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Guarantor Subsidiaries
12 Months Ended
Dec. 31, 2012
Guarantor Subsidiaries [Abstract]  
Guarantor Subsidiaries
(16)
Guarantor Subsidiaries
 
The obligations under the Notes are fully and unconditionally guaranteed (except for certain release provisions including any sale or other disposition of all or substantially all of the assets of that guarantor, any sale or other disposition of the capital stock of that guarantor, if we designate any restricted subsidiary that is a guarantor to be an unrestricted subsidiary and upon legal defeasance of satisfaction and discharge of the indenture,  which are considered customary), jointly and severally, by all of our current and future 100% owned domestic restricted subsidiaries (Guarantors).  No other subsidiaries guarantee the Notes.  The Notes and guarantees are secured by a first-priority lien on certain collateral which comprises substantially all of the Parent and Guarantors' tangible and intangible assets, subject to certain exceptions.  The following tables present the balance sheets, statements of operations and statements of cash flows of the Parent, Guarantor and Non-Guarantor entities along with the eliminations necessary to arrive at the information on a consolidated basis.
 
General corporate expenses, including public company costs, certain amortization, corporate administration costs, acquisition-related expenses and net interest expense are included in the results of the Parent.
 
CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
Parent
 
 
Guarantors
 
 
Non-Guarantors
 
 
Eliminations
 
 
Consolidated
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (including restricted cash)
 
$
862
 
 
$
32,012
 
 
$
3,001
 
 
$
0
 
 
$
35,875
 
Accounts receivable, net
 
 
-
 
 
 
61,871
 
 
 
10,194
 
 
 
-
 
 
 
72,065
 
Intercompany receivables
 
 
1,142
 
 
 
48,418
 
 
 
799
 
 
 
(50,359
)
 
 
-
 
Other current assets
 
 
2,668
 
 
 
29,337
 
 
 
3,702
 
 
 
-
 
 
 
35,707
 
Total current assets
 
 
4,672
 
 
 
171,638
 
 
 
17,696
 
 
 
(50,359
)
 
 
143,647
 
Net property and equipment
 
 
130
 
 
 
4,187
 
 
 
648
 
 
 
-
 
 
 
4,964
 
Purchased and developed software, net
 
 
-
 
 
 
18,508
 
 
 
499
 
 
 
-
 
 
 
19,007
 
Other intangible assets, net
 
 
-
 
 
 
35,025
 
 
 
603
 
 
 
-
 
 
 
35,628
 
Goodwill
 
 
-
 
 
 
212,908
 
 
 
1,404
 
 
 
-
 
 
 
214,312
 
Investment in and advances to subsidiaries
 
 
345,364
 
 
 
(868
)
 
 
-
 
 
 
(344,496
)
 
 
-
 
Other assets
 
 
5,957
 
 
 
5,745
 
 
 
7,593
 
 
 
-
 
 
 
19,295
 
Total assets
 
$
356,123
 
 
$
447,143
 
 
$
28,443
 
 
$
(394,855
)
 
$
436,853
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
1,509
 
 
$
21,839
 
 
$
1,090
 
 
$
-
 
 
$
24,438
 
Deferred revenue
 
 
-
 
 
 
50,716
 
 
 
1,639
 
 
 
-
 
 
 
52,355
 
Intercompany payables
 
 
20,008
 
 
 
13,369
 
 
 
17,037
 
 
 
(50,414
)
 
 
-
 
Other accrued liabilities
 
 
4,352
 
 
 
18,168
 
 
 
1,133
 
 
 
-
 
 
 
23,653
 
Total current liabilities
 
 
25,869
 
 
 
104,092
 
 
 
20,899
 
 
 
(50,414
)
 
 
100,446
 
Notes payable
 
 
250,046
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
250,046
 
Other long-term liabilities
 
 
2,747
 
 
 
5,518
 
 
 
635
 
 
 
-
 
 
 
8,900
 
Total liabilities
 
 
278,662
 
 
 
109,610
 
 
 
21,534
 
 
 
(50,414
)
 
 
359,392
 
Total shareholders' equity
 
 
77,461
 
 
 
337,532
 
 
 
6,909
 
 
 
