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These excerpts taken from the RVBD 10-K filed Feb 23, 2009. Other Income (Expense), Net Other income (expense), net consists primarily of interest income on our cash and marketable securities, interest expense, and foreign currency exchange losses. Cash has historically been invested in highly liquid investments such as time deposits held at major banks, commercial paper, U.S. government agency discount notes, money market mutual funds and other money market securities with maturities at the date of purchase of 90 days or less.
2008 Compared to 2007: Other income (expense), net, decreased in the year ended December 31, 2008 due to decreased interest income on cash and marketable securities balances as a result of declining interest rates. Weighted average interest rates applicable to our cash and marketable securities balances decreased to 2.6% in the year ended December 31, 2008 compared to 5.0% in the year ended December 31, 2007. Other expense in the year ended December 31, 2008 and 2007 consists primarily of foreign currency losses. 2007 Compared to 2006: Other income (expense), net, increased in the year ended December 31, 2007 primarily due to interest income on higher cash and marketable securities balances. We did not have interest expense in 2007, as we paid off the balance of our credit facility on October 2, 2006. Other expense decreased due to recording our preferred stock warrants to fair value in 2006 and no such adjustment was required in 2007. In the year ended December 31, 2006 we recognized a $644,000 charge to record our preferred stock warrants at fair value. Subsequent to our IPO, we were no longer required to record the warrants to fair value. Other expense in the years ended December 31, 2007 consists primarily of foreign currency losses. Other Income Other income (expense), net consists primarily of interest income on our cash and marketable securities, interest expense, and
2008 Compared to 2007: Other income (expense), net, decreased in the year income on higher cash and marketable securities balances. We did not have interest expense in 2007, as we paid off the balance of our credit facility on October 2, 2006. Other expense decreased due to recording our preferred stock warrants to fair value in 2006 and no such adjustment was required in 2007. In the year ended December 31, 2006 we recognized a $644,000 charge to record our preferred stock warrants at fair value. Subsequent to our IPO, we were no longer required to record the warrants to fair value. Other expense in the years ended December 31, 2007 consists primarily of foreign currency losses. SIZE="2">Provision (Benefit) for Income Taxes The provision (benefit) for income taxes was ($8.3) million, $5.2 million and $303,000 for the The decrease in the effective tax rate for 2008 as compared to 2007 was primarily the result of the reduction in income
49 Table of ContentsOur effective tax rate differs from the federal statutory rate due to state taxes, significant permanent assets because of the uncertainty of the realization of the deferred tax assets. Realization of our deferred tax assets is dependent primarily upon future taxable income. In assessing the need for a valuation allowance, we have considered our historical levels of income, expectations of future taxable income and on-going tax planning strategies. In the year ended December 31, 2008, strategies warrant the release of all or a portion of the remaining valuation allowance, which totaled $764,000 as of December 31, 2008, a reduction in the valuation allowance would result in additional income tax benefit in such period. Our effective tax rate in 2008 has fluctuated significantly on a quarterly basis. The effective tax rate can be affected by our stock-based
50 Table of ContentsThis excerpt taken from the RVBD 10-K filed Feb 15, 2008. Other Income (Expense), Net Other income (expense), net consists primarily of interest income, interest expense, and foreign currency exchange gains (losses).
