FORM
10-Q
|
||
x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Chordiant
Software, Inc.
|
|||
(Exact
name of registrant as specified in its charter)
|
|||
Delaware
|
93-1051328
|
||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Large
accelerated filer
|
Accelerated
filer x
|
|
Non-accelerated
filer (Do not check if a smaller reporting
company)
|
Smaller
reporting company
|
PART I.
FINANCIAL INFORMATION
|
Page
No.
|
|
Item 1.
|
3
|
|
3
|
||
4
|
||
5
|
||
6
|
||
Item 2.
|
29
|
|
Item 3.
|
48
|
|
Item 4.
|
48
|
|
PART II.
OTHER INFORMATION
|
||
Item 1.
|
49
|
|
Item 1A.
|
49
|
|
Item 6.
|
60
|
|
60
|
||
December
31,
2009
|
September
30,
2009
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
50,613
|
$
|
49,863
|
||||
Marketable
securities
|
1,716
|
—
|
||||||
Accounts
receivable, net
|
22,021
|
16,708
|
||||||
Prepaid
expenses and other current assets
|
3,453
|
4,006
|
||||||
Total
current assets
|
77,803
|
70,577
|
||||||
Property
and equipment, net
|
1,638
|
1,850
|
||||||
Goodwill
|
22,608
|
22,608
|
||||||
Intangible
assets, net
|
—
|
303
|
||||||
Deferred
tax assets—non-current
|
3,224
|
3,480
|
||||||
Other
assets
|
2,378
|
2,491
|
||||||
Total
assets
|
$
|
107,651
|
$
|
101,309
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
4,534
|
$
|
3,809
|
||||
Accrued
expenses
|
9,242
|
6,334
|
||||||
Deferred
revenue
|
32,157
|
28,704
|
||||||
Total
current liabilities
|
45,933
|
38,847
|
||||||
Deferred
revenue—long-term
|
8,786
|
9,257
|
||||||
Other
liabilities—non-current
|
1,151
|
1,069
|
||||||
Restructuring
costs, net of current portion
|
21
|
123
|
||||||
Total
liabilities
|
55,891
|
49,296
|
||||||
Commitments
and contingencies (Notes 7, 8 and 9)
|
||||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, $0.001 par value; 51,000 shares authorized (500 shares designated
as Series A Junior Participating Preferred Stock); none issued and
outstanding at December 31, 2009 and September 30, 2009
|
—
|
—
|
||||||
Common
stock, $0.001 par value; 300,000 shares authorized; 30,362 and 30,208
shares issued and outstanding at December 31, 2009 and September 30, 2009,
respectively
|
30
|
30
|
||||||
Additional
paid-in capital
|
286,583
|
285,666
|
||||||
Accumulated
deficit
|
(237,586
|
)
|
(236,614
|
)
|
||||
Accumulated
other comprehensive income
|
2,733
|
2,931
|
||||||
Total
stockholders’ equity
|
51,760
|
52,013
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
107,651
|
$
|
101,309
|
Three
Months Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Revenues:
|
||||||||
License
|
$
|
7,432
|
$
|
7,941
|
||||
Service
|
14,792
|
15,436
|
||||||
Total
revenues
|
22,224
|
23,377
|
||||||
Cost
of revenues:
|
||||||||
License
|
134
|
98
|
||||||
Service
|
5,545
|
6,686
|
||||||
Amortization
of intangible assets
|
303
|
303
|
||||||
Total
cost of revenues
|
5,982
|
7,087
|
||||||
Gross
profit
|
16,242
|
16,290
|
||||||
Operating
expenses:
|
||||||||
Sales
and marketing
|
6,657
|
7,780
|
||||||
Research
and development
|
5,354
|
5,259
|
||||||
General
and administrative
|
4,504
|
4,402
|
||||||
Restructuring
expense
|
144
|
784
|
||||||
Total
operating expenses
|
16,659
|
18,225
|
||||||
Loss
from operations
|
(417
|
)
