GSIC » Topics » Sources of Cash

These excerpts taken from the GSIC 10-K filed Mar 16, 2009.
Sources of Cash
 
Our principal sources of liquidity in fiscal 2008 were our cash and cash equivalents balances, cash provided by operating activities, and cash provided by financing activities, including cash borrowed under our secured revolving bank credit facility.
 
As of January 3, 2009, we had $130.3 million of cash and cash equivalents, compared to $231.5 million of cash and cash equivalents as of December 29, 2007. Cash equivalents are comprised of money market mutual funds.
 
Cash provided by operating activities was $96.0 million, $58.1 million, and $66.1 million in fiscal 2008, fiscal 2007, and fiscal 2006, respectively. Cash provided by operating activities is driven by our net income, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash adjustments include depreciation, amortization, stock-based compensation expense and deferred income taxes. Cash provided by operating activities was greater than net loss in fiscal 2008 primarily due to the net impact of non-cash adjustments to income as well as an increase to our accounts payable and accrued expense balances.
 
We have experienced and expect to continue to experience seasonal fluctuations in our cash flows. We generate the majority of our cash from operating activities in our fourth fiscal quarter. In our first fiscal quarter, we typically use cash generated from operating activities in the fourth quarter of the prior fiscal year to satisfy accounts payable and accrued expenses incurred in the fourth fiscal quarter of our prior fiscal year. During our second and third fiscal quarters, we generally fund our operating expenses and capital expenditures from cash generated from operating activities, cash and cash equivalents, and/or cash from financing activities.
 
Cash provided by financing activities was primarily driven by proceeds from our secured revolving bank credit facility, proceeds from our equity and debt offerings, capital lease financings, and proceeds from employee stock option exercises. In January 2008, we entered into a $75 million secured revolving credit facility with a syndicate of banks which is collateralized by substantially all of our assets other than intellectual property. In May 2008, we increased our line of credit by $15 million, which increased the total borrowing availability to $90 million. The credit facility contains financial and restrictive covenants that limit our ability to engage in activities that may be in our long term best interests. We do not believe the financial covenants will limit our ability to utilize the entire borrowing availability in fiscal 2009, if necessary.
 
During fiscal 2008, we borrowed and also repaid $70 million on our secured revolving bank credit facility. During fiscal 2008, the maximum amount outstanding on our secured revolving bank credit facility was $40 million. During fiscal 2007, we issued subordinated convertible notes resulting in net proceeds of $145 million. Our cash proceeds from employee option exercises were $1.4 million in 2008, compared to $8.1 million and $10.2 million in fiscal 2007 and fiscal 2006, respectively. The downward trend in proceeds from option exercises was due primarily to our granting of restricted stock units since fiscal 2006 rather than stock options as well as our fluctuating stock price.


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Sources of Cash
 
Our principal sources of liquidity in fiscal 2008 were our cash and cash equivalents balances, cash provided by operating activities, and cash provided by financing activities, including cash borrowed under our secured revolving bank credit facility.
 
As of January 3, 2009, we had $130.3 million of cash and cash equivalents, compared to $231.5 million of cash and cash equivalents as of December 29, 2007. Cash equivalents are comprised of money market mutual funds.
 
Cash provided by operating activities was $96.0 million, $58.1 million, and $66.1 million in fiscal 2008, fiscal 2007, and fiscal 2006, respectively. Cash provided by operating activities is driven by our net income, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash adjustments include depreciation, amortization, stock-based compensation expense and deferred income taxes. Cash provided by operating activities was greater than net loss in fiscal 2008 primarily due to the net impact of non-cash adjustments to income as well as an increase to our accounts payable and accrued expense balances.
 
We have experienced and expect to continue to experience seasonal fluctuations in our cash flows. We generate the majority of our cash from operating activities in our fourth fiscal quarter. In our first fiscal quarter, we typically use cash generated from operating activities in the fourth quarter of the prior fiscal year to satisfy accounts payable and accrued expenses incurred in the fourth fiscal quarter of our prior fiscal year. During our second and third fiscal quarters, we generally fund our operating expenses and capital expenditures from cash generated from operating activities, cash and cash equivalents, and/or cash from financing activities.
 
Cash provided by financing activities was primarily driven by proceeds from our secured revolving bank credit facility, proceeds from our equity and debt offerings, capital lease financings, and proceeds from employee stock option exercises. In January 2008, we entered into a $75 million secured revolving credit facility with a syndicate of banks which is collateralized by substantially all of our assets other than intellectual property. In May 2008, we increased our line of credit by $15 million, which increased the total borrowing availability to $90 million. The credit facility contains financial and restrictive covenants that limit our ability to engage in activities that may be in our long term best interests. We do not believe the financial covenants will limit our ability to utilize the entire borrowing availability in fiscal 2009, if necessary.
 
