EX-99.2 3 w64224exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
HGS CALCULATION OF NET CASH BURN
Our July 30, 2008 press release announcing second quarter 2008 financial results includes a discussion of net cash burn, which is a non-GAAP financial measure. This non-GAAP measure may be considered in addition to results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), but should not be considered a substitute for, or superior to, GAAP results. We believe that net cash burn is relevant and useful information for the Company and our investors as it provides a simple method of determining net cash used by the Company. A calculation of net cash burn is provided below:
         
    Six months ended  
    June 30, 2008  
    (dollars in thousands)  
Net income (loss)
  $ (121,106 )
Stock-based compensation expense
    9,304  
Depreciation and amortization
    10,402  
Change in deferred revenues
    (22,610 )
Capital expenditures
    (3,951 )
Proceeds from sale of long-term investment, net of gain of $32,518
    14,818  
 
     
Net Cash Burn
  $ (113,143 )