|
(1,935
|
)
|
||||
Interest
income, net
|
29
|
292
|
||||||
Other
income (expense), net
|
(90
|
)
|
685
|
|||||
Loss
before income taxes
|
(478
|
)
|
(958
|
)
|
||||
Provision
for income taxes
|
494
|
1,711
|
||||||
Net
loss
|
$
|
(972
|
)
|
$
|
(2,669
|
)
|
||
Net
loss per share:
|
||||||||
Basic
and diluted
|
$
|
(0.03
|
)
|
$
|
(0.09
|
)
|
||
Weighted
average shares used in computing net loss per share:
|
||||||||
Basic
and diluted
|
30,180
|
30,008
|
Three
Months Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$
|
(972
|
)
|
$
|
(2,669
|
)
|
||
Adjustments
to reconcile net loss to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
347
|
456
|
||||||
Amortization
of intangibles and capitalized software
|
380
|
363
|
||||||
Non-cash
stock-based compensation expense
|
889
|
965
|
||||||
Provision
for doubtful accounts
|
(27
|
)
|
202
|
|||||
Non-cash
provision for income taxes
|
503
|
1,263
|
||||||
Changes
in assets and liabilities:
|
||||||||
Accounts
receivable
|
(5,524
|
)
|
2,736
|
|||||
Prepaid
expenses and other current assets
|
318
|
1,203
|
||||||
Other
assets
|
29
|
(44
|
)
|
|||||
Accounts
payable
|
751
|
(2,443
|
)
|
|||||
Accrued
expenses, other liabilities—non-current and restructuring
|
2,938
|
(256
|
)
|
|||||
Deferred
revenue
|
3,170
|
864
|
||||||
Net
cash provided by operating activities
|
2,802
|
2,640
|
||||||
Cash
flows from investing activities:
|
||||||||
Property
and equipment purchases
|
(131
|
)
|
(180
|
)
|
||||
Capitalized
product development costs
|
(11
|
)
|
(13
|
)
|
||||
Increase
in restricted cash
|
—
|
(1
|
)
|
|||||
Purchases
of marketable securities
|
(1,709
|
)
|
—
|
|||||
Net
cash used for investing activities
|
(1,851
|
)
|
(194
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from exercise of stock options
|
27
|
11
|
||||||
Net
cash provided by financing activities
|
27
|
11
|
||||||
Effect
of exchange rate changes
|
(228
|
)
|
(4,198
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
750
|
(1,741
|
)
|
|||||
Cash
and cash equivalents at beginning of period
|
49,863
|
55,516
|
||||||
Cash
and cash equivalents at end of period
|
$
|
50,613
|
$
|
53,775
|
Three
Months Ended December 31,
|
|||||||||||
2009
|
2008
|
||||||||||
Royal
Bank of Scotland plc
|
22
|
%
|
*
|
||||||||
Lloyds
TSB Bank
|
11
|
%
|
*
|
||||||||
Citicorp
Credit Services, Inc.
|
*
|
13
|
%
|
||||||||
Vodafone
Group Services Limited and affiliated companies
|
*
|
25
|
%
|
||||||||
*
|
Represents
less than 10% of total revenues.
|
Three
Months Ended December 31,
|
|||||||||
2009
|
2008
|
||||||||
Net
loss attributable to common stockholders
|
$
|
(972
|
)
|
$
|
(2,669
|
)
|
|||
Denominator:
|
|||||||||
Weighted
average common stock outstanding for basic and diluted
calculations
|
30,180
|
30,008
|
|||||||
Net
loss per share—basic and diluted
|
$
|
(0.03
|
)
|
$
|
(0.09
|
)
|
December
31,
2009
|
December
31,
2008
|
||||||||
Employee
stock options
|
4,276
|
4,212
|
|||||||
Restricted
stock awards (RSAs)
|
90
|
71
|
|||||||
Restricted
stock units (RSUs)
|
987
|
520
|
|||||||
5,353
|
4,803
|
Level
1 – Valuations based on quoted prices in active markets for identical
assets that the Company has the ability to access.
