
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