During fiscal 2008, we borrowed and also repaid $70 million on our secured revolving bank credit facility. During fiscal 2008, the maximum amount outstanding on our secured revolving bank credit facility was $40 million. During fiscal 2007, we issued subordinated convertible notes resulting in net proceeds of $145 million. Our cash proceeds from employee option exercises were $1.4 million in 2008, compared to $8.1 million and $10.2 million in fiscal 2007 and fiscal 2006, respectively. The downward trend in proceeds from option exercises was due primarily to our granting of restricted stock units since fiscal 2006 rather than stock options as well as our fluctuating stock price.


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Table of Contents

Sources of Cash
 
Our principal sources of liquidity in fiscal 2008 were our cash and cash equivalents balances, cash provided by operating activities, and cash provided by financing activities, including cash borrowed under our secured revolving bank credit facility.
 
As of January 3, 2009, we had $130.3 million of cash and cash equivalents, compared to $231.5 million of cash and cash equivalents as of December 29, 2007. Cash equivalents are comprised of money market mutual funds.
 
Cash provided by operating activities was $96.0 million, $58.1 million, and $66.1 million in fiscal 2008, fiscal 2007, and fiscal 2006, respectively. Cash provided by operating activities is driven by our net income, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash adjustments include depreciation, amortization, stock-based compensation expense and deferred income taxes. Cash provided by operating activities was greater than net loss in fiscal 2008 primarily due to the net impact of non-cash adjustments to income as well as an increase to our accounts payable and accrued expense balances.
 
We have experienced and expect to continue to experience seasonal fluctuations in our cash flows. We generate the majority of our cash from operating activities in our fourth fiscal quarter. In our first fiscal quarter, we typically use cash generated from operating activities in the fourth quarter of the prior fiscal year to satisfy accounts payable and accrued expenses incurred in the fourth fiscal quarter of our prior fiscal year. During our second and third fiscal quarters, we generally fund our operating expenses and capital expenditures from cash generated from operating activities, cash and cash equivalents, and/or cash from financing activities.
 
Cash provided by financing activities was primarily driven by proceeds from our secured revolving bank credit facility, proceeds from our equity and debt offerings, capital lease financings, and proceeds from employee stock option exercises. In January 2008, we entered into a $75 million secured revolving credit facility with a syndicate of banks which is collateralized by substantially all of our assets other than intellectual property. In May 2008, we increased our line of credit by $15 million, which increased the total borrowing availability to $90 million. The credit facility contains financial and restrictive covenants that limit our ability to engage in activities that may be in our long term best interests. We do not believe the financial covenants will limit our ability to utilize the entire borrowing availability in fiscal 2009, if necessary.
 
During fiscal 2008, we borrowed and also repaid $70 million on our secured revolving bank credit facility. During fiscal 2008, the maximum amount outstanding on our secured revolving bank credit facility was $40 million. During fiscal 2007, we issued subordinated convertible notes resulting in net proceeds of $145 million. Our cash proceeds from employee option exercises were $1.4 million in 2008, compared to $8.1 million and $10.2 million in fiscal 2007 and fiscal 2006, respectively. The downward trend in proceeds from option exercises was due primarily to our granting of restricted stock units since fiscal 2006 rather than stock options as well as our fluctuating stock price.


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Table of Contents

Sources
of Cash



 



Our principal sources of liquidity in fiscal 2008 were our cash
and cash equivalents balances, cash provided by operating
activities, and cash provided by financing activities, including
cash borrowed under our secured revolving bank credit facility.


 



As of January 3, 2009, we had $130.3 million of cash
and cash equivalents, compared to $231.5 million of cash
and cash equivalents as of December 29, 2007. Cash
equivalents are comprised of money market mutual funds.


 



Cash provided by operating activities was $96.0 million,
$58.1 million, and $66.1 million in fiscal 2008,
fiscal 2007, and fiscal 2006, respectively. Cash provided by
operating activities is driven by our net income, adjusted for
non-cash items and changes in operating assets and liabilities.
Non-cash adjustments include depreciation, amortization,
stock-based compensation expense and deferred income taxes. Cash
provided by operating activities was greater than net loss in
fiscal 2008 primarily due to the net impact of non-cash
adjustments to income as well as an increase to our accounts
payable and accrued expense balances.


