(Mark
One)
|
|
R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended September 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)
|
September
30, 2008
|
December
31, 2007
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
47,485
|
$
|
70,907
|
||||
Short-term
investments
|
20,545
|
4,258
|
||||||
Accounts
receivable, net of allowance for doubtful accounts of $819 and $2,792,
respectively
|
36,903
|
35,938
|
||||||
Prepaid
expenses and other current assets
|
6,913
|
7,116
|
||||||
Short-term
deferred income tax assets
|
575
|
575
|
||||||
Total
current assets
|
112,421
|
118,794
|
||||||
Property
and equipment, net of accumulated depreciation of $33,743 and $41,435,
respectively
|
8,951
|
9,272
|
||||||
Other
assets
|
6,447
|
4,876
|
||||||
Acquired
intangible assets, net
|
6,354
|
9,504
|
||||||
Goodwill
|
79,543
|
79,543
|
||||||
Total
assets
|
$
|
213,716
|
$
|
221,989
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
16,650
|
$
|
15,923
|
||||
Accrued
liabilities
|
12,277
|
15,788
|
||||||
Deferred
revenue — short-term
|
5,576
|
6,606
|
||||||
Total
current liabilities
|
34,503
|
38,317
|
||||||
Deferred
tax liability — long-term
|
575
|
575
|
||||||
Deferred
revenue — long-term
|
1,859
|
949
|
||||||
Other
long-term liabilities
|
447
|
1,040
|
||||||
Total
liabilities
|
37,384
|
40,881
|
||||||
Stockholders’
equity:
|
||||||||
Common
stock
|
62
|
62
|
||||||
Additional
paid-in capital
|
241,918
|
241,703
|
||||||
Accumulated
other comprehensive income (loss)
|
(60
|
)
|
15
|
|||||
Accumulated
deficit
|
(65,588
|
)
|
(60,672
|
)
|
||||
Total
stockholders’ equity
|
176,332
|
181,108
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
213,716
|
$
|
221,989
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues
|
$
|
48,371
|
$
|
47,736
|
$
|
145,099
|
$
|
142,221
|
||||||||
Operating
expenses (1):
|
||||||||||||||||
Network
access
|
20,147
|
17,396
|
61,588
|
50,939
|
||||||||||||
Network
operations
|
8,739
|
8,686
|
26,138
|
25,667
|
||||||||||||
Research
and development
|
3,845
|
5,589
|
12,288
|
16,484
|
||||||||||||
Sales
and marketing
|
10,724
|
12,316
|
31,403
|
39,610
|
||||||||||||
General
and administrative
|
5,579
|
5,395
|
16,703
|
16,213
|
||||||||||||
Restructuring
charges
|
30
|
13
|
60
|
(139
|
) | |||||||||||
Amortization
of intangibles
|
1,050
|
1,050
|
3,150
|
3,150
|
||||||||||||
Total
operating expenses
|
50,114
|
50,445
|
151,330
|
151,924
|
||||||||||||
Operating
loss
|
(1,743
|
)
|
(2,709
|
)
|
(6,231
|
)
|
(9,703
|
)
|
||||||||
Interest
and other income (expense)
|
(296
|
)
|
772
|
659
|
2,372
|
|||||||||||
Loss
before income taxes
|
(2,039
|
)
|
(1,937
|
)
|
(5,572
|
)
|
(7,331
|
)
|
||||||||
Provision
for (benefit from) income taxes
|
59
|
(856
|
)
|
(656
|
)
|
(3,479
|
)
|
|||||||||
Net
loss
|
$
|
(2,098
|
)
|
$
|
(1,081
|
)
|
$
|
(4,916
|
)
|
$
|
(3,852
|
)
|
||||
Net
loss per share:
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
(0.08
|
)
|
$
|
(0.06
|
)
|
||||
Number
of shares used in per share calculations:
|
61,243,465
|
62,347,697
|
61,185,203
|
62,971,291
|
(1)Stock-based
compensation is included in the following expense line
items:
|
||||||||||||||||
Network
operations
|
$
|
314
|
$
|
224
|
$
|
872
|
$
|
617
|
||||||||
Research
and development
|
203
|
241
|
432
|
842
|
||||||||||||
Sales
and marketing
|
325
|
326
|
486
|
1,095
|
||||||||||||
General
and administrative
|
643
|
492
|
2,131
|
1,693
|
Nine
Months Ended September 30,
|
||||||||
2008
|
2007
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$
|
(4,916
|
)
|
$
|
(3,852
|
)
|
