(Mark
One)
|
|
R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended June 30, 2008
|
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the transition period from/to
|
Delaware
|
93-1214598
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification No.)
|
Large
Accelerated filer o
|
Accelerated
filer R
|
|
Non-accelerated
filer o
|
Smaller
reporting company o
|
|
(Do
not check if a smaller reporting company)
|
June
30, 2008
|
December
31, 2007
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
52,130
|
$
|
70,907
|
||||
Short-term
investments
|
17,564
|
4,258
|
||||||
Accounts
receivable, net of allowance for doubtful accounts of $875 and $2,792,
respectively
|
37,911
|
35,938
|
||||||
Prepaid
expenses and other current assets
|
6,888
|
7,116
|
||||||
Deferred
income tax assets
|
575
|
575
|
||||||
Total
current assets
|
115,068
|
118,794
|
||||||
Property
and equipment, net of accumulated depreciation of $32,658 and $41,435,
respectively
|
9,739
|
9,272
|
||||||
Other
assets
|
6,305
|
4,876
|
||||||
Acquired
intangible assets, net
|
7,404
|
9,504
|
||||||
Goodwill
|
79,543
|
79,543
|
||||||
Total
assets
|
$
|
218,059
|
$
|
221,989
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
19,152
|
$
|
15,923
|
||||
Accrued
liabilities
|
13,236
|
15,788
|
||||||
Deferred
revenue — short-term
|
5,749
|
6,606
|
||||||
Total
current liabilities
|
38,137
|
38,317
|
||||||
Deferred
tax liability — long-term
|
575
|
575
|
||||||
Deferred
revenue — long-term
|
1,723
|
949
|
||||||
Other
long-term liabilities
|
644
|
1,040
|
||||||
Total
liabilities
|
41,079
|
40,881
|
||||||
Stockholders’
equity:
|
||||||||
Common
stock
|
63
|
62
|
||||||
Additional
paid-in capital
|
240,421
|
241,703
|
||||||
Accumulated
other comprehensive income (loss)
|
(14
|
)
|
15
|
|||||
Accumulated
deficit
|
(63,490
|
)
|
(60,672
|
)
|
||||
Total
stockholders’ equity
|
176,980
|
181,108
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
218,059
|
$
|
221,989
|
||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues
|
$
|
48,616
|
$
|
47,597
|
$
|
96,728
|
$
|
94,485
|
||||||||
Operating
expenses (1):
|
||||||||||||||||
Network
access
|
20,941
|
17,273
|
41,441
|
33,543
|
||||||||||||
Network
operations
|
8,725
|
8,783
|
17,399
|
16,981
|
||||||||||||
Research
and development
|
3,988
|
5,438
|
8,443
|
10,895
|
||||||||||||
Sales
and marketing
|
10,371
|
13,868
|
20,680
|
27,294
|
||||||||||||
General
and administrative
|
5,805
|
5,059
|
11,124
|
10,818
|
||||||||||||
Restructuring
charges
|
26
|
(169
|
)
|
30
|
(152
|
)
|
||||||||||
Amortization
of intangibles
|
1,050
|
1,050
|
2,100
|
2,100
|
||||||||||||
Total
operating expenses
|
50,906
|
51,302
|
101,217
|
101,479
|
||||||||||||
Operating
loss
|
(2,290
|
)
|
(3,705
|
)
|
(4,489
|
)
|
(6,994
|
)
|
||||||||
Interest income
and other, net
|
367
|
851
|
956
|
1,600
|
||||||||||||
Loss
before income taxes
|
(1,923
|
)
|
(2,854
|
)
|
(3,533
|
)
|
(5,394
|
)
|
||||||||
Benefit
from income taxes
|
(478
|
)
|
(541
|
)
|
(715
|
)
|
(2,623
|
)
|
||||||||
Net
loss
|
$
|
(1,445
|
)
|
$
|
(2,313
|
)
|
$
|
(2,818
|
)
|
$
|
(2,771
|
)
|
||||
Net
loss per share, basic and diluted:
|
$
|
(0.02
|
)
|
$
|
(0.04
|
)
|
$
|
(0.05
|
)
|
$
|
(0.04
|
)
|
||||
Number