 



We have experienced and expect to continue to experience
seasonal fluctuations in our cash flows. We generate the
majority of our cash from operating activities in our fourth
fiscal quarter. In our first fiscal quarter, we typically use
cash generated from operating activities in the fourth quarter
of the prior fiscal year to satisfy accounts payable and accrued
expenses incurred in the fourth fiscal quarter of our prior
fiscal year. During our second and third fiscal quarters, we
generally fund our operating expenses and capital expenditures
from cash generated from operating activities, cash and cash
equivalents,
and/or cash
from financing activities.


 



Cash provided by financing activities was primarily driven by
proceeds from our secured revolving bank credit facility,
proceeds from our equity and debt offerings, capital lease
financings, and proceeds from employee stock option exercises.
In January 2008, we entered into a $75 million secured
revolving credit facility with a syndicate of banks which is
collateralized by substantially all of our assets other than
intellectual property. In May 2008, we increased our line of
credit by $15 million, which increased the total borrowing
availability to $90 million. The credit facility contains
financial and restrictive covenants that limit our ability to
engage in activities that may be in our long term best
interests. We do not believe the financial covenants will limit
our ability to utilize the entire borrowing availability in
fiscal 2009, if necessary.


 



During fiscal 2008, we borrowed and also repaid $70 million
on our secured revolving bank credit facility. During fiscal
2008, the maximum amount outstanding on our secured revolving
bank credit facility was $40 million. During fiscal 2007,
we issued subordinated convertible notes resulting in net
proceeds of $145 million. Our cash proceeds from employee
option exercises were $1.4 million in 2008, compared to
$8.1 million and $10.2 million in fiscal 2007 and
fiscal 2006, respectively. The downward trend in proceeds from
option exercises was due primarily to our granting of restricted
stock units since fiscal 2006 rather than stock options as well
as our fluctuating stock price.





43





Table of Contents







Sources
of Cash



 



Our principal sources of liquidity in fiscal 2008 were our cash
and cash equivalents balances, cash provided by operating
activities, and cash provided by financing activities, including
cash borrowed under our secured revolving bank credit facility.


 



As of January 3, 2009, we had $130.3 million of cash
and cash equivalents, compared to $231.5 million of cash
and cash equivalents as of December 29, 2007. Cash
equivalents are comprised of money market mutual funds.


 



Cash provided by operating activities was $96.0 million,
$58.1 million, and $66.1 million in fiscal 2008,
fiscal 2007, and fiscal 2006, respectively. Cash provided by
operating activities is driven by our net income, adjusted for
non-cash items and changes in operating assets and liabilities.
Non-cash adjustments include depreciation, amortization,
stock-based compensation expense and deferred income taxes. Cash
provided by operating activities was greater than net loss in
fiscal 2008 primarily due to the net impact of non-cash
adjustments to income as well as an increase to our accounts
payable and accrued expense balances.


 



We have experienced and expect to continue to experience
seasonal fluctuations in our cash flows. We generate the
majority of our cash from operating activities in our fourth
fiscal quarter. In our first fiscal quarter, we typically use
cash generated from operating activities in the fourth quarter
of the prior fiscal year to satisfy accounts payable and accrued
expenses incurred in the fourth fiscal quarter of our prior
fiscal year. During our second and third fiscal quarters, we
generally fund our operating expenses and capital expenditures
from cash generated from operating activities, cash and cash
equivalents,
and/or cash
from financing activities.


 



Cash provided by financing activities was primarily driven by
proceeds from our secured revolving bank credit facility,
proceeds from our equity and debt offerings, capital lease
financings, and proceeds from employee stock option exercises.
In January 2008, we entered into a $75 million secured
revolving credit facility with a syndicate of banks which is
collateralized by substantially all of our assets other than
intellectual property. In May 2008, we increased our line of
credit by $15 million, which increased the total borrowing
availability to $90 million. The credit facility contains
financial and restrictive covenants that limit our ability to
engage in activities that may be in our long term best
interests. We do not believe the financial covenants will limit
our ability to utilize the entire borrowing availability in
fiscal 2009, if necessary.


 



During fiscal 2008, we borrowed and also repaid $70 million
on our secured revolving bank credit facility. During fiscal
2008, the maximum amount outstanding on our secured revolving
bank credit facility was $40 million. During fiscal 2007,
we issued subordinated convertible notes resulting in net
proceeds of $145 million. Our cash proceeds from employee
option exercises were $1.4 million in 2008, compared to
$8.1 million and $10.2 million in fiscal 2007 and
fiscal 2006, respectively. The downward trend in proceeds from
option exercises was due primarily to our granting of restricted
stock units since fiscal 2006 rather than stock options as well
as our fluctuating stock price.





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Table of Contents







EXCERPTS ON THIS PAGE:

10-K (5 sections)
Mar 16, 2009

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