DSCM » Topics » Liquidity and Capital Resources

This excerpt taken from the DSCM 10-Q filed May 8, 2009.

Liquidity and Capital Resources

We have an accumulated deficit of $769.0 million through March 29, 2009. To date, we have had only two profitable quarters, and we may never achieve profitability on a full-year or consistent basis. We expect to continue to incur losses on a full-year basis in 2009, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their investment in our common stock. From our inception through March 29, 2009, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $421.3 million.

Our primary source of cash is from sales made through our websites, for which we collect cash from credit card settlements, or insurance reimbursements. Our primary uses of cash are purchases of inventory, payments of salaries, marketing expenses, and overhead and fixed costs. Any projections of our future cash needs and cash flows are subject to substantial uncertainty for the reasons discussed in this section and in the section entitled “Risk Factors” in Part I, Item 1A of our annual report on Form 10-K for the fiscal year ended December 28, 2008.

 

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Our principal sources of liquidity are our cash, cash equivalents, and marketable securities. Historically, our principal liquidity requirements have been to meet our working capital and capital expenditure needs. Until required for other purposes, our cash and cash equivalents are maintained in deposit accounts or highly liquid investments with remaining maturities of 90 days or less at the time of purchase. Our marketable securities, which include U.S. government agency obligations and corporate notes and bonds are considered short-term as they are available to fund current operations. In addition, we have a revolving two-year line of credit allowing for borrowings of up to $25.0 million in the aggregate through March 2011, which is available to fund operations, capital expenditures, or finance acquisitions, as needed. As of March 29, 2009, the aggregate available borrowings under the line of credit were approximately $20.5 million.

These excerpts taken from the DSCM 10-K filed Mar 13, 2009.

Liquidity and Capital Resources

We have an accumulated deficit of $770.1 million through December 28, 2008. To date, we have had only one profitable quarter, and we may never achieve profitability on a full-year or consistent basis. We expect to continue to incur net losses in the first quarter of 2009, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their investment in our common stock. From our inception through December 28, 2008, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $421.3 million.

 

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Our primary source of cash is sales made through our websites, for which we collect cash from credit card settlements, or insurance reimbursements. Our primary uses of cash are purchases of inventory, salaries, marketing expenses, and overhead and fixed costs. Any projections of our future cash needs and cash flows are subject to substantial uncertainty for the reasons discussed in this section and in the section entitled “Risk Factors” in Part I, Item 1A of this annual report.

Our principal sources of liquidity are our cash, cash equivalents, and marketable securities. Historically, our principal liquidity requirements have been to meet our working capital and capital expenditure needs. Until required for other purposes, our cash and cash equivalents are maintained in deposit accounts or highly liquid investments with remaining maturities of 90 days or less at the time of purchase. Our marketable securities, which include commercial paper, U.S. government agency obligations, and corporate notes and bonds, are considered short-term as they are available to fund current operations. In addition, we have a revolving two-year line of credit allowing for borrowings up to $25.0 million through March 2011, which is available to fund operations, capital expenditures, or finance acquisitions, as needed. As of March 9, 2009, the available borrowings under the line of credit were approximately $21.0 million.

The following table provides information regarding our balances of cash and cash equivalents and marketable securities for the last three fiscal years:

 

     December 28,
    2008    
   December 30,
    2007    
   December 31,
    2006    
     (in thousands)

Cash and cash equivalents

   $ 25,197    $ 18,572    $ 13,393

Marketable securities

     12,997      17,677      27,246
                    

Total

   $ 38,194    $ 36,249    $ 40,639
                    

We believe that our cash and marketable securities on hand plus our sources of cash will be sufficient to fund our operations and anticipated capital expenditures. However, any projections about our future cash needs and cash flows are subject to substantial uncertainty. As a result, we may need to raise additional monies to fund our operating activities or for strategic flexibility (if, for example, we decide to pursue business or technology acquisitions) or if our expectations regarding our operations and anticipated capital expenditures change. We have assessed in the past, and will continue to assess, opportunities for raising additional funds by selling equity, equity-related or debt securities, obtaining additional credit facilities, or obtaining other means of financing for strategic reasons or to further strengthen our financial position. We cannot be certain that additional financing will be available to us on acceptable terms when required, or at all. Furthermore, if we were to raise additional funds through the issuance of securities, such securities may have rights, preferences, or privileges senior to those of the rights of our common stock and our stockholders may experience additional dilution.