(344,441
)
 
 
77,461
 
Total liabilities and shareholders' equity
 
$
356,123
 
 
$
447,143
 
 
$
28,443
 
 
$
(394,855
)
 
$
436,853
 
 
 
CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
 
 
Parent
 
 
Guarantors
 
 
Non-Guarantors
 
 
Eliminations
 
 
Consolidated
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (including restricted cash)
 
$
5,451
 
 
$
28,003
 
 
$
5,818
 
 
$
-
 
 
$
39,272
 
Accounts receivable, net
 
 
-
 
 
 
63,487
 
 
 
7,527
 
 
 
-
 
 
 
71,014
 
Intercompany receivables
 
 
-
 
 
 
29,108
 
 
 
635
 
 
 
(29,743
)
 
 
-
 
Other current assets
 
 
595
 
 
 
29,579
 
 
 
3,814
 
 
 
-
 
 
 
33,988
 
Total current assets
 
 
6,046
 
 
 
150,177
 
 
 
17,794
 
 
 
(29,743
)
 
 
144,274
 
Net property and equipment
 
 
113
 
 
 
3,753
 
 
 
525
 
 
 
-
 
 
 
4,391
 
Purchased and developed software, net
 
 
-
 
 
 
23,309
 
 
 
615
 
 
 
-
 
 
 
23,924
 
Other intangible assets, net
 
 
-
 
 
 
44,483
 
 
 
669
 
 
 
-
 
 
 
45,152
 
Goodwill
 
 
-
 
 
 
207,799
 
 
 
2,030
 
 
 
-
 
 
 
209,829
 
Investment in and advances to subsidiaries
 
 
340,637
 
 
 
(338
)
 
 
-
 
 
 
(340,299
)
 
 
-
 
Other assets
 
 
8,013
 
 
 
4,597
 
 
 
9,835
 
 
 
372
 
 
 
22,817
 
Total assets
 
$
354,809
 
 
$
433,780
 
 
$
31,468
 
 
$
(369,670
)
 
$
450,387
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
3,124
 
 
$
17,647
 
 
$
1,343
 
 
$
-
 
 
$
22,114
 
Deferred revenue
 
 
-
 
 
 
49,678
 
 
 
1,568
 
 
 
-
 
 
 
51,246
 
Intercompany payables
 
 
2,176
 
 
 
8,580
 
 
 
24,086
 
 
 
(34,842
)
 
 
-
 
Other accrued liabilities
 
 
4,921
 
 
 
18,729
 
 
 
1,244
 
 
 
-
 
 
 
24,894
 
Total current liabilities
 
 
10,221
 
 
 
94,634
 
 
 
28,241
 
 
 
(34,842
)
 
 
98,254
 
Notes payable
 
 
249,371
 
 
 
67
 
 
 
-
 
 
 
-
 
 
 
249,438
 
Other long-term liabilities
 
 
2,746
 
 
 
6,381
 
 
 
725
 
 
 
372
 
 
 
10,224
 
Total liabilities
 
 
262,338
 
 
 
101,082
 
 
 
28,966
 
 
 
(34,470
)
 
 
357,916
 
Total shareholders' equity
 
 
92,471
 
 
 
332,698
 
 
 
2,502
 
 
 
(335,200
)
 
 
92,471
 
Total liabilities and shareholders' equity
 
$
354,809
 
 
$
433,780
 
 
$
31,468
 
 
$
(369,670
)
 
$
450,387
 
 
 
CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2010
 
 
Parent
 
 
Guarantors
 
 
Non-Guarantors
 
 
Eliminations
 
 
Consolidated
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (including restricted cash)
 
$
870
 
 
$
35,877
 
 
$
4,282
 
 
$
-
 
 
$
41,029
 
Accounts receivable, net
 
 
-
 
 
 
48,201
 
 
 
5,053
 
 
 
-
 
 
 
53,254
 
Intercompany receivables
 
 
14,170
 
 
 
14,168
 
 
 
961
 
 
 
(29,299
)
 
 
-
 
Other current assets
 
 
791
 
 
 
16,766
 
 
 
3,923
 
 
 
-
 
 
 
