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Employer) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 423.15 449.83 Td (Identification No.\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 112.30 432.83 Td (9737 ) Tj ET Q q 0 0 0 rg BT 130.16 432.83 Td (W) Tj ET Q q 0 0 0 rg BT 137.71 432.83 Td (ashingtonian Boulevard, Suite 350,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 152.70 424.83 Td (Gaithersburg, MD) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 444.50 424.83 Td (20878) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 118.35 412.68 Td (\(Address of principal executive offices\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.90 412.68 Td (\(Zip Code\)) Tj ET Q BT /F2 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 281.00 396.50 Td (\(301\)977-9440) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 217.00 386.90 Td (Registrant) Tj ET Q q 0 0 0 rg BT 255.36 386.90 Td (s telephone number) Tj ET Q q 0 0 0 rg BT 321.74 386.90 Td (, including ar) Tj ET Q q 0 0 0 rg BT 367.16 386.90 Td (ea code:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.75 377.30 Td (\(former) Tj ET Q q 0 0 0 rg BT 193.25 377.30 Td ( name, former) Tj ET Q q 0 0 0 rg BT 241.75 377.30 Td ( addr) Tj ET Q q 0 0 0 rg BT 260.05 377.30 Td (ess and former) Tj ET Q q 0 0 0 rg BT 310.57 377.30 Td ( fiscal year) Tj ET Q q 0 0 0 rg BT 346.71 377.30 Td (, if changed since last r) Tj ET Q q 0 0 0 rg BT 424.34 377.30 Td (eport\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.75 367.30 Td (______________________________________________) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.30 355.70 Td (Securities Register) Tj ET Q q 0 0 0 rg BT 271.91 355.70 Td (ed Pursuant to Section12\(b\) of the ) Tj ET Q q 0 0 0 rg BT 391.69 355.70 Td (Act) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 137.95 336.43 Td (Title of Each Class) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.70 336.43 Td (Name of Each Exchange on Which Registered) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 115.60 324.28 Td (Common Stock, $0.01 par value) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 385.65 324.28 Td (NASDAQ Global Select Market) Tj ET Q BT /F2 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 197.30 308.10 Td (Securities Register) Tj ET Q q 0 0 0 rg BT 260.91 308.10 Td (ed Pursuant to Section12\(g\) of the ) Tj ET Q q 0 0 0 rg BT 380.24 308.10 Td (Act: None) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.00 298.10 Td (______________________________________________) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 286.50 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 279.55 286.50 Td (, as defined in Rule405 of the Securities ) Tj ET Q q 0 0 0 rg BT 411.07 286.50 Td (Act.) 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Tj ET Q q 0 0 0 rg BT 110.53 242.10 Td (Y) Tj ET Q q 0 0 0 rg BT 115.50 242.10 Td (es) Tj ET Q /GS0 gs q 7.13 0 0 8.27 126.17 240.37 cm /I7 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 133.30 242.10 Td (No) Tj ET Q /GS0 gs q 7.13 0 0 8.27 155.08 240.37 cm /I8 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 229.50 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate ) Tj ET Q q 0 0 0 rg BT 377.91 229.50 Td (W) Tj ET Q q 0 0 0 rg BT 384.82 229.50 Td (eb site, if any) Tj ET Q q 0 0 0 rg BT 427.39 229.50 Td (, every Interactive Data File required to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 219.90 Td (be submitted and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 255.55 219.90 Td ( \(232.405 of this chapter\) during the preceding 12months \(or for such shorter period that the ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 210.30 Td (registrant was required to submit and post such files\).) 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Tj ET Q /GS0 gs q 7.13 0 0 8.27 152.38 176.77 cm /I11 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 165.90 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 219.28 165.90 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 279.80 165.90 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 344.32 165.90 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 419.50 165.90 Td (, or a smaller reporting company) Tj ET Q q 0 0 0 rg BT 523.39 165.90 Td (. See ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 156.30 Td (definitions of lar) Tj ET Q q 0 0 0 rg BT 106.23 156.30 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 166.75 156.30 Td (, accelerated filer and smaller reporting company in Rule12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 443.07 156.30 Td (Act. \(Check one\):) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 137.05 Td (Largeacceleratedfiler) Tj ET Q /GS0 gs q 7.13 0 0 7.81 182.50 135.34 cm /I12 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.50 137.05 Td (Acceleratedfiler) Tj ET Q /GS0 gs q 7.13 0 0 7.81 578.50 135.34 cm /I13 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 120.05 Td (Non-accelerated filer) Tj ET Q /GS0 gs q 7.13 0 0 8.81 182.50 118.34 cm /I14 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 189.63 119.98 Td (\(Do not check if a smaller reporting company\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.50 120.05 Td (SmallerReportingCompany) Tj ET Q /GS0 gs q 7.13 0 0 7.81 578.50 118.34 cm /I15 Do Q BT /F2 10.00 Tf ET BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 103.70 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 396.27 103.70 Td (Act\).) Tj ET Q q 0 0 0 rg BT 420.19 103.70 Td (Y) Tj ET Q q 0 0 0 rg BT 425.16 103.70 Td (es) Tj ET Q /GS0 gs q 7.13 0 0 8.27 435.83 101.97 cm /I16 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.96 103.70 Td (No) Tj ET Q /GS0 gs q 7.13 0 0 8.27 464.73 101.97 cm /I17 Do Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (The aggregate market value of the voting and non-voting common equity held by non-af) Tj ET Q q 0 0 0 rg BT 332.61 91.10 Td (filiates computed by reference to the price at which the common equity ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 81.50 Td (was last sold as of June28, 2013 was approximately $752million. ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 68.90 Td (The number of shares of the registrant) Tj ET Q q 0 0 0 rg BT 173.90 68.90 Td (s common stock, par value $0.01 per share, outstanding as of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.19 68.90 Td (February25, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.07 68.90 Td ( was 28,390,134.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 5 0 obj <> endobj 6 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 214.30 732.60 Td (DOCUMENTS INCORPORA) Tj ET Q q 0 0 0 rg BT 317.04 732.60 Td (TED BY) Tj ET Q q 0 0 0 rg BT 346.31 732.60 Td ( REFERENCE) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 721.00 Td (Portions of the registrant) Tj ET Q q 0 0 0 rg BT 131.04 721.00 Td (s definitive proxy statement for its 2014 annual meeting of stockholders to be filed pursuant to Regulation14A) Tj ET Q q 0 0 0 rg BT 485.86 721.00 Td ( with the Securities and ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 711.40 Td (Exchange Commission not later than 120days after the registrant) Tj ET Q q 0 0 0 rg BT 261.22 711.40 Td (s fiscal year ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.53 711.40 Td (December31, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.39 711.40 Td (, are incorporated by reference into PartIII of this ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 49.50 701.80 Td (Form10-K.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 637.52 Td (Item 3.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 622.52 Td (Item 4.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 603.68 Td (PART II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 589.52 Td (Item 5.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 564.52 Td (Item 6.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 549.52 Td (Item 7.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 534.52 Td (Item 7A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 519.52 Td (Item 8.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 504.52 Td (Item 9.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 489.52 Td (Item 9A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 474.52 Td (Item 9B.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 455.68 Td (PART III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 441.52 Td (Item 10.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 426.52 Td (Item 11.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 411.52 Td (Item 12.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 386.52 Td (Item 13.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 371.52 Td (Item 14.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 352.68 Td (PART IV) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 338.52 Td (Item 15.) 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10.00 Tf ET q 0 0 0 rg BT 139.00 621.62 Td (Mine Safety Disclosures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.00 621.62 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.00 588.62 Td (Market for Registrant) Tj ET Q q 0 0 0 rg BT 228.42 588.62 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 300.55 588.62 Td (, Related Stockholder Matters and Issuer Purchases of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.00 578.62 Td (Equity Securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.00 578.62 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.00 563.62 Td (Selected Consolidated Financial Data) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.00 563.62 Td (31) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.00 548.62 Td (Management) Tj ET Q q 0 0 0 rg BT 193.98 548.62 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 263.15 548.62 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.00 548.62 Td (34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 309.10 Td (The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (and other factors that could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 262.80 297.10 Td (fer materially from the results anticipated by these forward-looking ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 285.10 Td (statements, including those factors we discuss in the Risk Factors section of this ) Tj ET Q q 0 0 0 rg BT 381.05 285.10 Td (Annual Report on Form 10-K and in our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 273.10 Td (other filings with the Securities and Exchange Commission, or SEC. ) Tj ET Q q 0 0 0 rg BT 326.26 273.10 Td (Y) Tj ET Q q 0 0 0 rg BT 332.48 273.10 Td (ou should read these factors and the other cautionary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 261.10 Td (statements made in this ) Tj ET Q q 0 0 0 rg BT 145.54 261.10 Td (Annual Report on Form 10-K as being applicable to all related forward-looking statements wherever ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 249.10 Td (they appear in this ) Tj ET Q q 0 0 0 rg BT 125.54 249.10 Td (Annual Report on Form 10-K. ) Tj ET Q q 0 0 0 rg BT 249.23 249.10 Td (These risks are not exhaustive. ) Tj ET Q q 0 0 0 rg BT 374.20 249.10 Td (Although we believe that the expectations ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 237.10 Td (reflected in the forward-looking statements are based on reasonable assumptions, we can give no assurance that we will attain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 225.10 Td (these expectations or that any deviations will not be material. Except as required by law) Tj ET Q q 0 0 0 rg BT 400.63 225.10 Td (, we undertake no obligation to update ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 213.10 Td (publicly any forward-looking statements for any reason after the date of this ) Tj ET Q q 0 0 0 rg BT 356.57 213.10 Td (Annual Report on Form 10-K to conform these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 201.10 Td (statements to actual results or to changes in our expectations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 742.25 Td ( I) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 710.48 Td (Item1.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 710.48 Td (Business) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (Overview) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 672.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 672.25 Td (e are the leading global provider of software and services that enable mobile, fixed-line and cable service providers to deliver ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 660.25 Td (hosted, or cloud-based, Unified Communications, or UC, and other voice and multimedia services over their internet protocol, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 648.25 Td (or IP) Tj ET Q q 0 0 0 rg BT 68.61 648.25 Td (, based networks. Over 600 service providers in more than 76 countries have purchased and/or are delivering services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 636.25 Td (utilizing our software, including 19 of the top 25 telecommunications service providers globally) Tj ET Q q 0 0 0 rg BT 433.43 636.25 Td (, as measured by revenue in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 624.25 Td (year ended December31, 2012. Our core communications platform consists of three of) Tj ET Q q 0 0 0 rg BT 398.59 624.25 Td (ferings:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.71 598.25 Td (orks) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 581.25 Td (Our BroadW) Tj ET Q q 0 0 0 rg BT 101.13 581.25 Td (orks software enables our service provider customers to provide enterprises and consumers with a range of hosted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 569.25 Td (communications of) Tj ET Q q 0 0 0 rg BT 126.75 569.25 Td (ferings, such as hosted PBX \(also referred to as hosted IP) Tj ET Q q 0 0 0 rg BT 356.05 569.25 Td ( Centrex\), voice and video calling, SIP) Tj ET Q q 0 0 0 rg BT 510.64 569.25 Td ( ) Tj ET Q q 0 0 0 rg BT 512.96 569.25 Td (T) Tj ET Q q 0 0 0 rg BT 518.72 569.25 Td (runking, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 557.25 Td (voice and video mail, call center and audio conferencing, as well as 4G or L) Tj ET Q q 0 0 0 rg BT 353.41 557.25 Td (TE of) Tj ET Q q 0 0 0 rg BT 376.27 557.25 Td (ferings. BroadW) Tj ET Q q 0 0 0 rg BT 442.12 557.25 Td (orks performs a critical ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 545.25 Td (network function by serving as the software element that delivers and coordinates call control, voice, video and messaging ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 533.25 Td (communications through a service provider) Tj ET Q q 0 0 0 rg BT 224.21 533.25 Td () Tj ET Q q 0 0 0 rg BT 226.99 533.25 Td (s IP-based network. ) Tj ET Q q 0 0 0 rg BT 308.46 533.25 Td (W) Tj ET Q q 0 0 0 rg BT 317.09 533.25 Td (e enable carriers to of) Tj ET Q q 0 0 0 rg BT 403.53 533.25 Td (fer these UC services across their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 521.25 Td (broadband and wireless networks to a broad range of smartphones, tablets, laptops and other end-user devices. ) Tj ET Q q 0 0 0 rg BT 493.85 521.25 Td (W) Tj ET Q q 0 0 0 rg BT 502.49 521.25 Td (e believe we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 509.25 Td (are well positioned to enable service providers to capitalize on their IP-based network investments by ef) Tj ET Q q 0 0 0 rg BT 466.07 509.25 Td (ficiently and cost-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 497.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 497.25 Td (fectively of) Tj ET Q q 0 0 0 rg BT 103.22 497.25 Td (fering a broad suite of services to their end-users.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.25 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 476.25 Td (orks, which we generally license on a perpetual license basis to service providers, is installed on industry-standard ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.25 Td (servers, typically located in service providers) Tj ET Q q 0 0 0 rg BT 233.63 464.25 Td ( data centers. BroadW) Tj ET Q q 0 0 0 rg BT 321.68 464.25 Td (orks interoperates with service providers) Tj ET Q q 0 0 0 rg BT 486.99 464.25 Td ( core networks, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.25 Td (accesses other networks for interworking with end-users) Tj ET Q q 0 0 0 rg BT 278.08 452.25 Td ( communications devices and connects to service providers) Tj ET Q q 0 0 0 rg BT 517.53 452.25 Td ( support ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.25 Td (and billing systems. Since our inception, most of our revenue has come from license and maintenance and support fees for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 428.25 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 428.25 Td (orks software.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (BroadCloud) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 385.25 Td (BroadCloud services are of) Tj ET Q q 0 0 0 rg BT 158.95 385.25 Td (ferings hosted and managed by us, and resold by service providers under their brand. ) Tj ET Q q 0 0 0 rg BT 500.89 385.25 Td (The key ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 373.25 Td (objectives of providing these services from our own BroadCloud service delivery network include expediting our service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 361.25 Td (provider customers) Tj ET Q q 0 0 0 rg BT 129.51 361.25 Td ( time to market and enabling our service provider customers to access our BroadW) Tj ET Q q 0 0 0 rg BT 459.99 361.25 Td (orks and UC capabilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 349.25 Td (on a software as a service, or SaaS, basis.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (W) Tj ET Q q 0 0 0 rg BT 59.04 182.25 Td (ith our UC-One of) Tj ET Q q 0 0 0 rg BT 132.46 182.25 Td (fering, a set of bundled UC services that combines the power of BroadW) Tj ET Q q 0 0 0 rg BT 422.96 182.25 Td (orks, BroadT) Tj ET Q q 0 0 0 rg BT 475.03 182.25 Td (ouch and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 170.25 Td (BroadCloud enabled Unified Communications into a seamless and consistent end-user experience, service providers can of) Tj ET Q q 0 0 0 rg BT 542.17 170.25 Td (fer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 158.25 Td (their customers the ability to communicate using one familiar user interface from any of the user) Tj ET Q q 0 0 0 rg BT 436.63 158.25 Td () Tj ET Q q 0 0 0 rg BT 439.41 158.25 Td (s devices, simplifying access ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 146.25 Td (to a fully integrated UC experience including voice, video, messaging, conferencing and collaboration. Our UC-One of) Tj ET Q q 0 0 0 rg BT 526.61 146.25 Td (ferings ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 134.25 Td (are optimized for a range of broadband, ) Tj ET Q q 0 0 0 rg BT 210.86 134.25 Td (W) Tj ET Q q 0 0 0 rg BT 219.90 134.25 Td (iFi and 3G, 4G and mobile networks.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 108.25 Td (Company) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 90.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 90.25 Td (e were incorporated in Delaware in 1998 and we began selling BroadW) Tj ET Q q 0 0 0 rg BT 344.12 90.25 Td (orks in 2001. ) Tj ET Q q 0 0 0 rg BT 401.44 90.25 Td (W) Tj ET Q q 0 0 0 rg BT 410.07 90.25 Td (e sell our products to service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 78.25 Td (providers both directly and indirectly through distribution partners, such as telecommunications equipment vendors, value-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 66.25 Td (added resellers, or ) Tj ET Q q 0 0 0 rg BT 125.34 66.25 Td (V) Tj ET Q q 0 0 0 rg BT 131.27 66.25 Td (ARs, and other distributors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Industry) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 725.25 Td (e believe telecommunications service providers are replacing their legacy circuit switched networks as they migrate to IP-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (based networks and are making these transitions so they can of) Tj ET Q q 0 0 0 rg BT 301.42 713.25 Td (fer enhanced UC services in addition to traditional voice ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (services. ) Tj ET Q q 0 0 0 rg BT 87.03 701.25 Td (These service providers are facing significant challenges to their traditional business models, including declining ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (revenues in their legacy businesses, rapidly evolving customer communications demands and the need to generate returns on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (their increasing investments in IP-based networks. Historically) Tj ET Q q 0 0 0 rg BT 300.68 677.25 Td (, service providers derived much of their revenue from providing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (reliable voice and high-speed data access. However) Tj ET Q q 0 0 0 rg BT 255.89 665.25 Td (, these legacy services have been increasingly commoditized as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (technological and regulatory changes have brought increased competition and lower prices. ) Tj ET Q q 0 0 0 rg BT 417.65 653.25 Td (At the same time, enterprises and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 641.25 Td (consumers have started to seek new and enhanced cloud-based communications services, which can provide service providers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (with opportunities to counter falling legacy revenues and increase subscriber growth. Service providers are using both their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 617.25 Td (existing IP-based networks and third-party cloud-based platforms to deliver these services to their customers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 596.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 596.25 Td (e believe that, as service providers look to rapidly introduce new UC services through their own networks, they need ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (products like those provided by us that are capable of coordinating delivery of a lar) Tj ET Q q 0 0 0 rg BT 382.49 584.25 Td (ge and rapidly increasing number of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 572.25 Td (applications, operating across heterogeneous network elements and devices, ensuring high levels of reliability and quality and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 560.25 Td (ficiently scaling as more subscribers are added.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 534.25 Td (Demand for) Tj ET Q q 0 0 0 rg BT 101.20 534.25 Td ( ) Tj ET Q q 0 0 0 rg BT 103.52 534.25 Td (V) Tj ET Q q 0 0 0 rg BT 109.82 534.25 Td (oice and Multimedia Services) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 517.25 Td (Service providers are providing UC services to enterprise and consumer customers. Enterprise subscribers include small, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 505.25 Td (medium and lar) Tj ET Q q 0 0 0 rg BT 112.58 505.25 Td (ge businesses, universities and governments and range in size from a few end-users to tens of thousands. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 493.25 Td (Consumer subscribers include individuals and families purchasing communications services for their personal and residential ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (use.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (Enterprises) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (Enterprises require communications features and functionality that are varied and, in many cases, complex. Four) Tj ET Q q 0 0 0 rg BT 499.93 438.25 Td (-digit dialing, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.25 Td (multi-party conferencing and video conferencing are common enterprise needs. Historically) Tj ET Q q 0 0 0 rg BT 416.99 426.25 Td (, enterprises have purchased voice ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.25 Td (and data access from service providers and deployed customer premises-based equipment, or CPE, such as PBXs to help ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (deliver this functionality) Tj ET Q q 0 0 0 rg BT 147.66 402.25 Td (. Enterprises could avoid the costly purchase of CPE by obtaining these services directly from a service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 390.25 Td (provider) Tj ET Q q 0 0 0 rg BT 83.33 390.25 Td (. However) Tj ET Q q 0 0 0 rg BT 124.58 390.25 Td (, enterprises frequently required greater features and functionality than could previously be obtained ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 378.25 Td (ficiently from service providers) Tj ET Q q 0 0 0 rg BT 186.52 378.25 Td ( legacy voice networks.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 357.25 Td (Using our core communications platform, we believe service providers can enhance the quality and functionality of their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 345.25 Td (communications and increase the volume of communications services delivered to customers as hosted of) Tj ET Q q 0 0 0 rg BT 472.75 345.25 Td (ferings. Concurrently) Tj ET Q q 0 0 0 rg BT 557.64 345.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 333.25 Td (we believe a number of trends are driving increased demand for hosted communication services, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 316.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 316.25 Td (Accelerating rate of technology change) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.65 316.25 Td (. Communications technology is evolving rapidly) Tj ET Q q 0 0 0 rg BT 498.75 316.25 Td (, with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 304.25 Td (frequent introduction of new devices and services and an increase in the number of ways people interact. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 292.25 Td (Keeping pace with this change becomes dif) Tj ET Q q 0 0 0 rg BT 313.65 292.25 Td (ficult and expensive in a CPE-based environment where the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 280.25 Td (investment to interoperate with new devices or provide new services must be fully borne by the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 268.25 Td (enterprise. Furthermore, CPE vendors operate proprietary systems with typically higher prices and a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 256.25 Td (limited selection of end-point devices. ) Tj ET Q q 0 0 0 rg BT 294.96 256.25 Td (As new services are added, equipment upgrades are often required ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 244.25 Td (and, unless the equipment of all constituents within the enterprise is upgraded, functionality can remain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 232.25 Td (limited.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 215.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 215.25 Td (Mobile smartphones and tablets are further driving accelerated change) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.78 215.25 Td (. ) Tj ET Q q 0 0 0 rg BT 437.23 215.25 Td (As mobile and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 203.25 Td (communications services are increasingly integrated, the dif) Tj ET Q q 0 0 0 rg BT 380.01 203.25 Td (ficulty of using a CPE-based approach is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 191.25 Td (compounded by the complexity of these additions. Enterprise and consumer users are demanding their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 179.25 Td (communications services be integrated across their fixed-line, personal computer and mobile devices. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 167.25 Td (Hosted services deliver communications services from a network, are centrally managed by or on behalf ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 155.25 Td (of the service provider and deliver uniform service across an enterprise. ) Tj ET Q q 0 0 0 rg BT 429.15 155.25 Td (W) Tj ET Q q 0 0 0 rg BT 437.78 155.25 Td (e believe it is far more dif) Tj ET Q q 0 0 0 rg BT 540.89 155.25 Td (ficult ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 143.25 Td (to of) Tj ET Q q 0 0 0 rg BT 158.43 143.25 Td (fer integrated services for mobile devices in a CPE-based environment. Hosted services also enable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 131.25 Td (enterprises to integrate within the enterprise employee-owned mobile devices \(often referred to as bring ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 119.25 Td (your own device\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 102.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 102.25 Td (Shift towards Unified Communications.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.93 102.25 Td ( UC is the integration of voice and video calling and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 90.25 Td (conferencing with IM, text messaging, presence, and collaboration tools. UC increases significantly the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 78.25 Td (number of devices to be supported, the number of network interconnect points and the associated amount ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 66.25 Td (of required network integration. ) Tj ET Q q 0 0 0 rg BT 270.05 66.25 Td (W) Tj ET Q q 0 0 0 rg BT 278.69 66.25 Td (e also believe UC increases the pace at which enterprises will seek to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 742.10 Td (introduce new services. CPE-based UC solutions can be complex, expensive and consume significant ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 730.10 Td (time and resources as compared to hosted solutions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 713.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 713.10 Td (Increased acceptance of cloud-based services) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.06 713.10 Td (. Enterprises are increasingly obtaining mission-critical IT) Tj ET Q q 0 0 0 rg BT 558.86 713.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 701.10 Td (services, such as computing and storage, from the cloud. ) Tj ET Q q 0 0 0 rg BT 368.65 701.10 Td (W) Tj ET Q q 0 0 0 rg BT 377.29 701.10 Td (e believe the positive experiences and savings ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 689.10 Td (enterprises can achieve with cloud-based IT) Tj ET Q q 0 0 0 rg BT 315.58 689.10 Td ( systems will drive enterprises to continue to move other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 677.10 Td (important functions, such as communications services, into the cloud.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 660.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 660.10 Td (New IP-based 4G ) Tj ET Q q 0 0 0 rg BT 214.53 660.10 Td (W) Tj ET Q q 0 0 0 rg BT 223.05 660.10 Td (ireless Networks) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.55 660.10 Td (. ) Tj ET Q q 0 0 0 rg BT 295.37 660.10 Td (W) Tj ET Q q 0 0 0 rg BT 304.01 660.10 Td (e believe all the trends described above will accelerate even ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 648.10 Td (further as service providers deploy and adapt 4G wireless networks, such as L) Tj ET Q q 0 0 0 rg BT 450.93 648.10 Td (TE networks. ) Tj ET Q q 0 0 0 rg BT 507.13 648.10 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 636.10 Td (transition will, we believe, become even more pronounced as service providers move to of) Tj ET Q q 0 0 0 rg BT 501.65 636.10 Td (fering fully IP-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 624.10 Td (based voice and telephony services, commonly referred to as voice over L) Tj ET Q q 0 0 0 rg BT 435.63 624.10 Td (TE or ) Tj ET Q q 0 0 0 rg BT 461.00 624.10 Td (V) Tj ET Q q 0 0 0 rg BT 466.93 624.10 Td (oL) Tj ET Q q 0 0 0 rg BT 477.12 624.10 Td (TE.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Consumers) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 581.10 Td (Service providers are experiencing challenges in both their fixed line and mobile consumer businesses. For their fixed line ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 569.10 Td (voice of) Tj ET Q q 0 0 0 rg BT 82.30 569.10 Td (ferings, service providers have experienced a high degree of subscriber attrition, partially due to their limited ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 557.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 557.10 Td (ferentiate service of) Tj ET Q q 0 0 0 rg BT 140.14 557.10 Td (ferings, and consumers) Tj ET Q q 0 0 0 rg BT 235.21 557.10 Td ( increased reliance on mobile telephony) Tj ET Q q 0 0 0 rg BT 393.66 557.10 Td (. Service providers have bundled services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 545.10 Td (into integrated packages for their fixed line customers, to retain subscribers and introduce new revenue streams. ) Tj ET Q q 0 0 0 rg BT 499.66 545.10 Td (T) Tj ET Q q 0 0 0 rg BT 505.07 545.10 Td (o date, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 533.10 Td (bundled services have included voice, ) Tj ET Q q 0 0 0 rg BT 204.21 533.10 Td (TV) Tj ET Q q 0 0 0 rg BT 217.36 533.10 Td ( and internet services, with mobile increasingly included, and are commonly referred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 521.10 Td (to as either triple play or quad play) Tj ET Q q 0 0 0 rg BT 202.34 521.10 Td (. For their mobile customers, service providers are finding they have to deliver more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 509.10 Td (feature rich services, as well as address competitive threats from the over the top competitors. ) Tj ET Q q 0 0 0 rg BT 436.06 509.10 Td (The service providers are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 497.10 Td (looking to the next generation of mobile networks, commonly referred to as 4G or L) Tj ET Q q 0 0 0 rg BT 386.49 497.10 Td (TE, to better enable them to of) Tj ET Q q 0 0 0 rg BT 508.77 497.10 Td (fer enhanced ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 485.10 Td (consumer services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 464.10 Td (o further increase revenue and decrease subscriber churn, service providers are expanding beyond triple and quad play and are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.10 Td (starting to of) Tj ET Q q 0 0 0 rg BT 100.92 452.10 Td (fer services such as video calling, single number mobile and fixed-line dialing and messaging and integration with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.10 Td (household devices, such as television set top boxes. ) Tj ET Q q 0 0 0 rg BT 258.30 440.10 Td (At the same time, we believe the proliferation of new devices, such as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 428.10 Td (smartphones, tablets and home video phones, is driving increased consumer demand for expanded service of) Tj ET Q q 0 0 0 rg BT 484.14 428.10 Td (ferings. ) Tj ET Q q 0 0 0 rg BT 516.72 428.10 Td (W) Tj ET Q q 0 0 0 rg BT 525.36 428.10 Td (e believe ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 416.10 Td (this trend has been accelerated by the emer) Tj ET Q q 0 0 0 rg BT 221.68 416.10 Td (gence of new 4G or L) Tj ET Q q 0 0 0 rg BT 308.23 416.10 Td (TE high bandwidth mobile networks and the associated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 404.10 Td (network infrastructure referred to as IP) Tj ET Q q 0 0 0 rg BT 205.40 404.10 Td ( Multimedia subsystems, or IMS, as well as standards associated with ) Tj ET Q q 0 0 0 rg BT 486.57 404.10 Td (V) Tj ET Q q 0 0 0 rg BT 492.50 404.10 Td (oL) Tj ET Q q 0 0 0 rg BT 502.69 404.10 Td (TE. Service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 392.10 Td (providers are increasingly demanding ) Tj ET Q q 0 0 0 rg BT 203.10 392.10 Td (V) Tj ET Q q 0 0 0 rg BT 209.03 392.10 Td (oL) Tj ET Q q 0 0 0 rg BT 219.22 392.10 Td (TE compliance in their IP) Tj ET Q q 0 0 0 rg BT 322.15 392.10 Td ( telephony implementations so they can seamlessly of) Tj ET Q q 0 0 0 rg BT 537.20 392.10 Td (fer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 380.10 Td (multimedia telephony to their consumer subscribers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.10 Td (As communications evolve from voice to multimedia, devices proliferate and modes of communications broaden, service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 347.10 Td (providers are finding services delivered to one category of subscriber) Tj ET Q q 0 0 0 rg BT 326.44 347.10 Td (, enterprise or consumer) Tj ET Q q 0 0 0 rg BT 422.67 347.10 Td (, are starting to drive demand for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 335.10 Td (similar services in the other category) Tj ET Q q 0 0 0 rg BT 196.80 335.10 Td (. For example, consumers) Tj ET Q q 0 0 0 rg BT 302.42 335.10 Td ( personal use of their smartphones and tablets for varied modes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.10 Td (of communications, such as IM, e-mail, video and voice, can create expectations for multimedia and collaboration services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 311.10 Td (within the enterprises where they work. Conversely) Tj ET Q q 0 0 0 rg BT 255.68 311.10 Td (, in the work context, when consumers experience conver) Tj ET Q q 0 0 0 rg BT 485.42 311.10 Td (ged mobile and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 299.10 Td (fixed-line services, such as one number calling, find me/follow me, single unified voicemail, e-mail delivery of voicemail or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 287.10 Td (video calling, they may seek similar services to use in their personal communications. In addition, the division between ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 275.10 Td (enterprise and consumer communications is blurring, as workforces become more mobile and people seek to work either part- ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 263.10 Td (or full-time from their homes. ) Tj ET Q q 0 0 0 rg BT 172.01 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 180.65 263.10 Td (e believe that this dynamic increases overall demand for multimedia services and provides ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (service providers opportunities to enable feature-rich services across their subscriber bases.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (As with enterprise customers, we believe these consumer demand trends will accelerate as service providers deploy and adapt ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (IP-based 4G wireless networks.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 192.10 Td (Challenges in Enabling Multimedia Services on IP-based Networks) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 175.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 175.10 Td (, applications such as voice messaging, call forwarding and call waiting were delivered from within the core ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (network by network elements, such as legacy Class 5 and softswitches. ) Tj ET Q q 0 0 0 rg BT 336.70 163.10 Td (These applications were voice-focused, limited in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 151.10 Td (nature and changed infrequently) Tj ET Q q 0 0 0 rg BT 178.46 151.10 Td (. ) Tj ET Q q 0 0 0 rg BT 183.28 151.10 Td (W) Tj ET Q q 0 0 0 rg BT 191.92 151.10 Td (e believe that, as service providers look to rapidly introduce new services, many of which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 139.10 Td (include multimedia and not merely voice communications, they require products capable of:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 122.