||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
||||||||
Amortization
of stock-based compensation for employees
|
3,921
|
4,247
|
||||||
Amortization
of acquired intangibles
|
3,150
|
3,150
|
||||||
Depreciation,
amortization and accretion
|
4,129
|
3,368
|
||||||
Deferred
income tax
|
—
|
|
(1,269
|
)
|
||||
Loss
on disposal of property and equipment
|
17
|
69
|
||||||
Provision
for (recovery of) doubtful accounts
|
258
|
(84
|
)
|
|||||
Realized
gain (loss) on investments, net
|
(29
|
)
|
42
|
|||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(1,223
|
)
|
(8,569
|
)
|
||||
Prepaid
expenses and other current assets
|
203
|
(2,145
|
)
|
|||||
Other
assets
|
(1,149
|
)
|
(290
|
)
|
||||
Accounts
payable
|
727
|
2,304
|
||||||
Accrued
liabilities
|
(4,049
|
)
|
(5,297
|
)
|
||||
Deferred
revenue
|
(120
|
)
|
857
|
|||||
Other
liabilities
|
(593
|
)
|
(729
|
)
|
||||
Net
cash provided by (used in) operating activities
|
326
|
(8,198
|
)
|
|||||
Cash
flows from investing activities:
|
||||||||
Purchases
of short-term investments
|
(197,380
|
)
|
(346,740
|
)
|
||||
Maturities
of short-term investments
|
181,046
|
396,083
|
||||||
Purchases
of property and equipment
|
(3,824
|
)
|
(3,819
|
)
|
||||
Restricted
cash pledged for letter of credit
|
(422
|
)
|
(1,470
|
)
|
||||
Net
cash provided by (used in) investing activities
|
(20,580
|
)
|
44,054
|
|||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from issuance of common stock
|
505
|
1,760
|
||||||
Cash
used in repurchase of common stock
|
(3,673
|
)
|
(13,801
|
)
|
||||
Net
cash used in financing activities
|
(3,168
|
)
|
(12,041
|
)
|
||||
Net
decrease in cash and cash equivalents
|
(23,422
|
)
|
23,815
|
|||||
Cash
and cash equivalents at beginning of period
|
70,907
|
15,492
|
||||||
Cash
and cash equivalents at end of period
|
$
|
47,485
|
$
|
39,307
|
||||
Non-cash
investing activities:
|
||||||||
Leasehold
improvements paid by landlord
|
—
|
627
|
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)
|
$
|
7,413
|
$
|
7,413
|
$
|
—
|
$
|
—
|
||||||||
Fixed
income available-for-sale securities (2)
|
$
|
50,232
|
$
|
—
|
$
|
50,232
|
$
|
—
|
||||||||
Forward
currency contracts (3)
|
$
|
4,917
|
$
|
—
|
$
|
4,917
|
$
|
—
|
||||||||
Total
|
$
|
62,562
|
$
|
7,413
|
$
|
55,149
|
$
|
—
|
December
31, 2007 Balance
|
Amortization
|
September
30, 2008 Balance
|
||||||||||
Goodwill
|
$
|
79,543
|
$
|
—
|
$
|
79,543
|
||||||
Intangibles:
|
||||||||||||
Existing
technology
|
2,749
|
(1,209
|
)
|
1,540
|
||||||||
Patent/Core
technology
|
1,001
|
(422
|
)
|
579
|
||||||||
Maintenance
agreements and certain relationships
|
189
|
(50
|
)
|
139
|
||||||||
Customer
relationships
|
4,805
|
(1,254
|
)
|
3,551
|
||||||||
Supplier
contracts
|
504
|
(178
|
)
|
326
|
||||||||
Internally
developed software
|
256
|
(37
|
)
|
219
|
||||||||
$
|
89,047
|
$
|
(3,150
|
)
|
$
|
85,897
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Intangibles:
|
||||||||||||||||
Existing
technology
|
$
|
(403
|
)
|
$
|
(403
|
)
|
$
|
(1,209
|
)
|
$
|
(1,209
|
)
|
||||
Patent/Core
technology
|
(141
|
)
|
(141
|
)
|
(422
|
)
|
(422
|
)
|
||||||||
Maintenance
agreements and certain relationships
|
(17
|
)
|
(17
|
)
|
(50
|
)
|
(50
|
)
|
||||||||
Customer
relationships
|
(418
|
)
|
(418
|
)
|
(1,254
|
)
|
(1,254
|
)
|
||||||||
Supplier
contracts
|
(58
|
)
|
(58
|
)
|
(178
|
)
|
(178
|
)
|
||||||||
Internally
developed software
|
(13
|
)
|
(13
|
)
|
(37
|
)
|
(37
|
)
|
||||||||
$
|
(1,050
|
)
|
$
|
(1,050
|
)
|
$
|
(3,150
|
)
|
$
|
(3,150
|
)
|
September
30, 2008
|
|||||||||||||
Amortization