21,480
 
Total current assets
 
 
15,831
 
 
 
115,012
 
 
 
14,219
 
 
 
(29,299
)
 
 
115,763
 
Net property and equipment
 
 
156
 
 
 
4,949
 
 
 
667
 
 
 
-
 
 
 
5,772
 
Purchased and developed software, net
 
 
601
 
 
 
25,210
 
 
 
808
 
 
 
-
 
 
 
26,619
 
Other intangible assets, net
 
 
395
 
 
 
48,053
 
 
 
509
 
 
 
-
 
 
 
48,957
 
Goodwill
 
 
-
 
 
 
167,957
 
 
 
1,576
 
 
 
-
 
 
 
169,533
 
Investment in and advances to subsidiaries
 
 
284,893
 
 
 
1,830
 
 
 
-
 
 
 
(286,723
)
 
 
-
 
Other assets
 
 
13,615
 
 
 
7,164
 
 
 
12,101
 
 
 
(2,879
)
 
 
30,001
 
Total assets
 
$
315,491
 
 
$
370,175
 
 
$
29,880
 
 
$
(318,901
)
 
$
396,645
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
2,054
 
 
$
14,155
 
 
$
2,161
 
 
$
-
 
 
$
18,370
 
Deferred revenue
 
 
-
 
 
 
50,573
 
 
 
1,660
 
 
 
-
 
 
 
52,233
 
Intercompany payables
 
 
-
 
 
 
13,767
 
 
 
25,580
 
 
 
(39,347
)
 
 
-
 
Other accrued liabilities
 
 
4,965
 
 
 
10,902
 
 
 
936
 
 
 
-
 
 
 
16,803
 
Total current liabilities
 
 
7,019
 
 
 
89,397
 
 
 
30,337
 
 
 
(39,347
)
 
 
87,406
 
Notes payable
 
 
195,077
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
195,077
 
Other long-term liabilities
 
 
8,589
 
 
 
2,785
 
 
 
861
 
 
 
(2,879
)
 
 
9,356
 
Total liabilities
 
 
210,685
 
 
 
92,182
 
 
 
31,198
 
 
 
(42,226
)
 
 
291,839
 
Total shareholders' equity
 
 
104,806
 
 
 
277,993
 
 
 
(1,318
)
 
 
(276,675
)
 
 
104,806
 
Total liabilities and shareholders' equity
 
$
315,491
 
 
$
370,175
 
 
$
29,880
 
 
$
(318,901
)
 
$
396,645
 
 
 
 
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2012
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Net sales
 
$
-
 
 
$
225,662
 
 
$
23,242
 
 
$
-
 
 
$
248,904
 
Cost of sales
 
 
-
 
 
 
104,117
 
 
 
3,934
 
 
 
-
 
 
 
108,051
 
Gross margin
 
 
-
 
 
 
121,545
 
 
 
19,308
 
 
 
-
 
 
 
140,853
 
Selling, research and development, general
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and administrative expenses
 
 
12,532
 
 
 
92,670
 
 
 
13,491
 
 
 
-
 
 
 
118,693
 
Acquisition-related expenses
 
 
3,402
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
3,402
 
Restructuring and other expenses
 
 
-
 
 
 
425
 
 
 
405
 
 
 
-
 
 
 
830
 
Depreciation and amortization
 
 
59
 
 
 
10,990
 
 
 
259
 
 
 
-
 
 
 
11,308
 
Total operating costs and expenses
 
 
15,993
 
 
 
104,085
 
 
 
14,155
 
 
 
-
 
 
 
134,233
 
Operating income (loss)
 
 
(15,993
)
 
 
17,460
 
 
 
5,153
 
 
 
-
 
 
 
6,620
 
Equity in net income of subsidiaries
 
 
9,689
 
 
 
(2,507
)
 
 
-
 
 
 
(7,182
)
 
 
-
 
Other, net
 
 
(22,515
)
 
 
(10,395
)
 
 
1,561
 
 
 
-
 
 
 
(31,349
)
Other income (expense)
 
 
(12,826
)
 
 
(12,902
)
 
 
1,561
 
 
 
(7,182
)
 