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 122.10 Td (Coordinating delivery of a large and rapidly increasing number of applications) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.01 122.10 Td (. Each new application ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 110.10 Td (requires coordination within the service provider) Tj ET Q q 0 0 0 rg BT 335.59 110.10 Td () Tj ET Q q 0 0 0 rg BT 338.36 110.10 Td (s network to ensure that the application is authorized, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 98.10 Td (appropriately char) Tj ET Q q 0 0 0 rg BT 212.84 98.10 Td (ged for and delivered in a way that is appropriate to the end-user based on the device ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 86.10 Td (and user preferences.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 69.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 69.10 Td (Operating across heterogeneous network elements and devices) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.21 69.10 Td (. Most service providers) Tj ET Q q 0 0 0 rg BT 496.45 69.10 Td ( networks ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 57.10 Td (consist of network equipment and software from multiple vendors. In addition, service providers) Tj ET Q q 0 0 0 rg BT 529.16 57.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 45.10 Td (subscribers and end-users operate a variety of devices with more and more companies opting to allow ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 742.10 Td (their employees to bring their own devices to work, resulting in the need for IT) Tj ET Q q 0 0 0 rg BT 456.12 742.10 Td ( support for and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 730.10 Td (integration of such devices. New applications must seamlessly navigate these varied network elements ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 718.10 Td (and devices without impacting functionality) Tj ET Q q 0 0 0 rg BT 315.42 718.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 701.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 701.10 Td (Ensuring high levels of reliability and quality) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.25 701.10 Td (. Service providers and their subscribers are accustomed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 689.10 Td (to a high level of reliability and quality and expect similar levels of reliability and quality from new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 677.10 Td (applications.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 660.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 660.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 149.82 660.10 Td (ficiently scaling as more subscribers are added) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.03 660.10 Td (. ) Tj ET Q q 0 0 0 rg BT 346.48 660.10 Td (As more subscribers purchase applications and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 648.10 Td (service providers acquire new subscribers, service providers need to be able to ef) Tj ET Q q 0 0 0 rg BT 463.86 648.10 Td (ficiently add capacity ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 636.10 Td (without increasing complexity) Tj ET Q q 0 0 0 rg BT 260.99 636.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 619.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 619.10 Td (Of) Tj ET Q q 0 0 0 rg BT 150.37 619.10 Td (fering IP-based communications services regardless of access, across fixed line and mobile ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 607.10 Td (networks.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 179.73 607.10 Td ( Service providers also need to be able to of) Tj ET Q q 0 0 0 rg BT 354.77 607.10 Td (fer the same set of communications services across ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 595.10 Td (their fixed line and mobile networks in increasingly interconnected ways, and as one of) Tj ET Q q 0 0 0 rg BT 489.16 595.10 Td (fering.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (It is no longer ef) Tj ET Q q 0 0 0 rg BT 115.91 574.10 Td (ficient for application delivery responsibility to reside in network elements such as softswitches. ) Tj ET Q q 0 0 0 rg BT 503.41 574.10 Td (These ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (elements are dedicated to primarily voice centric network roles, are not designed to deliver multimedia applications and are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (typically limited in the number of network elements with which they interact. In addition, because these network elements are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (generally dispersed throughout a network, deploying, scaling and managing these multimedia services through these network ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (elements is even more dif) Tj ET Q q 0 0 0 rg BT 152.56 526.10 Td (ficult.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 500.10 Td (The Br) Tj ET Q q 0 0 0 rg BT 80.10 500.10 Td (oadSoft Solution) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 483.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 483.10 Td (o meet these challenges, many service providers are deploying a separate voice and multimedia application server specifically ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 471.10 Td (designed to deliver multimedia services as part of their network architecture. ) Tj ET Q q 0 0 0 rg BT 358.78 471.10 Td (A) Tj ET Q q 0 0 0 rg BT 365.45 471.10 Td ( voice and multimedia application server is the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (dedicated network software element that delivers and coordinates voice, video and messaging communications. In addition, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (many service providers are shifting their networks toward new all-IP-based network architectures, such as IMS. ) Tj ET Q q 0 0 0 rg BT 499.40 447.10 Td (W) Tj ET Q q 0 0 0 rg BT 508.44 447.10 Td (ithin these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 435.10 Td (new all-IP) Tj ET Q q 0 0 0 rg BT 91.01 435.10 Td ( architectures, the application server is a defined function or layer) Tj ET Q q 0 0 0 rg BT 352.84 435.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 414.10 Td (orks is the industry) Tj ET Q q 0 0 0 rg BT 162.24 414.10 Td (s leading IP) Tj ET Q q 0 0 0 rg BT 209.09 414.10 Td ( communications application server) Tj ET Q q 0 0 0 rg BT 350.99 414.10 Td (. BroadW) Tj ET Q q 0 0 0 rg BT 389.07 414.10 Td (orks is installed on industry-standard ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (servers, typically located in data centers. It utilizes well-defined interfaces to interoperate with core networks, accesses other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (networks for interworking with end-users) Tj ET Q q 0 0 0 rg BT 218.66 390.10 Td ( communications devices and connects to support and billing systems for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (management and char) Tj ET Q q 0 0 0 rg BT 137.55 378.10 Td (ging functions. ) Tj ET Q q 0 0 0 rg BT 199.87 378.10 Td (W) Tj ET Q q 0 0 0 rg BT 208.51 378.10 Td (e believe we are well-positioned to enable service providers to ef) Tj ET Q q 0 0 0 rg BT 468.22 378.10 Td (ficiently and cost-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 366.10 Td (fectively of) Tj ET Q q 0 0 0 rg BT 103.22 366.10 Td (fer a broad suite of essential and value-added services to their end-users.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 345.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.04 345.10 Td (ith BroadCloud PBX and BroadCloud UC, service providers can now utilize the BroadW) Tj ET Q q 0 0 0 rg BT 415.12 345.10 Td (orks PBX functionality on a SaaS ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 333.10 Td (basis, as well as of) Tj ET Q q 0 0 0 rg BT 124.53 333.10 Td (fer additional UC of) Tj ET Q q 0 0 0 rg BT 205.16 333.10 Td (ferings to their customers, hosted and managed by us using our network. ) Tj ET Q q 0 0 0 rg BT 497.70 333.10 Td (W) Tj ET Q q 0 0 0 rg BT 506.33 333.10 Td (e believe this ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (enables service providers to much more rapidly of) Tj ET Q q 0 0 0 rg BT 250.59 321.10 Td (fer UC services to their end customers. BroadT) Tj ET Q q 0 0 0 rg BT 438.72 321.10 Td (ouch client communications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 309.10 Td (applications allow service providers to put the power of voice, video and our other UC services in the hands of the end-user ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (across many mobile devices. Our UC-One of) Tj ET Q q 0 0 0 rg BT 230.05 297.10 Td (fering combines the power of BroadW) Tj ET Q q 0 0 0 rg BT 383.36 297.10 Td (orks, BroadT) Tj ET Q q 0 0 0 rg BT 435.43 297.10 Td (ouch and BroadCloud enabled-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 285.10 Td (Unified Communications into a seamless and consistent end-user experience.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (BroadSoft) Tj ET Q q 0 0 0 rg BT 93.89 264.10 Td (s of) Tj ET Q q 0 0 0 rg BT 108.43 264.10 Td (ferings provide service providers several key advantages, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 247.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 247.10 Td (Rapid delivery of feature-rich enterprise and consumer multimedia services) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.53 247.10 Td (. ) Tj ET Q q 0 0 0 rg BT 455.35 247.10 Td (W) Tj ET Q q 0 0 0 rg BT 463.98 247.10 Td (e believe BroadW) Tj ET Q q 0 0 0 rg BT 535.37 247.10 Td (orks ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 235.10 Td (and BroadCloud provide the most extensive set of UC features and applications available for both ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 223.10 Td (enterprise and consumer applications. ) Tj ET Q q 0 0 0 rg BT 293.38 223.10 Td (W) Tj ET Q q 0 0 0 rg BT 302.02 223.10 Td (e also believe BroadW) Tj ET Q q 0 0 0 rg BT 392.01 223.10 Td (orks is the most feature rich application ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 211.10 Td (server for fixed-line, mobile and cable broadband access networks. BroadCloud allows service providers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 199.10 Td (to quickly market to their customers cloud-based PBX functionality as well as additional, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 187.10 Td (complementary UC of) Tj ET Q q 0 0 0 rg BT 229.24 187.10 Td (ferings and BroadT) Tj ET Q q 0 0 0 rg BT 306.29 187.10 Td (ouch allows end-users to access UC services from a multitude ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 175.10 Td (of devices.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 158.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 158.10 Td (Demonstrated carrier adoption globally across many service provider networks) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.88 158.10 Td (. Over 600 service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 146.10 Td (providers in more than 76 countries have purchased and/or are delivering services utilizing our software, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 134.10 Td (including 19 of the top 25 telecommunications service providers globally) Tj ET Q q 0 0 0 rg BT 432.34 134.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 117.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 117.10 Td (Broad interoperability across network equipment vendors, network architectures and devices) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.11 117.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 105.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 173.08 105.10 Td (orks interoperates with all significant network architectures \(such as IMS and Next Generation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 93.10 Td (Network architectures\), access types, infrastructures and protocols and integrates and interoperates with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 81.10 Td (the major network equipment vendors) Tj ET Q q 0 0 0 rg BT 294.77 81.10 Td ( core network solutions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 742.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 742.10 Td (Extensive technology and device partner ecosystem) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 350.24 742.10 Td (. BroadW) Tj ET Q q 0 0 0 rg BT 388.32 742.10 Td (orks interoperates with more than 800 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 730.10 Td (devices, including more than 680 CPE devices, such as IP) Tj ET Q q 0 0 0 rg BT 371.53 730.10 Td ( phones, computer) Tj ET Q q 0 0 0 rg BT 444.92 730.10 Td (-based soft-phones, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 718.10 Td (conferencing devices, IP) Tj ET Q q 0 0 0 rg BT 238.20 718.10 Td ( gateways, mobile phones and consumer electronics.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 701.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 701.10 Td (Scalable architecture and carrier-grade reliability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.98 701.10 Td (. Our applications are designed to scale to support ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 689.10 Td (hundreds of millions of subscribers with a carrier) Tj ET Q q 0 0 0 rg BT 336.69 689.10 Td (-grade level of reliability) Tj ET Q q 0 0 0 rg BT 435.72 689.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 672.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 672.10 Td (Leadership in emerging standards and requirements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.86 672.10 Td (. ) Tj ET Q q 0 0 0 rg BT 360.68 672.10 Td (W) Tj ET Q q 0 0 0 rg BT 369.32 672.10 Td (e are actively involved in the development of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 660.10 Td (the IMS, SIP) Tj ET Q q 0 0 0 rg BT 191.58 660.10 Td ( and ) Tj ET Q q 0 0 0 rg BT 210.84 660.10 Td (V) Tj ET Q q 0 0 0 rg BT 216.77 660.10 Td (oL) Tj ET Q q 0 0 0 rg BT 226.96 660.10 Td (TE standards, as well as several other standards that we expect to shape our market ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 648.10 Td (in the future. Our BroadW) Tj ET Q q 0 0 0 rg BT 245.00 648.10 Td (orks application server supports what we believe is the world) Tj ET Q q 0 0 0 rg BT 492.44 648.10 Td (s lar) Tj ET Q q 0 0 0 rg BT 509.19 648.10 Td (gest IMS ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 636.10 Td (deployment, based on the number of subscribers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.60 610.10 Td ( Strategy) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 593.10 Td (Our goal is to strengthen our position as the leading global provider of IP) Tj ET Q q 0 0 0 rg BT 342.63 593.10 Td ( communications application servers by enabling ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 581.10 Td (service providers to increase revenue opportunities by delivering feature-rich services to their enterprise and consumer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 569.10 Td (subscribers. Key elements of our strategy include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 552.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 552.10 Td (Extend our technology leadership and product depth and breadth) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.92 552.10 Td (. ) Tj ET Q q 0 0 0 rg BT 413.74 552.10 Td (W) Tj ET Q q 0 0 0 rg BT 422.37 552.10 Td (e intend to continue to provide an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 540.10 Td (industry-leading solution through our focus on product innovation and substantial investment in research ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 528.10 Td (and development for new features, applications and services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 511.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 511.10 Td (Expand our BroadCloud PBX and UC of) Tj ET Q q 0 0 0 rg BT 309.31 511.10 Td (ferings) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 338.20 511.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.70 511.10 Td ( ) Tj ET Q q 0 0 0 rg BT 343.02 511.10 Td (W) Tj ET Q q 0 0 0 rg BT 351.66 511.10 Td (e intend to accelerate UC adoption and our service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 499.10 Td (provider customers) Tj ET Q q 0 0 0 rg BT 219.51 499.10 Td ( time to market by promoting and expanding our BroadCloud PBX and UC of) Tj ET Q q 0 0 0 rg BT 531.24 499.10 Td (ferings. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 487.10 Td (BroadCloud enables our service providers to of) Tj ET Q q 0 0 0 rg BT 329.21 487.10 Td (fer BroadW) Tj ET Q q 0 0 0 rg BT 375.89 487.10 Td (orks features and functions through a service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 475.10 Td (of) Tj ET Q q 0 0 0 rg BT 148.15 475.10 Td (fering hosted and/or managed by us. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 458.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 458.10 Td (Provide UC-One bundled of) Tj ET Q q 0 0 0 rg BT 255.09 458.10 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.48 458.10 Td ( ) Tj ET Q q 0 0 0 rg BT 288.80 458.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.44 458.10 Td (e intend to continue to provide prepackaged integrated elements ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 446.10 Td (of BroadW) Tj ET Q q 0 0 0 rg BT 183.91 446.10 Td (orks, BroadCloud and BroadT) Tj ET Q q 0 0 0 rg BT 304.30 446.10 Td (ouch with the goal of better enabling new and existing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 434.10 Td (customers to drive adoption of their hosted UC of) Tj ET Q q 0 0 0 rg BT 338.67 434.10 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 417.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 417.10 Td (Drive revenue growth by) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.38 417.10 Td (:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.00 400.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 185.00 400.10 Td (Assisting our current service provider customers sell more of their currently-deployed ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 185.00 388.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 218.71 388.10 Td (orks, BroadCloud services and BroadT) Tj ET Q q 0 0 0 rg BT 378.09 388.10 Td (ouch of) Tj ET Q q 0 0 0 rg BT 409.30 388.10 Td (ferings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.19 388.10 Td (. ) Tj ET Q q 0 0 0 rg BT 443.01 388.10 Td (W) Tj ET Q q 0 0 0 rg BT 451.65 388.10 Td (e support our service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 376.10 Td (provider customers by regularly of) Tj ET Q q 0 0 0 rg BT 323.67 376.10 Td (fering enhanced and new features to their current ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 364.10 Td (applications, as well as providing tools and training to help them market their services to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 352.10 Td (subscribers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.00 335.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 185.00 335.10 Td (Selling new applications and features to our current service provider customers) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.68 335.10 Td (. ) Tj ET Q q 0 0 0 rg BT 516.13 335.10 Td (Although ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 323.10 Td (our initial engagement with a service provider may be for a single initiative or business unit, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 311.10 Td (once a service provider deploys services using our core applications communications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 299.10 Td (platform, we believe we are well-positioned to sell additional applications and features to that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 287.10 Td (service provider) Tj ET Q q 0 0 0 rg BT 249.29 287.10 Td (, as software \(BroadW) Tj ET Q q 0 0 0 rg BT 338.46 287.10 Td (orks and BroadT) Tj ET Q q 0 0 0 rg BT 404.97 287.10 Td (ouch\) and/or through our BroadCloud ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 275.10 Td (services delivery platform. ) Tj ET Q q 0 0 0 rg BT 294.22 275.10 Td (These BroadSoft service of) Tj ET Q q 0 0 0 rg BT 403.17 275.10 Td (ferings can be tied together with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 263.10 Td (service provider) Tj ET Q q 0 0 0 rg BT 249.49 263.10 Td (-branded BroadT) Tj ET Q q 0 0 0 rg BT 317.38 263.10 Td (ouch mobile smartphone, tablet, and personal computer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 251.10 Td (clients.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.00 234.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 185.00 234.10 Td (Continuing to acquire new customers) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.48 234.10 Td (. Our customers are located around the world and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 222.10 Td (include 19 of the top 25 telecommunications service providers globally) Tj ET Q q 0 0 0 rg BT 469.00 222.10 Td (. ) Tj ET Q q 0 0 0 rg BT 473.82 222.10 Td (W) Tj ET Q q 0 0 0 rg BT 482.46 222.10 Td (e believe we are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 210.10 Td (well positioned to grow by adding customers in regions where we already have a strong ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 198.10 Td (presence, by expanding our geographic footprint and by penetrating more deeply into some ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 186.10 Td (types of service provider customers, such as additional cable and mobile service providers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.00 169.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 185.00 169.10 Td (Pursuing selected acquisitions and collaborations that complement our strategy) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.25 169.10 Td (. ) Tj ET Q q 0 0 0 rg BT 517.07 169.10 Td (W) Tj ET Q q 0 0 0 rg BT 525.71 169.10 Td (e intend ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 157.10 Td (to continue to pursue acquisitions and collaborations where we believe they are strategic to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 145.10 Td (strengthen our industry leadership position, expand our geographic presence or allow us to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.00 133.10 Td (of) Tj ET Q q 0 0 0 rg BT 193.15 133.10 Td (fer new or complementary products or services.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 107.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.60 107.10 Td ( Platform) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (Service providers can of) Tj ET Q q 0 0 0 rg BT 147.28 90.10 Td (fer their subscribers a comprehensive portfolio of enterprise and consumer communications services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (using BroadW) Tj ET Q q 0 0 0 rg BT 107.25 78.10 Td (orks, BroadCloud and BroadT) Tj ET Q q 0 0 0 rg BT 227.64 78.10 Td (ouch. ) Tj ET Q q 0 0 0 rg BT 251.90 78.10 Td (W) Tj ET Q q 0 0 0 rg BT 260.54 78.10 Td (e typically license and price BroadW) Tj ET Q q 0 0 0 rg BT 407.73 78.10 Td (orks and BroadT) Tj ET Q q 0 0 0 rg BT 474.24 78.10 Td (ouch on a per) Tj ET Q q 0 0 0 rg BT 528.18 78.10 Td (-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (subscriber) Tj ET Q q 0 0 0 rg BT 90.70 66.10 Td (, per) Tj ET Q q 0 0 0 rg BT 108.27 66.10 Td (-feature basis and we can deploy either in a variety of network configurations, matching the needs of fixed-line, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 54.10 Td (mobile and cable service providers. ) Tj ET Q q 0 0 0 rg BT 194.21 54.10 Td (W) Tj ET Q q 0 0 0 rg BT 202.85 54.10 Td (e typically sell our BroadCloud services on a per) Tj ET Q q 0 0 0 rg BT 397.59 54.10 Td (-month per) Tj ET Q q 0 0 0 rg BT 441.55 54.10 Td (-user basis.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (6) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (BroadSoft Enterprise ) Tj ET Q q 0 0 0 rg BT 140.20 742.25 Td (Applications) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Hosted Unified Communications) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 708.25 Td (Hosted unified communications products enable service providers to of) Tj ET Q q 0 0 0 rg BT 335.30 708.25 Td (fer enterprises advanced IP) Tj ET Q q 0 0 0 rg BT 443.49 708.25 Td ( PBX and UC features ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 696.25 Td (through a hosted service rather than through premises-based equipment, such as PBXs. ) Tj ET Q q 0 0 0 rg BT 399.92 696.25 Td (As enterprise needs become more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 684.25 Td (complex and as enterprise budgets are more closely controlled, we believe enterprise demand for cost-ef) Tj ET Q q 0 0 0 rg BT 467.15 684.25 Td (fective and feature-rich ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 672.25 Td (applications such as multimedia, mobility and UC is growing. ) Tj ET Q q 0 0 0 rg BT 300.07 672.25 Td (W) Tj ET Q q 0 0 0 rg BT 308.71 672.25 Td (e also believe the delivery of advanced IP) Tj ET Q q 0 0 0 rg BT 475.21 672.25 Td ( PBX and UC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 660.25 Td (features in a hosted model is simpler to implement and more cost ef) Tj ET Q q 0 0 0 rg BT 320.86 660.25 Td (ficient for both the service provider and enterprise customer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 648.25 Td (than premises-based alternatives.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (The advanced IP) Tj ET Q q 0 0 0 rg BT 116.82 627.25 Td ( PBX and UC features we of) Tj ET Q q 0 0 0 rg BT 231.06 627.25 Td (fer to enterprises through hosted unified communications applications include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 610.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 610.25 Td (PBX functionality such as call control, call waiting, call forwarding and conference calling, in each case ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 598.25 Td (across multiple locations;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 581.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 581.25 Td (real-time multimedia communications support for voice and video calling;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 564.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 564.25 Td (integration of of) Tj ET Q q 0 0 0 rg BT 204.80 564.25 Td (ferings across fixed and mobile devices and networks;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 547.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 547.25 Td (integrated voice, video and fax messaging;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 530.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 530.25 Td (enhanced features such as auto attendants, call centers and conferencing;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 513.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 513.25 Td (UC features, such as presence, IM and e-mail integration and collaboration;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 496.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 496.25 Td (open ) Tj ET Q q 0 0 0 rg BT 161.39 496.25 Td (APIs for third-party application development that complements the core call control functionality;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 479.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 479.25 Td (clients, which are devices and software that request information, for feature control and administration;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 462.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 462.25 Td (regulatory functions such as emer) Tj ET Q q 0 0 0 rg BT 274.78 462.25 Td (gency calling \(E91) Tj ET Q q 0 0 0 rg BT 349.93 462.25 Td (1\) and lawful intercept \(CALEA\); and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 445.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 445.25 Td (geographic redundancy and disaster recovery) Tj ET Q q 0 0 0 rg BT 320.38 445.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 419.25 Td (BroadCloud Unified Communications Service Delivery Platform) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (BroadCloud enables us to of) Tj ET Q q 0 0 0 rg BT 163.69 402.25 Td (fer our service provider customers communications applications such as BroadCloud PBX ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 390.25 Td (functionality) Tj ET Q q 0 0 0 rg BT 100.45 390.25 Td (, as well as web collaboration, video conferencing and fixed line short message service, or SMS, from our cloud ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (service delivery platform. ) Tj ET Q q 0 0 0 rg BT 155.33 378.25 Td (W) Tj ET Q q 0 0 0 rg BT 164.37 378.25 Td (ith BroadCloud of) Tj ET Q q 0 0 0 rg BT 236.96 378.25 Td (ferings, we are able to expedite our service provider customers) Tj ET Q q 0 0 0 rg BT 490.56 378.25 Td ( time to market ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (by hosting this set of applications, such as UC solutions and enhanced consumer services, in our network. ) Tj ET Q q 0 0 0 rg BT 475.30 366.25 Td (The BroadCloud ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (PBX of) Tj ET Q q 0 0 0 rg BT 80.10 354.25 Td (fering includes the hosted PBX capabilities of BroadW) Tj ET Q q 0 0 0 rg BT 299.53 354.25 Td (orks, but delivered from our network, plus an operating and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (business support system \(OSS/BSS\) layer) Tj ET Q q 0 0 0 rg BT 216.68 342.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 316.25 Td (BroadT) Tj ET Q q 0 0 0 rg BT 80.75 316.25 Td (ouch IP) Tj ET Q q 0 0 0 rg BT 113.44 316.25 Td ( Communications Clients) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 299.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 299.25 Td (e enable our service provider customers to of) Tj ET Q q 0 0 0 rg BT 238.67 299.25 Td (fer compelling end-user client experiences utilizing our BroadT) Tj ET Q q 0 0 0 rg BT 492.60 299.25 Td (ouch IP) Tj ET Q q 0 0 0 rg BT 523.06 299.25 Td ( clients ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 287.25 Td (for personal computers, smartphones and tablets \(these clients are often referred to as soft phones\). BroadT) Tj ET Q q 0 0 0 rg BT 486.65 287.25 Td (ouch clients allow ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 275.25 Td (enterprise and consumer end-users the full range of the service provider) Tj ET Q q 0 0 0 rg BT 337.48 275.25 Td () Tj ET Q q 0 0 0 rg BT 340.26 275.25 Td (s BroadSoft UC services through a service provider) Tj ET Q q 0 0 0 rg BT 546.40 275.25 Td (-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 263.25 Td (branded client experience.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 237.25 Td (UC-One) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 220.25 Td (Our UC-One of) Tj ET Q q 0 0 0 rg BT 112.58 220.25 Td (fering is a set of bundled UC services that allows service providers to of) Tj ET Q q 0 0 0 rg BT 400.94 220.25 Td (fer their customers the ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 208.25 Td (communicate from any of the user) Tj ET Q q 0 0 0 rg BT 187.82 208.25 Td () Tj ET Q q 0 0 0 rg BT 190.60 208.25 Td (s devices using one familiar) Tj ET Q q 0 0 0 rg BT 301.84 208.25 Td (, easy to use user interface. Our UC One of) Tj ET Q q 0 0 0 rg BT 474.10 208.25 Td (ferings are optimized ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (for a range of network architectures and all UC-One products and services have been architected to provide full mobile ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (integration. ) Tj ET Q q 0 0 0 rg BT 98.14 184.25 Td (The UC-One platform was designed to give service providers the flexibility to integrate third-party applications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (with their of) Tj ET Q q 0 0 0 rg BT 99.25 172.25 Td (ferings so they can meet the communications needs of the market segments they serve.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 146.25 Td (SIP) Tj ET Q q 0 0 0 rg BT 65.19 146.25 Td ( T) Tj ET Q q 0 0 0 rg BT 73.43 146.25 Td (runking) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 129.25 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 129.25 Td (orks) Tj ET Q q 0 0 0 rg BT 102.89 129.25 Td ( SIP) Tj ET Q q 0 0 0 rg BT 119.47 129.25 Td ( ) Tj ET Q q 0 0 0 rg BT 121.79 129.25 Td (T) Tj ET Q q 0 0 0 rg BT 127.54 129.25 Td (runking enables service providers to provide IP) Tj ET Q q 0 0 0 rg BT 316.57 129.25 Td ( interconnectivity and additional services to enterprises that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 117.25 Td (already have CPE-based IP) Tj ET Q q 0 0 0 rg BT 158.76 117.25 Td ( PBXs, PBXs and/or video endpoints. ) Tj ET Q q 0 0 0 rg BT 311.92 117.25 Td (W) Tj ET Q q 0 0 0 rg BT 320.96 117.25 Td (ith SIP) Tj ET Q q 0 0 0 rg BT 348.10 117.25 Td ( ) Tj ET Q q 0 0 0 rg BT 350.42 117.25 Td (T) Tj ET Q q 0 0 0 rg BT 356.17 117.25 Td (runking, service providers are able to bundle voice, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 105.25 Td (which interconnects to either circuit or IP-based networks, and data over a single conver) Tj ET Q q 0 0 0 rg BT 403.03 105.25 Td (ged IP) Tj ET Q q 0 0 0 rg BT 428.49 105.25 Td ( pipe, creating a more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 93.25 Td (economical of) Tj ET Q q 0 0 0 rg BT 106.74 93.25 Td (fering than can be achieved with separate voice and data connections. ) Tj ET Q q 0 0 0 rg BT 387.54 93.25 Td (W) Tj ET Q q 0 0 0 rg BT 396.18 93.25 Td (e believe BroadW) Tj ET Q q 0 0 0 rg BT 467.57 93.25 Td (orks-powered service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 81.25 Td (providers can dif) Tj ET Q q 0 0 0 rg BT 117.57 81.25 Td (ferentiate their SIP) Tj ET Q q 0 0 0 rg BT 192.73 81.25 Td ( ) Tj ET Q q 0 0 0 rg BT 195.05 81.25 Td (T) Tj ET Q q 0 0 0 rg BT 200.81 81.25 Td (runking service of) Tj ET Q q 0 0 0 rg BT 273.38 81.25 Td (ferings and increase revenue by of) Tj ET Q q 0 0 0 rg BT 410.63 81.25 Td (fering enhanced services such as UC, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 69.25 Td (video, mobility) Tj ET Q q 0 0 0 rg BT 110.46 69.25 Td (, global four) Tj ET Q q 0 0 0 rg BT 159.41 69.25 Td (-digit dialing and business continuity) Tj ET Q q 0 0 0 rg BT 307.08 69.25 Td (, in connection with their core SIP) Tj ET Q q 0 0 0 rg BT 443.63 69.25 Td ( ) Tj ET Q q 0 0 0 rg BT 445.95 69.25 Td (T) Tj ET Q q 0 0 0 rg BT 451.70 69.25 Td (runking service of) Tj ET Q q 0 0 0 rg BT 524.28 69.25 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 57.25 Td (Since BroadW) Tj ET Q q 0 0 0 rg BT 107.79 57.25 Td (orks) Tj ET Q q 0 0 0 rg BT 127.60 57.25 Td ( hosted UC and SIP) Tj ET Q q 0 0 0 rg BT 206.12 57.25 Td ( ) Tj ET Q q 0 0 0 rg BT 208.44 57.25 Td (T) Tj ET Q q 0 0 0 rg BT 214.20 57.25 Td (runking applications share the same software and platform, service providers can ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 45.25 Td (easily and cost-ef) Tj ET Q q 0 0 0 rg BT 119.79 45.25 Td (fectively expand their addressable markets by of) Tj ET Q q 0 0 0 rg BT 313.42 45.25 Td (fering hosted UC services in conjunction with SIP) Tj ET Q q 0 0 0 rg BT 513.86 45.25 Td ( ) Tj ET Q q 0 0 0 rg BT 516.18 45.25 Td (T) Tj ET Q q 0 0 0 rg BT 521.93 45.25 Td (runking. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (This hybrid of) Tj ET Q q 0 0 0 rg BT 107.04 742.10 Td (fering is attractive to multi-site enterprises that have some environments using premises-based PBXs and others ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (that are hosted. Despite their complex legacy systems, service providers can use BroadW) Tj ET Q q 0 0 0 rg BT 405.75 730.10 Td (orks to deliver a consistent set of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (mobility) Tj ET Q q 0 0 0 rg BT 83.24 718.10 Td (, multimedia and application integration capabilities to all end-users across these enterprises.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 692.10 Td (BroadSoft Consumer ) Tj ET Q q 0 0 0 rg BT 139.65 692.10 Td (Applications) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 675.10 Td (Our consumer IP) Tj ET Q q 0 0 0 rg BT 117.95 675.10 Td ( applications of) Tj ET Q q 0 0 0 rg BT 179.42 675.10 Td (fer voice and multimedia telephony services with voice calling, video calling, enhanced ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 663.10 Td (messaging, content sharing and web interfaces. ) Tj ET Q q 0 0 0 rg BT 240.87 663.10 Td (They also provide full regulatory compliance for fixed-line, mobile and cable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 651.10 Td (service providers. ) Tj ET Q q 0 0 0 rg BT 123.03 651.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 172.93 651.10 Td (, we enable service providers to dif) Tj ET Q q 0 0 0 rg BT 312.98 651.10 Td (ferentiate their of) Tj ET Q q 0 0 0 rg BT 382.20 651.10 Td (ferings through advanced feature sets for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.10 Td (managing family and small of) Tj ET Q q 0 0 0 rg BT 169.79 639.10 Td (fice/residential of) Tj ET Q q 0 0 0 rg BT 239.85 639.10 Td (fice communications, including multiple lines, video calling and mobility ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (support.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 601.10 Td (BroadSoft Xcelerate and Xtended Programs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 584.10 Td (Our BroadSoft Xcelerate program focuses on and fosters successful go-to-market initiatives with our service provider ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 572.10 Td (customers, from tar) Tj ET Q q 0 0 0 rg BT 127.85 572.10 Td (get of) Tj ET Q q 0 0 0 rg BT 150.72 572.10 Td (fers, to sales and marketing ef) Tj ET Q q 0 0 0 rg BT 270.49 572.10 Td (forts. Our go-to-market consultants help service providers prepare to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 560.10 Td (launch, market and sell their service of) Tj ET Q q 0 0 0 rg BT 205.03 560.10 Td (ferings to their end-users. ) Tj ET Q q 0 0 0 rg BT 309.55 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 318.18 560.10 Td (e generally seek to help the service providers by providing a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.10 Td (best-practice framework and resources such as templates, marketing workshops and planning guides, to accelerate the launch ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 536.10 Td (and development of our applications to their subscribers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (Our BroadSoft Xtended program is designed to enable our service provider customers to create and/or deploy highly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 507.10 Td (ferentiated IP-based communications services using BroadW) Tj ET Q q 0 0 0 rg BT 304.22 507.10 Td (orks. BroadSoft Xtended is premised on three operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 495.10 Td (principles:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 478.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 478.10 Td (Expanding familiarity with web services ) Tj ET Q q 0 0 0 rg BT 307.13 478.10 Td (APIs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.70 478.10 Td (. ) Tj ET Q q 0 0 0 rg BT 332.51 478.10 Td (The powerful RESTful Xtended Services Interface, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 466.10 Td (Xsi, exposes our BroadW) Tj ET Q q 0 0 0 rg BT 241.96 466.10 Td (orks software to other applications;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 449.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 449.10 Td (Maintaining community) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.30 449.10 Td (. ) Tj ET Q q 0 0 0 rg BT 244.75 449.10 Td (An innovative developer community driven by the BroadSoft Xtended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 437.10 Td (developer program is created; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 420.