of shares used in per share calculations:
|
61,539,722
|
63,097,688
|
61,305,563
|
63,333,332
|
(1)Stock-based
compensation is included in the following expense line
items:
|
||||||||||||||||
Network
operations
|
$
|
285
|
$
|
258
|
$
|
558
|
$
|
393
|
||||||||
Research
and development
|
41
|
327
|
230
|
601
|
||||||||||||
Sales
and marketing
|
(176
|
)
|
527
|
161
|
769
|
|||||||||||
General
and administrative
|
941
|
655
|
1,487
|
1,201
|
Six
Months Ended June 30,
|
||||||||
2008
|
2007
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$
|
(2,818
|
)
|
$
|
(2,771
|
)
|
||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
||||||||
Amortization
of stock-based compensation for employees
|
2,436
|
2,963
|
||||||
Amortization
of acquired intangibles
|
2,100
|
2,100
|
||||||
Depreciation
and amortization
|
2,930
|
2,612
|
||||||
Deferred
income tax
|
—
|
(832
|
)
|
|||||
Provision
for doubtful accounts
|
(114
|
)
|
(407
|
)
|
||||
Realized
loss on investments
|
(29
|
)
|
—
|
|||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(1,859
|
)
|
(2,750
|
)
|
||||
Prepaid
expenses and other current assets
|
228
|
(1,645
|
)
|
|||||
Other
assets
|
(1,007
|
)
|
80
|
|||||
Accounts
payable
|
3,229
|
1,071
|
||||||
Accrued
liabilities
|
(2,982
|
)
|
(4,456
|
)
|
||||
Deferred
revenues
|
(192
|
)
|
—
|
|||||
Other
liabilities
|
(396
|
)
|
(48
|
)
|
||||
Net
cash provided by (used in) operating activities
|
1,526
|
(4,083
|
)
|
|||||
Cash
flows from investing activities:
|
||||||||
Purchases
of short-term investments
|
(137,287
|
)
|
(238,957
|
)
|
||||
Maturities
of short-term investments
|
123,969
|
281,265
|
||||||
Restricted
cash pledged for letter of credit
|
(422
|
)
|
(1,010
|
)
|
||||
Purchases
of property and equipment
|
(3,385
|
)
|
(2,629
|
)
|
||||
Net cash provided
by (used in) investing activities
|
(17,125
|
)
|
38,669
|
|||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from issuance of common stock
|
494
|
1,673
|
||||||
Cash
used in repurchase of common stock
|
(3,672
|
)
|
(12,055
|
)
|
||||
Net
cash used in financing activities
|
(3,178
|
)
|
(10,382
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
(18,777
|
)
|
24,204
|
|||||
Cash
and cash equivalents at beginning of period
|
70,907
|
15,492
|
||||||
Cash
and cash equivalents at end of period
|
$
|
52,130
|
$
|
39,696
|
Fair
Value Measurements at Reporting Date Using
|
||||||||||||||||
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 (1)
|
$ | 6,549 | $ | 6,549 | $ | — | $ | — | ||||||||
Fixed
income available-for-sale securities (2)
|
$ | 50,755 | $ | — | $ | 50,755 | $ | — | ||||||||
Total
|
$ | 57,304 | $ | 6,549 | $ | 50,755 | $ | — |
(1)
|
Included
in cash and cash equivalents on the Company’s consolidated balance
sheet.
|
(2)
|
Fixed
income available-for-sale securities include commercial paper (92% of
total) and bonds of government agencies (8% of total). Included in fixed
income available-for-sale securities is approximately $33.1 million
of cash equivalents. Cash equivalents consist of instruments with
remaining maturities of three months or less at the date of purchase. The
remaining balance of cash equivalents consists primarily of money market
funds, for which the carrying amount is a reasonable estimate of fair
value.