2007 Compared to 2006: Other income (expense), net, increased in the year ended December 31, 2007 primarily due to interest income on higher cash and marketable securities balances. We did not have interest expense in 2007, as we paid off the balance of our credit facility on October 2, 2006. Other expense decreased due to recording our preferred stock warrants to fair value in 2006 and no such adjustment was required in 2007. In the year ended December 31, 2006 we recognized a $644,000 charge to record our preferred stock warrants at fair value. Subsequent to our IPO, we were no longer required to record the warrants to fair value. Other expense in the year ended December 31, 2007 consists primarily of foreign currency losses. 2006 Compared to 2005: Other income (expense), net increased in 2006 due primarily to interest income on higher cash balances. In February 2006, we received net proceeds of $19.9 million from the issuance of 3,738,318 shares of Series D convertible preferred stock. In September 2006, we received net IPO proceeds of $87.5 million. Interest expense decreased slightly as we paid off the balance of our credit facility on October 2, 2006. Other expense increased due to recording our preferred stock warrants to fair value. In 2006 and 2005 we recorded $644,000 and $230,000 of warrant expense respectively. Subsequent to our IPO, we were no longer required to record the warrants to fair value. This excerpt taken from the RVBD 10-Q filed Oct 25, 2007. Other Income (Expense), Net Other income (expense), net consists primarily of interest income, interest expense, and foreign currency exchange gains (losses).
Quarter Ended September 30, 2007 Compared to the Quarter Ended September 30, 2006: Other income (expense), net, increased in the three months ended September 30, 2007 primarily due to interest income on higher cash balances. In September 2006, we received net IPO proceeds of $87.4 million and in February 2007, we received net follow-on public offering proceeds of $87.7 million. We did not have interest expense in the third quarter of 2007, as we paid off the balance of our credit facility on October 2, 2006.
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Table of ContentsNine Months Ended September 30, 2007 Compared to the Nine Months Ended September 30, 2006: Other income (expense), net, increased in the nine months ended September 30, 2007 primarily due to interest income on higher cash balances. We did not have interest expense in the first three quarters of 2007, as we paid off the balance of our credit facility on October 2, 2006. Other expense decreased due to recording our preferred stock warrants to fair value in 2006 and no such adjustment was required in 2007. In the nine months ended September 30, 2006 we recognized a $644,000 charge to record our preferred stock warrants at fair value of warrant expense. Subsequent to our IPO, we were no longer required to record the warrants to fair value. Other expense in the nine months ended September 30, 2007 consists of foreign currency losses. This excerpt taken from the RVBD 10-Q filed Jul 30, 2007. Other Income (Expense), Net Other income (expense), net consists primarily of interest income, interest expense, and foreign currency exchange gains (losses).
Quarter Ended June 30, 2007 Compared to the Quarter Ended June 30, 2006: Other income (expense), net, increased in the three months ended June 30, 2007 primarily due to interest income on higher cash balances. In September 2006, we received net IPO proceeds of $87.5 million and in February 2007, we received net follow-on public offering proceeds of $87.7 million. We did not have interest expense in the second quarter of 2007, as we paid off the balance of our credit facility on October 2, 2006.
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Table of ContentsSix Months Ended June 30, 2007 Compared to the Six Months Ended June 30, 2006: Other income (expense), net, increased in the six months ended June 30, 2007 primarily due to interest income on higher cash balances. We did not have interest expense in the first two quarters of 2007, as we paid off the balance of our credit facility on October 2, 2006. Other expense decreased due to recording our preferred stock warrants to fair value in 2006 and no such adjustment was required in 2007. In the six months ended June 30, 2006 we recorded $215,000 of warrant expense. Subsequent to our IPO, we were no longer required to record the warrants to fair value. This excerpt taken from the RVBD 10-Q filed Apr 27, 2007. Other Income (Expense), Net Other income (expense), net consists primarily of interest income, interest expense, warrant expense and foreign currency exchange gains (losses).
Quarter Ended March 31, 2007 Compared to the Quarter Ended March 31, 2006: Other income (expense), net, increased in the three months ended March 31, 2007 primarily due to interest income on higher cash balances. In September 2006, we received net IPO proceeds of $87.5 million and in February 2007, we received net follow-on public offering proceeds of $87.7 million. We did not have interest expense in the first quarter of 2007, as we paid off the balance of our credit facility on October 2, 2006. Other expense decreased due to recording our preferred stock warrants to fair value in 2006 and no such adjustment was required in 2007. In the three months ended March 31, 2006 we recorded $172,000 of warrant expense. Subsequent to our IPO, we were no longer required to record the warrants to fair value. As of March 31, 2007, all of our warrants were exercised. This excerpt taken from the RVBD 10-K filed Feb 9, 2007. Other Income (Expense), Net Other income (expense), net consists primarily of interest income, interest expense, warrant expense and foreign currency exchange gains (losses).