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 420.10 Td (Promoting commerce) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 228.60 420.10 Td (. ) Tj ET Q q 0 0 0 rg BT 233.42 420.10 Td (The Xtended Marketplace allows developers to monetize their applications by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 408.10 Td (enabling service providers to purchase developer applications through the Xtended Marketplace.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (While our Xtended program is still at an early stage of market acceptance, we believe the applications made available in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (Xtended Marketplace will increase functionality for subscribers, which will in turn make them more likely to maintain their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (subscriptions with our customers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 337.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.75 337.10 Td (echnology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 320.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 320.10 Td (e have invested significant time and financial resources into the development of our suite of product of) Tj ET Q q 0 0 0 rg BT 469.44 320.10 Td (ferings. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 308.10 Td (orks code base comprises over twelve million lines of software code refined over 14 years and 20 major releases. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 296.10 Td (While the predominant industry approach has been to use proprietary standards, which greatly limits interoperability) Tj ET Q q 0 0 0 rg BT 515.61 296.10 Td (, our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 284.10 Td (technology strategy is to adopt and extend leading open standards with the objectives of providing the widest level of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 272.10 Td (interoperability in the industry) Tj ET Q q 0 0 0 rg BT 171.27 272.10 Td (. Our products implement a diverse set of industry protocols such as SIP) Tj ET Q q 0 0 0 rg BT 459.28 272.10 Td (, DIAMETER, SNMP) Tj ET Q q 0 0 0 rg BT 547.07 272.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 260.10 Td (SOAP) Tj ET Q q 0 0 0 rg BT 75.20 260.10 Td ( and RESTful-based interfaces, allowing for the successful penetration of the service provider market across dif) Tj ET Q q 0 0 0 rg BT 521.52 260.10 Td (ferent ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (types of architectures, access types and infrastructures.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (Our technology includes software-based server functions and software clients designed for scalability and performance. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (server functions provide a number of discrete capabilities, including call control and signaling, media processing and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 203.10 Td (provisioning interfaces to back of) Tj ET Q q 0 0 0 rg BT 184.22 203.10 Td (fice infrastructure. Our software clients run on a variety of devices, including smartphones, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 191.10 Td (tablets and personal computers. Our open interfaces allow service providers to quickly and easily integrate with mobile ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 179.10 Td (applications, back of) Tj ET Q q 0 0 0 rg BT 132.85 179.10 Td (fice systems, web portals and network infrastructure and also permits them to deploy applications that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 167.10 Td (complement the functionality of the servers. Because the solution reaches the service provider) Tj ET Q q 0 0 0 rg BT 426.63 167.10 Td () Tj ET Q q 0 0 0 rg BT 429.40 167.10 Td (s subscribers, we believe this ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 155.10 Td (end-to-end integration is critical to ensure the usability) Tj ET Q q 0 0 0 rg BT 268.45 155.10 Td (, look and feel of the service of) Tj ET Q q 0 0 0 rg BT 392.67 155.10 Td (fering is superior) Tj ET Q q 0 0 0 rg BT 460.43 155.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (The key elements of our technology are:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 117.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 117.10 Td (SIP) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 155.56 117.10 Td (. ) Tj ET Q q 0 0 0 rg BT 160.38 117.10 Td (W) Tj ET Q q 0 0 0 rg BT 169.02 117.10 Td (e believe we have the industry) Tj ET Q q 0 0 0 rg BT 293.14 117.10 Td (s most customer) Tj ET Q q 0 0 0 rg BT 357.93 117.10 Td (-tested and fully functioned SIP) Tj ET Q q 0 0 0 rg BT 484.76 117.10 Td ( stack. Because we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 105.10 Td (developed the software ourselves, we can rapidly customize it and resolve any related issues. ) Tj ET Q q 0 0 0 rg BT 514.14 105.10 Td (W) Tj ET Q q 0 0 0 rg BT 522.77 105.10 Td (e have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 93.10 Td (developed SIP) Tj ET Q q 0 0 0 rg BT 197.68 93.10 Td ( extensions for many advanced PBX functions such as advanced call control and bridged ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 81.10 Td (line appearances. Our SIP) Tj ET Q q 0 0 0 rg BT 243.48 81.10 Td ( stack provides programmable controls on a per) Tj ET Q q 0 0 0 rg BT 433.50 81.10 Td (-device basis to allow for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 69.10 Td (maximum compatibility and interoperability) Tj ET Q q 0 0 0 rg BT 316.81 69.10 Td (. ) Tj ET Q q 0 0 0 rg BT 321.63 69.10 Td (W) Tj ET Q q 0 0 0 rg BT 330.27 69.10 Td (e have achieved full interoperability with over 620 SIP-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 57.10 Td (based devices and applications. ) Tj ET Q q 0 0 0 rg BT 267.83 57.10 Td (W) Tj ET Q q 0 0 0 rg BT 276.47 57.10 Td (e have validated our stack and deployed it with leading IMS core ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 45.10 Td (network vendors;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 725.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 725.10 Td (Call control) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.17 725.10 Td (. ) Tj ET Q q 0 0 0 rg BT 193.99 725.10 Td (W) Tj ET Q q 0 0 0 rg BT 202.63 725.10 Td (e have developed a patented architecture for service definition, service execution, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 713.10 Td (interface abstraction, event routing and service precedence. ) Tj ET Q q 0 0 0 rg BT 379.42 713.10 Td (This provides an extensible pattern for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 701.10 Td (creating and adding new services and/or interfaces without an impact on existing functionality) Tj ET Q q 0 0 0 rg BT 516.46 701.10 Td (. Interfaces ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 689.10 Td (are abstracted so that services can be written to work with any protocol. ) Tj ET Q q 0 0 0 rg BT 429.17 689.10 Td (This approach yields a product ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 677.10 Td (we believe is easier to test and consequently has fewer defects as evidenced by current support for over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 665.10 Td (200 services. BroadSoft has evolved the service operating system to natively support the IMS call model;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 648.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 648.10 Td (Geographic redundancy) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 239.72 648.10 Td (. ) Tj ET Q q 0 0 0 rg BT 244.54 648.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.18 648.10 Td (e have designed a geographically redundant solution tailored for call control ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 636.10 Td (that requires no special software and uses standard IP) Tj ET Q q 0 0 0 rg BT 353.45 636.10 Td ( networking configurations with standard IP) Tj ET Q q 0 0 0 rg BT 529.44 636.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 624.10 Td (addressing. ) Tj ET Q q 0 0 0 rg BT 187.59 624.10 Td (This solution supports seamless failover for server outages and IP) Tj ET Q q 0 0 0 rg BT 450.22 624.10 Td ( networking issues. It also ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 612.10 Td (allows for placement of servers in any geography without distance limitations. ) Tj ET Q q 0 0 0 rg BT 455.85 612.10 Td (The solution is supported ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 600.10 Td (by leading IMS core network vendors and session border controller vendors. Our solution has proven ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 588.10 Td (greater than 99.999% reliability with over ten years of historical data;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 571.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 571.10 Td (Common OAMP) Tj ET Q q 0 0 0 rg BT 208.81 571.10 Td ( platform) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.87 571.10 Td (. BroadW) Tj ET Q q 0 0 0 rg BT 284.94 571.10 Td (orks has a common management container for all BroadSoft servers, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 559.10 Td (providing consistent functions for operations, administration, management and provisioning, or OAMP) Tj ET Q q 0 0 0 rg BT 551.88 559.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 547.10 Td (It supports identical carrier grade management interfaces on all servers and includes functions for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 535.10 Td (command line interfaces, alarms, statistics, configuration, char) Tj ET Q q 0 0 0 rg BT 390.29 535.10 Td (ging, security and provisioning. It is fully ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 523.10 Td (tested and validated with leading carrier network management systems and customer care systems and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 511.10 Td (proven carrier grade in over 80 ) Tj ET Q q 0 0 0 rg BT 266.43 511.10 Td (T) Tj ET Q q 0 0 0 rg BT 272.18 511.10 Td (ier 1 telecommunications service providers. It works on standard ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 499.10 Td (servers, as well as virtualized servers;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 482.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 482.10 Td (Media resource framework) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.66 482.10 Td (. ) Tj ET Q q 0 0 0 rg BT 256.48 482.10 Td (W) Tj ET Q q 0 0 0 rg BT 265.12 482.10 Td (e have developed a completely software-based media resource framework ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 470.10 Td (for dual-tone multi-frequency detection, media playback, recording, conferencing and repeating. ) Tj ET Q q 0 0 0 rg BT 527.99 470.10 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 458.10 Td (framework supports all de facto standard audio and video codecs. It supports the Internet Engineering ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 446.10 Td (T) Tj ET Q q 0 0 0 rg BT 145.41 446.10 Td (ask Force, or IETF) Tj ET Q q 0 0 0 rg BT 220.15 446.10 Td (, and the 3rd Generation Partnership Project, or 3GPP) Tj ET Q q 0 0 0 rg BT 433.99 446.10 Td (, standard protocols, including ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 434.10 Td (the standard format for specifying interactive voice dialogues between a human and a computer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 422.10 Td (\(V) Tj ET Q q 0 0 0 rg BT 149.26 422.10 Td (oiceXML\) and call control extensible markup language, or CCXML, which provides telephony ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 410.10 Td (support to ) Tj ET Q q 0 0 0 rg BT 182.60 410.10 Td (V) Tj ET Q q 0 0 0 rg BT 188.53 410.10 Td (oiceXML. ) Tj ET Q q 0 0 0 rg BT 232.23 410.10 Td (The framework can be integrated with all leading voice recognition and text-to-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 398.10 Td (speech engines. ) Tj ET Q q 0 0 0 rg BT 205.07 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 213.71 398.10 Td (e believe using a completely software-based platform not only provides us with a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 386.10 Td (technical advantage over our competition, but also a strong commercial advantage since we can bundle ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 374.10 Td (this technology with BroadW) Tj ET Q q 0 0 0 rg BT 257.24 374.10 Td (orks; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 357.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 357.10 Td (Client technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 212.50 357.10 Td (. ) Tj ET Q q 0 0 0 rg BT 217.32 357.10 Td (W) Tj ET Q q 0 0 0 rg BT 225.96 357.10 Td (e support a full suite of smartphone, tablet and personal computer voice over IP) Tj ET Q q 0 0 0 rg BT 543.09 357.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 345.10 Td (V) Tj ET Q q 0 0 0 rg BT 145.93 345.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 158.72 345.10 Td (, clients. ) Tj ET Q q 0 0 0 rg BT 194.64 345.10 Td (These clients provide audio and video calling, IM, presence, conferences, collaboration and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 333.10 Td (service management. ) Tj ET Q q 0 0 0 rg BT 226.72 333.10 Td (They are designed to be integrated with our network software and cloud services, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 321.10 Td (providing a superior user experience.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 304.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 304.10 Td (IMS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.34 304.10 Td (. Our products support IMS interfaces, adhering to a 3GPP) Tj ET Q q 0 0 0 rg BT 392.66 304.10 Td ( specifications. ) Tj ET Q q 0 0 0 rg BT 454.96 304.10 Td (W) Tj ET Q q 0 0 0 rg BT 463.59 304.10 Td (e provide a fully ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 292.10 Td (functional ) Tj ET Q q 0 0 0 rg BT 182.86 292.10 Td (T) Tj ET Q q 0 0 0 rg BT 188.27 292.10 Td (elephony ) Tj ET Q q 0 0 0 rg BT 226.88 292.10 Td (Application Server \(T) Tj ET Q q 0 0 0 rg BT 313.82 292.10 Td (AS\) and Media Resource Function \(MRF\), supporting ) Tj ET Q q 0 0 0 rg BT 533.07 292.10 Td (V) Tj ET Q q 0 0 0 rg BT 539.00 292.10 Td (oL) Tj ET Q q 0 0 0 rg BT 549.19 292.10 Td (TE ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 280.10 Td (and fixed line applications. ) Tj ET Q q 0 0 0 rg BT 250.62 280.10 Td (W) Tj ET Q q 0 0 0 rg BT 259.26 280.10 Td (e have over 70 IMS deployments, providing both business and consumer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 268.10 Td (applications.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 251.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 251.10 Td (Network Function V) Tj ET Q q 0 0 0 rg BT 224.47 251.10 Td (irtualization \(NFV\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.77 251.10 Td (. Our products are all software, supporting standard IT) Tj ET Q q 0 0 0 rg BT 522.30 251.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 239.10 Td (virtualization technology) Tj ET Q q 0 0 0 rg BT 239.60 239.10 Td (. ) Tj ET Q q 0 0 0 rg BT 244.42 239.10 Td (This allows our customers to consolidate their networks onto industry standard ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 227.10 Td (high volume servers, located in their data centers. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.10 Td (Global Support Services) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (Providing a broad range of professional support services is an integral part of our business model. ) Tj ET Q q 0 0 0 rg BT 443.34 184.10 Td (W) Tj ET Q q 0 0 0 rg BT 451.98 184.10 Td (e of) Tj ET Q q 0 0 0 rg BT 467.07 184.10 Td (fer services designed to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (deliver comprehensive support to our service provider customers and distribution partners through every stage of product ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (deployment. Our services can be categorized as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 143.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 143.10 Td (Pre-sales support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.39 143.10 Td (. Our worldwide sales engineering group works with our direct sales force to provide ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 131.10 Td (demonstrations, architecture consulting, interoperability testing and related services in connection with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 119.10 Td (product sales opportunities to establish the capability) Tj ET Q q 0 0 0 rg BT 351.53 119.10 Td (, functionality) Tj ET Q q 0 0 0 rg BT 406.98 119.10 Td (, scalability and interoperability of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 107.10 Td (software with a service provider) Tj ET Q q 0 0 0 rg BT 269.21 107.10 Td () Tj ET Q q 0 0 0 rg BT 271.99 107.10 Td (s network;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 90.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 90.10 Td (Professional services) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.38 90.10 Td (. Our professional services group provides installation services, such as planning, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 78.10 Td (consulting and staging of software on the customer) Tj ET Q q 0 0 0 rg BT 344.49 78.10 Td () Tj ET Q q 0 0 0 rg BT 347.27 78.10 Td (s hardware, as well as installation and network ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 66.10 Td (integration services, project management and remote upgrades. ) Tj ET Q q 0 0 0 rg BT 395.00 66.10 Td (W) Tj ET Q q 0 0 0 rg BT 403.64 66.10 Td (e also of) Tj ET Q q 0 0 0 rg BT 437.33 66.10 Td (fer our customers the option of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 54.10 Td (longer) Tj ET Q q 0 0 0 rg BT 165.35 54.10 Td (-term engagements in the form of resident engineering services. In addition, we of) Tj ET Q q 0 0 0 rg BT 502.82 54.10 Td (fer a full suite ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 742.10 Td (of consulting services including network planning, network architecture definition, back of) Tj ET Q q 0 0 0 rg BT 503.60 742.10 Td (fice ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 730.10 Td (consulting and solution verification;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 713.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 713.10 Td (Global operations centers) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.56 713.10 Td (. ) Tj ET Q q 0 0 0 rg BT 250.38 713.10 Td (W) Tj ET Q q 0 0 0 rg BT 259.01 713.10 Td (e maintain operations centers in several locations around the world to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 701.10 Td (provide our customers with product life-cycle services, such as platform support and maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 689.10 Td (services. ) Tj ET Q q 0 0 0 rg BT 177.03 689.10 Td (W) Tj ET Q q 0 0 0 rg BT 185.66 689.10 Td (e also host our BroadCloud of) Tj ET Q q 0 0 0 rg BT 305.75 689.10 Td (ferings in select operations centers. Members of our technical ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 677.10 Td (assistance center and regional project management and professional services teams provide remote ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 665.10 Td (assistance to customers via these locations and our in-depth web support portal, including periodic ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 653.10 Td (updates for our software products and product documentation. ) Tj ET Q q 0 0 0 rg BT 391.14 653.10 Td (T) Tj ET Q q 0 0 0 rg BT 396.55 653.10 Td (o respond to our customers) Tj ET Q q 0 0 0 rg BT 507.45 653.10 Td ( needs, our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 641.10 Td (technical assistance personnel are available 24 hours a day) Tj ET Q q 0 0 0 rg BT 373.70 641.10 Td (, seven days a week and accessible by phone, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 629.10 Td (e-mail and, when required, on-site via a professional services engagement; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 612.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 140.00 612.10 Td (T) Tj ET Q q 0 0 0 rg BT 145.74 612.10 Td (raining) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 176.31 612.10 Td (. ) Tj ET Q q 0 0 0 rg BT 181.13 612.10 Td (W) Tj ET Q q 0 0 0 rg BT 189.77 612.10 Td (e of) Tj ET Q q 0 0 0 rg BT 204.85 612.10 Td (fer an array of training services to our customers, which include systems administration, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 600.10 Td (provisioning and advanced diagnostic courses. ) Tj ET Q q 0 0 0 rg BT 328.66 600.10 Td (W) Tj ET Q q 0 0 0 rg BT 337.30 600.10 Td (e present these courses regularly at our regional centers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 588.10 Td (and headquarters and we also can deliver versions of the courses at customer sites. ) Tj ET Q q 0 0 0 rg BT 472.21 588.10 Td (W) Tj ET Q q 0 0 0 rg BT 480.84 588.10 Td (e also of) Tj ET Q q 0 0 0 rg BT 514.54 588.10 Td (fer product ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 576.10 Td (and feature training via streaming video courses, which we refer to as our eLearning of) Tj ET Q q 0 0 0 rg BT 487.74 576.10 Td (ferings, as well as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 564.10 Td (a full product certification program that is available through our BroadSoft University website.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 543.10 Td (e believe our commitment to providing high-quality services to our customers provides us with a competitive advantage by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (helping us to retain customers and to identify new revenue opportunities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 505.10 Td (Sales and Marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 488.10 Td (e market and sell our products and services either directly) Tj ET Q q 0 0 0 rg BT 288.74 488.10 Td (, through our internal sales force, or indirectly) Tj ET Q q 0 0 0 rg BT 472.19 488.10 Td (, through our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.10 Td (distribution partners, such as ) Tj ET Q q 0 0 0 rg BT 167.30 476.10 Td (V) Tj ET Q q 0 0 0 rg BT 173.23 476.10 Td (ARs and system integrators. For the years ended December31, 2013, 2012 and 201) Tj ET Q q 0 0 0 rg BT 507.23 476.10 Td (1, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (approximately 82%, 82% and 79%, respectively) Tj ET Q q 0 0 0 rg BT 242.35 464.10 Td (, of our revenue was generated through direct sales.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 443.10 Td (Direct sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.05 443.10 Td (. Our direct sales team sells our products and services to service providers worldwide and supports the sales ef) Tj ET Q q 0 0 0 rg BT 539.13 443.10 Td (forts ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 431.10 Td (of our various distribution partners. ) Tj ET Q q 0 0 0 rg BT 194.24 431.10 Td (W) Tj ET Q q 0 0 0 rg BT 202.88 431.10 Td (e have employees in 24 countries supporting our customers and distribution partners in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 419.10 Td (more than 76 countries.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (Distribution partners) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 136.97 398.10 Td (. In an ef) Tj ET Q q 0 0 0 rg BT 172.33 398.10 Td (fort to acquire new customers, we periodically enter into non-exclusive distribution or reseller ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (agreements with distribution partners, such as ) Tj ET Q q 0 0 0 rg BT 235.61 386.10 Td (V) Tj ET Q q 0 0 0 rg BT 241.54 386.10 Td (ARs and system integrators. ) Tj ET Q q 0 0 0 rg BT 356.63 386.10 Td (W) Tj ET Q q 0 0 0 rg BT 365.26 386.10 Td (e predominantly engage with a distribution ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (partner in connection with marketing to international service providers. Our agreements with our distribution partners typically ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (have a duration of one to two years and provide for a full spectrum of sales and marketing services, product implementation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (services, technical and training support and warranty protection. ) Tj ET Q q 0 0 0 rg BT 309.17 350.10 Td (These agreements generally do not contain minimum sales ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (requirements and we ordinarily do not of) Tj ET Q q 0 0 0 rg BT 213.66 338.10 Td (fer contractual rights of return or price protection to our distribution partners. ) Tj ET Q q 0 0 0 rg BT 524.40 338.10 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (December31, 2013, we had approximately 70 distribution partners. Our partners include many of the lar) Tj ET Q q 0 0 0 rg BT 468.58 326.10 Td (gest networking and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (telecommunications equipment vendors in the world, as well as regionally focused system and network integrators. ) Tj ET Q q 0 0 0 rg BT 513.32 314.10 Td (W) Tj ET Q q 0 0 0 rg BT 521.95 314.10 Td (e may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (seek to selectively add distribution partners, particularly in additional countries outside the United States, to complement or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (expand our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 269.10 Td (Marketing and product management) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.41 269.10 Td (. Our marketing and product management teams focus their marketing ef) Tj ET Q q 0 0 0 rg BT 492.51 269.10 Td (forts on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 257.10 Td (increasing our company and brand awareness, heightening product awareness and specifying our competitive advantages, as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 245.10 Td (well as generating qualified sales leads from existing and prospective customers. ) Tj ET Q q 0 0 0 rg BT 374.91 245.10 Td (As part of marketing our products and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 233.10 Td (services, we communicate enhancements and new capabilities, convey reference solutions that we develop with our partners ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 221.10 Td (and announce successful end-user market of) Tj ET Q q 0 0 0 rg BT 226.69 221.10 Td (ferings jointly with our service providers. ) Tj ET Q q 0 0 0 rg BT 395.09 221.10 Td (W) Tj ET Q q 0 0 0 rg BT 404.13 221.10 Td (ithin our industry) Tj ET Q q 0 0 0 rg BT 472.92 221.10 Td (, we work to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 209.10 Td (influence next generation service architectures and service provider requirements globally by actively contributing to industry-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 197.10 Td (related standards or) Tj ET Q q 0 0 0 rg BT 128.12 197.10 Td (ganizations, conferences, publications and analyst consulting services. ) Tj ET Q q 0 0 0 rg BT 411.37 197.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 461.27 197.10 Td (, we work closely with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 185.10 Td (service providers to develop subscriber loyalty and share successful best practices through user conferences, on-site seminars, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 173.10 Td (monthly webinars, social networking campaigns and newsletters.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (Customers) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (Our products and services have been sold to more than 600 service providers in over 76 countries. ) Tj ET Q q 0 0 0 rg BT 444.71 130.10 Td (These companies have either ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (purchased products or services directly from us or have purchased our software through one of our distribution partners. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (installed customer base includes 19 of the top 25 telecommunications service providers globally) Tj ET Q q 0 0 0 rg BT 433.70 106.10 Td (. Our customers include fixed-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (line, mobile, cable and Internet service providers. ) Tj ET Q q 0 0 0 rg BT 249.93 94.10 Td (As a result of the diversity of service providers comprising our customer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (base, our products are used in a broad array of services, applications, network types and business models worldwide.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (Revenue from customers located outside the United States represented 43%, 43% and 45% of our total revenue in 2013, 2012 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 49.10 Td (and 201) Tj ET Q q 0 0 0 rg BT 81.57 49.10 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 139.23 49.10 Td (. For the years ended December31, 2013 and December 31, 2012, no customer accounted for 10% or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (more of our revenues. For the year ended December31, 201) Tj ET Q q 0 0 0 rg BT 290.65 742.10 Td (1, ) Tj ET Q q 0 0 0 rg BT 300.47 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 305.88 742.10 Td (elstra Corporation Limited, or ) Tj ET Q q 0 0 0 rg BT 428.17 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 433.58 742.10 Td (elstra, accounted for 1) Tj ET Q q 0 0 0 rg BT 522.06 742.10 Td (1% of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (our total revenue.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 704.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 704.10 Td (ch and Development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 687.10 Td (Continued investment in research and development is critical to our business. ) Tj ET Q q 0 0 0 rg BT 361.97 687.10 Td (W) Tj ET Q q 0 0 0 rg BT 370.61 687.10 Td (e have assembled a team of engineers primarily ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 675.10 Td (engaged in research and development, with expertise in various fields of communications and software development. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 663.10 Td (research and development department is responsible for designing, developing and enhancing our software products and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 651.10 Td (performing product testing and quality assurance activities, as well as ensuring the interoperability of our products with third-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.10 Td (party hardware and software products. ) Tj ET Q q 0 0 0 rg BT 205.87 639.10 Td (W) Tj ET Q q 0 0 0 rg BT 214.51 639.10 Td (e also validate and produce solution guides for joint reference solutions with our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (partners that specify infrastructure components and management functions. ) Tj ET Q q 0 0 0 rg BT 353.33 627.10 Td (W) Tj ET Q q 0 0 0 rg BT 361.97 627.10 Td (e employ advanced software development tools, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (including automated testing, performance and capacity testing, source code control, requirements traceability and defect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (tracking systems. Research and development expense totaled ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.59 603.10 Td ($49.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 350.48 603.10 Td (, $36.2 million and $27.7 million for 2013, 2012 and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (201) Tj ET Q q 0 0 0 rg BT 64.63 591.10 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 122.29 591.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 565.10 Td (Competition) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.10 Td (The market for IP) Tj ET Q q 0 0 0 rg BT 120.99 548.10 Td ( application of) Tj ET Q q 0 0 0 rg BT 178.57 548.10 Td (ferings is extremely competitive, rapidly evolving and subject to changing technology) Tj ET Q q 0 0 0 rg BT 522.00 548.10 Td (. ) Tj ET Q q 0 0 0 rg BT 526.82 548.10 Td (W) Tj ET Q q 0 0 0 rg BT 535.45 548.10 Td (e ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 536.10 Td (expect competition to persist and intensify in the future. ) Tj ET Q q 0 0 0 rg BT 275.87 536.10 Td (W) Tj ET Q q 0 0 0 rg BT 284.51 536.10 Td (e believe that the principal competitive factors in our industry ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 524.10 Td (include product features and performance, interoperability) Tj ET Q q 0 0 0 rg BT 282.58 524.10 Td (, time required for application deployment, scalability) Tj ET Q q 0 0 0 rg BT 497.42 524.10 Td (, customer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 512.10 Td (support of) Tj ET Q q 0 0 0 rg BT 90.65 512.10 Td (ferings, customer relationships, partner relationships, pricing and total deployment costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 491.10 Td (Currently) Tj ET Q q 0 0 0 rg BT 87.68 491.10 Td (, our primary direct competitors consist of established network equipment companies, including ) Tj ET Q q 0 0 0 rg BT 473.14 491.10 Td (Alcatel-Lucent, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 479.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.48 479.10 Td (vaya Inc., Cisco Systems, Inc., Ericsson ) Tj ET Q q 0 0 0 rg BT 218.40 479.10 Td (AB, GENBAND Inc., Huawei ) Tj ET Q q 0 0 0 rg BT 342.36 479.10 Td (T) Tj ET Q q 0 0 0 rg BT 347.77 479.10 Td (echnologies Co. Ltd., Mavenir Systems Inc., ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 467.10 Td (Metaswitch Networks, Microsoft Corporation, and Nokia Siemens Networks B.V) Tj ET Q q 0 0 0 rg BT 375.05 467.10 Td (. Some of the network equipment companies ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 455.10 Td (with which we have non-exclusive distributor partnerships may also provide, as a package, their own network equipment in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 443.10 Td (combination with IP) Tj ET Q q 0 0 0 rg BT 131.29 443.10 Td ( application software that they have developed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (Many of our current and potential competitors may have significantly greater financial, technical, marketing and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (resources than we do and may be able to devote greater resources to the development, promotion, sale and support of their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (products. Our competitors may also have more extensive customer bases and broader customer relationships than we do, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (including relationships with our potential customers. In addition, many of these companies have longer operating histories and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (greater brand recognition than we do.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.10 Td (Intellectual Pr) Tj ET Q q 0 0 0 rg BT 111.19 348.10 Td (operty) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 331.10 Td (Our success depends upon our ability to protect our core technology and intellectual property) Tj ET Q q 0 0 0 rg BT 422.29 331.10 Td (. ) Tj ET Q q 0 0 0 rg BT 427.11 331.10 Td (T) Tj ET Q q 0 0 0 rg BT 432.52 331.10 Td (o accomplish this, we rely on a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 319.10 Td (combination of intellectual property rights, including patents, trade secrets, copyrights and trademarks, as well as customary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 307.10 Td (confidentiality and other contractual protections. ) Tj ET Q q 0 0 0 rg BT 249.47 307.10 Td (W) Tj ET Q q 0 0 0 rg BT 258.11 307.10 Td (e have a number of United States and foreign patents and pending ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 295.10 Td (applications that relate to various aspects of our products and technology) Tj ET Q q 0 0 0 rg BT 340.93 295.10 Td (. ) Tj ET Q q 0 0 0 rg BT 345.75 295.10 Td (While we believe that our patents have value, no ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 283.10 Td (single patent is essential to us or to any of our principal products or services. Our registered trademarks in the United States ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 271.10 Td (include BroadSoft, the BroadSoft logo, BroadW) Tj ET Q q 0 0 0 rg BT 242.22 271.10 Td (orks, BroadCloud, UC-One, BroadSoft Xtended and BroadSoft Xcelerate. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 259.10 Td (BroadSoft and BroadW) Tj ET Q q 0 0 0 rg BT 143.62 259.10 Td (orks are also registered trademarks in the European Community and a number of other countries ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (throughout the world. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (In addition to the protections described above, we generally control access to and use of our proprietary software and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (confidential information through the use of internal and external controls, including contractual protections with employees, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (consultants, customers and vendors, and our software is protected by U.S. and international copyright laws. ) Tj ET Q q 0 0 0 rg BT 481.94 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 490.58 202.10 Td (e also incorporate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (a number of third-party software programs into our products, including BroadW) Tj ET Q q 0 0 0 rg BT 369.95 190.10 Td (orks, pursuant to license agreements. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (software is not substantially dependent on any third-party software, with the exception of database technology that is provided ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (by Oracle pursuant to a license agreement expiring in 2016, although our software does utilize open source code. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Notwithstanding the use of this open source code, we do not believe that our usage requires public disclosure of our own source ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (code nor do we believe the use of open source code is material to our business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 121.10 Td (e may not receive competitive advantages from the rights granted under our patent and other intellectual property rights. If ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 109.10 Td (our products, patents or patent applications are found to conflict with any patents held by third parties, we could be prevented ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (from selling our products, our patents may be declared invalid or our patent applications may not result in issued patents. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 85.10 Td (foreign countries, we may not receive ef) Tj ET Q q 0 0 0 rg BT 211.14 85.10 Td (fective patent, copyright and trademark protection. ) Tj ET Q q 0 0 0 rg BT 416.43 85.10 Td (W) Tj ET Q q 0 0 0 rg BT 425.07 85.10 Td (e may be required to initiate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 73.10 Td (litigation to enforce any patents issued to us, or to determine the scope or validity of a third party) Tj ET Q q 0 0 0 rg BT 440.73 73.10 Td (s patent or other proprietary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (rights. In addition, we are currently subject to lawsuits, and in the future we may be subject to additional lawsuits by third ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 49.10 Td (parties seeking to enforce their own intellectual property rights. See Item3, Legal Proceedings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 742.10 Td (e license our software to customers pursuant to agreements that impose restrictions on the customers) Tj ET Q q 0 0 0 rg BT 463.34 742.10 Td ( ability to use the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (software, including prohibitions on reverse engineering and limitations on the use of copies. ) Tj ET Q q 0 0 0 rg BT 420.57 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 429.20 730.10 Td (e also seek to avoid disclosure of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (our intellectual property by requiring employees and consultants with access to our proprietary information to execute ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (nondisclosure and assignment of intellectual property agreements and by restricting access to our source code. Our employees ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (and consultants may not comply with the terms of these agreements and we may not be able to adequately enforce our rights ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (against these non-compliant parties.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 656.10 Td (Employees) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.10 Td (As of December31, 2013, we had 725 employees, 286 of whom were primarily engaged in research and development, 177 of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (whom were primarily engaged in sales and marketing, 177 of whom were primarily engaged in providing customer support, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (cloud operations and professional support services and 85 of whom were primarily engaged in administration and finance. ) Tj ET Q q 0 0 0 rg BT 540.98 615.10 Td (A) Tj ET Q q 0 0 0 rg BT 547.65 615.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (majority of these employees are located in the United States. None of our employees is represented by a labor union or covered ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (by a collective bar) Tj ET Q q 0 0 0 rg BT 123.39 591.10 Td (gaining agreement. ) Tj ET Q q 0 0 0 rg BT 202.35 591.10 Td (W) Tj ET Q q 0 0 0 rg BT 210.99 591.10 Td (e consider our relationship with our employees to be good.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 565.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.48 565.10 Td (vailable Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 67.50 548.10 Td (Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 536.10 Td (SEC, and all amendments to these filings, are available, free of char) Tj ET Q q 0 0 0 rg BT 321.39 536.10 Td (ge, on our Investor Relations website at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 524.10 Td (www) Tj ET Q q 0 0 0 rg BT 71.02 524.10 Td (.investors.broadsoft.com as soon as reasonably practicable following our filing of any of these reports with the SEC. ) Tj ET Q q 0 0 0 rg BT 538.59 524.10 Td (Y) Tj ET Q q 0 0 0 rg BT 544.81 524.10 Td (ou ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 512.10 Td (can also obtain copies free of char) Tj ET Q q 0 0 0 rg BT 186.42 512.10 Td (ge by contacting our Investor Relations department at our of) Tj ET Q q 0 0 0 rg BT 427.56 512.10 Td (fice address listed below) Tj ET Q q 0 0 0 rg BT 525.49 512.10 Td (. ) Tj ET Q q 0 0 0 rg BT 530.31 512.10 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 500.10 Td (public may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street NE, Room ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.10 Td (1580, ) Tj ET Q q 0 0 0 rg BT 74.82 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 83.46 488.10 Td (ashington, DC 20549. ) Tj ET Q q 0 0 0 rg BT 173.55 488.10 Td (The public may obtain information on the operation of the Public Reference Room by calling the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.10 Td (SEC at 1-800-SEC-0330. ) Tj ET Q q 0 0 0 rg BT 153.71 476.10 Td (The SEC maintains an Internet site that contains reports, proxy) Tj ET Q q 0 0 0 rg BT 404.66 476.10 Td (, and information statements, and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (information regarding issuers that file electronically with the SEC at www) Tj ET Q q 0 0 0 rg BT 347.05 464.10 Td (.sec.gov) Tj ET Q q 0 0 0 rg BT 379.17 464.10 Td (. ) Tj ET Q q 0 0 0 rg BT 383.99 464.10 Td (The information posted on or accessible ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.10 Td (through these websites are not incorporated into this filing.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.60 426.10 Td ( Corporate Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td (Our principal executive of) Tj ET Q q 0 0 0 rg BT 155.05 409.10 Td (fice is located at 9737 ) Tj ET Q q 0 0 0 rg BT 245.12 409.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.75 409.10 Td (ashingtonian Boulevard, Suite 350, Gaithersbur) Tj ET Q q 0 0 0 rg BT 444.10 409.10 Td (g, Maryland 20878 and our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (telephone number is \(301\)977-9440. Our website address is www) Tj ET Q q 0 0 0 rg BT 314.85 397.10 Td (.broadsoft.com.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 363.28 Td (Item1A.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 363.28 Td (Risk Factors) Tj ET Q BT /F2 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (Set forth below and elsewher) Tj ET Q q 0 0 0 rg BT 165.73 342.10 Td (e in this ) Tj ET Q q 0 0 0 rg BT 199.71 342.10 Td (Annual Report on Form 10-K, and in other documents we file with the SEC, ar) Tj ET Q q 0 0 0 rg BT 514.32 342.10 Td (e risks and ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (uncertainties that could cause actual r) Tj ET Q q 0 0 0 rg BT 203.77 330.10 Td (esults to differ materially fr) Tj ET Q q 0 0 0 rg BT 313.39 330.10 Td (om the r) Tj ET Q q 0 0 0 rg BT 346.35 330.10 Td (esults contemplated by the forwar) Tj ET Q q 0 0 0 rg BT 481.52 330.10 Td (d-looking ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (statements contained in this ) Tj ET Q q 0 0 0 rg BT 163.70 318.10 Td (Annual Report on Form 10-K. Because of the following factors, as well as other variables affecting ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (our operating r) Tj ET Q q 0 0 0 rg BT 111.30 306.10 Td (esults, past financial performance should not be consider) Tj ET Q q 0 0 0 rg BT 340.35 306.10 Td (ed as a r) Tj ET Q q 0 0 0 rg BT 374.70 306.10 Td (eliable indicator of futur) Tj ET Q q 0 0 0 rg BT 472.93 306.10 Td (e performance and ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (investors should not use historical tr) Tj ET Q q 0 0 0 rg BT 196.02 294.10 Td (ends to anticipate r) Tj ET Q q 0 0 0 rg BT 273.14 294.10 Td (esults or tr) Tj ET Q q 0 0 0 rg BT 316.11 294.10 Td (ends in futur) Tj ET Q q 0 0 0 rg BT 366.29 294.10 Td (e periods.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.54 268.10 Td ( Business) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 251.10 Td (e are substantially dependent upon the commercial success of one product, BroadW) Tj ET Q q 0 0 0 rg BT 401.86 251.10 Td (orks. If the market for BroadW) Tj ET Q q 0 0 0 rg BT 529.46 251.10 Td (orks ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (does not develop as we anticipate, or if the significant investments we have recently made to grow our BroadCloud hosted ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (service of) Tj ET Q q 0 0 0 rg BT 88.96 227.10 Td (fering are unsuccessful in increasing revenues from that product, our overall revenue may decline or fail to grow) Tj ET Q q 0 0 0 rg BT 554.71 227.10 Td (, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (which would adversely af) Tj ET Q q 0 0 0 rg BT 153.98 215.10 Td (fect our operating results and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (Our revenue growth depends substantially upon the commercial success of our voice and multimedia application server ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (software, BroadW) Tj ET Q q 0 0 0 rg BT 122.50 186.10 Td (orks. ) Tj ET Q q 0 0 0 rg BT 144.55 186.10 Td (W) Tj ET Q q 0 0 0 rg BT 153.18 186.10 Td (e derive a significant portion of our revenue from licensing BroadW) Tj ET Q q 0 0 0 rg BT 425.07 186.10 Td (orks and related products and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (services. During the years ended December31, 2013, 2012 and 201) Tj ET Q q 0 0 0 rg BT 320.38 174.10 Td (1, BroadW) Tj ET Q q 0 0 0 rg BT 363.46 174.10 Td (orks licenses and related services represented ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (86%, 84% and 87% of our revenue, respectively) Tj ET Q q 0 0 0 rg BT 242.90 162.10 Td (. ) Tj ET Q q 0 0 0 rg BT 247.71 162.10 Td (W) Tj ET Q q 0 0 0 rg BT 256.35 162.10 Td (e expect revenue from BroadW) Tj ET Q q 0 0 0 rg BT 381.04 162.10 Td (orks and related products and services to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (continue to account for the significant majority of our revenue for the foreseeable future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 129.10 Td (e generally sell licenses of BroadW) Tj ET Q q 0 0 0 rg BT 199.73 129.10 Td (orks on a perpetual basis and deliver new versions and upgrades to customers who ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (purchase maintenance contracts; consequently) Tj ET Q q 0 0 0 rg BT 234.55 117.10 Td (, our future license software revenue is dependent, in part, on the success of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 105.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 105.10 Td (forts to sell additional BroadW) Tj ET Q q 0 0 0 rg BT 180.65 105.10 Td (orks licenses to our existing service provider customers, as well as licenses to new customers. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 93.10 Td (The sale of new or additional licenses to service providers depends upon the number of their customers subscribing to IP-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 81.10 Td (communications services rather than traditional services and the purchasing by those subscribers of additional service of) Tj ET Q q 0 0 0 rg BT 531.06 81.10 Td (ferings ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 69.10 Td (that use our applications. ) Tj ET Q q 0 0 0 rg BT 152.29 69.10 Td (These service providers may choose not to expand their use of, or make additional purchases of, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 57.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 57.10 Td (orks or might delay additional purchases we expect. ) Tj ET Q q 0 0 0 rg BT 293.11 57.10 Td (These events could occur for a number of reasons, including ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 45.10 Td (because their customers are not subscribing to IP-based communications services in the quantities expected, because services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (based upon our applications are not suf) Tj ET Q q 0 0 0 rg BT 206.45 742.10 Td (ficiently popular or because service providers migrate to a software solution other than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 730.10 Td (orks. If service providers do not adopt, purchase and successfully deploy BroadW) Tj ET Q q 0 0 0 rg BT 409.68 730.10 Td (orks, our revenue could grow at a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (slower rate or decrease.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 697.10 Td (e have been, and will continue to, devote considerable resources and allocate capital expenditures to growing our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (BroadCloud PBX service of) Tj ET Q q 0 0 0 rg BT 162.30 685.10 Td (fering revenue over the next several years. ) Tj ET Q q 0 0 0 rg BT 334.26 685.10 Td (There can be no assurance that we will meet our revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (tar) Tj ET Q q 0 0 0 rg BT 60.37 673.10 Td (gets for this service and if we fail to achieve our revenue goals, our growth and operating results will be materially adversely ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 661.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 86.46 661.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 136.36 661.10 Td (, new or existing customers may choose to purchase our BroadCloud PBX services rather than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 649.10 Td (orks. If our customers) Tj ET Q q 0 0 0 rg BT 173.42 649.10 Td ( purchases trend away from BroadW) Tj ET Q q 0 0 0 rg BT 319.51 649.10 Td (orks perpetual licenses toward our BroadCloud hosted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 637.10 Td (solutions, or to the extent customers defer or cancel BroadW) Tj ET Q q 0 0 0 rg BT 291.90 637.10 Td (orks orders due to evaluating BroadCloud PBX, our BroadW) Tj ET Q q 0 0 0 rg BT 535.22 637.10 Td (orks ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (revenues, and our revenues and/or timing of revenues generally) Tj ET Q q 0 0 0 rg BT 303.42 625.10 Td (, may be adversely af) Tj ET Q q 0 0 0 rg BT 388.48 625.10 Td (fected, which could adversely af) Tj ET Q q 0 0 0 rg BT 517.96 625.10 Td (fect our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 613.10 Td (results of operations and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (In addition, because our sales are derived substantially from one product, our share price could be disproportionately af) Tj ET Q q 0 0 0 rg BT 527.16 592.10 Td (fected ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (by market perceptions of current or anticipated competing products, allegations of intellectual property infringement or other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (matters. ) Tj ET Q q 0 0 0 rg BT 84.25 568.10 Td (These perceptions, even if untrue, could cause our stock price to decline.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (Our success depends in large part on service providers) Tj ET Q q 0 0 0 rg BT 276.47 542.10 Td ( continued deployment of, and investment in, their IP-based ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (networks.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 513.10 Td (Our products are predominantly used by service providers to deliver voice and multimedia services over IP-based networks. ) Tj ET Q q 0 0 0 rg BT 548.19 513.10 Td (As ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 501.10 Td (a result, our success depends significantly on these service providers) Tj ET Q q 0 0 0 rg BT 326.95 501.10 Td ( continued deployment of, and investment in, their IP-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 489.10 Td (based networks, and increased demand by their end-users for UC capabilities. Service providers) Tj ET Q q 0 0 0 rg BT 436.35 489.10 Td ( deployment of IP-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 477.10 Td (networks and their migration of communications services to IP-based networks is still in its early stages, and these service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 465.10 Td (providers) Tj ET Q q 0 0 0 rg BT 90.36 465.10 Td ( continued deployment of, and investment in, IP-based networks depends on a number of factors outside of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 453.10 Td (control. ) Tj ET Q q 0 0 0 rg BT 82.77 453.10 Td (Among other elements, service providers) Tj ET Q q 0 0 0 rg BT 250.03 453.10 Td ( legacy networks include PBXs, Class 5 switches and other equipment that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 441.10 Td (may adequately perform certain basic functions and could have remaining useful lives of 20 or more years and, therefore, may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 429.10 Td (continue to operate reliably for a lengthy period of time. Many other factors may cause service providers to delay their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 417.10 Td (deployment of, or reduce their investments in, their IP-based networks, including capital constraints, available capacity on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 405.10 Td (legacy networks, competitive and pricing conditions within the telecommunications industry and regulatory issues. If service ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 393.10 Td (providers do not continue deploying and investing in their IP-based networks at the rates we expect, for these or other reasons, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 381.10 Td (our growth and operating results will be materially adversely af) Tj ET Q q 0 0 0 rg BT 303.91 381.10 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 355.10 Td (The loss of, or a significant reduction in orders from, one or more major customers or through one or more major ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 343.10 Td (distribution partners would reduce our revenue and harm our results.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (For the years ended December31, 2013 and December 31, 2012, there were no customers that generated greater than 10% of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (our total revenue. For the year ended December31, 201) Tj ET Q q 0 0 0 rg BT 273.15 314.10 Td (1, ) Tj ET Q q 0 0 0 rg BT 282.97 314.10 Td (T) Tj ET Q q 0 0 0 rg BT 288.38 314.10 Td (elstra accounted for 1) Tj ET Q q 0 0 0 rg BT 374.36 314.10 Td (1% of our total revenue. Our customer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (agreements do not require our customers to purchase any minimum amount of our products or services.Because of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (variability of the buying practices of our lar) Tj ET Q q 0 0 0 rg BT 224.48 290.10 Td (ger customers, the composition of our most significant customers is likely to change ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (over time. If we experience a loss of one or more significant customers or distribution partners including, for example, the loss ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (of ) Tj ET Q q 0 0 0 rg BT 60.65 266.10 Td (T) Tj ET Q q 0 0 0 rg BT 66.06 266.10 Td (elstra, or if we suf) Tj ET Q q 0 0 0 rg BT 138.35 266.10 Td (fer a substantial reduction in orders from one or more of our significant customers or distribution partners ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (and we are unable to sell directly or indirectly to new customers or increase orders from other existing customers to of) Tj ET Q q 0 0 0 rg BT 523.00 254.10 Td (fset lost ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (revenue, our business will be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 216.10 Td (Our revenue, operating results and gross margin can fluctuate significantly and unpredictably from quarter to quarter and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 204.10 Td (from year to year) Tj ET Q q 0 0 0 rg BT 120.26 204.10 Td (, and we expect they will continue to do so, which could cause the trading price of our stock to decline.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 187.10 Td (The rate at which our customers order our products, and the size of these orders, are highly variable and dif) Tj ET Q q 0 0 0 rg BT 478.83 187.10 Td (ficult to predict. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 175.10 Td (the past, we have experienced significant variability in our customer purchasing practices on a quarterly and annual basis, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (we expect that this variability will continue, as a result of a number of factors, many of which are beyond our control, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 151.10 Td (including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 136.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 136.10 Td (demand for our products and the timing and size of customer orders;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 121.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 121.10 Td (customers' budgetary constraints;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 106.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 106.10 Td (length of sales cycles;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 91.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 91.10 Td (length of time of deployment of our products by our customers;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 76.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 76.10 Td (competitive pressures; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 61.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 61.10 Td (general economic conditions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (As a result of this volatility in our customers) Tj ET Q q 0 0 0 rg BT 230.90 742.10 Td ( purchasing practices, our license software revenue has historically fluctuated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (unpredictably on a quarterly and annual basis and we expect this to continue for the foreseeable future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 709.10 Td (Our budgeted expense levels depend in part on our expectations of future revenue. Because any substantial adjustment to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (expenses to account for lower levels of revenue is dif) Tj ET Q q 0 0 0 rg BT 262.80 697.10 Td (ficult and takes time, if our revenue declines, our operating expenses and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (general overhead would likely be high relative to revenue, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 441.32 685.10 Td (fect on our operating mar) Tj ET Q q 0 0 0 rg BT 542.76 685.10 Td (gin ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (and operating results.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 652.10 Td (In addition to the unpredictability of customer orders, our quarterly and annual results of operations are also subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (significant fluctuation as a result of the application of accounting regulations and related interpretations and policies regarding ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 628.10 Td (revenue recognition under generally accepted accounting principles in the United States, or GAAP) Tj ET Q q 0 0 0 rg BT 443.48 628.10 Td (. Compliance with these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 616.10 Td (revenue recognition rules has resulted in certain instances in our deferral of the recognition of revenue in connection with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 604.10 Td (sale of our software licenses, maintenance and services. ) Tj ET Q q 0 0 0 rg BT 275.28 604.10 Td (The majority of our deferred revenue balance consists of software ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (license orders that do not meet all the criteria for revenue recognition and the undelivered portion of maintenance. ) Tj ET Q q 0 0 0 rg BT 507.88 592.10 Td (Although we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (typically use standardized license agreements designed to meet current revenue recognition criteria under GAAP) Tj ET Q q 0 0 0 rg BT 500.11 580.10 Td (, we must often ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (negotiate and revise terms and conditions of these standardized agreements, particularly in multi-element transactions with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (lar) Tj ET Q q 0 0 0 rg BT 60.37 556.10 Td (ger customers who often desire customized features, which causes us to defer revenue until all elements are delivered. ) Tj ET Q q 0 0 0 rg BT 534.63 556.10 Td (As our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (transactions increase in complexity with the sale of lar) Tj ET Q q 0 0 0 rg BT 267.52 544.10 Td (ger) Tj ET Q q 0 0 0 rg BT 279.89 544.10 Td (, multi-product licenses that may be integrated into or with other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (systems or third party technology) Tj ET Q q 0 0 0 rg BT 183.22 532.10 Td (, negotiation of mutually acceptable terms and conditions with our customers can require us to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 Td (defer recognition of revenue on such licenses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 Td (The cumulative ef) Tj ET Q q 0 0 0 rg BT 122.56 499.10 Td (fects of these factors could result in lar) Tj ET Q q 0 0 0 rg BT 277.60 499.10 Td (ge fluctuations and unpredictability in our quarterly and annual ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 487.10 Td (operating results. ) Tj ET Q q 0 0 0 rg BT 121.19 487.10 Td (This variability and unpredictability could result in our failing to meet the expectations of securities industry ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 475.10 Td (analysts or investors for any period. If we fail to meet or exceed such expectations for these or any other reasons, the market ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 463.10 Td (price of our shares could fall substantially and we could face costly securities class action suits. ) Tj ET Q q 0 0 0 rg BT 433.87 463.10 Td (Therefore, you should not rely ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td (on our operating results in any quarter or year as being indicative of our operating results for any future period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 425.10 Td (Lengthy and unpredictable sales cycles may force us either to assume unfavorable pricing or payment terms and conditions ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 413.10 Td (or to abandon a sale altogether) Tj ET Q q 0 0 0 rg BT 177.51 413.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 396.10 Td (Our initial sales cycle for a new customer ranges generally between six and 12 months and sometimes more than two years. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 384.10 Td (Our sales cycle can be very unpredictable due to:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 367.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 367.10 Td (the generally lengthy service provider product testing, evaluation and approval process for our products, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 355.10 Td (including internal reviews and capital expenditure approvals;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 338.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 338.10 Td (the evolving nature of the market, which may lead prospective customers to postpone their purchasing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 326.10 Td (decisions pending resolution of standards or adoption of technology by others;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 309.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 309.10 Td (our service provider customers increasingly asking us to participate in complex transactions involving ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 297.10 Td (multiple parties developing a platform or telecommunications solution for the service provider; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 280.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 280.10 Td (customers making critical decisions regarding the design and implementation of lar) Tj ET Q q 0 0 0 rg BT 473.06 280.10 Td (ge network ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 268.10 Td (deployments engaging in very lengthy procurement processes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 247.10 Td (, after we make an initial sale to a customer) Tj ET Q q 0 0 0 rg BT 273.32 247.10 Td (, its implementation of our products can be very time consuming, often ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (requiring six to 24 months or more, particularly in the case of lar) Tj ET Q q 0 0 0 rg BT 308.92 235.10 Td (ger service providers. ) Tj ET Q q 0 0 0 rg BT 397.59 235.10 Td (This lengthy implementation and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td (deployment process can result in a significant delay before we receive an additional order from that customer) Tj ET Q q 0 0 0 rg BT 486.50 223.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (As a result of these lengthy sales cycles, we are sometimes required to assume terms or conditions that negatively af) Tj ET Q q 0 0 0 rg BT 514.68 202.10 Td (fect pricing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (or payment for our products to consummate a sale, which can negatively af) Tj ET Q q 0 0 0 rg BT 350.55 190.10 Td (fect our gross mar) Tj ET Q q 0 0 0 rg BT 422.85 190.10 Td (gin and results of operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (Alternatively) Tj ET Q q 0 0 0 rg BT 102.11 178.10 Td (, if service providers ultimately insist upon terms and conditions that we deem too onerous or not to be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (commercially prudent, we may incur substantial expenses and devote time and resources to potential relationships that never ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (result in completed sales or revenue. If this result becomes prevalent, it could have a material adverse impact on our results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 116.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 116.10 Td (e may fail to achieve our financial forecasts due to inaccurate sales forecasts or other factors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 99.60 Td (Our revenues are dif) Tj ET Q q 0 0 0 rg BT 131.72 99.60 Td (ficult to forecast, and, as a result, our quarterly operating results can fluctuate substantially) Tj ET Q q 0 0 0 rg BT 493.73 99.60 Td (. ) Tj ET Q q 0 0 0 rg BT 498.55 99.60 Td (W) Tj ET Q q 0 0 0 rg BT 507.19 99.60 Td (e use a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 87.60 Td (pipeline system, a common industry practice, to forecast sales and trends in our business. Our sales personnel monitor the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 75.60 Td (status of all proposals and estimate when a customer will make a purchase decision and the dollar amount of the sale. ) Tj ET Q q 0 0 0 rg BT 521.35 75.60 Td (These ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 63.60 Td (estimates are aggregated periodically to generate a sales pipeline. Our pipeline estimates can prove to be unreliable both in a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 51.60 Td (particular quarter and over a longer period of time, in part because the conversion rate or closure rate of the pipeline into ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (contracts can be very dif) Tj ET Q q 0 0 0 rg BT 148.11 742.10 Td (ficult to estimate. ) Tj ET Q q 0 0 0 rg BT 219.76 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 226.43 742.10 Td ( reduction in the conversion rate, or in the pipeline itself, could cause us to plan or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (budget incorrectly and adversely af) Tj ET Q q 0 0 0 rg BT 190.87 730.10 Td (fect our business or results of operations. In particular) Tj ET Q q 0 0 0 rg BT 406.24 730.10 Td (, a slowdown in capital spending or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (economic conditions generally can unexpectedly reduce the conversion rate in particular periods as purchasing decisions are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (delayed, reduced in amount or cancelled. ) Tj ET Q q 0 0 0 rg BT 216.41 706.10 Td (The conversion rate can also be af) Tj ET Q q 0 0 0 rg BT 352.83 706.10 Td (fected by the tendency of some of our customers to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (wait until the end of a fiscal period in the hope of obtaining more favorable terms, which can also impede our ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (negotiate, execute and deliver upon these contracts in a timely manner) Tj ET Q q 0 0 0 rg BT 330.73 682.10 Td (. In addition, for our newly acquired companies, we have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (limited ability to predict how their pipelines will convert into sales or revenues for a number of quarters following the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (acquisition. Conversion rates post-acquisition may be quite dif) Tj ET Q q 0 0 0 rg BT 300.33 658.10 Td (ferent from the acquired companies) Tj ET Q q 0 0 0 rg BT 445.07 658.10 Td ( historical conversion rates. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 63.15 646.10 Td (ferences in conversion rates can also be af) Tj ET Q q 0 0 0 rg BT 231.50 646.10 Td (fected by changes in our business practices that we implement with our newly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (acquired companies that may af) Tj ET Q q 0 0 0 rg BT 176.99 634.10 Td (fect customer behavior) Tj ET Q q 0 0 0 rg BT 268.06 634.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 617.60 Td (Because a significant portion of our cost structure is lar) Tj ET Q q 0 0 0 rg BT 271.14 617.60 Td (gely fixed in the short-term, revenue shortfalls tend to have a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 605.60 Td (disproportionately negative impact on our profitability) Tj ET Q q 0 0 0 rg BT 267.35 605.60 Td (. ) Tj ET Q q 0 0 0 rg BT 272.17 605.60 Td (The number of lar) Tj ET Q q 0 0 0 rg BT 344.46 605.60 Td (ge new software licenses transactions increases the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 593.60 Td (risk of fluctuations in our quarterly results because a delay in even a small number of these transactions could cause our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 581.60 Td (quarterly revenues and profitability to fall significantly short of our predictions. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 555.60 Td (Infringement claims are common in our industry and third parties, including competitors, have and could in the future ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 543.60 Td (assert infringement claims against us including for past infringement, which could force us to redesign our software and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 531.60 Td (incur significant costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 514.60 Td (The IP-based communications industry is highly competitive and IP-based technologies are complex. Companies file patents ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 502.60 Td (covering these technologies frequently and maintain programs to protect their intellectual property portfolios. Some of these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 490.60 Td (companies actively search for) Tj ET Q q 0 0 0 rg BT 168.71 490.60 Td (, and routinely bring claims against, alleged infringers. Our products are technically complex and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 478.60 Td (compete with the products of significantly lar) Tj ET Q q 0 0 0 rg BT 231.99 478.60 Td (ger companies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 457.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 457.60 Td (e periodically receive notices from, or have lawsuits filed against us by) Tj ET Q q 0 0 0 rg BT 342.34 457.60 Td (, others claiming we are infringing their intellectual ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 445.60 Td (property rights, principally patent rights. ) Tj ET Q q 0 0 0 rg BT 214.51 445.60 Td (W) Tj ET Q q 0 0 0 rg BT 223.14 445.60 Td (e expect the number of such claims may increase for a variety of reasons, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 428.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 428.60 Td (the expansion of our product lines through product development and acquisitions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 411.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 411.60 Td (our real or perceived success in selling our products to our customers;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 394.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 394.60 Td (the proliferation of non-practicing entities asserting intellectual property infringement claims;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 377.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 377.60 Td (an increase in the number of competitors in our industry segments, the resulting increase in the number ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 365.60 Td (of related products and services and the overlap in the functionality of those products and services; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 348.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 348.60 Td (an increase in the risk that our competitors and third parties could use their own intellectual property ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 336.60 Td (rights to seek to restrain our freedom to operate and exploit our products, or to otherwise block us from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 324.60 Td (taking full advantage of our markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (Regardless of the merit of third-party direct claims that we infringe their rights or indemnification claims arising out of such ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 291.60 Td (third party claims,, these claims could:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 273.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 273.60 Td (be time consuming and costly to defend;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 256.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 256.60 Td (divert our management) Tj ET Q q 0 0 0 rg BT 235.52 256.60 Td (s attention and resources;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 239.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 239.60 Td (cause product shipment and installation delays;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 222.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 222.60 Td (require us to redesign our products, which may not be feasible or cost-ef) Tj ET Q q 0 0 0 rg BT 429.45 222.60 Td (fective;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 205.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 205.60 Td (cause us to cease producing, licensing or using software or products that incorporate challenged ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 193.60 Td (intellectual property;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 176.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 176.60 Td (damage our reputation and cause customer reluctance to license our products; or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 159.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 159.60 Td (require us to pay amounts for past infringement or enter into royalty or licensing agreements to obtain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 147.60 Td (the right to use a necessary product or component, which may not be available on terms acceptable to us, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 135.60 Td (or at all.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 114.60 Td (It is possible that other companies hold patents covering technologies similar to one or more of the technologies that we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 102.60 Td (incorporate into our products. In addition, new patents may be issued covering these technologies. Unless and until the U.S. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 90.60 Td (Patent and ) Tj ET Q q 0 0 0 rg BT 94.25 90.60 Td (T) Tj ET Q q 0 0 0 rg BT 100.01 90.60 Td (rademark Of) Tj ET Q q 0 0 0 rg BT 150.63 90.60 Td (fice issues a patent to an applicant, there is no reliable way to assess the scope of the potential patent. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 78.