|
December
31, 2007 Balance
|
Amortization
|
June
30, 2008 Balance
|
||||||||||
Goodwill
|
$
|
79,543
|
$
|
—
|
$
|
79,543
|
||||||
Intangibles:
|
||||||||||||
Existing
technology
|
2,749
|
(806
|
)
|
1,943
|
||||||||
Patent/Core
technology
|
1,001
|
(281
|
)
|
720
|
||||||||
Maintenance
agreements and certain relationships
|
189
|
(33
|
)
|
156
|
||||||||
Customer
relationships
|
4,805
|
(836
|
)
|
3,969
|
||||||||
Supplier
contracts
|
504
|
(119
|
)
|
385
|
||||||||
Internally
developed software
|
256
|
(25
|
)
|
231
|
||||||||
$
|
89,047
|
$
|
(2,100
|
)
|
$
|
86,947
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Intangibles:
|
||||||||||||||||
Existing
technology
|
$
|
(403
|
)
|
$
|
(403
|
)
|
$
|
(806
|
)
|
$
|
(806
|
)
|
||||
Patent/Core
technology
|
(141
|
)
|
(141
|
)
|
(281
|
)
|
(281
|
)
|
||||||||
Maintenance
agreements and certain relationships
|
(17
|
)
|
(17
|
)
|
(33
|
)
|
(33
|
)
|
||||||||
Customer
relationships
|
(418
|
)
|
(418
|
)
|
(836
|
)
|
(836
|
)
|
||||||||
Supplier
contracts
|
(58
|
)
|
(58
|
)
|
(119
|
)
|
(119
|
)
|
||||||||
Internally
developed software
|
(13
|
)
|
(13
|
)
|
(25
|
)
|
(25
|
)
|
||||||||
$
|
(1,050
|
)
|
$
|
(1,050
|
)
|
$
|
(2,100
|
)
|
$
|
(2,100
|
)
|
June
30, 2008
|
|||||||||||||
Amortization
Life
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
||||||||||
Intangibles:
|
|||||||||||||
Existing
technology
|
4-8
yrs
|
$
|
7,900
|
$
|
(5,957
|
)
|
$
|
1,943
|
|||||
Patent/Core
technology
|
4-8
yrs
|
2,800
|
(2,080
|
)
|
720
|
||||||||
Maintenance
agreements and certain relationships
|
5
yrs
|
400
|
(244
|
)
|
156
|
||||||||
Customer
relationships
|
4-7
yrs
|
8,100
|
(4,131
|
)
|
3,969
|
||||||||
Supplier
contracts
|
4
yrs
|
950
|
(565
|
)
|
385
|
||||||||
Internally
developed software
|
7
yrs
|
350
|
(119
|
)
|
231
|
||||||||
$
|
20,500
|
$
|
(13,096
|
)
|
$
|
7,404
|
December
31, 2007
|
|||||||||||||
Amortization
Life
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
||||||||||
Intangibles:
|
|||||||||||||
Existing
technology
|
4-8
yrs
|
$ | 7,900 | $ | (5,151 | ) | $ | 2,749 | |||||
Patent/Core
technology
|
4-8
yrs
|
2,800 | (1,799 | ) | 1,001 | ||||||||
Maintenance
agreements and certain relationships
|
5
yrs
|
400 | (211 | ) | 189 | ||||||||
Customer
relationships
|
4-7
yrs
|
8,100 | (3,295 | ) | 4,805 | ||||||||
Supplier
contracts
|
4
yrs
|
950 | (446 | ) | 504 | ||||||||
Internally
developed software
|
7
yrs
|
350 | (94 | ) | 256 | ||||||||
$ | 20,500 | $ | (10,996 | ) | $ | 9,504 |
Fiscal
Year
|
||||
Remaining
2008
|
$
|
1,800
|
||
2009
|
2,401
|
|||
2010
|
1,241
|
|||
2011
|
1,021
|
|||
2012
|
876
|
|||
2013
and thereafter
|
65
|
|||
$
|
7,404
|
Excess
Facility Costs
|
Severance
Costs
|
Total
Restructuring Accrual
|
||||||||||
Balance
as of December 31, 2007
|
$ | 1,966 | $ | 768 | $ | 2,734 | ||||||
Payments
|
(681 | ) | (743 | ) | (1,424 | ) | ||||||
Adjustments
|
(25 | ) | (25 | ) | ||||||||
Net
book value accretion
|
47 | 47 | ||||||||||
Balance
as of June 30, 2008
|
$ | 1,332 | $ | — | $ | 1,332 |
Excess
Facility Costs
|
||||
Balance
as of December 31, 2007
|
$
|
100
|
||
Payments
|
(100
|
)
|
||
Balance
as of June 30, 2008
|
$
|
—
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
loss
|
$
|
(1,445
|
)
|
$
|
(2,313
|
)
|
$
|
(2,818
|
)
|
$
|
(2,771
|
)
|
||||