|
|
Level
2 – Valuations based on quoted prices in markets that are not active or
for which all significant inputs are observable, either directly or
indirectly.
|
|
Level
3 – Valuations based on inputs that are unobservable and significant to
the overall fair value measurement.
|
Fair
value of investments as of December 31, 2009
|
||||||||||||||||
Total
|
Quoted Prices
In
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
|||||||||||||
Money
Market Funds
|
$
|
33,930
|
$
|
33,930
|
$
|
—
|
$
|
—
|
||||||||
Marketable
securities
|
1,716
|
1,716
|
—
|
—
|
||||||||||||
Total
|
$
|
35,646
|
$
|
35,646
|
$
|
—
|
$
|
—
|
Fair
value of investments as of September 30, 2009
|
||||||||||||||||
Total
|
Quoted
Prices
In
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
|||||||||||||
Money
Market Funds
|
$
|
39,497
|
$
|
39,497
|
$
|
—
|
$
|
—
|
||||||||
December
31, 2009
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gain
|
Gross
Unrealized
Loss
|
Fair
Value
|
|||||||||||||
Marketable
securities
|
$
|
1,709
|
$
|
7
|
$
|
—
|
$
|
1,716
|
December
31,
2009
|
September
30,
2009
|
||||||||
Accounts
receivable, net:
|
|||||||||
Accounts
receivable
|
$
|
22,213
|
$
|
17,017
|
|||||
Less:
allowance for doubtful accounts
|
(192
|
)
|
(309
|
)
|
|||||
$
|
22,021
|
$
|
16,708
|
December
31,
2009
|
September
30,
2009
|
||||||||
Prepaid
expenses and other current assets:
|
|||||||||
Prepaid
commissions and royalties
|
$
|
689
|
$
|
582
|
|||||
Deferred
tax assets
|
1,449
|
1,684
|
|||||||
Other
prepaid expenses and current assets
|
1,315
|
1,740
|
|||||||
$
|
3,453
|
$
|
4,006
|
December
31,
2009
|
September
30,
2009
|
||||||||
Property
and equipment, net:
|
|||||||||
Computer
hardware (useful lives of 3 years)
|
$
|
4,667
|
$
|
4,580
|
|||||
Purchased
internal-use software (useful lives of 3 years)
|
3,414
|
3,381
|
|||||||
Furniture
and equipment (useful lives of 3 to 7 years)
|
743
|
739
|
|||||||
Leasehold
improvements (shorter of 7 years or the term of the lease)
|
2,738
|
2,741
|
|||||||
11,562
|
11,441
|
||||||||
Accumulated
depreciation and amortization
|
(9,924
|
)
|
(9,591
|
)
|
|||||
$
|
1,638
|
$
|
1,850
|
December
31, 2009
|
September
30, 2009
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
|||||||||||||||||||
Intangible
assets:
|
||||||||||||||||||||||||
Developed
technologies
|
$
|
6,904
|
$
|
(6,904
|
)
|
$
|
—
|
$
|
6,904
|
$
|
(6,661
|
)
|
$
|
243
|
||||||||||
Customer
list and trade-names
|
2,731
|
(2,731
|
)
|
—
|
2,731
|
(2,671
|
)
|
60
|
||||||||||||||||
$
|
9,635
|
$
|
(9,635
|
)
|
$
|
—
|
$
|
9,635
|
$
|
(9,332
|
)
|
$
|
303
|
December
31,
2009
|
September
30,
2009
|
||||||||
Other
assets:
|
|||||||||
Long-term
accounts receivable
|
$
|
930
|
$
|
930
|
|||||
Long-term
restricted cash
|
88
|
90
|
|||||||
Other
assets
|
1,360
|
1,471
|
|||||||
$
|
2,378
|
$
|
2,491
|
December
31,
2009
|
September
30,