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 78.60 Td (e currently face, and may in the future face claims of infringement from both holders of issued patents and, depending upon ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 66.60 Td (the timing, scope and content of patents that have not yet been issued, patents issued in the future. ) Tj ET Q q 0 0 0 rg BT 443.89 66.60 Td (The application of patent law ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 54.60 Td (to the software industry is particularly uncertain because the time that it takes for a software-related patent to issue is lengthy) Tj ET Q q 0 0 0 rg BT 549.18 54.60 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (which increases the likelihood of pending patent applications claiming inventions whose priority dates may pre-date ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (development of our own proprietary software.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 709.10 Td (The results of litigation and claims cannot be predicted with certainty) Tj ET Q q 0 0 0 rg BT 327.04 709.10 Td (, and an unsuccessful outcome in a claim of intellectual ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (property infringement could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 269.44 697.10 Td (fect on our business. Moreover) Tj ET Q q 0 0 0 rg BT 393.18 697.10 Td (, even if litigation or claims are resolved ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (in our favor or without significant cash settlements, the time and resources necessary to litigate or resolve them could harm our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (business, our operating results, financial condition or reputation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 647.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 647.10 Td (e are generally obligated to indemnify our customers for certain expenses and liabilities resulting from intellectual ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 635.10 Td (property infringement claims regarding our software, which could force us to incur substantial costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 618.10 Td (e have agreed, and expect to continue to agree, to indemnify our customers for certain expenses or liabilities resulting from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (claimed infringement of intellectual property rights of third parties with respect to our software. ) Tj ET Q q 0 0 0 rg BT 435.16 606.10 Td (As a result, in the case of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (infringement claims against these customers, we could be required to indemnify them for losses resulting from such claims or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (to refund license fees they have paid to us. Some of our customers have sought, and we expect certain of our customers in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (future to seek, indemnification from us in connection with infringement claims brought against them. In addition, some of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (customers have tendered to us the defense of claims brought against them for infringement, and we have received these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (requests with increasing frequency in recent years. ) Tj ET Q q 0 0 0 rg BT 254.74 546.10 Td (W) Tj ET Q q 0 0 0 rg BT 263.37 546.10 Td (e evaluate each such request on a case-by-case basis and we may not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (succeed in refuting all such claims.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 513.10 Td (If a customer elects to invest resources in enforcing a claim for indemnification against us, we could incur significant costs ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 501.10 Td (disputing it. If we do not succeed in disputing such claim, we could face substantial liability) Tj ET Q q 0 0 0 rg BT 417.33 501.10 Td (, which may have a material ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 489.10 Td (adverse impact on our results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 463.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 463.10 Td (e may be unable to adequately protect our intellectual property rights in internally developed systems and software and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 451.10 Td (forts to protect them may be costly) Tj ET Q q 0 0 0 rg BT 197.75 451.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (Our ability to compete ef) Tj ET Q q 0 0 0 rg BT 150.34 434.10 Td (fectively is dependent in part upon the maintenance and protection of systems and software that we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (have developed internally) Tj ET Q q 0 0 0 rg BT 152.64 422.10 Td (. ) Tj ET Q q 0 0 0 rg BT 157.46 422.10 Td (While we hold issued patents and pending patent applications covering certain elements of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.78 410.10 Td (, patent laws may not provide adequate protection for portions of the technology that are important to our business. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (In addition, our pending patent applications may not result in issued patents.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 377.10 Td (The America Invents ) Tj ET Q q 0 0 0 rg BT 140.80 377.10 Td (Act, which was signed into law in 201) Tj ET Q q 0 0 0 rg BT 298.17 377.10 Td (1, changes, among other things, the law on U.S. patent priority ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 365.10 Td (from a first to conceive priority to a first to conceive and file priority) Tj ET Q q 0 0 0 rg BT 342.29 365.10 Td (. In other words, the first person or entity to file a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 353.10 Td (patent application on a particular subject matter is deemed to have priority over any other applicant who files an application on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (the same subject matter in the future, regardless of who first conceived or reduced to practice the claimed invention. ) Tj ET Q q 0 0 0 rg BT 516.59 341.10 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 329.10 Td (change in patent priority law may make it more dif) Tj ET Q q 0 0 0 rg BT 253.36 329.10 Td (ficult for us to obtain U.S. patents in the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td (The act also creates alternative avenues to challenge the validity of issued U.S. patents other than the existing methods of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 296.10 Td (litigation and reexaminations. ) Tj ET Q q 0 0 0 rg BT 171.46 296.10 Td (These new avenues may make it easier and less expensive for third parties to petition the U.S. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 284.10 Td (Patent and ) Tj ET Q q 0 0 0 rg BT 94.25 284.10 Td (T) Tj ET Q q 0 0 0 rg BT 100.01 284.10 Td (rademark Of) Tj ET Q q 0 0 0 rg BT 150.63 284.10 Td (fice to cancel one or more issued patent claims. ) Tj ET Q q 0 0 0 rg BT 342.60 284.10 Td (The act also provides a new defense to infringement ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 272.10 Td (based upon prior commercial use for any patents issued on or after the date of enactment of the act. ) Tj ET Q q 0 0 0 rg BT 449.12 272.10 Td (This new defense may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 260.10 Td (make it more dif) Tj ET Q q 0 0 0 rg BT 116.19 260.10 Td (ficult for a U.S. patent holder to successfully assert an infringement claim against a third party that has ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (commercially used the patented technology at least one year prior to the earlier of the ef) Tj ET Q q 0 0 0 rg BT 401.62 248.10 Td (fective date of the claimed invention, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 236.10 Td (the date on which the claimed invention was disclosed to the public. ) Tj ET Q q 0 0 0 rg BT 324.66 236.10 Td (Although the ef) Tj ET Q q 0 0 0 rg BT 387.24 236.10 Td (fectiveness of these new procedures and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 224.10 Td (defenses will depend on regulations to be promulgated by the U.S. Patent and ) Tj ET Q q 0 0 0 rg BT 362.81 224.10 Td (T) Tj ET Q q 0 0 0 rg BT 368.56 224.10 Td (rademark Of) Tj ET Q q 0 0 0 rg BT 419.19 224.10 Td (fice, as well as future court ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 212.10 Td (decisions interpreting the act, these provisions may make it more dif) Tj ET Q q 0 0 0 rg BT 323.36 212.10 Td (ficult for us to protect our intellectual property rights ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 200.10 Td (through U.S. patents.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 179.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 179.10 Td (e have lar) Tj ET Q q 0 0 0 rg BT 97.32 179.10 Td (gely relied on copyright, trade secret and, to a lesser extent, trademark laws, as well as confidentiality procedures ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 167.10 Td (and agreements with our employees, consultants, customers and vendors, to control access to, and distribution of, technology) Tj ET Q q 0 0 0 rg BT 550.07 167.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 155.10 Td (software, documentation and other confidential information. Despite these precautions, it may be possible for a third party to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 143.10 Td (copy or otherwise obtain and use our technology without authorization. If this were to occur) Tj ET Q q 0 0 0 rg BT 418.11 143.10 Td (, we could lose revenue as a result ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 131.10 Td (of competition from products infringing our technology and we may be required to initiate litigation to protect our proprietary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 119.10 Td (rights and market position.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (U.S. patent, copyright and trade secret laws of) Tj ET Q q 0 0 0 rg BT 234.76 98.10 Td (fer us only limited protection and the laws of some foreign countries do not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (protect proprietary rights to the same extent. ) Tj ET Q q 0 0 0 rg BT 229.39 86.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 278.73 86.10 Td (, defense of our proprietary technology may become an increasingly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (important issue as we continue to expand our operations and product development into countries that provide a lower level of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (intellectual property protection than the United States. Policing unauthorized use of our technology is dif) Tj ET Q q 0 0 0 rg BT 469.44 62.10 Td (ficult and the steps we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (16) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (take may not prevent misappropriation of the technology we rely on. If competitors are able to use our technology without ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (recourse, our ability to compete would be harmed and our business would be materially and adversely af) Tj ET Q q 0 0 0 rg BT 468.30 730.10 Td (fected.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 709.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 709.10 Td (e may elect to initiate litigation in the future to enforce or protect our proprietary rights or to determine the validity and scope ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (of the rights of others. ) Tj ET Q q 0 0 0 rg BT 140.91 697.10 Td (That litigation may not be ultimately successful and could result in substantial costs to us, the diversion ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (of our management attention and harm to our reputation, any of which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 467.18 685.10 Td (fect our business and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 647.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 647.10 Td (e may not be able to obtain necessary licenses of third-party technology on acceptable terms, or at all, which could delay ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 635.10 Td (product sales and development and adversely impact product quality) Tj ET Q q 0 0 0 rg BT 330.17 635.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 618.10 Td (e have incorporated third-party licensed technology into our current products. For example, we use a third-party database as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (the core database for our applications server) Tj ET Q q 0 0 0 rg BT 226.04 606.10 Td (. ) Tj ET Q q 0 0 0 rg BT 230.85 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 239.49 606.10 Td (e anticipate that we are also likely to need to license additional technology from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (third parties to develop new products or product enhancements in the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 573.10 Td (Third-party licenses may not be available or continue to be available to us on commercially reasonable terms. ) Tj ET Q q 0 0 0 rg BT 490.78 573.10 Td (The inability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 561.10 Td (retain any third-party licenses required in our current products or to obtain any new third-party licenses to develop new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 549.10 Td (products and product enhancements could require us to obtain substitute technology of lower quality or performance standards ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 537.10 Td (or at greater cost, and delay or prevent us from making these products or enhancements, any of which could seriously harm the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 525.10 Td (competitive position of our products.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 Td (Our software must interoperate with many dif) Tj ET Q q 0 0 0 rg BT 238.17 499.10 Td (ferent networks, software applications and hardware products, and this ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 487.10 Td (interoperability will depend on the continued prevalence of open standards.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (Our software is designed to interoperate with our customers) Tj ET Q q 0 0 0 rg BT 291.97 470.10 Td ( existing and planned networks, which have varied and complex ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (specifications, utilize multiple protocol standards, software applications and products from numerous vendors and contain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (multiple products that have been added over time. ) Tj ET Q q 0 0 0 rg BT 251.88 446.10 Td (As a result, we must attempt to ensure that our software interoperates ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 434.10 Td (fectively with these existing and planned networks. ) Tj ET Q q 0 0 0 rg BT 265.13 434.10 Td (T) Tj ET Q q 0 0 0 rg BT 270.54 434.10 Td (o meet these requirements, we have and must continue to undertake ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (development and testing ef) Tj ET Q q 0 0 0 rg BT 157.84 422.10 Td (forts that require significant capital and employee resources. ) Tj ET Q q 0 0 0 rg BT 401.73 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 410.37 422.10 Td (e may not accomplish these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (development ef) Tj ET Q q 0 0 0 rg BT 111.74 410.10 Td (forts quickly or cost-ef) Tj ET Q q 0 0 0 rg BT 202.92 410.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 237.25 410.10 Td (, or at all. If our software does not interoperate ef) Tj ET Q q 0 0 0 rg BT 433.66 410.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 467.99 410.10 Td (, installations could be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (delayed or orders for our software could be canceled, which would harm our revenue, gross mar) Tj ET Q q 0 0 0 rg BT 434.40 398.10 Td (gins and our reputation, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (potentially resulting in the loss of existing and potential customers. ) Tj ET Q q 0 0 0 rg BT 320.61 386.10 Td (The failure of our software to interoperate ef) Tj ET Q q 0 0 0 rg BT 498.96 386.10 Td (fectively with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (our customers) Tj ET Q q 0 0 0 rg BT 108.96 374.10 Td ( networks may result in significant warranty) Tj ET Q q 0 0 0 rg BT 284.94 374.10 Td (, support and repair costs, divert the attention of our engineering ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (personnel from our software development ef) Tj ET Q q 0 0 0 rg BT 227.81 362.10 Td (forts and cause significant customer relations problems.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 341.10 Td (e have entered into arrangements with a number of equipment and software vendors for the use or integration of their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 329.10 Td (technology with our software. ) Tj ET Q q 0 0 0 rg BT 172.29 329.10 Td (These arrangements give us access to, and enable our software to interoperate with, various ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 317.10 Td (products that we do not otherwise of) Tj ET Q q 0 0 0 rg BT 195.90 317.10 Td (fer) Tj ET Q q 0 0 0 rg BT 206.45 317.10 Td (. If these relationships terminate, we may have to devote substantially more resources to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 305.10 Td (the development of alternative software and processes, and our ef) Tj ET Q q 0 0 0 rg BT 311.94 305.10 Td (forts may not be as ef) Tj ET Q q 0 0 0 rg BT 398.12 305.10 Td (fective as the combined solutions under ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 293.10 Td (our current arrangements. In some cases, these other vendors are either companies that we compete with directly) Tj ET Q q 0 0 0 rg BT 499.73 293.10 Td (, or companies ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 281.10 Td (that have extensive relationships with our existing and potential customers and may have influence over the purchasing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 269.10 Td (decisions of those customers. Some of our competitors may have stronger relationships with some of our existing and potential ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 257.10 Td (vendors and, as a result, our ability to have successful interoperability arrangements with these companies may be harmed. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 245.10 Td (failure to establish or maintain key relationships with third-party equipment and software vendors may harm our ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 233.10 Td (successfully market and sell our software.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 216.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 216.10 Td (, the interoperability of our software with multiple dif) Tj ET Q q 0 0 0 rg BT 314.39 216.10 Td (ferent networks is significantly dependent on the continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 204.10 Td (prevalence of standards for IP) Tj ET Q q 0 0 0 rg BT 169.58 204.10 Td ( multimedia services, such as IMS. Some of our existing and potential competitors are network ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 192.10 Td (equipment providers who could potentially benefit from the deployment of their own proprietary non-standards-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 180.10 Td (architectures. If resistance to open standards by network equipment providers becomes prevalent, it could make it more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 168.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 168.10 Td (ficult for our software to interoperate with our customers) Tj ET Q q 0 0 0 rg BT 291.22 168.10 Td ( networks, which would have a material adverse ef) Tj ET Q q 0 0 0 rg BT 494.02 168.10 Td (fect on our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 156.10 Td (ability to sell our software to service providers.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 130.10 Td (e may not be able to detect errors or defects in our software until after full deployment and product liability claims by ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (customers could result in substantial costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 101.10 Td (Our software is sophisticated and is designed to be deployed in lar) Tj ET Q q 0 0 0 rg BT 315.03 101.10 Td (ge and complex telecommunications networks. Because of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 89.10 Td (the nature of our software, it can only be fully tested when substantially deployed in very lar) Tj ET Q q 0 0 0 rg BT 419.43 89.10 Td (ge networks with high volumes of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 77.10 Td (telecommunications traf) Tj ET Q q 0 0 0 rg BT 146.73 77.10 Td (fic. Some of our customers have only recently begun to commercially deploy our software and they ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 65.10 Td (may discover errors or defects in the software, or the software may not operate as expected. Because we may not be able to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 53.10 Td (detect these problems until full deployment, any errors or defects in our software could af) Tj ET Q q 0 0 0 rg BT 408.32 53.10 Td (fect the functionality of the networks ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (in which it is deployed. ) Tj ET Q q 0 0 0 rg BT 145.55 742.10 Td (As a result, the time it may take us to rectify errors can be critical to our customers. Because of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (complexity of our software, it may take a material amount of time for us to resolve errors or defects, if we can resolve them at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (all. ) Tj ET Q q 0 0 0 rg BT 64.81 718.10 Td (The likelihood of such errors or defects is heightened as we acquire new products from third parties, whether as a result of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (acquisitions or otherwise.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (If one of our software products fails, and we are unable to fix the errors or other performance problems expeditiously) Tj ET Q q 0 0 0 rg BT 518.08 685.10 Td (, or at all, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (we could experience:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 656.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 656.10 Td (damage to our reputation, which may result in the loss of existing or potential customers and market ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 644.10 Td (share;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 627.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 627.10 Td (payment of liquidated damages for performance failures;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 610.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 610.10 Td (loss of, or delay in, revenue recognition;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 593.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 593.10 Td (increased service, support, warranty) Tj ET Q q 0 0 0 rg BT 283.46 593.10 Td (, product replacement and product liability insurance costs, as well as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 581.10 Td (a diversion of development resources; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 564.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 564.10 Td (costly and time-consuming legal actions by our customers, which could result in significant damages.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (Any of the above events would likely have a material adverse impact on our business, revenue, results of operations, financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (condition and reputation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 505.10 Td (Data privacy concerns could result in additional cost and liability to us or inhibit sales of our of) Tj ET Q q 0 0 0 rg BT 442.91 505.10 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.10 Td (Use of the BroadW) Tj ET Q q 0 0 0 rg BT 126.67 488.10 Td (orks platform and our BroadCloud of) Tj ET Q q 0 0 0 rg BT 275.63 488.10 Td (ferings can involve the storage and transmission of an end-user) Tj ET Q q 0 0 0 rg BT 528.43 488.10 Td () Tj ET Q q 0 0 0 rg BT 531.21 488.10 Td (s ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.10 Td (business and personally identifiable information. ) Tj ET Q q 0 0 0 rg BT 247.55 476.10 Td (Thus, maintaining the security of computers, computer networks and data ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (storage resources is a critical issue for us and our service provider customers, as security breaches could result in the loss of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.10 Td (and/or unauthorized access to this information. Data privacy is a significant issue in the United States, and in many other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.10 Td (countries where we of) Tj ET Q q 0 0 0 rg BT 138.39 440.10 Td (fer our hosted services. ) Tj ET Q q 0 0 0 rg BT 233.46 440.10 Td (The regulatory framework for privacy issues worldwide is complex, dynamic, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 428.10 Td (and likely to remain uncertain for the foreseeable future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 407.10 Td (In the United States, there are multiple state and federal laws governing the collection, use and disclosure of the information we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 395.10 Td (store and process in our systems. For example, the Electronic Communications Privacy ) Tj ET Q q 0 0 0 rg BT 401.04 395.10 Td (Act protects electronic ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 383.10 Td (communications, among other things; ) Tj ET Q q 0 0 0 rg BT 203.41 383.10 Td (The Federal ) Tj ET Q q 0 0 0 rg BT 253.76 383.10 Td (T) Tj ET Q q 0 0 0 rg BT 259.52 383.10 Td (rade Commission ) Tj ET Q q 0 0 0 rg BT 331.74 383.10 Td (Act, which prohibits unfair and deceptive privacy ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 371.10 Td (practices, covers acts that are unfair or deceptive to consumers; Customer Proprietary Network Information rules restrict use of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.10 Td (call records; the Computer Fraud and ) Tj ET Q q 0 0 0 rg BT 201.07 359.10 Td (Abuse ) Tj ET Q q 0 0 0 rg BT 228.57 359.10 Td (Act protects users from unauthorized collection of data from a computer or device; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 347.10 Td (the Communications ) Tj ET Q q 0 0 0 rg BT 135.00 347.10 Td (Assistance for Law Enforcement ) Tj ET Q q 0 0 0 rg BT 268.28 347.10 Td (Act of 1994 requires ) Tj ET Q q 0 0 0 rg BT 353.08 347.10 Td (V) Tj ET Q q 0 0 0 rg BT 359.01 347.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 372.53 347.10 Td ( operators to assist law enforcement with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 335.10 Td (communications monitoring; and the Cable Privacy ) Tj ET Q q 0 0 0 rg BT 258.30 335.10 Td (Act of 1984 places restrictions on disclosure of any personally identifiable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.10 Td (information related to a cable subscriber) Tj ET Q q 0 0 0 rg BT 210.92 323.10 Td (, among other things.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (Internationally) Tj ET Q q 0 0 0 rg BT 108.22 302.10 Td (, virtually every jurisdiction in which we operate has established its own data security and privacy legal ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (framework with which we, our service providers and our customers must comply) Tj ET Q q 0 0 0 rg BT 374.27 290.10 Td (, including the Data Protection Directive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (established in the European Union and the Federal Data Protection ) Tj ET Q q 0 0 0 rg BT 318.81 278.10 Td (Act in Germany) Tj ET Q q 0 0 0 rg BT 382.59 278.10 Td (, which place broad restrictions on use and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (collection of personal data, including restrictions on cross-border data flows. Further) Tj ET Q q 0 0 0 rg BT 388.39 266.10 Td (, many federal, state and foreign ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (government bodies and agencies have introduced and are currently considering additional laws and regulations. If passed, we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (will likely incur additional expenses and costs associated with complying with such laws. In addition to government regulation, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (privacy advocacy and industry groups may propose new and dif) Tj ET Q q 0 0 0 rg BT 305.58 230.10 Td (ferent self-regulatory standards that either legally or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (contractually apply to us. Our customers may also propose other new and dif) Tj ET Q q 0 0 0 rg BT 357.24 218.10 Td (ferent privacy standards contractually) Tj ET Q q 0 0 0 rg BT 507.36 218.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 197.10 Td (Because the interpretation and application of privacy and data protection laws are still uncertain and industry standards are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 185.10 Td (constantly in flux, it is possible that these laws and industry standards may impose requirements that are inconsistent with our) Tj ET Q q 0 0 0 rg BT 552.84 185.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 173.10 Td (and our service providers, existing data management practices or the features of our hosted services. If so, in addition to the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 161.10 Td (possibility of fines, lawsuits and other claims, and contractual requirements, we and our service providers could be required or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 149.10 Td (compelled to fundamentally change our business activities and practices or modify our hosted services, which could have an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 137.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 137.10 Td (fect on our business. ) Tj ET Q q 0 0 0 rg BT 174.78 137.10 Td (Any inability to adequately address privacy concerns, even if unfounded, or comply with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 125.10 Td (applicable privacy or data protection laws, regulations and policies and industry standards, could result in additional costs and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 113.10 Td (other burdens imposed by) Tj ET Q q 0 0 0 rg BT 152.94 113.10 Td (, the privacy laws, regulations, and policies that are applicable to the businesses of our customers may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 101.10 Td (limit the use of adoptions of, and reduce the overall demand for) Tj ET Q q 0 0 0 rg BT 303.96 101.10 Td (, our hosted services. Privacy and security concerns, whether ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 89.10 Td (valid or not valid, may inhibit market adoption of our hosted services particularly in certain foreign countries that perceive the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 77.10 Td (United States as having lesser privacy protections.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (18) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (If our security measures are breached or unauthorized access to data on our cloud-based networks is otherwise obtained, we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (may incur significant liabilities under U.S. and foreign laws and our hosted services may be perceived as being vulnerable ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (causing customers to reduce their use of, or stop using, our hosted services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (Our cloud-based services involve the storage and transmission of a lar) Tj ET Q q 0 0 0 rg BT 330.29 701.25 Td (ge amount of data, and may include personally ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (identifiable data, and security breaches could result in the loss of unauthorized disclosure of this information, degradation of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (our services or denial of ability of users to access our products and service. If our security measures are breached even as a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (result of third-party action, employee error) Tj ET Q q 0 0 0 rg BT 220.64 665.25 Td (, malfeasance or otherwise, such breaches could result in negative publicity that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (causes our reputation and brand to be damaged, our business may suf) Tj ET Q q 0 0 0 rg BT 326.97 653.25 Td (fer) Tj ET Q q 0 0 0 rg BT 337.67 653.25 Td (, and we could incur significant legal fines and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 641.25 Td (financial exposure. ) Tj ET Q q 0 0 0 rg BT 128.03 641.25 Td (A) Tj ET Q q 0 0 0 rg BT 134.70 641.25 Td ( cyber attack may cause additional costs, such as investigative and remediation costs, and the costs of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (providing individuals and/or data owners with notice of the breach, legal fees and the costs of any additional fraud detection ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 617.25 Td (activities required by a court or third party) Tj ET Q q 0 0 0 rg BT 219.01 617.25 Td (. ) Tj ET Q q 0 0 0 rg BT 226.33 617.25 Td (W) Tj ET Q q 0 0 0 rg BT 234.97 617.25 Td (e devote significant resources to addressing security vulnerabilities in our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 605.25 Td (products and services through engineering more secure products and services, enhancing security and reliability features in our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 593.25 Td (products and services, deploying security updates to address security vulnerabilities and seeking to respond to known security ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 581.25 Td (incidents in suf) Tj ET Q q 0 0 0 rg BT 110.92 581.25 Td (ficient time to minimize any potential adverse impact.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (In the United States, there are multiple state and federal laws governing the security and protection of the information we store ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.25 Td (and process in our systems. For example, the Federal ) Tj ET Q q 0 0 0 rg BT 264.49 548.25 Td (T) Tj ET Q q 0 0 0 rg BT 270.25 548.25 Td (rade Commission, or the FTC, frequently investigates and brings ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 536.25 Td (enforcement actions against businesses whose data protection, disclosure, or sharing practices are perceived by the FTC as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 524.25 Td (being unfair or deceptive to consumers. Many states require companies to use reasonable safeguards to protect data and most ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 512.25 Td (states require that, in the event of a breach of our data security systems involving sensitive data, we notify every person ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 500.25 Td (potentially af) Tj ET Q q 0 0 0 rg BT 102.86 500.25 Td (fected by such breach and to pay considerable damages. Because techniques used to obtain unauthorized access or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.25 Td (sabotage systems change frequently and are often dif) Tj ET Q q 0 0 0 rg BT 261.68 488.25 Td (ficult to identify until they are launched against a tar) Tj ET Q q 0 0 0 rg BT 471.15 488.25 Td (get, we may be unable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.25 Td (to anticipate these techniques or to implement adequate preventative measures. Further) Tj ET Q q 0 0 0 rg BT 397.53 476.25 Td (, as the regulatory focus on privacy ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.25 Td (issues continues to increase and worldwide laws and regulations concerning the protection of personal information expand and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.25 Td (become more complex, these potential risks to our business will intensify) Tj ET Q q 0 0 0 rg BT 342.91 452.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 431.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 431.25 Td (e have no direct control over the substance of the content within our hosted network. U.S. law provides considerable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 419.25 Td (protections for any indirect liability as a result of storing infringing or even illegal content in the form of the Section230 of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 407.25 Td (Communications Decency ) Tj ET Q q 0 0 0 rg BT 157.75 407.25 Td (Act, or the CDA, which provides a safe harbor against claims that content stored on our cloud-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 395.25 Td (network invades consumer privacy or is indecent, of) Tj ET Q q 0 0 0 rg BT 259.20 395.25 Td (fensive, libelous, profane, pornographic or illegal. ) Tj ET Q q 0 0 0 rg BT 461.73 395.25 Td (The CDA) Tj ET Q q 0 0 0 rg BT 499.79 395.25 Td () Tj ET Q q 0 0 0 rg BT 502.56 395.25 Td (s safe harbor ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 383.25 Td (only of) Tj ET Q q 0 0 0 rg BT 78.43 383.25 Td (fers us partial protection, however) Tj ET Q q 0 0 0 rg BT 214.92 383.25 Td (, because it only limits our legal liability against allegations that our service provider ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 371.25 Td (customer illegally uploaded information to our servers; it of) Tj ET Q q 0 0 0 rg BT 289.20 371.25 Td (fers no protection whatsoever for claims arising from a breach of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.25 Td (our security measures.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (Any or all of these data privacy concerns could negatively impact our ability to attract new service provider customers and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (increase engagement by existing service provider customers, cause existing service provider customers to elect to terminate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 314.25 Td (their subscriptions or reduce or delay future purchases, subject us to third-party lawsuits, regulatory fines or other action or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.25 Td (liability) Tj ET Q q 0 0 0 rg BT 80.46 302.25 Td (, thereby increasing our costs and diverting management resources which could materially harm our operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 276.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 276.25 Td (e rely on third-party service providers to host some of our solutions and any interruptions or delays in services from this ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 264.25 Td (third party could impair the delivery of our products and harm our business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 247.