 
(31,349
)
Income (loss) before income taxes
 
 
(28,819
)
 
 
4,558
 
 
 
6,714
 
 
 
(7,182
)
 
 
(24,729
)
Income tax expense
 
 
1
 
 
 
1,741
 
 
 
2,349
 
 
 
-
 
 
 
4,091
 
Net income (loss)
 
$
(28,820
)
 
$
2,817
 
 
$
4,365
 
 
$
(7,182
)
 
$
(28,820
)
 
 
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2011
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Net sales
 
$
-
 
 
$
206,144
 
 
$
26,284
 
 
$
-
 
 
$
232,428
 
Cost of sales
 
 
-
 
 
 
83,782
 
 
 
4,872
 
 
 
-
 
 
 
88,654
 
Gross margin
 
 
-
 
 
 
122,362
 
 
 
21,412
 
 
 
-
 
 
 
143,774
 
Selling, research and development, general
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and administrative expenses
 
 
3,455
 
 
 
80,130
 
 
 
15,336
 
 
 
-
 
 
 
98,921
 
Acquisition-related expenses
 
 
1,614
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
1,614
 
Restructuring and other expenses
 
 
-
 
 
 
1,061
 
 
 
155
 
 
 
-
 
 
 
1,216
 
Depreciation and amortization
 
 
279
 
 
 
12,251
 
 
 
338
 
 
 
-
 
 
 
12,868
 
Total operating costs and expenses
 
 
5,348
 
 
 
93,442
 
 
 
15,829
 
 
 
-
 
 
 
114,619
 
Operating income (loss)
 
 
(5,348
)
 
 
28,920
 
 
 
5,583
 
 
 
-
 
 
 
29,155
 
Equity in net income of subsidiaries
 
 
30,476
 
 
 
(1,546
)
 
 
-
 
 
 
(28,930
)
 
 
-
 
Other, net
 
 
(30,889
)
 
 
(398
)
 
 
266
 
 
 
-
 
 
 
(31,021
)
Other income (expense)
 
 
(413
)
 
 
(1,944
)
 
 
266
 
 
 
(28,930
)
 
 
(31,021
)
Income (loss) before income taxes
 
 
(5,761
)
 
 
26,976
 
 
 
5,849
 
 
 
(28,930
)
 
 
(1,866
)
Income tax expense (benefit)
 
 
(230
)
 
 
1,830
 
 
 
2,065
 
 
 
-
 
 
 
3,665
 
Net income (loss)
 
$
(5,531
)
 
$
25,146
 
 
$
3,784
 
 
$
(28,930
)
 
$
(5,531
)
 
 
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2010
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Net sales
 
$
-
 
 
$
122,001
 
 
$
18,331
 
 
$
-
 
 
$
140,332
 
Cost of sales
 
 
-
 
 
 
59,511
 
 
 
5,052
 
 
 
-
 
 
 
64,563
 
Gross margin
 
 
-
 
 
 
62,490
 
 
 
13,279
 
 
 
-
 
 
 
75,769
 
Selling, research and development, general
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and administrative expenses
 
 
5,819
 
 
 
50,634
 
 
 
6,320
 
 
 
-
 
 
 
62,773
 
Acquisition-related expenses
 
 
9,638
 
 
 
36
 
 
 
-
 
 
 
-
 
 
 
9,674
 
Restructuring and other expenses
 
 
418
 
 
 
4,575
 
 
 
13
 
 
 
-
 
 
 
5,006
 
Depreciation, amortization and impairment
 
 
858
 
 
 
5,665
 
 
 
317
 
 
 
-
 
 
 
6,840
 
Total operating costs and expenses
 
 
16,733
 
 
 
60,910
 
 
 
6,650
 
 
 
-
 
 
 
84,293
 
Operating income (loss)
 
 
(16,733
)
 
 
1,580
 
 
 
6,629
 
 
 
-
 
 
 
(8,524
)
Equity in net income of subsidiaries
 
 
22,502
 
 
 
(138
)
 
 
-
 
 
 
(22,364
)
 
 
-
 
Other, net
 
 
(17,097
)
 
 
106
 
 
 
353
 
 
 
-
 
 
 
(16,638
)
Other income (expense)
 