2006 Compared to 2005: Other income (expense), net increased in 2006 due primarily to interest income on higher cash balances. In February 2006, we received net proceeds of $19.9 million from the issuance of 3,738,318 shares of Series D convertible preferred stock. In September 2006, we received net IPO proceeds of $87.5 million. Interest expense decreased slightly as we paid off the balance of our credit facility on October 2, 2006. Other expense increased due to recording our preferred stock warrants to fair value. In 2006 and 2005 we recorded $644,000 and $230,000 of warrant expense respectively. Subsequent to our IPO, we are no longer required to record the warrants to fair value. 2005 Compared to 2004: Other income (expense), net decreased in 2005 due primarily to a $230,000 charge we recognized subsequent to the adoption of FASB Staff Position 150-5, Issuer’s Accounting under FASB Statement No. 150 for Freestanding Warrants and Other Similar Instruments on Shares That Are Redeemable, which required us to classify our preferred stock warrants as liabilities and record them at fair value. Interest expense increased in 2005 due to $1.1 million of additional borrowings under our credit facility in 2005 as compared to 2004. These decreases to other
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Table of Contentsincome (expense), net were partially offset by increased interest income. Interest income increased due to average cash balances increasing from $9.0 million in 2004 to $15.8 million in 2005. In December 2004, we received net proceeds of $19.9 million from the issuance of 9,345,796 shares of Series C convertible preferred stock. This excerpt taken from the RVBD 10-Q filed Oct 31, 2006. Other Income (Expense), Net Other income (expense), net consists primarily of interest income, interest expense, warrant expense and foreign currency exchange gains (losses).
Quarter Ended September 30, 2006 Compared to the Quarter Ended September 30, 2005: Other income (expense), net decreased in the nine months ended September 30, 2006 due primarily to a $429,000 charge we recognized in accordance with FASB Staff Position 150-5, Issuer’s Accounting under FASB Statement No. 150 for Freestanding Warrants and Other Similar Instruments on Shares That Are Redeemable, which required us to classify our preferred stock warrants as liabilities and record them at fair value. Subsequent to our IPO, we are no longer required to record the warrants to fair value. Interest expense increased due to an increase in the weighted average interest rate to 13.1% in the quarter ended September 30, 2006 as compared to 11.1% in the quarter ended September 30, 2005. These decreases to other income (expense), net were partially offset by increased interest income as a result of higher cash balances. In February 2006, we received net proceeds of $19.9 million from the issuance of 3,738,318 shares of Series D convertible preferred stock. In September 2006,
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Table of Contentswe received IPO proceeds net of expenses of $87.4 million. We expect that interest income from cash will increase in the quarter ending December 31, 2006 and beyond compared to the quarter ended September 30, 2006 as a result of the net proceeds received in our IPO. We expect that interest expense will decline in the quarter ending December 31, 2006 compared to the quarter ended September 30, 2006 as a result of settling our outstanding debt obligations in October 2006. Nine Months Ended September 30, 2006 Compared to the Nine Months Ended September 30, 2005: Other income (expense), net decreased in the nine months ended September 30, 2006 due primarily to a $644,000 charge we recognized to record our preferred stock warrants at fair value. Interest expense increased due to an increase in the weighted average interest rate to 12.6% in the nine months ended September 30, 2006 as compared to 10.6% in the nine months ended September 30, 2005. These decreases to other income (expense), net were partially offset by increased interest income due to higher cash balances. | EXCERPTS ON THIS PAGE:
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