Comprehensive
loss:
|
||||||||||||||||
Net
change in accumulated unrealized gain (loss) on available-for- sale
securities
|
(19
|
)
|
26
|
(29
|
)
|
47
|
||||||||||
Total
comprehensive loss
|
$
|
(1, 464
|
)
|
$
|
(2,287
|
)
|
$
|
(2,847
|
)
|
$
|
(2,724
|
)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net
loss
|
$ | (1,445 | ) | $ | (2,313 | ) | $ | (2,818 | ) | $ | (2,771 | ) | ||||
Denominator:
|
||||||||||||||||
Denominator
for basic net loss per common share weighted average shares
outstanding
|
61,539,722 | 63,097,688 | 61,305,563 | 63,333,332 | ||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Options
to purchase common stock
|
— | — | — | — | ||||||||||||
Restricted
stock awards
|
— | — | — | — | ||||||||||||
Denominator
for diluted net loss per common share — adjusted weighted average shares
outstanding
|
61,539,722 | 63,097,688 | 61,305,563 | 63,333,332 | ||||||||||||
Basic
net loss per common share
|
$ | (0.02 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.04 | ) | ||||
Diluted
net loss per common share
|
$ | (0.02 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.04 | ) |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Options
to purchase common stock
|
6,983,945 | 9,083,619 | 6,983,945 | 9,083,619 | ||||||||||||
Restricted
stock awards
|
1,506,916 | 855,813 | 1,506,916 | 855,813 | ||||||||||||
Total
|
8,490,86 | 9,939,432 | 8,490,861, | 9,939,432 |
Year
ending December 31:
|
||||
Remaining
2008
|
8,030
|
|||
2009
|
12,183
|
|||
2010
|
9,995
|
|||
2011
|
2,550
|
|||
$
|
32,758
|
Year
ending December 31:
|
||||
Remaining
2008
|
$
|
3,649
|
||
2009
|
6,785
|
|||
2010
|
4,651
|
|||
2011
|
3,559
|
|||
2012
|
2,728
|
|||
2013
and thereafter
|
6,593
|
|||
$
|
27,965
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Total
Revenue
|
$
|
48,616
|
$
|
47,597
|
$
|
96,728
|
$
|
94,485
|
||||||||
Change,
period over period
|
$
|
1,019
|
$
|
2,243
|
||||||||||||
Percentage
change, period over period
|
2.1
|
%
|
2.4
|
%
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Broadband
|
$
|
26,234
|
$
|
17,891
|
$
|
50,307
|
$
|
33,326
|
||||||||
Percentage
of total revenue
|
54.0
|
%
|
37.6
|
%
|
52.0
|
%
|
35.3
|
%
|
||||||||
Change,
period over period
|
$
|
8,343
|
$
|
16,981
|
||||||||||||
Percentage
change, period over period
|
46.6
|
%
|
51.0
|
%
|
Dial
Up
|
$
|
9,429
|
$
|
18,354
|
$
|
20,941
|
$
|
38,689
|
||||||||
Percentage
of total revenue
|
19.4
|
%
|
38.6
|
%
|
21.6
|
%
|
40.9
|
%
|
||||||||
Change,
period over period
|
$
|
(8,925
|
)
|
$
|
(17,748
|
)
|
||||||||||
Percentage
change, period over period
|
(48.6
|
%)
|
(45.9
|
%)
|
Software
and Services Fees
|
$
|
12,953
|
$
|
11,352
|
$
|
25,480
|
$
|
22,470
|
||||||||
Percentage
of total revenue
|
26.6
|
%
|
23.9
|
%
|
26.3
|
%
|
23.8
|
%
|
||||||||
Change,
period over period
|
$
|
1,601
|
$
|
3,010
|
||||||||||||
Percentage
change, period over period
|
14.1
|
%
|
13.4
|
%
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Network
access expenses
|
$
|
20,941
|
$
|
17,273
|
$
|
41,441
|
$
|
33,543
|
||||||||
As
a percentage of revenue
|
43.1
|
%
|
36.3
|
%
|
42.8
|
%
|
35.5
|
%
|
||||||||
Change,
period over period
|
$
|
3,668
|
$
|
7,898
|
||||||||||||
Percentage
change, period over period
|
21.2
|
%
|
23.5
|
%
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Network