 
5,405
 
 
 
(32
)
 
 
353
 
 
 
(22,364
)
 
 
(16,638
)
Income (loss) before income taxes
 
 
(11,328
)
 
 
1,548
 
 
 
6,982
 
 
 
(22,364
)
 
 
(25,162
)
Income tax expense (benefit)
 
 
188
 
 
 
200
 
 
 
(14,034
)
 
 
-
 
 
 
(13,646
)
Net income (loss)
 
$
(11,516
)
 
$
1,348
 
 
$
21,016
 
 
$
(22,364
)
 
$
(11,516
)
 
 
 
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2012
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(28,820
)
 
$
2,817
 
 
$
4,365
 
 
$
(7,182
)
 
$
(28,820
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
 
-
 
 
 
1,179
 
 
 
2,402
 
 
 
-
 
 
 
3,581
 
Depreciation, amortization and impairment
 
 
59
 
 
 
19,847
 
 
 
389
 
 
 
-
 
 
 
20,295
 
Share-based compensation
 
 
2,944
 
 
 
2,695
 
 
 
147
 
 
 
-
 
 
 
5,786
 
Change in contingent consideration for acquisitions
 
 
1,547
 
 
 
(167
)
 
 
-
 
 
 
-
 
 
 
1,380
 
Amortization of notes payable issuance costs and discount
 
 
2,724
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
2,724
 
Unrealized gain on investment
 
 
(486
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(486
)
Provision for doubtful accounts receivable and allowances, net of recoveries
 
 
-
 
 
 
12,561
 
 
 
(510
)
 
 
-
 
 
 
12,051
 
Net change in assets and liabilities (net of effects of acquisitions)
 
 
(3,180
)
 
 
(13,927
)
 
 
(7,227
)
 
 
7,182
 
 
 
(17,151
)
Net cash provided by (used in) operating activities
 
 
(25,212
)
 
 
25,006
 
 
 
(434
)
 
 
-
 
 
 
(640
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions, net of cash acquired
 
 
-
 
 
 
(876
)
 
 
-
 
 
 
-
 
 
 
(876
)
Investment in securities
 
 
-
 
 
 
(240
)
 
 
-
 
 
 
-
 
 
 
(240
)
Purchases of property, equipment, and leasehold improvements
 
 
(75
)
 
 
(1,846
)
 
 
(253
)
 
 
-
 
 
 
(2,174
)
Intercompany advances
 
 
-
 
 
 
(17,638
)
 
 
(2,520
)
 
 
20,158
 
 
 
-
 
Change in restricted cash
 
 
(106
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(106
)
Net cash provided by (used in) investing activities
 
 
(181
)
 
 
(20,600
)
 
 
(2,773
)
 
 
20,158
 
 
 
(3,396
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany advances
 
 
19,658
 
 
 
-
 
 
 
500
 
 
 
(20,158
)
 
 
-
 
Proceeds from exercise of options and employee stock purchase plan
 
 
1,039
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
1,039
 
Principal payments on notes
 
 
-
 
 
 
-
 
 
 
(37
)
 
 
-
 
 
 
(37
)
Principal payments on capital leases
 
 
-
 
 
 
(396
)
 
 
-
 
 
 
-
 
 
 
(396
)
Net cash provided by (used in) financing activities
 
 
20,697
 
 
 
(396
)
 
 
463
 
 
 
(20,158
)
 
 
606
 
Effect of exchange rates on cash and cash equivalents
 
 
-
 
 
 
-
 
 
 
(73
)
 
 
-
 
 
 
(73
)
Net increase (decrease) in cash and cash equivalents
 
 
(4,695
)
 
 
4,009
 
 
 
(2,817
)
 
 
-
 
 
 
(3,503
)
Cash and cash equivalents (net of restricted cash), beginning of period
 
 
4,907
 
 
 
27,840
 
 
 
5,818
 
 
 
-
 
 
 
38,565
 (1)
Cash and cash equivalents (net of restricted cash), end of period
 
$
212
 
 
$
31,849
 
 
$
3,001
 
 
$
-
 
 
$
35,062
 (2)
 
 (1)
Net of restricted cash of $707 at December 31, 2011.
 (2)
Net of restricted cash of $813 at December 31, 2012.
 