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 247.25 Td (e currently outsource some of our hosting services to third parties. ) Tj ET Q q 0 0 0 rg BT 325.61 247.25 Td (W) Tj ET Q q 0 0 0 rg BT 334.25 247.25 Td (e do not control the operation of any third party ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 235.25 Td (facilities. ) Tj ET Q q 0 0 0 rg BT 89.25 235.25 Td (These facilities are vulnerable to damage or interruption from natural disasters, fires, power loss, telecommunications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 223.25 Td (failures and similar events. ) Tj ET Q q 0 0 0 rg BT 160.06 223.25 Td (They are also subject to break-ins, computer viruses, sabotage, intentional acts of vandalism and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 211.25 Td (other misconduct. ) Tj ET Q q 0 0 0 rg BT 123.97 211.25 Td (The occurrence of any of these disasters or other unanticipated problems could result in lengthy interruptions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 199.25 Td (in our service. Furthermore, the availability of our platform could be interrupted by a number of additional factors, including ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 187.25 Td (our customers) Tj ET Q q 0 0 0 rg BT 108.96 187.25 Td ( inability to access the Internet, the failure of our network or software systems due to human or other error) Tj ET Q q 0 0 0 rg BT 533.43 187.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 175.25 Td (security breaches or ability of the infrastructure to handle spikes in customer usage. Interruptions in our service may reduce our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 163.25 Td (revenue, cause us to issue credits or pay penalties, cause customers to terminate their subscriptions and adversely af) Tj ET Q q 0 0 0 rg BT 512.72 163.25 Td (fect our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 151.25 Td (renewal rates and our ability to attract new customers. Our business will also be harmed if our customers and potential ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 139.25 Td (customers believe our service is unreliable.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 113.25 Td (The quality of our support and services of) Tj ET Q q 0 0 0 rg BT 221.77 113.25 Td (ferings is important to our customers, and if we fail to of) Tj ET Q q 0 0 0 rg BT 454.39 113.25 Td (fer high quality support ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 101.25 Td (and services, customers may not buy our software and our revenue may decline.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 84.25 Td (Once our products are deployed within our customers) Tj ET Q q 0 0 0 rg BT 267.25 84.25 Td ( networks, our customers generally depend on our support or) Tj ET Q q 0 0 0 rg BT 510.35 84.25 Td (ganization ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 72.25 Td (to resolve issues relating to those products. ) Tj ET Q q 0 0 0 rg BT 223.86 72.25 Td (A) Tj ET Q q 0 0 0 rg BT 230.53 72.25 Td ( high level of support is critical for the successful marketing and sale of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 60.25 Td (software. If we are unable to provide the necessary level of support and service to our customers, we could experience:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 742.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 742.10 Td (loss of customers and market share;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 725.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 725.10 Td (a failure to attract new customers, including in new geographic regions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 708.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 708.10 Td (increased service, support and warranty costs and a diversion of development resources; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 691.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 691.10 Td (network performance penalties, including liquidated damages for periods of time that our customers) Tj ET Q q 0 0 0 rg BT 542.74 691.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 679.10 Td (networks are inoperable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (Any of the above results would likely have a material adverse impact on our business, revenue, results of operations, financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (condition and reputation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 620.10 Td (If we do not introduce and sell new and enhanced products in a timely manner) Tj ET Q q 0 0 0 rg BT 373.37 620.10 Td (, customers may not buy our products and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 608.10 Td (our revenue may decline.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (The market for communications software and services is characterized by rapid technological advances, frequent introductions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (of new products including via new deployment models such as cloud-based service of) Tj ET Q q 0 0 0 rg BT 393.62 579.10 Td (ferings, evolving industry standards and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (recurring or unanticipated changes in customer requirements and deployment model preferences. ) Tj ET Q q 0 0 0 rg BT 440.22 567.10 Td (T) Tj ET Q q 0 0 0 rg BT 445.63 567.10 Td (o succeed, we must ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 555.10 Td (fectively anticipate, and adapt in a timely manner to, customer requirements and continue to develop or acquire new products ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (and features that meet market demands and technology and architectural trends. ) Tj ET Q q 0 0 0 rg BT 371.36 543.10 Td (This requires us to identify) Tj ET Q q 0 0 0 rg BT 478.47 543.10 Td (, gain access to or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (develop new technologies or service models. ) Tj ET Q q 0 0 0 rg BT 231.71 531.10 Td (The introduction of new or enhanced products also requires that we carefully ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (manage the transition from older products to minimize disruption in customer ordering practices and ensure that new products ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (can be timely delivered to meet demand. ) Tj ET Q q 0 0 0 rg BT 214.76 507.10 Td (W) Tj ET Q q 0 0 0 rg BT 223.39 507.10 Td (e may also require additional capital to achieve these objectives and we may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 495.10 Td (unable to obtain adequate financing on terms satisfactory to us, or at all, when we require it. ) Tj ET Q q 0 0 0 rg BT 419.89 495.10 Td (As a result, our ability to continue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 483.10 Td (to support our business growth and to respond to business challenges could be significantly limited. 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Employees may be more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 272.10 Td (likely to terminate their employment with us if the shares they own or the shares underlying their vested options have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 260.10 Td (significantly appreciated in value relative to the original purchase prices of the shares or the exercise prices of the options, or if ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (the exercise prices of the options that they hold are significantly above the market price of our common stock. If we are unable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 236.10 Td (to retain our employees, our business, operating results and financial condition will be harmed.) 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Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (General global economic conditions could adversely af) Tj ET Q q 0 0 0 rg BT 275.35 78.10 Td (fect our operating results and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (As a company with significant global sales, we are subject to the risks arising from global economic and market conditions. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 49.10 Td (The worldwide economy underwent significant turmoil in the past several years. ) Tj ET Q q 0 0 0 rg BT 374.17 49.10 Td (While global economies appear to be slowly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (improving, economic indicators are mixed and negative economic and market conditions persist, and the rate and pace of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (recovery in individual economies is uncertain. ) Tj ET Q q 0 0 0 rg BT 237.26 730.10 Td (The continuing uncertainty about future global economic conditions could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (negatively impact our current and prospective customers by af) Tj ET Q q 0 0 0 rg BT 299.17 718.10 Td (fecting their buying decisions or ability to obtain financing for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (significant purchases and operations. Specific economic trends, such as declines in the demand for infrastructure spending by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (service providers, or softness in corporate telecommunications software spending, could have an even more direct, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (harmful, impact on our business. ) Tj ET Q q 0 0 0 rg BT 183.04 682.10 Td (As a result, we could experience fewer orders, longer sales cycles, slower adoption of new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (technologies by our customers and increased price competition, any of which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 494.67 670.10 Td (fect our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (business, results of operations and financial condition. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 632.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 632.10 Td (e have made a number of acquisitions, and we may undertake additional strategic transactions to further expand our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 620.10 Td (business, which may pose risks to our business and dilute the ownership of our stockholders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (As part of our growth strategy) Tj ET Q q 0 0 0 rg BT 170.16 603.10 Td (, we have made a number of acquisitions including the acquisitions in 2013 of finocom, a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (German provider of hosted PBX services to small and medium enterprises, and HIPCOM, a UK provider of hosted business ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.93 579.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 69.45 579.10 Td ( services. ) Tj ET Q q 0 0 0 rg BT 108.98 579.10 Td (These acquisitions enabled us to extend our BroadCloud delivery platform to customers in the United Kingdom, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (Germany and other select European markets. In ) Tj ET Q q 0 0 0 rg BT 242.71 567.10 Td (August 2012, we completed our acquisition of substantially all the assets of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (Adaption, which was a provider of hosted business ) Tj ET Q q 0 0 0 rg BT 256.17 555.10 Td (V) Tj ET Q q 0 0 0 rg BT 262.10 555.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 275.63 555.10 Td ( solutions. ) Tj ET Q q 0 0 0 rg BT 319.06 555.10 Td (The acquisition enabled us to enhance our BroadCloud ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (Software-as-a-Service delivery platform. ) Tj ET Q q 0 0 0 rg BT 215.86 543.10 Td (Whether we realize the anticipated benefits from these and prior transactions will ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (depend in part upon our ability to service and satisfy new customers gained as part of these acquisitions, the continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (integration of the acquired businesses, the performance of the acquired products, the capacities of the technologies acquired and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (the personnel hired in connection with these transactions. ) Tj ET Q q 0 0 0 rg BT 281.33 507.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 330.66 507.10 Td (, our results of operations could be adversely af) Tj ET Q q 0 0 0 rg BT 520.15 507.10 Td (fected ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 495.10 Td (from transaction-related char) Tj ET Q q 0 0 0 rg BT 165.87 495.10 Td (ges, amortization of intangible assets and char) Tj ET Q q 0 0 0 rg BT 350.35 495.10 Td (ges for impairment of long-term assets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 474.10 Td (e have evaluated, and expect to continue to evaluate, other potential strategic transactions. ) Tj ET Q q 0 0 0 rg BT 421.09 474.10 Td (W) Tj ET Q q 0 0 0 rg BT 429.73 474.10 Td (e may in the future acquire ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (businesses, products, technologies or services to expand our product of) Tj ET Q q 0 0 0 rg BT 333.92 462.10 Td (ferings, capabilities and customer base, enter new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (markets or increase our market share. ) Tj ET Q q 0 0 0 rg BT 202.25 450.10 Td (W) Tj ET Q q 0 0 0 rg BT 210.89 450.10 Td (e cannot predict the number) Tj ET Q q 0 0 0 rg BT 322.11 450.10 Td (, timing or size of future acquisitions, or the ef) Tj ET Q q 0 0 0 rg BT 507.71 450.10 Td (fect that any ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (such acquisitions might have on our operating results. Because of our size, any of these transactions could be material to our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (financial condition and results of operations. ) Tj ET Q q 0 0 0 rg BT 230.61 426.10 Td (While we have some experience with such transactions, the anticipated benefits of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (acquisitions may never materialize. Some of the areas where we may face acquisition-related risks include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 397.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 397.10 Td (diverting management time and potentially disrupting business;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 380.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 380.10 Td (expenses, distractions and potential claims resulting from acquisitions, whether or not they are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 368.10 Td (completed;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 351.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 351.10 Td (reducing our cash available for operations and other uses;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 334.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 334.10 Td (retaining and integrating employees from any businesses we acquire;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 317.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 317.10 Td (integrating and supporting acquired businesses, products or technologies;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 300.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 300.10 Td (integrating various accounting, management, information, human resources and other systems to permit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 288.10 Td (ef) Tj ET Q q 0 0 0 rg BT 147.59 288.10 Td (fective management;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 271.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 271.10 Td (additional regulatory compliance obligations resulting from an acquired business;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 254.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 254.10 Td (the issuance of dilutive equity securities or the incurrence or assumption of debt to finance the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 242.10 Td (acquisition;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 225.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 225.10 Td (incurring possible impairment char) Tj ET Q q 0 0 0 rg BT 280.06 225.10 Td (ges, contingent liabilities, amortization expense or write-of) Tj ET Q q 0 0 0 rg BT 515.92 225.10 Td (fs of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 213.10 Td (goodwill;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 196.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 196.10 Td (unexpected capital expenditure requirements;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 179.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 179.10 Td (insuf) Tj ET Q q 0 0 0 rg BT 159.82 179.10 Td (ficient revenues to of) Tj ET Q q 0 0 0 rg BT 244.33 179.10 Td (fset increased expenses associated with the acquisitions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 162.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 162.10 Td (opportunity costs associated with committing time and capital to such acquisitions; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 145.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 145.10 Td (acquisition-related litigation, including intellectual property infringement claims.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (Foreign acquisitions involve risks in addition to those mentioned above, including those related to integration of operations ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (across dif) Tj ET Q q 0 0 0 rg BT 88.42 112.10 Td (ferent cultures and languages, our ability to enforce contracts in various jurisdictions, currency risks and the particular ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (economic, political and regulatory risks associated with specific countries. ) Tj ET Q q 0 0 0 rg BT 350.00 100.10 Td (W) Tj ET Q q 0 0 0 rg BT 358.64 100.10 Td (e may not be able to address these risks ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (successfully) Tj ET Q q 0 0 0 rg BT 98.23 88.10 Td (, or at all, without incurring significant costs, delays or other operating problems that could disrupt our business and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 76.10 Td (have a material adverse ef) Tj ET Q q 0 0 0 rg BT 154.20 76.10 Td (fect on our financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (22) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Our use of open source software could impose limitations on our ability to commercialize our products.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 725.25 Td (e incorporate open source software into our products. ) Tj ET Q q 0 0 0 rg BT 273.85 725.25 Td (Although we closely monitor our use of open source software, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (terms of many open source software licenses have not been interpreted by U.S. courts, and there is a risk that such licenses ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (could be construed in a manner that could impose unanticipated conditions or restrictions on our ability to sell our products. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (such event, we could be required to make our proprietary software generally available to third parties, including competitors, at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (no cost, to seek licenses from third parties to continue of) Tj ET Q q 0 0 0 rg BT 276.15 677.25 Td (fering our products, to re-engineer our products or to discontinue the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (sale of our products in the event re-engineering cannot be accomplished on a timely basis or at all, any of which could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.40 653.25 Td (fect our revenues and operating expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (If we fail to maintain proper and ef) Tj ET Q q 0 0 0 rg BT 195.10 627.25 Td (fective internal controls, our ability to produce accurate financial statements could be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 615.25 Td (impaired, which would adversely af) Tj ET Q q 0 0 0 rg BT 195.65 615.25 Td (fect our operating results, our ability to operate our business and our stock price.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Ensuring that we have adequate internal financial and accounting controls and procedures in place to produce accurate financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (statements is a costly and time-consuming ef) Tj ET Q q 0 0 0 rg BT 229.22 586.25 Td (fort that needs to be re-evaluated frequently) Tj ET Q q 0 0 0 rg BT 403.50 586.25 Td (. ) Tj ET Q q 0 0 0 rg BT 407.94 586.25 Td (Although we believe we have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 574.25 Td (fective internal controls, we may in the future have material weaknesses in our internal financial and accounting controls and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (procedures.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 541.25 Td (The Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 133.86 541.25 Td (Act of 2002, or the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 277.99 541.25 Td (Act, requires that we test our internal control over financial reporting ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 529.25 Td (and disclosure controls and procedures. Compliance with Section404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 422.96 529.25 Td (Act requires that we incur ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 517.25 Td (substantial expense and expend significant management time on compliance-related issues. Moreover) Tj ET Q q 0 0 0 rg BT 456.41 517.25 Td (, if we are not able to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 505.25 Td (comply with the requirements of Section404 in the future, or if we or our independent registered public accounting firm ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 493.25 Td (identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the market price ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (of our stock may decline and we could be subject to sanctions or investigations by the Nasdaq Stock Market) Tj ET Q q 0 0 0 rg BT 485.45 481.25 Td (s, the SEC or other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td (regulatory authorities, which would require significant additional financial and management resources.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 443.25 Td (Man-made problems such as computer viruses or terrorism may disrupt our operations and could adversely af) Tj ET Q q 0 0 0 rg BT 502.35 443.25 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 431.25 Td (operating results and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.25 Td (Despite our implementation of network security measures, our servers are vulnerable to computer viruses, break-ins and similar ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (disruptions from unauthorized tampering with our computer systems. ) Tj ET Q q 0 0 0 rg BT 329.12 402.25 Td (Any such event could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 522.74 402.25 Td (fect on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 390.25 Td (our business, operating results and financial condition. Ef) Tj ET Q q 0 0 0 rg BT 280.04 390.25 Td (forts to limit the ability of third parties to disrupt the operations of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (Internet or undermine our own security ef) Tj ET Q q 0 0 0 rg BT 216.98 378.25 Td (forts may be inef) Tj ET Q q 0 0 0 rg BT 284.83 378.25 Td (fective. In addition, the continued threat of terrorism and heightened ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (security and military action in response to this threat, or any future acts of terrorism, may cause further disruptions to the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (economies of the United States and other countries and create further uncertainties or otherwise materially harm our business, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (operating results, and financial condition. Likewise, events such as widespread electrical blackouts could have similar negative ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 330.25 Td (impacts. ) Tj ET Q q 0 0 0 rg BT 85.92 330.25 Td (T) Tj ET Q q 0 0 0 rg BT 91.33 330.25 Td (o the extent that such disruptions or uncertainties result in delays or cancellations of customer orders or the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 318.25 Td (manufacture or shipment of our products, our business, operating results, financial condition and reputation could be materially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 306.25 Td (and adversely af) Tj ET Q q 0 0 0 rg BT 115.34 306.25 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td (Changes in ef) Tj ET Q q 0 0 0 rg BT 107.05 280.25 Td (fective tax rates or adverse outcomes resulting from examination of our income or other tax returns could ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 268.25 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.96 268.25 Td (fect our operating results and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 251.25 Td (Our future ef) Tj ET Q q 0 0 0 rg BT 102.02 251.25 Td (fective tax rates could be subject to volatility or adversely af) Tj ET Q q 0 0 0 rg BT 343.41 251.25 Td (fected by a number of factors, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 234.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 234.25 Td (earnings being lower than anticipated in countries where we have lower statutory tax rates and higher ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 222.25 Td (than anticipated earnings in countries where we have higher statutory tax rates;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 205.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 205.25 Td (changes in the valuation of our deferred tax assets and liabilities;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 188.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 188.25 Td (expiration of, or lapses in, the research and development tax credit laws;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 171.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 171.25 Td (expiration or non-utilization of net operating losses;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 154.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 154.25 Td (tax ef) Tj ET Q q 0 0 0 rg BT 162.30 154.25 Td (fects of stock-based compensation;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 137.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 137.25 Td (costs related to intercompany restructurings; or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 120.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 120.25 Td (changes in tax laws, regulations, accounting principles or interpretations thereof.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 99.25 Td (In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue Service and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 87.25 Td (tax authorities. ) Tj ET Q q 0 0 0 rg BT 111.75 87.25 Td (W) Tj ET Q q 0 0 0 rg BT 120.39 87.25 Td (e regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 75.25 Td (adequacy of our provision for income taxes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Outcomes from these continuous examinations could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 369.16 742.10 Td (fect on our financial condition, results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (operations or cash flows.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 704.10 Td (e incurred significant indebtedness through the sale of our 1.50% convertible senior notes due 2018, and we may incur ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 692.10 Td (additional indebtedness in the future. The indebtedness created by the sale of the notes and any future indebtedness we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 680.10 Td (incur exposes us to risks that could adversely af) Tj ET Q q 0 0 0 rg BT 245.94 680.10 Td (fect our business, financial condition and results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 663.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 663.10 Td (e incurred $120million of senior indebtedness in June 201) Tj ET Q q 0 0 0 rg BT 292.94 663.10 Td (1 when we sold $120million aggregate principal amount of 1.50% ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 651.10 Td (convertible senior notes due 2018, or the Notes. ) Tj ET Q q 0 0 0 rg BT 243.66 651.10 Td (W) Tj ET Q q 0 0 0 rg BT 252.30 651.10 Td (e may also incur additional long-term indebtedness or obtain additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.10 Td (working capital lines of credit to meet future financing needs. Our indebtedness could have significant negative consequences ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (for our business, results of operations, cash flows and financial condition, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 610.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 610.10 Td (increasing our vulnerability to adverse economic and industry conditions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 593.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 593.10 Td (limiting our ability to obtain additional financing;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 576.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 576.10 Td (requiring the dedication of a substantial portion of our cash flow from operations to service our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 564.10 Td (indebtedness, thereby reducing the amount of our cash flow available for other purposes;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 547.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 547.10 Td (limiting our flexibility in planning for) Tj ET Q q 0 0 0 rg BT 290.97 547.10 Td (, or reacting to, changes in our business; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 530.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 530.10 Td (placing us at a possible competitive disadvantage with less leveraged competitors and competitors that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 518.10 Td (may have better access to capital resources.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 497.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 497.10 Td (e cannot assure you that we will continue to maintain suf) Tj ET Q q 0 0 0 rg BT 286.18 497.10 Td (ficient cash reserves or that our business will continue to generate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 485.10 Td (cash flow from operations at levels suf) Tj ET Q q 0 0 0 rg BT 204.78 485.10 Td (ficient to permit us to pay principal, premium, if any) Tj ET Q q 0 0 0 rg BT 414.35 485.10 Td (, and interest on our indebtedness, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 473.10 Td (that our cash needs will not increase. If we are unable to generate suf) Tj ET Q q 0 0 0 rg BT 325.82 473.10 Td (ficient cash flow or otherwise obtain funds necessary to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 461.10 Td (make required payments, or if we fail to comply with the various requirements of the Notes, or any indebtedness that we may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 449.10 Td (incur in the future, we would be in default, which would permit the holders of the Notes and such other indebtedness to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 437.10 Td (accelerate the maturity of the Notes and such other indebtedness and could cause defaults under the Notes and such other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 425.10 Td (indebtedness. ) Tj ET Q q 0 0 0 rg BT 106.10 425.10 Td (Any default under the Notes or any indebtedness that we may incur in the future could have a material adverse ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 413.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 413.10 Td (fect on our business, results of operations and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (The repurchase rights and events of default features of the Notes, if triggered, may adversely af) Tj ET Q q 0 0 0 rg BT 441.72 387.10 Td (fect our financial condition ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (and operating results.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (In the event the repurchase rights features of the Notes are triggered, holders of the Notes will be entitled to require us to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (repurchase all or a portion of their Notes. If the events of default features of the Notes are triggered, holders of the Notes may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (declare the principal amount of the Notes, plus accrued and unpaid interest thereon, to be immediately due and payable. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (either event, we would be required to make cash payments to satisfy our obligations, which could adversely af) Tj ET Q q 0 0 0 rg BT 491.08 322.10 Td (fect our liquidity) Tj ET Q q 0 0 0 rg BT 557.64 322.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (In addition, even if holders do not elect to exercise their repurchase rights or declare their Notes immediately due and payable, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the Notes as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (a current rather than long-term liability) Tj ET Q q 0 0 0 rg BT 205.68 286.10 Td (, which could result in a material reduction of our net working capital.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 260.10 Td (The accounting method for convertible debt securities, such as the Notes, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 486.45 260.10 Td (fect on our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (reported financial results.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 231.10 Td (Under applicable accounting guidance, we must separately account for the liability and equity components of the Notes, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 219.10 Td (because they may be settled partially in cash upon conversion, in a manner that reflects our economic interest cost. ) Tj ET Q q 0 0 0 rg BT 511.05 219.10 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (guidance requires us to record the fair value of the conversion option of the Notes as a component of stockholders) Tj ET Q q 0 0 0 rg BT 508.28 207.10 Td ( equity and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (include this amount in additional paid-in-capital on our consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 384.72 195.10 Td (The value of the conversion option of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (Notes is reported as a debt discount and subsequently amortized as interest expense through the expected maturity date of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (Notes. ) Tj ET Q q 0 0 0 rg BT 78.15 171.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.79 171.10 Td (e will report lower net income in our financial results because we will be required to include both the current period) Tj ET Q q 0 0 0 rg BT 552.74 171.10 Td (s ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td (amortization of the debt discount \(non-cash interest\) and the instrument) Tj ET Q q 0 0 0 rg BT 339.09 159.10 Td (s cash interest, which could adversely af) Tj ET Q q 0 0 0 rg BT 500.24 159.10 Td (fect our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (reported or future financial results and the trading price of our common stock.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (Risks Related to the ) Tj ET Q q 0 0 0 rg BT 137.59 121.10 Td (T) Tj ET Q q 0 0 0 rg BT 143.34 121.10 Td (elecommunications Industry) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 104.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 104.10 Td (e face intense competition in our markets, especially from larger) Tj ET Q q 0 0 0 rg BT 322.57 104.10 Td (, better-known companies, and we may lack suf) Tj ET Q q 0 0 0 rg BT 517.11 104.10 Td (ficient ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 92.10 Td (financial or other resources to maintain or improve our competitive position.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 75.10 Td (The worldwide markets for our products and services are highly competitive and continually evolving and we expect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 63.10 Td (competition from both established and new companies to increase. Our primary competitors include companies such as ) Tj ET Q q 0 0 0 rg BT 529.04 63.10 Td (Alcatel-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 51.10 Td (Lucent, ) Tj ET Q q 0 0 0 rg BT 82.21 51.10 Td (A) Tj ET Q q 0 0 0 rg BT 88.69 51.10 Td (vaya Inc., Cisco Systems, Inc., Ericsson ) Tj ET Q q 0 0 0 rg BT 250.61 51.10 Td (AB, GENBAND Inc., Huawei ) Tj ET Q q 0 0 0 rg BT 374.58 51.10 Td (T) Tj ET Q q 0 0 0 rg BT 379.99 51.10 Td (echnologies Co. Ltd., Mavenir Systems Inc., ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Metaswitch Networks, Microsoft Corporation, and Nokia-Siemens Networks B.V) Tj ET Q q 0 0 0 rg BT 375.88 742.10 Td (. Many of our existing and potential ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (competitors have substantially greater financial, technical, marketing, intellectual property and distribution resources than we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (have. ) Tj ET Q q 0 0 0 rg BT 73.70 718.10 Td (Their resources may enable them to develop superior products, or they could aggressively price, finance and bundle their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (product of) Tj ET Q q 0 0 0 rg BT 91.20 706.10 Td (ferings to attempt to gain market adoption or to increase market share. In addition, our customers could also begin ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (using open source software, such as ) Tj ET Q q 0 0 0 rg BT 195.24 694.10 Td (Asterisk, which is incorporated in the products of Digium, Inc., as an alternative to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (BroadW) Tj ET Q q 0 0 0 rg BT 83.08 682.10 Td (orks. If our competitors of) Tj ET Q q 0 0 0 rg BT 188.15 682.10 Td (fer deep discounts on certain products in an ef) Tj ET Q q 0 0 0 rg BT 372.35 682.10 Td (fort to gain market share or to sell other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (products or services, or if a significant number of our customers use open source software as an alternative to BroadW) Tj ET Q q 0 0 0 rg BT 522.93 670.10 Td (orks, we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (may then need to lower the prices of our products and services, change our pricing models, or of) Tj ET Q q 0 0 0 rg BT 435.53 658.10 Td (fer other favorable terms to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (compete successfully) Tj ET Q q 0 0 0 rg BT 134.60 646.10 Td (, which would reduce our mar) Tj ET Q q 0 0 0 rg BT 254.38 646.10 Td (gins and adversely af) Tj ET Q q 0 0 0 rg BT 338.89 646.10 Td (fect our operating results.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (In addition to price competition, increased competition may result in other aggressive business tactics from our competitors, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 613.10 Td (such as:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 596.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 596.10 Td (emphasizing their own size and perceived stability against our smaller size and narrower recognition;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 579.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 579.10 Td (providing customers one-stop shopping options for the purchase of network equipment and application ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 567.10 Td (server software;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 550.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 550.10 Td (of) Tj ET Q q 0 0 0 rg BT 148.15 550.10 Td (fering customers financing assistance;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 533.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 533.10 Td (making early announcements of competing products and employing extensive marketing ef) Tj ET Q q 0 0 0 rg BT 505.27 533.10 Td (forts;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 516.