2009
|
||||||||
Accrued
expenses:
|
|||||||||
Accrued
payroll, payroll taxes and related expenses
|
$
|
4,248
|
$
|
2,509
|
|||||
Accrued
restructuring expenses, current portion (Note 5)
|
519
|
408
|
|||||||
Accrued
third party consulting fees
|
505
|
505
|
|||||||
Accrued
income, sales and other taxes
|
2,684
|
1,786
|
|||||||
Other
accrued liabilities
|
1,286
|
1,126
|
|||||||
$
|
9,242
|
$
|
6,334
|
December
31,
2009
|
September
30,
2009
|
||||||||
Deferred
revenue:
|
|||||||||
License
|
$
|
7,635
|
$
|
7,314
|
|||||
Support
and maintenance
|
32,219
|
29,959
|
|||||||
Other
|
1,089
|
688
|
|||||||
40,943
|
37,961
|
||||||||
Less:
current portion
|
(32,157
|
)
|
(28,704
|
)
|
|||||
Long-term
deferred revenue
|
$
|
8,786
|
$
|
9,257
|
|
•
|
Severance
and Termination Benefits—These costs represent severance and payroll taxes
related to restructuring plans.
|
|
•
|
Excess
Facilities Costs—These costs represent future minimum lease payments
related to excess and abandoned office space under leases, and the
disposal of property and equipment including facility leasehold
improvements, net of estimated sublease
income.
|
|
•
|
Termination
Costs—These costs represent contract termination costs related to the
restructuring plan.
|
Current
|
Non-Current
|
Total
|
|||||||||||
Severance
and termination benefits
|
$
|
87
|
$
|
—
|
$
|
87
|
|||||||
Excess
facilities
|
432
|
21
|
453
|
||||||||||
Total
|
$
|
519
|
$
|
21
|
$
|
540
|
Fiscal Year Ended September
30,
|
Total
Net Future
Minimum
Lease
Payments
|
||||||||||||
2010
(nine months remaining)
|
$
|
331
|
|||||||||||
2011
|
122
|
||||||||||||
Total
|
$
|
453
|
Severance
and
Termination
Benefits
|
|||||
Provision
|
$
|
144
|
|||
Cash
paid
|
(57
|
)
|
|||
Reserve
balance as of December 31, 2009
|
$
|
87
|
Severance
and
Benefits
|
Contract
Termination
Costs
|
Total
|
|||||||||||
Provision
|
$
|
758
|
$
|
130
|
$
|
888
|
|||||||
Cash
paid
|
(758
|
)
|
(130
|
)
|
(888
|
)
|
|||||||
Reserve
balance as of December 31, 2008
|
$
|
—
|
$
|
—
|
$
|
—
|
Severance
and
Termination
Benefits
|
|||||
Reserve
balance as of September 30, 2008
|
$
|
123
|
|||
Provision
adjustment
|
(104
|
)
|
|||
Non-cash
|
(19
|
)
|
|||
Cash
paid
|
—
|
||||
Reserve
balance as of December 31, 2008
|
$
|
—
|
Excess
Facilities
|
|||||
Reserve
balance as of September 30, 2009
|
$
|
531
|
|||
Cash
paid
|
(78
|
)
|
|||
Reserve
balance as of December 31, 2009
|
$
|
453
|
Three
Months Ended December 31,
|
|||||||||
2009
|
2008
|
||||||||
Net
loss
|
$
|
(972
|
)
|
$
|
(2,669
|
)
|
|||
Other
comprehensive loss:
|
|||||||||
Change
in foreign currency translation
|
(205
|
)
|
(3,494
|
)
|
|||||
Net
change in unrealized gain from investments
|
7
|
—
|
|||||||
Comprehensive
loss
|
$
|
(1,170
|
)
|
$
|
(6,163
|
)
|
Operating
Leases
|
Operating
Sublease
Income
|
Net
Operating
Leases
|
|||||||||||
Fiscal
year ended September 30:
|
|||||||||||||
2010
(remaining nine months)
|
$
|
2,684
|
$
|
(196
|
)
|
$
|
2,488
|
||||||
2011
|
2,994
|
(86
|
)
|
2,908
|
|||||||||
2012
|
2,201
|
—
|
2,201
|
||||||||||
2013
|
2,031
|
—
|
2,031
|
||||||||||
2014
|
351
|
—
|
351
|
||||||||||
Total
minimum payments
|
$
|
10,261
|
$
|
(282
|
)
|
$
|
9,979
|
Payments
|
|||||||||||||
Fiscal
year ended September 30:
|
|||||||||||||
2010
|
$
|
—
|
|||||||||||
2011
|
145
|
||||||||||||
2012
|
172
|
||||||||||||
Total
|
$
|
317
|
Outstanding
|
||||||||||||||
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Aggregate
Intrinsic
Value
Closing
Price
at
12/31/2009
of
$2.76
|
|||||||||||
Balance
at September 30, 2009
|
3,694
|
$
|
6.82
|
|||||||||||
Granted
|
690
|
2.87
|
||||||||||||
Options
exercised
|
(14
|
)
|
1.98
|
|||||||||||
Options
cancelled/forfeited
|
(94
|
)
|
6.75
|
|||||||||||
Balance
at December 31, 2009
|
4,276
|
$
|
6.20
|
6.06
|
$
|
314
|
||||||||
Vested
and expected to vest at December 31, 2009
|
3,974
|
$
|
6.36
|
5.97
|
$
|
301
|
||||||||
Exercisable
at December 31, 2009
|
2,610
|
$
|
7.12
|
5.54
|
$
|
181
|
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||||||||
Range
of
Exercise
Prices
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
Closing
Price
at
12/31/2009
of
$2.76
|
Number
Exercisable
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
Closing
Price
at
12/31/2009
of
$2.76
|
|||||||||||||||
$0.35
– 2.32
|
653
|
3.71
|
$
|
2.30
|
$
|
299
|
353
|
$
|
2.29
|
$
|
166
|
|||||||||||
2.50
– 2.87
|
745
|
6.89
|
2.83
|
15
|
75
|
2.57
|
15
|
|||||||||||||||
2.98
– 4.90
|
517
|
6.13
|
4.17
|
—
|
322
|
4.21
|
—
|
|||||||||||||||
4.95
– 7.65
|
430
|
5.33
|
6.72
|
—
|
375
|
6.81
|
—
|
|||||||||||||||
7.68
– 8.13
|
423
|
5.87
|
7.97
|
—
|
406
|
7.97
|
—
|
|||||||||||||||
8.25
– 8.28
|
547
|
7.05
|
8.25
|
—
|
423
|
8.25
|
—
|
|||||||||||||||
8.35
– 9.25
|
613
|
7.49
|
9.13
|
—
|
368
|
9.06
|
—
|
|||||||||||||||
9.26
– 45.00
|
348
|
5.66
|
12.56
|
—
|
288
|
12.53
|
—
|
|||||||||||||||
$0.35
– 45.00
|
4,276
|
6.06
|
$
|
6.20
|
$
|
314
|
2,610
|
$
|
7.12
|
$
|
181
|
Non-vested
Stock Awards
|
RSAs
|
RSUs
|
Total
Number
of
Shares
Underlying
Awards
|
Weighted
Average
Grant
Date
Fair Value
|
|||||||||||
Non-vested
balance at September 30, 2009
|
90
|
588
|
678
|
$
|
2.48
|
||||||||||
Awarded
|
—
|
455
|
455
|
2.87
|
|||||||||||
Vested/Released
|
—
|
(140
|
)*
|
(140
|
)*
|
2.32
|
|||||||||
Forfeited
|
—
|
(56
|
)
|
(56
|
)
|
2.38
|
|||||||||
Non-vested
balance at December 31, 2009
|
90
|
847
|
937
|
$
|
2.70
|
Three
Months Ended December 31,
|
|||||||||
2009
|
2008
|
||||||||
Stock-based
compensation expense:
|
|||||||||
Cost
of revenues
|
$
|
162
|
$
|
134
|
|||||
Sales
and marketing
|
162
|
256
|
|||||||
Research
and development
|
90
|
109
|
|||||||
General
and administrative
|
475
|
466
|
|||||||
Total
stock-based compensation expense
|
$
|
889
|
$
|
965