 
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2011
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(5,531
)
 
$
25,146
 
 
$
3,784
 
 
$
(28,930
)
 
$
(5,531
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
 
3,368
 
 
 
2,693
 
 
 
2,047
 
 
 
-
 
 
 
8,108
 
Depreciation, amortization and impairment
 
 
1,038
 
 
 
20,793
 
 
 
377
 
 
 
-
 
 
 
22,208
 
Share-based compensation
 
 
1,837
 
 
 
1,987
 
 
 
84
 
 
 
-
 
 
 
3,908
 
Change in contingent consideration for acquisitions
 
 
-
 
 
 
345
 
 
 
-
 
 
 
-
 
 
 
345
 
Amortization of notes payable issuance costs and discount
 
 
2,393
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
2,393
 
Realized (gain) loss on investment
 
 
-
 
 
 
-
 
 
 
(405
)
 
 
-
 
 
 
(405
)
Provision for doubtful accounts receivable and sales returns, net of recoveries
 
 
-
 
 
 
2,102
 
 
 
664
 
 
 
-
 
 
 
2,766
 
Stock issued for charitable contribution
 
 
1,851
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
1,851
 
Net change in assets and liabilities (net of effects of acquisitions)
 
 
(43,694
)
 
 
(13,393
)
 
 
(5,797
)
 
 
28,930
 
 
 
(33,954
)
Net cash provided by (used in) operating activities
 
 
(38,738
)
 
 
39,673
 
 
 
754
 
 
 
-
 
 
 
1,689
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions, net of cash acquired
 
 
-
 
 
 
(1,277
)
 
 
-
 
 
 
-
 
 
 
(1,277
)
Purchases of property, equipment, and leasehold improvements
 
 
-
 
 
 
(1,952
)
 
 
(24
)
 
 
-
 
 
 
(1,976
)
Intercompany advances
 
 
-
 
 
 
(39,723
)
 
 
-
 
 
 
39,723
 
 
 
-
 
Change in restricted cash
 
 
140
 
 
 
800
 
 
 
-
 
 
 
-
 
 
 
940
 
Distribution from equity investment
 
 
-
 
 
 
-
 
 
 
405
 
 
 
-
 
 
 
405
 
Net cash provided by (used in) investing activities
 
 
140
 
 
 
(42,152
)
 
 
381
 
 
 
39,723
 
 
 
(1,908
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany advances
 
 
39,199
 
 
 
-
 
 
 
524
 
 
 
(39,723
)
 
 
-
 
Proceeds from issuance of term notes
 
 
53,560
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
53,560
 
Redemption and retirement of preferred stock
 
 
(41,750
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(41,750
)
Preferred stock dividends paid
 
 
(7,328
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(7,328
)
Notes payable issuance costs paid
 
 
(1,528
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(1,528
)
Proceeds from exercise of options and employee stock purchase plan
 
 
1,166
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
1,166
 
Principal payments on notes
 
 
-
 
 
 
(4,591
)
 
 
-
 
 
 
-
 
 
 
(4,591
)
Principal payments on capital leases
 
 
-
 
 
 
(4
)
 
 
-
 
 
 
-
 
 
 
(4
)
Net cash provided by (used in) financing activities
 
 
43,319
 
 
 
(4,595
)
 
 
524
 
 
 
(39,723
)
 
 
(475
)
Effect of exchange rates on cash and cash equivalents
 
 
-
 
 
 
-
 
 
 
(123
)
 
 
-
 
 
 
(123
)
Net increase (decrease) in cash and cash equivalents
 
 
4,721
 
 
 
(7,074
)
 
 
1,536
 
 
 
-
 
 
 
(817
)
Cash and cash equivalents (net of restricted cash), beginning of period
 
 
186
 
 
 
34,914
 
 
 
4,282
 
 
 
-
 
 
 
39,382
 (1)
Cash and cash equivalents (net of restricted cash), end of period
 
$
4,907
 
 
$
27,840
 
 
$
5,818
 
 
$
-
 
 
$
38,565
 (2)
 
 (1)
Net of restricted cash of $1,647 at December 31, 2010.
 (2)
Net of restricted cash of $707 at December 31, 2011.
 