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 516.10 Td (assisting customers with marketing and advertising directed at their subscribers; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 499.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 499.10 Td (asserting infringement of their intellectual property rights.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (The tactics described above can be particularly ef) Tj ET Q q 0 0 0 rg BT 247.77 478.10 Td (fective in the concentrated base of service provider customers to whom we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 466.10 Td (fer our products. Our inability to compete successfully in our markets would harm our operating results and our ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (achieve and maintain profitability) Tj ET Q q 0 0 0 rg BT 184.58 454.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 428.10 Td (Our business depends upon the success of service providers who are vulnerable to competition from free or low-cost ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 416.10 Td (providers of IP-based communications services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 399.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 399.10 Td (e sell software licenses or provide cloud-based UC service of) Tj ET Q q 0 0 0 rg BT 303.10 399.10 Td (ferings to service providers, who then seek to persuade their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (customers to subscribe to IP-based communications services that use our software. ) Tj ET Q q 0 0 0 rg BT 383.07 387.10 Td (The number of licenses or subscriptions a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (service provider purchases from us is based in lar) Tj ET Q q 0 0 0 rg BT 247.53 375.10 Td (ge part on the number of customers the service provider expects will subscribe ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (to its IP-based communications services. ) Tj ET Q q 0 0 0 rg BT 215.34 363.10 Td (When the number of customers using the service provider) Tj ET Q q 0 0 0 rg BT 447.31 363.10 Td () Tj ET Q q 0 0 0 rg BT 450.09 363.10 Td (s IP) Tj ET Q q 0 0 0 rg BT 465.00 363.10 Td ( services running on our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 Td (software exceeds the number of licenses or subscriptions, the service provider must purchase additional licenses or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 339.10 Td (subscriptions from us. ) Tj ET Q q 0 0 0 rg BT 140.56 339.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 189.89 339.10 Td (, the growth of our business depends upon the success of service providers in attracting new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (subscribers to IP-based communications services. Our dependence on service providers exposes us to a number of risks, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (including the risk that service providers will not succeed in growing and maintaining their IP) Tj ET Q q 0 0 0 rg BT 421.21 315.10 Td ( subscriber base. ) Tj ET Q q 0 0 0 rg BT 489.53 315.10 Td (Among the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 303.10 Td (reasons that service providers may not succeed in growing or maintaining subscriptions to IP-based communications is the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 291.10 Td (prevalence of alternative IP-based communications providers who of) Tj ET Q q 0 0 0 rg BT 325.56 291.10 Td (fer services free or for low cost. Current providers of free ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 279.10 Td (or low-cost IP-based communication include Skype, JaJah, ) Tj ET Q q 0 0 0 rg BT 288.19 279.10 Td (Y) Tj ET Q q 0 0 0 rg BT 294.41 279.10 Td (ahoo Messenger and GoogleV) Tj ET Q q 0 0 0 rg BT 414.48 279.10 Td (oice.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (If service providers do not succeed in growing and maintaining their IP) Tj ET Q q 0 0 0 rg BT 334.83 262.10 Td ( subscriber base for any reason, including failure to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 250.10 Td (fectively compete with competitors of) Tj ET Q q 0 0 0 rg BT 209.58 250.10 Td (fering free or low-cost services, then our business, financial condition and results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (operations would be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 212.10 Td (Over-the-top business models, which provide telecommunications services directly to end-users through third-party network ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 200.10 Td (connections, may reduce demand for our services. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (Our revenue is lar) Tj ET Q q 0 0 0 rg BT 121.73 182.10 Td (gely derived from our service provider customers) Tj ET Q q 0 0 0 rg BT 322.03 182.10 Td ( end-users accessing telecommunications services through ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (service provider networks. ) Tj ET Q q 0 0 0 rg BT 161.17 170.10 Td (The emer) Tj ET Q q 0 0 0 rg BT 199.02 170.10 Td (gence of over) Tj ET Q q 0 0 0 rg BT 253.24 170.10 Td (-the-top services that provide telecommunications services directly to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (customers over third-party network connections, such as those of) Tj ET Q q 0 0 0 rg BT 310.03 158.10 Td (fered by 8x8 and Ring Central, may cause end-users of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (service provider customers to reduce their demand for telecommunications through carrier) Tj ET Q q 0 0 0 rg BT 411.33 146.10 Td (-branded services or to demand ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (carrier) Tj ET Q q 0 0 0 rg BT 75.88 134.10 Td (-branded services for free or at reduced pricing. Service providers may fail to of) Tj ET Q q 0 0 0 rg BT 398.07 134.10 Td (fer branded services that can compete ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (with these over) Tj ET Q q 0 0 0 rg BT 110.89 122.10 Td (-the-top services. If end-users do not find service provider) Tj ET Q q 0 0 0 rg BT 343.12 122.10 Td (-branded services compelling or cost-ef) Tj ET Q q 0 0 0 rg BT 501.21 122.10 Td (fective, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (demand that our service provider customers provide such communications services for free, or if we are unable to expand or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (modify our service of) Tj ET Q q 0 0 0 rg BT 136.18 98.10 Td (ferings to compete with, or sell to, potential customers in this market, demand for our services may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (reduced, which would harm our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 60.10 Td (Competitive pressures in the telecommunications industry may increase and impact our customers) Tj ET Q q 0 0 0 rg BT 456.77 60.10 Td ( purchasing decisions, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 48.10 Td (which could reduce our revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Our customers are under increasing competitive pressure from companies within their industry and other participants that of) Tj ET Q q 0 0 0 rg BT 546.34 742.10 Td (fer) Tj ET Q q 0 0 0 rg BT 557.04 742.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (or seek to of) Tj ET Q q 0 0 0 rg BT 99.53 730.10 Td (fer) Tj ET Q q 0 0 0 rg BT 110.22 730.10 Td (, overlapping or similar services. ) Tj ET Q q 0 0 0 rg BT 243.62 730.10 Td (These pressures are likely to continue to cause our customers to seek to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (minimize the costs of the software platforms that they purchase and may cause static or reduced expenditures by our customers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (or potential customers. ) Tj ET Q q 0 0 0 rg BT 143.69 706.10 Td (These competitive pressures may also result in pricing becoming a more important factor in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (purchasing decisions of our customers. Increased focus on pricing may favor low-cost vendors and our lar) Tj ET Q q 0 0 0 rg BT 474.14 694.10 Td (ger competitors that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (can spread the ef) Tj ET Q q 0 0 0 rg BT 117.28 682.10 Td (fect of price discounts across a broader of) Tj ET Q q 0 0 0 rg BT 283.97 682.10 Td (fering of products and services and across a lar) Tj ET Q q 0 0 0 rg BT 471.50 682.10 Td (ger customer base.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 661.10 Td (e expect the developments described above to continue to af) Tj ET Q q 0 0 0 rg BT 299.20 661.10 Td (fect our business by:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 644.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 644.10 Td (potentially making it dif) Tj ET Q q 0 0 0 rg BT 236.75 644.10 Td (ficult to accurately forecast revenue and manage our business;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 627.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 627.10 Td (exposing us to potential unexpected declines in revenue; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 610.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 610.10 Td (exposing us to potential losses because we expect that a high percentage of our operating expenses will ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 598.10 Td (continue to be fixed in the short-term.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 Td (Any one or a combination of the above ef) Tj ET Q q 0 0 0 rg BT 216.43 577.10 Td (fects could materially and adversely af) Tj ET Q q 0 0 0 rg BT 370.90 577.10 Td (fect our business, operating results and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 565.10 Td (financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 539.10 Td (Consolidation in the telecommunications industry will likely continue and result in delays or reductions in capital ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 527.10 Td (expenditure plans and increased competitive pricing pressures, which could reduce our revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (The telecommunications industry has experienced significant consolidation over the past several years. ) Tj ET Q q 0 0 0 rg BT 464.41 510.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.05 510.10 Td (e expect this trend to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (continue as companies attempt to strengthen or retain their market positions in an evolving industry and as businesses are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (acquired or are unable to continue operations. Consolidation among our customers, distribution partners and technology ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (partners may cause delays or reductions in capital expenditure plans and increased competitive pricing pressures as the number ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (of available customers and partners declines and their relative purchasing power increases in relation to suppliers. ) Tj ET Q q 0 0 0 rg BT 506.79 462.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 556.69 462.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (the acquisition of one of our customers, distribution partners or technology partners by a company that uses or sells the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (products of one of our competitors could result in our loss of the customer or partner if the acquiring company elects to switch ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (the acquired company to our competitor) Tj ET Q q 0 0 0 rg BT 210.60 426.10 Td () Tj ET Q q 0 0 0 rg BT 213.37 426.10 Td (s products. Moreover) Tj ET Q q 0 0 0 rg BT 298.23 426.10 Td (, the consolidation in the number of potential customers and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (distribution partners could increase the risk of quarterly and annual fluctuations in our revenue and operating results. ) Tj ET Q q 0 0 0 rg BT 518.75 414.10 Td (Any of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (these factors could adversely af) Tj ET Q q 0 0 0 rg BT 175.87 402.10 Td (fect our business, financial condition and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (Regulation of IP-based networks and commerce in the United States and elsewhere may increase, compliance with these ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (regulations may be time-consuming, dif) Tj ET Q q 0 0 0 rg BT 213.44 364.10 Td (ficult and costly and, if we fail to comply) Tj ET Q q 0 0 0 rg BT 380.00 364.10 Td (, our sales might decrease.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 347.10 Td (In general, the telecommunications industry is highly regulated. However) Tj ET Q q 0 0 0 rg BT 343.96 347.10 Td (, to date Congress and the Federal Communications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 335.10 Td (Commission, or the FCC, have imposed less regulation on IP- based services and networks. ) Tj ET Q q 0 0 0 rg BT 418.94 335.10 Td (W) Tj ET Q q 0 0 0 rg BT 427.57 335.10 Td (e could be adversely af) Tj ET Q q 0 0 0 rg BT 519.57 335.10 Td (fected by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.10 Td (regulation of IP-based services or networks in any country where we do business, including the United States. Regulatory ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 311.10 Td (treatment of ) Tj ET Q q 0 0 0 rg BT 100.91 311.10 Td (V) Tj ET Q q 0 0 0 rg BT 106.84 311.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 120.36 311.10 Td ( telephony outside the United States varies from country to country and often the laws are unclear) Tj ET Q q 0 0 0 rg BT 510.80 311.10 Td (. ) Tj ET Q q 0 0 0 rg BT 515.62 311.10 Td (W) Tj ET Q q 0 0 0 rg BT 524.26 311.10 Td (e ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 299.10 Td (currently distribute our products and services directly to service providers and through resellers that may be subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 287.10 Td (telecommunications regulations in their home countries. ) Tj ET Q q 0 0 0 rg BT 277.26 287.10 Td (The failure by us or our customers and resellers to comply with these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 275.10 Td (laws and regulations could reduce our revenue and profitability) Tj ET Q q 0 0 0 rg BT 302.60 275.10 Td (. ) Tj ET Q q 0 0 0 rg BT 309.92 275.10 Td (W) Tj ET Q q 0 0 0 rg BT 318.55 275.10 Td (e expanded our BroadCloud PBX of) Tj ET Q q 0 0 0 rg BT 463.63 275.10 Td (ferings in Europe during ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 263.10 Td (2013, and as we continue to further expand our operations internationally) Tj ET Q q 0 0 0 rg BT 342.88 263.10 Td (, we expect to become subject to additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (government regulations. Such regulations could include matters such as using or providing ) Tj ET Q q 0 0 0 rg BT 415.58 251.10 Td (V) Tj ET Q q 0 0 0 rg BT 421.51 251.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 435.03 251.10 Td ( services or protocols, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (encryption technology and access char) Tj ET Q q 0 0 0 rg BT 204.20 239.10 Td (ges for service providers. ) Tj ET Q q 0 0 0 rg BT 307.59 239.10 Td (The adoption of such regulations could prohibit entry into a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (tar) Tj ET Q q 0 0 0 rg BT 60.37 227.10 Td (get market or force us to withdraw products in one or more jurisdictions. ) Tj ET Q q 0 0 0 rg BT 353.08 227.10 Td (As a result, overall demand for our products could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (decrease and, at the same time, the cost of selling our products could increase, either of which, or the combination of both, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 203.10 Td (could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 178.92 203.10 Td (fect on our business, operating results and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (In addition, the conver) Tj ET Q q 0 0 0 rg BT 140.35 182.10 Td (gence of the public switched telephone network, or PSTN, and IP-based networks could become subject ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (to governmental regulation, including the imposition of access fees or other tarif) Tj ET Q q 0 0 0 rg BT 371.39 170.10 Td (fs, and such regulation could adversely af) Tj ET Q q 0 0 0 rg BT 537.54 170.10 Td (fect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (the market for our products and services. User uncertainty regarding future policies and regulations may also af) Tj ET Q q 0 0 0 rg BT 495.50 158.10 Td (fect demand for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (communications products such as ours. ) Tj ET Q q 0 0 0 rg BT 209.24 146.10 Td (W) Tj ET Q q 0 0 0 rg BT 217.88 146.10 Td (e may be required, or we may otherwise deem it necessary or advisable, to alter our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (products to address actual or anticipated changes in the regulatory environment. Our inability to timely alter our products or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (address any regulatory changes may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 301.65 122.10 Td (fect on our financial condition, results of operations or cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 89.10 Td (Our acquisition in 2012 of the assets of ) Tj ET Q q 0 0 0 rg BT 208.87 89.10 Td (Adaption, a provider of hosted business ) Tj ET Q q 0 0 0 rg BT 370.05 89.10 Td (V) Tj ET Q q 0 0 0 rg BT 375.98 89.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 389.50 89.10 Td ( solutions, subjects us to additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 77.10 Td (regulation. Such providers are subject to certain FCC rules and regulations, including with respect to the provision of enhanced ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 65.10 Td (91) Tj ET Q q 0 0 0 rg BT 59.63 65.10 Td (1 services, or E91) Tj ET Q q 0 0 0 rg BT 130.90 65.10 Td (1 services, disability access requirements, communications assistance for law enforcement requirements, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 53.10 Td (customer proprietary network information requirements, and other requirements. If we become subject to the rules and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (regulations applicable to such providers in individual states, or such existing state rules and regulations are amended or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (modified to apply to such services, we may incur significant increased costs, and we may have to restructure our hosted ) Tj ET Q q 0 0 0 rg BT 530.79 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 536.72 730.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 550.24 730.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (services business, exit certain markets, or raise the price of these services, any of which could cause these services to be less ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (attractive to our customers. ) Tj ET Q q 0 0 0 rg BT 161.17 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 169.81 706.10 Td (e are unable to predict the impact, if any) Tj ET Q q 0 0 0 rg BT 330.48 706.10 Td (, that future legislation, judicial decisions or FCC or other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (regulations concerning hosted ) Tj ET Q q 0 0 0 rg BT 172.29 694.10 Td (V) Tj ET Q q 0 0 0 rg BT 178.22 694.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 191.74 694.10 Td ( service providers generally may have on our business, financial condition, and results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (operations, and if we fail to comply with applicable state or federal rules associated with such services, including the provision ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (of E91) Tj ET Q q 0 0 0 rg BT 76.57 670.10 Td (1 services, we may be exposed to significant liability) Tj ET Q q 0 0 0 rg BT 287.81 670.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 644.10 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.54 644.10 Td ( International Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 627.10 Td (e are exposed to risks related to our international operations and failure to manage these risks may adversely af) Tj ET Q q 0 0 0 rg BT 516.86 627.10 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (operating results and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 598.10 Td (e market, license and service our products globally and have a number of of) Tj ET Q q 0 0 0 rg BT 361.68 598.10 Td (fices around the world. For the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (December31, 2013, 2012 and 201) Tj ET Q q 0 0 0 rg BT 187.65 586.10 Td (1, 43%, 43% and 45% of our revenue, respectively) Tj ET Q q 0 0 0 rg BT 390.55 586.10 Td (, was attributable to our international ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (customers. ) Tj ET Q q 0 0 0 rg BT 95.00 574.10 Td (As of December31, 2013, approximately 47% of our employees were located abroad. ) Tj ET Q q 0 0 0 rg BT 441.36 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 450.00 574.10 Td (e expect that our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (international activities will continue to be dynamic over the foreseeable future as we pursue additional opportunities in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (international markets. ) Tj ET Q q 0 0 0 rg BT 139.51 550.10 Td (Therefore, we are subject to risks associated with having worldwide operations. ) Tj ET Q q 0 0 0 rg BT 460.62 550.10 Td (These international ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (operations will require significant management attention and financial resources.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 517.10 Td (International operations are subject to inherent risks and our future results could be adversely af) Tj ET Q q 0 0 0 rg BT 433.02 517.10 Td (fected by a number of factors, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 505.10 Td (including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 488.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 488.10 Td (requirements or preferences for domestic products, which could reduce demand for our products;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 471.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 471.10 Td (dif) Tj ET Q q 0 0 0 rg BT 150.93 471.10 Td (fering technical standards, existing or future regulatory and certification requirements and required ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 459.10 Td (product features and functionality;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 442.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 442.10 Td (management communication and integration problems related to entering new markets with dif) Tj ET Q q 0 0 0 rg BT 520.54 442.10 Td (ferent ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 430.10 Td (languages, cultures and political systems;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 413.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 413.10 Td (greater dif) Tj ET Q q 0 0 0 rg BT 181.18 413.10 Td (ficulty in collecting accounts receivable and longer collection periods;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 396.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 396.10 Td (dif) Tj ET Q q 0 0 0 rg BT 150.93 396.10 Td (ficulties and costs of staf) Tj ET Q q 0 0 0 rg BT 250.17 396.10 Td (fing and managing foreign operations;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 379.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 379.10 Td (the uncertainty of protection for intellectual property rights in some countries;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 362.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 362.10 Td (potentially adverse tax consequences, including regulatory requirements regarding our ability to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 350.10 Td (repatriate profits to the United States; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 333.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 333.10 Td (political and economic instability and terrorism.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 312.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 312.10 Td (, our international operations expose us to risks of fluctuations in foreign currency exchange rates. ) Tj ET Q q 0 0 0 rg BT 494.88 312.10 Td (T) Tj ET Q q 0 0 0 rg BT 500.29 312.10 Td (o date, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 300.10 Td (significant majority of our international sales have been denominated in U.S. dollars, although most of our expenses associated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td (with our international operations are denominated in local currencies. ) Tj ET Q q 0 0 0 rg BT 329.90 288.10 Td (As a result, a decline in the value of the U.S. dollar ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 276.10 Td (relative to the value of these local currencies could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 359.94 276.10 Td (fect on the gross mar) Tj ET Q q 0 0 0 rg BT 443.62 276.10 Td (gins and profitability of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (international operations. ) Tj ET Q q 0 0 0 rg BT 149.14 264.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 199.04 264.10 Td (, an increase in the value of the U.S. dollar relative to the value of these local currencies ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 252.10 Td (results in our products being more expensive to potential customers and could have an adverse impact on our pricing or our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 240.10 Td (ability to sell our products internationally) Tj ET Q q 0 0 0 rg BT 215.15 240.10 Td (. ) Tj ET Q q 0 0 0 rg BT 219.97 240.10 Td (T) Tj ET Q q 0 0 0 rg BT 225.38 240.10 Td (o date, we have not used risk management techniques to hedge the risks associated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 228.10 Td (with these fluctuations. Even if we were to implement hedging strategies, not every exposure can be hedged and, where hedges ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 216.10 Td (are put in place based on expected foreign currency exchange exposure, they are based on forecasts that may vary or that may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 204.10 Td (later prove to have been inaccurate. ) Tj ET Q q 0 0 0 rg BT 194.09 204.10 Td (As a result, fluctuations in foreign currency exchange rates or our failure to successfully ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 192.10 Td (hedge against these fluctuations could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 308.88 192.10 Td (fect on our operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 166.10 Td (e rely significantly on distribution partners to sell our products in certain international markets, the loss of which could ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (materially reduce our revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 137.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 137.10 Td (e sell our products to telecommunication service providers both directly and indirectly through distribution partners such as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 125.10 Td (telecommunications equipment vendors, ) Tj ET Q q 0 0 0 rg BT 214.22 125.10 Td (V) Tj ET Q q 0 0 0 rg BT 220.16 125.10 Td (ARs and other distributors. ) Tj ET Q q 0 0 0 rg BT 330.80 125.10 Td (W) Tj ET Q q 0 0 0 rg BT 339.44 125.10 Td (e believe that establishing and maintaining successful ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 113.10 Td (relationships with these distribution partners is, and will continue to be, important to our financial success. Recruiting and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 101.10 Td (retaining qualified distribution partners and training them in our technology and product of) Tj ET Q q 0 0 0 rg BT 413.62 101.10 Td (ferings requires significant time and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 89.10 Td (resources. ) Tj ET Q q 0 0 0 rg BT 92.58 89.10 Td (T) Tj ET Q q 0 0 0 rg BT 97.99 89.10 Td (o develop and expand our distribution channel, we must continue to scale and improve our processes and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 77.10 Td (procedures that support our channel, including investment in systems and training.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (In addition, existing and future distribution partners will only partner with us if we are able to provide them with competitive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (products on terms that are commercially reasonable to them. If we fail to maintain the quality of our products or to update and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (enhance them, existing and future distribution partners may elect to partner with one or more of our competitors. In addition, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (the terms of our arrangements with our distribution partners must be commercially reasonable for both parties. If we are unable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (to reach agreements that are beneficial to both parties, then our distribution partner relationships will not succeed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (The reduction in or loss of sales by these distribution partners could materially reduce our revenue. If we fail to maintain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (relationships with our distribution partners, fail to develop new relationships with other distribution partners in new markets, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (fail to manage, train or incentivize existing distribution partners ef) Tj ET Q q 0 0 0 rg BT 315.29 649.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 349.62 649.10 Td (, fail to provide distribution partners with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 637.10 Td (competitive products on terms acceptable to them, or if these partners are not successful in their sales ef) Tj ET Q q 0 0 0 rg BT 465.23 637.10 Td (forts, our revenue may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (decrease and our operating results could suf) Tj ET Q q 0 0 0 rg BT 225.31 625.10 Td (fer) Tj ET Q q 0 0 0 rg BT 235.86 625.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 604.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 604.10 Td (e have no long-term contracts or minimum purchase commitments with any ) Tj ET Q q 0 0 0 rg BT 364.21 604.10 Td (V) Tj ET Q q 0 0 0 rg BT 370.15 604.10 Td (ARs or telecommunications equipment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (vendors, and our contracts with these distribution partners do not prohibit them from of) Tj ET Q q 0 0 0 rg BT 399.19 592.10 Td (fering products or services that compete ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (with ours, including products they currently of) Tj ET Q q 0 0 0 rg BT 236.17 580.10 Td (fer or may develop in the future and incorporate into their own systems. Some of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (our competitors may have stronger relationships with our distribution partners than we do and we have limited control, if any) Tj ET Q q 0 0 0 rg BT 550.34 568.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (as to whether those partners implement our products, rather than our competitors) Tj ET Q q 0 0 0 rg BT 375.83 556.10 Td ( products, or whether they devote resources to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (market and support our competitors) Tj ET Q q 0 0 0 rg BT 195.33 544.10 Td ( products, rather than our of) Tj ET Q q 0 0 0 rg BT 306.78 544.10 Td (ferings. Our failure to establish and maintain successful ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (relationships with distribution partners could materially adversely af) Tj ET Q q 0 0 0 rg BT 323.36 532.10 Td (fect our business, operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 506.10 Td (e are subject to governmental export and import controls that could subject us to liability or impair our ability to compete ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (in international markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 477.10 Td (Our products are subject to United States export controls and may be exported outside the United States only with the required ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 465.10 Td (level of export license or through an export license exception, because certain of our products contain encryption technology) Tj ET Q q 0 0 0 rg BT 548.06 465.10 Td (. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 453.10 Td (addition, various countries regulate the import of certain encryption technology and have enacted laws that could limit our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 441.10 Td (ability to distribute certain of our products or could limit our customers) Tj ET Q q 0 0 0 rg BT 337.81 441.10 Td ( ability to implement these products in those countries. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 429.10 Td (Changes in our products or changes in export and import regulations may create delays in the introduction of our products in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 417.10 Td (international markets, prevent our customers with international operations from deploying our products throughout their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 405.10 Td (networks or) Tj ET Q q 0 0 0 rg BT 97.09 405.10 Td (, in some cases, prevent the export or import of our products to certain countries altogether) Tj ET Q q 0 0 0 rg BT 459.48 405.10 Td (. ) Tj ET Q q 0 0 0 rg BT 463.93 405.10 Td (Any change in export or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 393.10 Td (import laws and regulations, shifts in approach to the enforcement or scope of existing laws and regulations, or change in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 381.10 Td (countries, persons or technologies tar) Tj ET Q q 0 0 0 rg BT 198.95 381.10 Td (geted by such regulations, could result in decreased use of our products by) Tj ET Q q 0 0 0 rg BT 496.27 381.10 Td (, or in our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 369.10 Td (decreased ability to export or sell our products to, existing or potential customers with international operations. ) Tj ET Q q 0 0 0 rg BT 496.01 369.10 Td (Any decreased ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 357.10 Td (use of our products or limitation on our ability to export or sell our products would likely adversely af) Tj ET Q q 0 0 0 rg BT 457.51 357.10 Td (fect our business, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 345.10 Td (operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 319.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 319.10 Td (e may not successfully sell our products in certain geographic markets or develop and manage new sales channels in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 307.10 Td (accordance with our business plan.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 290.10 Td (e expect to continue to sell our products in certain geographic markets where we do not have significant current business and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (to a broader customer base. ) Tj ET Q q 0 0 0 rg BT 162.00 278.10 Td (T) Tj ET Q q 0 0 0 rg BT 167.41 278.10 Td (o succeed in certain of these markets, we believe we will need to develop and manage new sales ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (channels and distribution arrangements. Because we have limited experience in developing and managing such channels, we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (may not be successful in further penetrating certain geographic regions or reaching a broader customer base. Failure to develop ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (or manage additional sales channels ef) Tj ET Q q 0 0 0 rg BT 203.93 242.10 Td (fectively would limit our ability to succeed in these markets and could adversely af) Tj ET Q q 0 0 0 rg BT 536.14 242.10 Td (fect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (our ability to grow our customer base and revenue.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 204.10 Td (Failure to comply with the United States Foreign Corrupt Practices ) Tj ET Q q 0 0 0 rg BT 329.65 204.10 Td (Act, or FCP) Tj ET Q q 0 0 0 rg BT 378.63 204.10 Td (A, and similar laws associated with our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 192.10 Td (activities outside the United States could subject us to penalties and other adverse consequences) Tj ET Q BT /F6 10.00 Tf ET q 0 0 0 rg BT 443.60 192.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 175.10 Td (As a substantial portion of our revenues is, and we expect will continue to be, from jurisdictions outside of the United States, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (we face significant risks if we fail to comply with the FCP) Tj ET Q q 0 0 0 rg BT 282.65 163.10 Td (A) Tj ET Q q 0 0 0 rg BT 289.32 163.10 Td ( and other laws that prohibit us and other business entities with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 151.10 Td (whom we do business from making improper payments or of) Tj ET Q q 0 0 0 rg BT 293.95 151.10 Td (fers of payment to governments and their of) Tj ET Q q 0 0 0 rg BT 469.55 151.10 Td (ficials and political ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 139.10 Td (parties for the purpose of obtaining or retaining business. ) Tj ET Q q 0 0 0 rg BT 280.51 139.10 Td (Although we have implemented policies and procedures designed to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 127.10 Td (ensure compliance with these laws and regulations, there can be no assurance that our employees, contractors, or resellers will ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 115.10 Td (not violate our policies. If we are found to be liable for violations of the FCP) Tj ET Q q 0 0 0 rg BT 358.74 115.10 Td (A) Tj ET Q q 0 0 0 rg BT 365.41 115.10 Td ( or similar anti-corruption laws in international ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 103.10 Td (jurisdictions, either due to our own acts or out of inadvertence, or due to the acts or inadvertence of others, we could suf) Tj ET Q q 0 0 0 rg BT 529.95 103.10 Td (fer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 91.10 Td (from criminal or civil penalties that could have a material and adverse ef) Tj ET Q q 0 0 0 rg BT 340.25 91.10 Td (fect on our business, operating results and financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 79.10 Td (condition. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (28) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Risks Related to Ownership of Our) Tj ET Q q 0 0 0 rg BT 200.10 742.25 Td ( Common Stock) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Our stock price has been and may continue to be highly volatile, and you may not be able to sell shares of our common ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (stock at or above the price you paid.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 696.25 Td (Our stock price has been and may continue to be highly volatile and it could be subject to wide fluctuations in response to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 684.25 Td (various factors, some of which are beyond our control. ) Tj ET Q q 0 0 0 rg BT 271.14 684.25 Td (These factors include those discussed in this Risk Factors section and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 672.25 Td (others such as:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 655.