operations expenses
|
$
|
8,725
|
$
|
8,783
|
$
|
17,399
|
$
|
16,981
|
||||||||
As
a percentage of revenue
|
17.9
|
%
|
18.5
|
%
|
18.0
|
%
|
18.0
|
%
|
||||||||
Change,
period over period
|
$
|
(58
|
) |
$
|
418
|
|||||||||||
Percentage
change, period over period
|
(0.7
|
%)
|
2.5
|
%
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Research
and development expenses
|
$
|
3,988
|
$
|
5,438
|
$
|
8,443
|
$
|
10,895
|
||||||||
As
a percentage of revenue
|
8.2
|
%
|
11.4
|
%
|
8.7
|
%
|
11.5
|
%
|
||||||||
Change,
period over period
|
$
|
(1,450
|
) |
$
|
(2,452
|
) | ||||||||||
Percentage
change, period over period
|
(26.7
|
%)
|
(22.5
|
%)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Sales
and marketing expenses
|
$
|
10,371
|
$
|
13,868
|
$
|
20,680
|
$
|
27,294
|
||||||||
As
a percentage of revenue
|
21.3
|
%
|
29.1
|
%
|
21.4
|
%
|
28.9
|
%
|
||||||||
Change,
period over period
|
$
|
(3,497
|
) |
$
|
(6,614
|
) | ||||||||||
Percentage
change, period over period
|
(25.2
|
%)
|
(24.2
|
%)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
General
and administrative expenses
|
$
|
5,805
|
$
|
5,059
|
$
|
11,124
|
$
|
10,818
|
||||||||
As
a percentage of revenue
|
11.9
|
%
|
10.6
|
%
|
11.5
|
%
|
11.4
|
%
|
||||||||
Change,
period over period
|
$
|
746
|
$
|
306
|
||||||||||||
Percentage
change, period over period
|
14.7
|
%
|
2.8
|
%
|
Fiscal
Year
|
||||
Remaining
2008
|
$
|
1,800
|
||
2009
|
2,401
|
|||
2010
|
1,241
|
|||
2011
|
1,021
|
|||
2012
|
876
|
|||
2013
and thereafter
|
65
|
|||
$
|
7,404
|
Year
ending December 31:
|
||||
Remaining
2008
|
8,030
|
|||
2009
|
12,183
|
|||
2010
|
9,995
|
|||
2011
|
2,550
|
|||
$
|
32,758
|
Year
ending December 31:
|
||||
Remaining
2008
|
$
|
3,649
|
||
2009
|
6,785
|
|||
2010
|
4,651
|
|||
2011
|
3,559
|
|||
2012
|
2,728
|
|||
2013
and thereafter
|
6,593
|
|||
$
|
27,965
|
• |
the
willingness of enterprises to make additional information technology
expenditures;
|
||
• |
the
availability of security products necessary to ensure data privacy over
the public networks;
|
||
• |
the
quality, cost and functionality of these services and competing
services;
|
||
• |
the
increased adoption of wired and wireless broadband access methods;
and
|
||
• |
the
proliferation of electronic devices such as handhelds and smartphones and
related applications.
|
• |
longer
payment cycles for foreign customers, including delays due to currency
controls and fluctuations;
|
||
• |
the
impact of changes in foreign currency exchange rates on the attractiveness
of our pricing;
|
||
• |
high
taxes in some foreign jurisdictions;
|
||
• |
difficulty
in complying with Internet-related regulations in foreign
jurisdictions;
|
||
• |
difficulty
in staffing and managing foreign operations; and
|
||
• |
difficulty
in enforcing intellectual property rights and weaker laws protecting these
rights.
|
• |
managing
our research and development efforts for new and evolving
technologies;
|
||
• |
expanding
the capacity and performance of our network and software
infrastructure;
|
||
• |
developing
our administrative, accounting and management information systems and
controls; and
|
||
• |
effectively
maintaining coordination among our various departments, particularly as we
expand internationally.