Life
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
||||||||||
Intangibles:
|
|||||||||||||
Existing
technology
|
4-8
yrs
|
$
|
7,900
|
$
|
(6,360
|
)
|
$
|
1,540
|
|||||
Patent/Core
technology
|
4-8
yrs
|
2,800
|
(2,221
|
)
|
579
|
||||||||
Maintenance
agreements and certain relationships
|
5
yrs
|
400
|
(261
|
)
|
139
|
||||||||
Customer
relationships
|
4-7
yrs
|
8,100
|
(4,549
|
)
|
3,551
|
||||||||
Supplier
contracts
|
4
yrs
|
950
|
(624
|
)
|
326
|
||||||||
Internally
developed software
|
7
yrs
|
350
|
(131
|
)
|
219
|
||||||||
$
|
20,500
|
$
|
(14,146
|
)
|
$
|
6,354
|
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
|
$
|
750
|
||
2009
|
2,401
|
|||
2010
|
1,241
|
|||
2011
|
1,021
|
|||
2012
|
876
|
|||
2013
and thereafter
|
65
|
|||
$
|
6,354
|
Excess
Facility Costs
|
Severance
Costs
|
Total
Restructuring Accrual
|
||||||||||
Balance
as of December 31, 2007
|
$
|
1,966
|
$
|
768
|
$
|
2,734
|
||||||
Payments
|
(947
|
)
|
(743
|
)
|
(1,690
|
)
|
||||||
Adjustments
|
8
|
(25
|
)
|
(17
|
)
|
|||||||
Net
book value accretion
|
77
|
77
|
||||||||||
Balance
as of September 30, 2008
|
$
|
1, 104
|
$
|
—
|
$
|
1,104
|
Excess
Facility Costs
|
||||
Balance
as of December 31, 2007
|
$
|
100
|
||
Payments
|
(100
|
)
|
||
Balance
as of September 30, 2008
|
$
|
—
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
loss
|
$
|
(2,098
|
)
|
$
|
(1,081
|
)
|
$
|
(4,916
|
)
|
$
|
(3,852
|
)
|
||||
Comprehensive
loss:
|
||||||||||||||||
Net
change in accumulated unrealized gain on available-for- sale
securities
|
(47
|
)
|
43
|
(75
|
)
|
90
|
||||||||||
Total
comprehensive loss
|
$
|
(2,145
|
)
|
$
|
(1,038
|
)
|
$
|
(4,991
|
)
|
$
|
(3,762
|
)
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net
loss
|
$
|
(2,098
|
)
|
$
|
(1,081
|
)
|
$
|
(4,916
|
)
|
$
|
(3,852
|
)
|
||||
Denominator:
|
||||||||||||||||
Denominator
for basic net loss per common share weighted average shares
outstanding
|
61,243,465
|
62,347,697
|
61,185,203
|
62,971,291
|
||||||||||||
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
|
61,243,465
|
62,347,697
|
61,185,203
|
62,971,291
|
||||||||||||
Basic
net loss per common share
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
(0.08
|
)
|
$
|
(0.06
|
)
|
||||
Diluted
net loss per common share
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
(0.08
|
)
|
$
|
(0.06
|
)
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Options
to purchase common stock
|
6,612,567
|
8,655,975
|
6,612,567
|
8,655,975
|
||||||||||||
Restricted
stock awards
|
1,475,525
|
850,771
|
1,475,525
|
850,771
|
||||||||||||
Total
|
8,088,092
|
9,506,746
|
8,088,092
|
9,506,746
|
Year
ending December 31:
|
||||
Remaining
2008
|
3,941
|
|||
2009
|
11,935
|
|||
2010
|
10,667
|
|||
2011
|
2,550
|
|||
$
|
29,093
|
Year
ending December 31:
|
||||
Remaining
2008
|
$
|
1,758
|
||
2009
|
6,785
|
|||
2010
|
4,651
|
|||
2011
|
3,559
|
|||
2012
|
2,728
|
|||
2013
and thereafter
|
6,593
|
|||
$
|
26,074
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Total
Revenue
|
$
|
48,371
|
$
|
47,736
|
$
|
145,099
|
$
|
142,221
|
||||||||
Change,
period over period
|
$
|
635
|
$
|
2,878
|
||||||||||||
Percentage
change, period over period
|
1.3
|
%
|
2.0
|
%
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Broadband
|
$
|
26,289
|
$
|
19,632
|
$
|
76,597
|
$
|
52,944
|
||||||||
Percentage
of total revenue
|
54.3
|
%
|
41.2
|
%
|
52.8
|
%
|
37.2
|
%
|
||||||||
Change,
period over period
|
$
|
6,657
|
$
|
23,653
|
||||||||||||
Percentage
change, period over period
|
33.9
|
%
|
44.7
|
%
|
Dial
Up
|
$
|
8,788
|