Liquidity and Capital Resources

We have an accumulated deficit of $770.1 million through December 28, 2008. To date, we have had only one profitable quarter, and we may never achieve profitability on a full-year or consistent basis. We expect to continue to incur net losses in the first quarter of 2009, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their investment in our common stock. From our inception through December 28, 2008, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $421.3 million.

 

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Our primary source of cash is sales made through our websites, for which we collect cash from credit card settlements, or insurance reimbursements. Our primary uses of cash are purchases of inventory, salaries, marketing expenses, and overhead and fixed costs. Any projections of our future cash needs and cash flows are subject to substantial uncertainty for the reasons discussed in this section and in the section entitled “Risk Factors” in Part I, Item 1A of this annual report.

Our principal sources of liquidity are our cash, cash equivalents, and marketable securities. Historically, our principal liquidity requirements have been to meet our working capital and capital expenditure needs. Until required for other purposes, our cash and cash equivalents are maintained in deposit accounts or highly liquid investments with remaining maturities of 90 days or less at the time of purchase. Our marketable securities, which include commercial paper, U.S. government agency obligations, and corporate notes and bonds, are considered short-term as they are available to fund current operations. In addition, we have a revolving two-year line of credit allowing for borrowings up to $25.0 million through March 2011, which is available to fund operations, capital expenditures, or finance acquisitions, as needed. As of March 9, 2009, the available borrowings under the line of credit were approximately $21.0 million.

The following table provides information regarding our balances of cash and cash equivalents and marketable securities for the last three fiscal years:

 

     December 28,
    2008    
   December 30,
    2007    
   December 31,
    2006    
     (in thousands)

Cash and cash equivalents

   $ 25,197    $ 18,572    $ 13,393

Marketable securities

     12,997      17,677      27,246
                    

Total

   $ 38,194    $ 36,249    $ 40,639
                    

We believe that our cash and marketable securities on hand plus our sources of cash will be sufficient to fund our operations and anticipated capital expenditures. However, any projections about our future cash needs and cash flows are subject to substantial uncertainty. As a result, we may need to raise additional monies to fund our operating activities or for strategic flexibility (if, for example, we decide to pursue business or technology acquisitions) or if our expectations regarding our operations and anticipated capital expenditures change. We have assessed in the past, and will continue to assess, opportunities for raising additional funds by selling equity, equity-related or debt securities, obtaining additional credit facilities, or obtaining other means of financing for strategic reasons or to further strengthen our financial position. We cannot be certain that additional financing will be available to us on acceptable terms when required, or at all. Furthermore, if we were to raise additional funds through the issuance of securities, such securities may have rights, preferences, or privileges senior to those of the rights of our common stock and our stockholders may experience additional dilution.

This excerpt taken from the DSCM 10-Q filed Nov 7, 2008.

Liquidity and Capital Resources

We have incurred net losses of $770.4 million since inception. To date, we have not been profitable, and we may never achieve profitability on a full-year or consistent basis. We expect to continue to incur net losses from operations in the fourth quarter of 2008, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their investment in our common stock. From our inception through September 28, 2008, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $421.2 million.

 

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This excerpt taken from the DSCM 10-Q filed Aug 8, 2008.

Liquidity and Capital Resources

We have incurred net losses of $766.8 million since inception. To date, we have not been profitable, and we may never achieve profitability on a full-year or consistent basis. We expect to continue to incur net losses in the third quarter of 2008, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their investment in our common stock. From our inception through June 29, 2008, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $421.1 million.

This excerpt taken from the DSCM 10-Q filed May 9, 2008.