 
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2010
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(11,516
)
 
$
1,348
 
 
$
21,016
 
 
$
(22,364
)
 
$
(11,516
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred income taxes
 
 
(2
)
 
 
-
 
 
 
(14,054
)
 
 
-
 
 
 
(14,056
)
Depreciation, amortization and impairment
 
 
2,221
 
 
 
14,762
 
 
 
829
 
 
 
-
 
 
 
17,812
 
Share-based compensation
 
 
1,350
 
 
 
1,121
 
 
 
152
 
 
 
-
 
 
 
2,623
 
Change in contingent consideration for acquisitions
 
 
-
 
 
 
113
 
 
 
-
 
 
 
-
 
 
 
113
 
Amortization of notes payable issuance costs and discount
 
 
1,445
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
1,445
 
Realized (gain) loss on investment
 
 
-
 
 
 
-
 
 
 
(506
)
 
 
-
 
 
 
(506
)
Provision for doubtful accounts receivable, sales returns and non-trade receivables, net of recoveries
 
 
-
 
 
 
400
 
 
 
480
 
 
 
-
 
 
 
880
 
Net change in assets and liabilities (net of effects of acquisitions)
 
 
(21,541
)
 
 
11,487
 
 
 
(3,100
)
 
 
22,364
 
 
 
9,210
 
Net cash provided by (used in) operating activities
 
 
(28,043
)
 
 
29,231
 
 
 
4,817
 
 
 
-
 
 
 
6,005
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions, net of cash acquired
 
 
(211,367
)
 
 
(4,845
)
 
 
-
 
 
 
-
 
 
 
(216,212
)
Purchases of property, equipment, and leasehold improvements
 
 
(139
)
 
 
(1,220
)
 
 
(133
)
 
 
-
 
 
 
(1,492
)
Proceeds from sale of property and equipment
 
 
-
 
 
 
6,124
 
 
 
-
 
 
 
-
 
 
 
6,124
 
Intercompany advances
 
 
8,518
 
 
 
-
 
 
 
-
 
 
 
(8,518
)
 
 
-
 
Change in restricted cash
 
 
(415
)
 
 
(673
)
 
 
-
 
 
 
-
 
 
 
(1,088
)
Distribution from equity investment
 
 
-
 
 
 
-
 
 
 
606
 
 
 
-
 
 
 
606
 
Net cash provided by (used in) investing activities
 
 
(203,403
)
 
 
(614
)
 
 
473
 
 
 
(8,518
)
 
 
(212,062
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany advances
 
 
-
 
 
 
(2,353
)
 
 
(6,165
)
 
 
8,518
 
 
 
-
 
Proceeds from issuance of notes payable, net of discount of $5,468
 
 
194,532
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
194,532
 
Proceeds from issuance of stock
 
 
41,750
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
41,750
 
Note and stock issuance costs paid
 
 
(9,897
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(9,897
)
Proceeds from exercise of options and employee stock purchase plan
 
 
160
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
160
 
Repurchases of stock
 
 
(26
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(26
)
Principal payments on capital leases
 
 
-
 
 
 
(142
)
 
 
-
 
 
 
-
 
 
 
(142
)
Net cash provided by (used in) financing activities
 
 
226,519
 
 
 
(2,495
)
 
 
(6,165
)
 
 
8,518
 
 
 
226,377
 
Net increase (decrease) in cash and cash equivalents
 
 
(4,927
)
 
 
26,122
 
 
 
(875
)
 
 
-
 
 
 
20,320
 
Cash and cash equivalents (net of restricted cash), beginning of period
 
 
5,113
 
 
 
8,792
 
 
 
5,157
 
 
 
-
 
 
 
19,062
 (1)
Cash and cash equivalents (net of restricted cash), end of period
 
$
186
 
 
$
34,914
 
 
$
4,282
 
 
$
-
 
 
$
39,382
 (2)
 
 (1)
Net of restricted cash of $559 at December 31, 2009.
 (2)
Net of restricted cash of $1,647 at December 31, 2010.