|
Three Months
Ended December
31,
|
|||||||||
2009
|
2008
|
||||||||
Expected
lives in years
|
3.8
|
2.8
|
|||||||
Risk
free interest rates
|
1.6
|
%
|
1.6
|
%
|
|||||
Volatility
|
68
|
%
|
62
|
%
|
|||||
Dividend
yield
|
0
|
%
|
0
|
%
|
Three
Months Ended December 31,
|
|||||||||
2009
|
2008
|
||||||||
License
revenue:
|
|||||||||
Enterprise
Foundation solutions
|
$
|
2,808
|
$
|
1,544
|
|||||
Marketing
Director solutions
|
332
|
2,381
|
|||||||
Decision
Management solutions
|
4,292
|
4,016
|
|||||||
Total
|
$
|
7,432
|
$
|
7,941
|
Three
Months Ended December 31,
|
|||||||||
2009
|
2008
|
||||||||
Service
revenue:
|
|||||||||
Enterprise
Foundation solutions
|
$
|
8,471
|
$
|
9,662
|
|||||
Marketing
Director solutions
|
2,254
|
2,951
|
|||||||
Decision
Management solutions
|
4,067
|
2,823
|
|||||||
Total
|
$
|
14,792
|
$
|
15,436
|
Three
Months Ended December 31,
|
|||||||||
2009
|
2008
|
||||||||
United
States
|
$
|
7,077
|
$
|
8,083
|
|||||
EMEA:
|
|||||||||
United
Kingdom
|
11,697
|
6,132
|
|||||||
Germany
|
2,473
|
3,636
|
|||||||
Other
EMEA
|
977
|
5,526
|
|||||||
Total
EMEA
|
15,147
|
15,294
|
|||||||
Total
|
$
|
22,224
|
$
|
23,377
|
December
31
2009
|
September
30,
2009
|
||||||||
United
States
|
$
|
1,164
|
$
|
1,313
|
|||||
EMEA:
|
|||||||||
United
Kingdom
|
308
|
343
|
|||||||
Other
EMEA
|
166
|
194
|
|||||||
Total
EMEA
|
474
|
537
|
|||||||
Total
|
$
|
1,638
|
$
|
1,850
|
|
•
|
software
license orders for which the delivered products have yet not been accepted
by customers or have not otherwise met all of the required criteria for
revenue recognition. This component includes billed amounts classified as
deferred revenue;
|
|
•
|
contractual
commitments received from customers through purchase orders or contracts
that have yet to be delivered;
|
|
•
|
deferred
revenue from customer support contracts;
and
|
|
•
|
consulting
service orders representing the unbilled remaining balances of consulting
contracts not yet completed or delivered, plus deferred consulting revenue
where we have not otherwise met all of the required criteria for revenue
recognition. Consulting service orders that have expired are excluded from
backlog.
|
|
•
|
Revenue
recognition, including estimating the total estimated time required to
complete sales arrangements involving significant implementation or
customization essential to the functionality of our
products;
|
|
•
|
Estimating
valuation allowances and accrued liabilities, specifically the allowance
for doubtful accounts, and assessment of the probability of the outcome of
our current litigation;
|
|
•
|
Stock-based
compensation expense;
|
|
•
|
Accounting
for income taxes;
|
|
•
|
Valuation
of long-lived and intangible assets and
goodwill;
|
|
•
|
Restructuring
expenses; and
|
|
•
|
Determining
functional currencies for the purposes of consolidating our international
operations.
|