DMAN » Topics » Operating Activities

This excerpt taken from the DMAN 10-K filed Apr 24, 2009.
Operating Activities
 
Our cash flows from operating activities in any period have been significantly influenced by the number of customers using our software, the number and size of new customer contracts, the timing of renewals of existing customer contracts, and the timing of payments by these customers. Our largest source of operating cash flows is cash collections from our customers, which results in decreases to accounts receivable. Our primary uses of cash in operating activities are for personnel-related expenditures. Our cash flows from operating activities in any period will continue to be significantly affected by the extent to which we add new customers, renew existing customers, collect payments from our customers and increase personnel to grow our business.
 
Fiscal 2009 Compared to Fiscal 2008.  Net cash provided by operating activities increased to $13.8 million in fiscal 2009 from $11.3 million in fiscal 2008. Improved expense management and growth in our business resulted in approximately $8.1 million of cash inflow from operating activities after taking into consideration non-cash expenses primarily associated with stock-based compensation, depreciation and amortization of intangible assets included in our net loss. Growth in our customer base and improved collection efforts resulted in a $7.7 million decrease in accounts receivable as well as an improvement in days sales outstanding. Our days sales outstanding was 55 days at February 28, 2009 compared to 82 days at February 29, 2008. The accounts receivable decrease was largely offset by a $7.1 million decrease in deferred revenue associated with the fact that long-term deferred revenue decreased because we increasingly bill customers on an annual basis rather than billing multiple years in advance. In addition, we had cash inflow from other working capital items in fiscal 2009 compared to a cash outflow from these same working capital items in fiscal 2008. Increased accounts payable, accrued compensation and accrued commissions, primarily due to the timing of payments to certain vendors and employees, accounted for the improved cash flow from other working capital.
 
Fiscal 2008 Compared to Fiscal 2007.  Net cash provided by operating activities increased to $11.3 million in fiscal 2008 from $5.2 million in fiscal 2007. The increase in cash provided by operating activities was primarily due to the collections of increased amounts billed to customers in advance of revenue recognition. Growth in our business as well as the fact that we billed some customers for multiple years in advance largely accounted for the $3.9 million increase in accounts receivable and $13.2 million increase in deferred revenue in fiscal 2008. This compares to accounts receivable and deferred revenue growth of $11.1 million and $16.0 million, respectively, in fiscal 2007, where we were also experiencing rapid growth and billed customers multiple years in advance. Our days sales outstanding was 82 days at February 29, 2008 compared to 54 days at February 28, 2007. The increase in our days sales outstanding was the result of delayed collections of a few of our customers’ accounts receivable balances. In addition, our net loss increased by $3.0 million in fiscal 2008, but the higher net loss was largely driven by non-cash charges such as stock-based compensation, intangible amortization and depreciation that together were $6.3 million higher in fiscal 2008 than in fiscal 2007. Finally, those increases were partially offset by a $2.3 million increase in amounts associated with prepaid expenses and trade disbursements.


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This excerpt taken from the DMAN 10-K filed Apr 25, 2008.
Operating Activities
 
Our cash flows from operating activities in any period have been significantly influenced by the number of customers using our software, the number and size of new customer contracts, the timing of renewals of existing customer contracts, and the timing of payments by these customers. Our largest source of operating cash flows is cash collections from our customers, which results in decreases to accounts receivable. Our primary uses of cash in operating activities are for personnel-related expenditures and rent payments. Our cash flows from operating activities in any period will continue to be significantly affected by the extent to which we add new customers, renew existing customers, collect payments from our customers and increase personnel to grow our business.
 
Fiscal 2008 Compared to Fiscal 2007.  Net cash provided by operating activities increased to $11.3 million in fiscal 2008 from $5.2 million in fiscal 2007. The increase was primarily due to the collections of increased amounts billed to customers in advance of revenue recognition. Accounts receivable increased $3.9 million compared to $11.1 million in fiscal 2007, but was partially offset by an increase in deferred revenue of $13.2 million compared to $16.0 million in fiscal 2007. Our adjusted days sales outstanding was 82 days at February 29, 2008 compared to 54 days at February 28, 2007. In addition, our net loss increased by $3.0 million but the higher net loss was largely driven by non-cash charges such as stock-based compensation, intangible amortization and depreciation that together were $6.3 million higher in fiscal 2008 than in fiscal 2007. Finally, those increases were partially offset by a $2.3 million increase in amounts associated with prepaid expenses and the payment of liabilities related to normal operations.
 
Fiscal 2007 Compared to Fiscal 2006.  Net cash provided by operating activities increased to $5.2 million in fiscal 2007 from $3.4 million in fiscal 2006. The increase was primarily due to an increase in amounts received from customers for services and a smaller net loss, partially offset by a smaller increase in amounts owed to vendors and employees.
 

EXCERPTS ON THIS PAGE:

10-K
Apr 24, 2009
10-K
Apr 25, 2008
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