Liquidity and Capital Resources

We have incurred net losses of $764.5 million since inception. To date, we have not been profitable, and we may never achieve profitability on a full-year or consistent basis. We expect to continue to incur net losses in the second quarter of 2008, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their investment in our common stock. From our inception through March 30, 2008, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $421.1 million.

These excerpts taken from the DSCM 10-K filed Mar 14, 2008.

Liquidity and Capital Resources

We have incurred net losses of $761.9 million since inception. To date, we have not been profitable, and we may never achieve profitability on a full-year or consistent basis. We expect to continue to incur net losses in the first quarter of 2008, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their investment in our common stock. From our inception through December 30, 2007, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $420.7 million.

 

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Liquidity and
Capital Resources

We have incurred net losses of $761.9 million since inception. To date, we have not been profitable, and we may never
achieve profitability on a full-year or consistent basis. We expect to continue to incur net losses in the first quarter of 2008, and possibly longer. As a result, our stock price may decline and stockholders may lose all or a part of their
investment in our common stock. From our inception through December 30, 2007, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $420.7 million.

 


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This excerpt taken from the DSCM 10-Q filed Nov 7, 2007.

Liquidity and Capital Resources

We have incurred net losses of $759.5 million since inception. We may continue to incur net losses for the next year, and possibly longer. From our inception through September 30, 2007, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $419.7 million.

This excerpt taken from the DSCM 10-Q filed Aug 8, 2007.

Liquidity and Capital Resources

We have incurred net losses of $757.1 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through July 1, 2007, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $418.3 million.

This excerpt taken from the DSCM 10-Q filed May 9, 2007.

Liquidity and Capital Resources

We have incurred net losses of $754.1 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through April 1, 2007, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $417.0 million.

This excerpt taken from the DSCM 10-K filed Mar 16, 2007.

Liquidity and Capital Resources

We have incurred net losses of $750.3 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through December 31, 2006, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $416.4 million.

This excerpt taken from the DSCM 10-Q filed Nov 8, 2006.

Liquidity and Capital Resources

We have incurred net losses of $747.4 million since inception. We believe that we may continue to incur net losses for at least the next year, and possibly longer. From our inception through October 1, 2006, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $415.0 million.

This excerpt taken from the DSCM 10-Q filed Aug 9, 2006.

Liquidity and Capital Resources

We have incurred net losses of $744.8 million since inception. We believe that we may continue to incur net losses for at least the next year, and possibly longer. From our inception through July 2, 2006, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $414.3 million.

This excerpt taken from the DSCM 10-Q filed May 12, 2006.

Liquidity and Capital Resources

We have incurred net losses of $742.6 million since inception. We believe that we may continue to incur net losses for at least the next year, and possibly longer. From our inception through April 2, 2006, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $413.9 million.

This excerpt taken from the DSCM 10-K filed Mar 17, 2006.

Liquidity and Capital Resources

We have incurred net losses of $737.3 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through January 1, 2006, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $413.6 million.

This excerpt taken from the DSCM 10-Q filed Nov 10, 2005.

Liquidity and Capital Resources

 

We have incurred net losses of $732.8 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through October 2, 2005, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $413.6 million.

 

This excerpt taken from the DSCM 10-Q filed Aug 12, 2005.

Liquidity and Capital Resources

 

We have incurred net losses of $725.7 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through July 3, 2005, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $412.7 million.

 

This excerpt taken from the DSCM 10-Q filed May 13, 2005.

Liquidity and Capital Resources

 

We have incurred net losses of $721.4 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through April 3, 2005, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $411.8 million.

 

This excerpt taken from the DSCM 10-K filed Mar 18, 2005.

Liquidity and Capital Resources

 

We have incurred net losses of $716.4 million since inception. We believe that we will continue to incur net losses for at least the next year, and possibly longer. From our inception through January 2, 2005, we have financed our operations primarily through the sale of equity securities, including common and preferred stock, yielding net cash proceeds of $385.6 million.

 

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