|
Expected
Maturity Date for Par Value Amounts For the Year Ended December
31,
|
As
of June 30, 2008
|
|||||||||||||||||||
2008
|
2009
|
2010
|
Total
Cost Value
|
Total
Fair Value
|
||||||||||||||||
Government
agencies
|
$
|
—
|
$
|
4,500
|
$
|
—
|
$
|
4,533
|
$
|
4,524
|
||||||||||
Money
market securities
|
8,950
|
4,200
|
—
|
13,045
|
$
|
13,040
|
||||||||||||||
Total
|
$
|
8,950
|
$
|
8,700
|
$
|
—
|
$
|
17,578
|
$
|
17,564
|
Expected
Maturity Date for Par Value Amounts for the Year Ended December
31,
|
As
of December 31, 2007
|
|||||||||||||||||||
2008
|
2009
|
2010
|
Total
Cost Value
|
Total
Fair Value
|
||||||||||||||||
Government
agencies
|
$
|
4,250
|
$
|
—
|
$
|
—
|
$
|
4,256
|
$
|
4,258
|
||||||||||
Total
|
$
|
4,250
|
$
|
—
|
$
|
—
|
$
|
4,256
|
$
|
4,258
|
(In
thousands, except share and per share amounts)
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Program
|
Approximate
Dollar Value of Shares that May Yet Be Purchased under the Program (in
thousands)
|
||||||||||||
April
1, 2008 to April 30, 2008
|
0
|
$
|
0
|
1,083,559
|
$
|
26,828
|
||||||||||
May
1, 2008 to May 31, 2008
|
11,000
|
2.17
|
1,094,559
|
26,804
|
||||||||||||
June
1, 2008 to June 30, 2008
|
218,252
|
2.18
|
1,312,811
|
26,328
|
||||||||||||
Total
|
229,252
|
$
|
2.18
|
1,312,811
|
$
|
26,328
|
Total
Votes “For” Each Director
|
Total
Votes “Withheld” from Each Director
|
|||||||
A.
Gary Ames
|
39,833,520
|
14,627,173
|
||||||
John
D. Beletic
|
39,823,170
|
14,637,523
|
||||||
Peter
C. Clapman
|
48,150,349
|
6,310,344
|
||||||
Stanley
Gold
|
52,538,086
|
1,922,607
|
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
|||||||||||
50,189,813
|
4,208,312 | 62,568 | 0 |
For
|
Against
|
Abstain
|
Broker
Non-Votes
|
|||||||||||
54,267,401 | 104,065 | 89,227 | 0 |
Exhibit
Number
|
Description
|
||
2.1
|
Agreement
of Merger among iPass Inc., Keystone Acquisition Sub, Inc. and GoRemote
Internet Communications, Inc. dated December 9, 2005.
(3)
|
||
3.1
|
Amended
and Restated Certificate of Incorporation (1)
|
||
3.2
|
Amended
and Restated Bylaws
|
||
4.1
|
Reference
is made to Exhibits 3.1 and 3.2
|
||
4.2
|
Specimen
stock certificate (2)
|
||
31.1
|
Certification
of the Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
||
31.2
|
Certification
of the Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
||
32.1
|
Certification
of the Chief Executive Officer pursuant to 18 U.S.C Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
||
32.2
|
Certification
of the Chief Financial Officer pursuant to 18 U.S.C Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
iPass
Inc.
|
|||
Date:
August 11, 2008
|
By:
|
/s/ FRANK
E. VERDECANNA
|
|
Frank
E. Verdecanna
|
|||
Vice
President and Chief Financial Officer (duly authorized officer and
principal financial officer)
|
|||
Exhibit
Number
|
Description
|
||
2.1
|
Agreement
of Merger among iPass Inc., Keystone Acquisition Sub, Inc. and GoRemote
Internet Communications, Inc. dated December 9, 2005.
(3)
|
||
3.1
|
Amended
and Restated Certificate of Incorporation (1)
|
||
3.2
|
Amended
and Restated Bylaws
|
||
4.1
|
Reference
is made to Exhibits 3.1 and 3.2
|
||
4.2
|
Specimen
stock certificate (2)
|
||
31.1
|
Certification
of the Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
||
31.2
|
Certification
of the Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
||
32.1
|
Certification
of the Chief Executive Officer pursuant to 18 U.S.C Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
||
32.2
|
Certification
of the Chief Financial Officer pursuant to 18 U.S.C Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|