$
|
15,719
|
$
|
29,728
|
$
|
54,419
|
||||||||
Percentage
of total revenue
|
18.2
|
%
|
32.9
|
%
|
20.5
|
%
|
38.3
|
%
|
||||||||
Change,
period over period
|
$
|
(6,931
|
)
|
$
|
(24,691
|
)
|
||||||||||
Percentage
change, period over period
|
(44.1
|
%)
|
(45.4
|
%)
|
Services
Fees and Other
|
$
|
13,294
|
$
|
12,385
|
$
|
38,774
|
$
|
34,858
|
||||||||
Percentage
of total revenue
|
27.5
|
%
|
25.9
|
%
|
26.7
|
%
|
24.5
|
%
|
||||||||
Change,
period over period
|
$
|
909
|
$
|
3,916
|
||||||||||||
Percentage
change, period over period
|
7.3
|
%
|
11.2
|
%
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Network
access expenses
|
$
|
20,147
|
$
|
17,396
|
$
|
61,588
|
$
|
50,939
|
||||||||
As
a percentage of revenue
|
41.7
|
%
|
36.4
|
%
|
42.4
|
%
|
35.8
|
%
|
||||||||
Change,
period over period
|
$
|
2,751
|
$
|
10,649
|
||||||||||||
Percentage
change, period over period
|
15.8
|
%
|
20.9
|
%
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Network
operations expenses
|
$
|
8,739
|
$
|
8,686
|
$
|
26,138
|
$
|
25,667
|
||||||||
As
a percentage of revenue
|
18.1
|
%
|
18.2
|
%
|
18.0
|
%
|
18.0
|
%
|
||||||||
Change,
period over period
|
$
|
53
|
$
|
471
|
||||||||||||
Percentage
change, period over period
|
0.6
|
%
|
1.8
|
%
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Research
and development expenses
|
$
|
3,845
|
$
|
5,589
|
$
|
12,288
|
$
|
16,484
|
||||||||
As
a percentage of revenue
|
7.9
|
%
|
11.7
|
%
|
8.5
|
%
|
11.6
|
%
|
||||||||
Change,
period over period
|
$
|
(1,744
|
)
|
$
|
(4,196
|
)
|
||||||||||
Percentage
change, period over period
|
(31.2
|
%)
|
(25.5
|
%)
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Sales
and marketing expenses
|
$
|
10,724
|
$
|
12,316
|
$
|
31,403
|
$
|
39,610
|
||||||||
As
a percentage of revenue
|
22.2
|
%
|
25.8
|
%
|
21.6
|
%
|
27.9
|
%
|
||||||||
Change,
period over period
|
$
|
(1,592
|
)
|
$
|
(8,207
|
)
|
||||||||||
Percentage
change, period over period
|
(12.9
|
%)
|
(20.7
|
%)
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
General
and administrative expenses
|
$
|
5,579
|
$
|
5,395
|
$
|
16,703
|
$
|
16,213
|
||||||||
As
a percentage of revenue
|
11.5
|
%
|
11.3
|
%
|
11.5
|
%
|
11.4
|
%
|
||||||||
Change,
period over period
|
$
|
184
|
$
|
490
|
||||||||||||
Percentage
change, period over period
|
3.4
|
%
|
3.0
|
%
|
Fiscal
Year
|
||||
Remaining
2008
|
$
|
750
|
||
2009
|
2,401
|
|||
2010
|
1,241
|
|||
2011
|
1,021
|
|||
2012
|
876
|
|||
2013
and thereafter
|
65
|
|||
$
|
6,354
|
Year
ending December 31:
|
||||
Remaining
2008
|
3,941
|
|||
2009
|
11,935
|
|||
2010
|
10,667
|
|||
2011
|
2,550
|
|||
$
|
29,093
|
Year
ending December 31:
|
||||
Remaining
2008
|
$
|
1,758
|
||
2009
|
6,785
|
|||
2010
|
4,651
|
|||
2011
|
3,559
|
|||
2012
|
2,728
|
|||
2013
and thereafter
|
6,593
|
|||
$
|
26,074
|
•
|
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 September 30, 2008
|
|||||||||||||||||||
2008
|
2009
|
2010
|
Total
Cost Value
|
Total
Fair Value
|
||||||||||||||||
U.S.
Government agencies
|
$
|
—
|
$
|
4,500
|
—
|
$
|
4,506
|
$
|
4,491
|
|||||||||||
Commercial
paper and agency discount notes
|
1,700
|
14,550
|
—
|
16,080
|
16,055
|
|||||||||||||||
Total
|
$
|
1,700
|
$
|
19,050
|
$
|
—
|
$
|
20,587
|
$
|
20,545
|
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
|
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)
|
||
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: November
7, 2008
|
By:
|
/s/ 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)
|
||
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
|