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 655.25 Td (a slowdown in the telecommunications industry or the general economy;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 638.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 638.25 Td (quarterly or annual variations in our results of operations or those of our competitors;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 621.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 621.25 Td (changes in earnings estimates or recommendations by securities analysts;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 604.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 604.25 Td (announcements by us or our competitors of new products or services, significant contracts, commercial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 592.25 Td (relationships, capital commitments or acquisitions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 575.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 575.25 Td (developments with respect to intellectual property rights;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 558.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 558.25 Td (our ability to develop and market new and enhanced products on a timely basis;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 541.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 541.25 Td (our commencement of, or involvement in, litigation;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 524.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 524.25 Td (departure of key personnel; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 507.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 507.25 Td (changes in governmental regulations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (In addition, in recent years, the stock markets generally) Tj ET Q q 0 0 0 rg BT 270.94 486.25 Td (, and the market for technology stocks in particular) Tj ET Q q 0 0 0 rg BT 474.64 486.25 Td (, have experienced ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (companies. From January 1, 2012 until December 31, 2013, our common stock has traded at prices ranging from $20.13 to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td ($45.32. Broad market and industry factors may seriously af) Tj ET Q q 0 0 0 rg BT 287.54 450.25 Td (fect the market price of our common stock, regardless of our actual ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (operating performance. In the past, class action litigation has often been instituted against companies whose securities have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.25 Td (experienced periods of volatility in market price. Securities litigation brought against us following volatility in our stock price, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.25 Td (regardless of the merit or ultimate results of such litigation could result in substantial costs, which would hurt our financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (condition and operating results and divert management) Tj ET Q q 0 0 0 rg BT 272.71 402.25 Td (s attention and resources from our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 376.25 Td (Securities analysts may not publish favorable research or reports about our business or may publish no information which ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 364.25 Td (could cause our stock price or trading volume to decline.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 347.25 Td (The trading market for our common stock will be influenced by the research and reports industry or financial analysts publish ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 335.25 Td (about us and our business. ) Tj ET Q q 0 0 0 rg BT 157.59 335.25 Td (W) Tj ET Q q 0 0 0 rg BT 166.23 335.25 Td (e do not control these analysts. If any of the analysts who cover us issue an adverse opinion ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.25 Td (regarding our stock price, our stock price would likely decline. If one or more of these analysts cease coverage of our company ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 311.25 Td (or fail to regularly publish reports covering us, we could lose visibility in the market, which in turn could cause our stock price ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 299.25 Td (or trading volume to decline.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 273.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 273.25 Td (e do not intend to pay dividends for the foreseeable future and our stock may not appreciate in value.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 256.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 256.25 Td (e currently intend to retain our future earnings, if any) Tj ET Q q 0 0 0 rg BT 270.69 256.25 Td (, to finance the operation and growth of our business and do not expect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 244.25 Td (to pay any cash dividends in the foreseeable future. ) Tj ET Q q 0 0 0 rg BT 257.15 244.25 Td (As a result, the success of an investment in shares of our common stock ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 232.25 Td (will depend upon any future appreciation in its value. ) Tj ET Q q 0 0 0 rg BT 265.87 232.25 Td (There is no guarantee that shares of our common stock will appreciate in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 220.25 Td (value or that the price at which our stockholders have purchased their shares will be able to be maintained.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (Provisions in our charter documents and under Delaware law could discourage potential acquisition proposals, could delay) Tj ET Q q 0 0 0 rg BT 557.46 194.25 Td (, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (deter or prevent a change in control and could limit the price certain investors might be willing to pay for our common ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 170.25 Td (stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 153.25 Td (Our certificate of incorporation and bylaws include provisions that may delay or prevent an acquisition of us or a change in our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 141.25 Td (management. ) Tj ET Q q 0 0 0 rg BT 105.91 141.25 Td (These provisions include a classified board of directors with three-year staggered terms, a prohibition on actions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 129.25 Td (by written consent of our stockholders and the ability of our board of directors to issue preferred stock without stockholder ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 117.25 Td (approval. In addition, because we are incorporated in Delaware, we are governed by the provisions of Section203 of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 105.25 Td (Delaware General Corporation Law) Tj ET Q q 0 0 0 rg BT 192.90 105.25 Td (, which prohibits stockholders owning in excess of 15% of our outstanding voting stock ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 93.25 Td (from mer) Tj ET Q q 0 0 0 rg BT 87.30 93.25 Td (ging or combining with us in certain circumstances. ) Tj ET Q q 0 0 0 rg BT 296.43 93.25 Td (Although we believe these provisions collectively provide for an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 81.25 Td (opportunity to receive higher bids by requiring potential acquirers to negotiate with our board of directors, they would apply ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 69.25 Td (even if the of) Tj ET Q q 0 0 0 rg BT 102.85 69.25 Td (fer may be considered beneficial by some stockholders. In addition, these provisions may frustrate or prevent ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 57.25 Td (attempts by our stockholders to replace or remove our current management by making it more dif) Tj ET Q q 0 0 0 rg BT 439.98 57.25 Td (ficult for stockholders to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 45.25 Td (replace members of our board of directors, which is responsible for appointing the members of our management.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (These provisions could discourage potential acquisition proposals or could delay) Tj ET Q q 0 0 0 rg BT 372.33 742.10 Td (, deter or prevent a change in control, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (including transactions that may be in the best interests of our stockholders. ) Tj ET Q q 0 0 0 rg BT 350.77 730.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 400.67 730.10 Td (, these provisions could limit the price ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (certain investors might be willing to pay for our common stock.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 692.10 Td (Provisions in the indenture for the Notes may deter or prevent a business combination.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 675.10 Td (Under the terms of the indenture governing the Notes, the occurrence of certain mer) Tj ET Q q 0 0 0 rg BT 385.80 675.10 Td (ger and business combination transactions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 663.10 Td (could require us to repurchase all or a portion of the Notes, or) Tj ET Q q 0 0 0 rg BT 296.46 663.10 Td (, in some circumstances, increase the conversion rate applicable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 651.10 Td (to the Notes. In addition, the indenture for the Notes prohibits us from engaging in certain mer) Tj ET Q q 0 0 0 rg BT 427.50 651.10 Td (gers or business combination ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.10 Td (transactions unless, among other things, the surviving entity assumes our obligations under the Notes. ) Tj ET Q q 0 0 0 rg BT 459.48 639.10 Td (These and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (provisions could prevent or deter a third party from acquiring us even where the acquisition could be beneficial to our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 589.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 589.10 Td (e may issue additional shares of our common stock or instruments convertible into shares of our common stock, including ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 Td (additional shares associated with the potential conversion of the Notes, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 508.16 577.10 Td (fect the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 565.10 Td (market price of our common stock and cause dilution to existing stockholders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.10 Td (Upon conversion of the Notes, we will repay the principal portion of the Notes in cash, but we will deliver shares of common ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 536.10 Td (stock to the note holder in respect of any conversion value of the Notes. ) Tj ET Q q 0 0 0 rg BT 339.09 536.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 388.99 536.10 Td (, we are not restricted from issuing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 524.10 Td (additional shares of our common stock or other instruments convertible into, or exchangeable or exercisable for) Tj ET Q q 0 0 0 rg BT 496.12 524.10 Td (, shares of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 512.10 Td (common stock. If we issue additional shares of our common stock, including upon the conversion of the Notes, or if we issue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 500.10 Td (additional instruments convertible into shares of our common stock, it may materially and adversely af) Tj ET Q q 0 0 0 rg BT 461.10 500.10 Td (fect the market price of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.10 Td (our common stock. ) Tj ET Q q 0 0 0 rg BT 129.25 488.10 Td (The issuance of additional shares of our common stock, including upon conversion of some or all of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.10 Td (Notes, will also dilute the ownership interests of existing holders of our common stock. Dilution will be greater if the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (conversion rate of the Notes is adjusted upon the occurrence of certain events specified in the indenture to the Notes.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 430.33 Td (Item1B.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 430.33 Td (Unresolved Staff Comments) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td (None.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 375.33 Td (Item2.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 375.33 Td (Properties) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (Our principal of) Tj ET Q q 0 0 0 rg BT 114.24 354.10 Td (fices occupy approximately 35,000 square feet of leased of) Tj ET Q q 0 0 0 rg BT 349.80 354.10 Td (fice space in Gaithersbur) Tj ET Q q 0 0 0 rg BT 449.30 354.10 Td (g, Maryland which we lease ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (pursuant to a sublease with a sublessor) Tj ET Q q 0 0 0 rg BT 204.42 342.10 Td (. ) Tj ET Q q 0 0 0 rg BT 209.24 342.10 Td (W) Tj ET Q q 0 0 0 rg BT 217.88 342.10 Td (e also maintain sales, development or technical assistance of) Tj ET Q q 0 0 0 rg BT 459.56 342.10 Td (fices in Phoenix, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (Arizona; San Jose, California; Richardson and Houston, ) Tj ET Q q 0 0 0 rg BT 276.72 330.10 Td (T) Tj ET Q q 0 0 0 rg BT 282.13 330.10 Td (exas; ) Tj ET Q q 0 0 0 rg BT 305.00 330.10 Td (T) Tj ET Q q 0 0 0 rg BT 310.76 330.10 Td (ulsa, Oklahoma; Belfast, Northern Ireland; Crawley) Tj ET Q q 0 0 0 rg BT 517.54 330.10 Td (, United ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (Kingdom; Chennai, India; Madrid, Spain; Montreal, Canada; Paris, France; Seoul, South Korea; Sydney) Tj ET Q q 0 0 0 rg BT 466.78 318.10 Td (, ) Tj ET Q q 0 0 0 rg BT 471.23 318.10 Td (Australia; ) Tj ET Q q 0 0 0 rg BT 512.98 318.10 Td (W) Tj ET Q q 0 0 0 rg BT 521.62 318.10 Td (arsaw) Tj ET Q q 0 0 0 rg BT 544.29 318.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (Poland; London, England; ) Tj ET Q q 0 0 0 rg BT 157.59 306.10 Td (T) Tj ET Q q 0 0 0 rg BT 163.00 306.10 Td (okyo, Japan; Sophia, Bulgaria; Cologne, Germany; and Helsinki, Finland.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 272.33 Td (Item3.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 272.33 Td (Legal Proceedings) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 251.10 Td (e are subject to litigation and claims arising in the ordinary course of business. ) Tj ET Q q 0 0 0 rg BT 374.77 251.10 Td (While we intend to defend ourselves ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (vigorously) Tj ET Q q 0 0 0 rg BT 92.13 239.10 Td (, we cannot be certain of any particular outcome and an adverse outcome in this lawsuit could have a material ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 227.10 Td (fect on our business. ) Tj ET Q q 0 0 0 rg BT 175.15 227.10 Td (W) Tj ET Q q 0 0 0 rg BT 183.79 227.10 Td (e are not aware of any pending or threatened legal proceeding against us that could have a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.88 215.10 Td (fect on our business, operating results or financial condition. ) Tj ET Q q 0 0 0 rg BT 370.37 215.10 Td (The software and communications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 203.10 Td (infrastructure industries are characterized by frequent claims and litigation, including claims regarding patent and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 191.10 Td (intellectual property rights as well as improper hiring practices and claims for indemnification. ) Tj ET Q q 0 0 0 rg BT 431.00 191.10 Td (As a result, we may be involved ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 179.10 Td (in various legal proceedings from time to time.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 145.33 Td (Item4.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 145.33 Td (Mine Safety Disclosures) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (30) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 742.25 Td ( II) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 696.48 Td (Item5.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 696.48 Td (Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 686.48 Td (Securities) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (Market Information for) Tj ET Q q 0 0 0 rg BT 152.02 665.25 Td ( Common Stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 648.25 Td (Our common stock has been listed on the NASDAQ Global Select Market since January3, 2012 and prior thereto was listed on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 636.25 Td (the NASDAQ Global Market, under the symbol BSFT. Prior to our IPO on June16, 2010, there was no public market for our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 624.25 Td (common stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.25 Td (The following table sets forth for the indicated periods the high and low sales prices of our common stock as reported on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.25 Td (NASDAQ Global Select Market.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 580.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 556.95 m 373.5 556.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 556.95 m 381.5 556.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 556.95 m 436.5 556.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 556.95 m 444.5 556.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 556.95 m 499.5 556.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 556.95 m 507.5 556.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 556.95 m 562.5 556.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 561.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.00 561.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 540.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.25 548.18 Td (First) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 331.55 540.18 Td (Quarter) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 396.25 548.18 Td (Second) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.55 540.18 Td (Quarter) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 461.45 548.18 Td (Third) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 457.55 540.18 Td (Quarter) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.50 548.18 Td (Fourth) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.55 540.18 Td (Quarter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 526.52 Td (High) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.00 525.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.15 525.62 Td (39.35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 525.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 525.62 Td (30.84) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 525.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 525.62 Td (37.93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 525.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 525.62 Td (37.87) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 511.52 Td (Low) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.15 510.62 Td (20.45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 510.62 Td (23.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 510.62 Td (27.48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 510.62 Td (23.01) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 482.95 m 373.5 482.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 482.95 m 381.5 482.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 482.95 m 436.5 482.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 482.95 m 444.5 482.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 482.95 m 499.5 482.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 482.95 m 507.5 482.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 482.95 m 562.5 482.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 487.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.00 487.18 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 466.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.25 474.18 Td (First) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 331.55 466.18 Td (Quarter) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 396.25 474.18 Td (Second) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.55 466.18 Td (Quarter) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 461.45 474.18 Td (Third) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 457.55 466.18 Td (Quarter) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.50 474.18 Td (Fourth) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.55 466.18 Td (Quarter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 452.52 Td (High) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.00 451.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.15 451.62 Td (40.90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 451.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 451.62 Td (45.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 451.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 451.62 Td (42.96) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 451.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 451.62 Td (41.37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 437.52 Td (Low) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.15 436.62 Td (24.85) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 436.62 Td (23.73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 436.62 Td (20.13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 436.62 Td (28.77) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 406.45 Td (Dividend Policy) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 389.45 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 389.45 Td (e have never declared or paid dividends on our capital stock. ) Tj ET Q q 0 0 0 rg BT 303.36 389.45 Td (W) Tj ET Q q 0 0 0 rg BT 312.00 389.45 Td (e currently intend to retain all available funds and any future ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 377.45 Td (earnings to support operations and to finance the growth and development of our business. ) Tj ET Q q 0 0 0 rg BT 414.46 377.45 Td (W) Tj ET Q q 0 0 0 rg BT 423.10 377.45 Td (e do not intend to declare or pay ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 365.45 Td (cash dividends on our common stock in the foreseeable future. ) Tj ET Q q 0 0 0 rg BT 302.43 365.45 Td (Any future determination to pay dividends will be made at the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 353.45 Td (discretion of our board of directors, subject to applicable laws, and will depend upon, among other factors, our results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 341.45 Td (operations, financial condition, contractual restrictions and capital requirements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.45 Td (Stockholders) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.45 Td (As of February20, 2014, there were 27 registered stockholders of record of our common stock.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 272.45 Td (Stock Performance Graph) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 255.45 Td (The graph set forth below compares the cumulative total stockholder return on an initial investment of $100 in our common ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 243.45 Td (stock between June16, 2010 \(the date of our IPO\) and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 243.45 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.08 243.45 Td (, with the comparative cumulative total return of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 231.45 Td (such amount on \(i\)the NASDAQ ) Tj ET Q q 0 0 0 rg BT 186.47 231.45 Td (T) Tj ET Q q 0 0 0 rg BT 191.88 231.45 Td (elecommunications Index and \(ii\)the NASDAQ Composite Index, over the same period. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 219.45 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 219.45 Td (e have not paid any cash dividends and, therefore, the cumulative total return calculation for us is based solely upon stock ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 207.45 Td (price appreciation and not upon reinvestment of cash dividends. ) Tj ET Q q 0 0 0 rg BT 308.08 207.45 Td (The graph assumes our closing sales price on June16, 2010 of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 195.45 Td ($8.30 per share as the initial value of our common stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 174.45 Td (The comparisons shown in the graph below are based upon historical data. ) Tj ET Q q 0 0 0 rg BT 350.57 174.45 Td (W) Tj ET Q q 0 0 0 rg BT 359.21 174.45 Td (e caution that the stock price performance shown ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 162.45 Td (in the graph below is not necessarily indicative of, nor is it intended to forecast, the potential future performance of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 150.45 Td (common stock. Information used in the graph was obtained from the NASDAQ Stock Market, Inc., a financial data provider ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 138.45 Td (and a source believed to be reliable. ) Tj ET Q q 0 0 0 rg BT 195.86 138.45 Td (The NASDAQ Stock Market, Inc. is not responsible for any errors or omissions in such ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 126.45 Td (information.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (31) Tj ET Q /GS0 gs q 512.00 0 0 298.65 50.00 450.37 cm /I18 Do Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 429.35 Td (The information presented above in the stock performance graph shall not be deemed to be soliciting material or to be filed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 417.35 Td (with the SEC or subject to Regulation 14A) Tj ET Q q 0 0 0 rg BT 220.82 417.35 Td ( or 14C, except to the extent that we subsequently specifically request that such ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 405.35 Td (information be treated as soliciting material or specifically incorporate it by reference into a filing under the Securities ) Tj ET Q q 0 0 0 rg BT 525.38 405.35 Td (Act of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 393.35 Td (1933, as amended, or a filing under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 292.15 393.35 Td (Act of 1934, as amended.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 367.35 Td (Recent Sale of Unr) Tj ET Q q 0 0 0 rg BT 130.08 367.35 Td (egister) Tj ET Q q 0 0 0 rg BT 158.21 367.35 Td (ed Securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 350.35 Td (None.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.35 Td (Pur) Tj ET Q q 0 0 0 rg BT 65.93 324.35 Td (chases of Equity Securities by the Issuer) Tj ET Q q 0 0 0 rg BT 236.86 324.35 Td ( and ) Tj ET Q q 0 0 0 rg BT 257.43 324.35 Td (Affiliated Pur) Tj ET Q q 0 0 0 rg BT 316.41 324.35 Td (chasers) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 307.35 Td (None.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 273.58 Td (Item6.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 273.58 Td (Selected Consolidated Financial Data) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 252.35 Td (Y) Tj ET Q q 0 0 0 rg BT 56.22 252.35 Td (ou should read the following selected consolidated financial data together with Management) Tj ET Q q 0 0 0 rg BT 433.04 252.35 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 502.21 252.35 Td (Analysis of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 240.35 Td (Financial Condition and Results of Operations, our consolidated financial statements and the related notes included in this ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 228.35 Td (Annual Report on Form 10-K.) 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Historical results are not necessarily indicative of the results to be expected in any future periods.) 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ET q 0 0 0 rg BT 420.10 597.62 Td (138,064) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 597.62 Td (95,623) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 597.62 Td (68,887) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 583.52 Td (Cost of revenue:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 568.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.15 567.62 Td (9,241) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 567.62 Td (8,643) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 567.62 Td (6,077) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 567.62 Td (5,341) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 567.62 Td (5,232) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 553.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 552.62 Td (21,368) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 552.62 Td (14,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 552.62 Td (10,419) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 552.62 Td (7,691) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 552.62 Td (6,678) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 538.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 537.62 Td (10,771) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 537.62 Td (9,012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 537.62 Td (8,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 537.62 Td (7,010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 537.62 Td (5,464) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 523.52 Td (Total cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 522.62 Td (41,380) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 522.62 Td (32,486) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 522.62 Td (24,974) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 522.62 Td (20,042) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 522.62 Td (17,374) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 508.52 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.10 507.62 Td (137,113) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.10 507.62 Td (132,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.10 507.62 Td (113,090) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 507.62 Td (75,581) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 507.62 Td (51,513) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 493.52 Td (Operating expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 478.52 Td (Sales and marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 477.62 Td (62,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 477.62 Td (47,911) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 477.62 Td (38,376) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 477.62 Td (31,818) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 477.62 Td (28,534) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 463.52 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 462.62 Td (49,696) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 462.62 Td (36,178) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 462.62 Td (27,744) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 462.62 Td (19,616) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 462.62 Td (16,625) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 448.52 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 447.62 Td (32,580) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 447.62 Td (22,863) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 447.62 Td (19,534) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 447.62 Td (14,103) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 447.62 Td (11,405) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 433.52 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.10 432.62 Td (144,450) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.10 432.62 Td (106,952) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 432.62 Td (85,654) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 432.62 Td (65,537) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 432.62 Td (56,564) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 418.52 Td (\(Loss\) income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.80 417.67 Td (\(7,337) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 417.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 417.62 Td (25,404) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 417.62 Td (27,436) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 417.62 Td (10,044) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 417.67 Td (\(5,051) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 417.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 403.52 Td (Other expense, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.15 402.62 Td (6,946) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 402.62 Td (6,470) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 402.62 Td (3,314) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 402.62 Td (879) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 402.62 Td (1,469) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 388.52 Td (\(Loss\) income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.80 387.67 Td (\(14,283) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 387.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 387.62 Td (18,934) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 387.62 Td (24,122) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 387.62 Td (9,165) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 387.67 Td (\(6,520) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 387.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 373.52 Td (\(Benefit from\) provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.80 372.67 Td (\(5,409) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 372.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 372.62 Td (6,858) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.80 372.67 Td (\(8,175) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.65 372.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 372.62 Td (1,169) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 372.62 Td (1,333) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 358.52 Td (Net \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.80 357.67 Td (\(8,874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 357.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 357.62 Td (12,076) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 357.62 Td (32,297) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 357.62 Td (7,996) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 357.67 Td (\(7,853) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 357.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 343.52 Td (Net \(loss\) income attributable to noncontrolling interest) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 342.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.65 342.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 342.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 342.62 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.30 342.67 Td (\(4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 342.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 328.52 Td (Net \(loss\) income attributable to BroadSoft, Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 327.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.80 327.67 Td (\(8,874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 327.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 327.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 327.62 Td (12,076) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 327.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 327.62 Td (32,297) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 327.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 327.62 Td (7,992) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.00 327.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 327.67 Td (\(7,849) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 327.62 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 313.68 Td (Net \(loss\) income per common share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 298.52 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.80 297.67 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 297.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 297.62 Td (0.44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.15 297.62 Td (1.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.15 297.62 Td (0.49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.80 297.67 Td (\(1.25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 297.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 283.52 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.80 282.67 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 282.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 282.62 Td (0.43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.15 282.62 Td (1.15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.15 282.62 Td (0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.80 282.67 Td (\(1.25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 282.62 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 268.68 Td (Weighted average common shares outstanding:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 253.52 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 252.62 Td (28,116) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 252.62 Td (27,581) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 252.62 Td (26,603) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 252.62 Td (16,263) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 252.62 Td (6,285) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 238.52 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 237.62 Td (28,116) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 237.62 Td (28,353) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 237.62 Td (27,987) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 237.62 Td (24,721) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 237.62 Td (6,285) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 212.63 Td (Stock based compensation expense included above:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 198.52 Td (Cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.15 197.62 Td (4,861) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 197.62 Td (1,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 197.62 Td (916) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 197.62 Td (210) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 197.62 Td (325) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 183.52 Td (Sales and marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 182.62 Td (14,336) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 182.62 Td (5,609) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 182.62 Td (1,984) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 182.62 Td (882) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 182.62 Td (1,088) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 168.52 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.10 167.62 Td (13,225) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 167.62 Td (4,498) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 167.62 Td (1,901) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 167.62 Td (638) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 167.62 Td (741) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 153.52 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.15 152.62 Td (9,262) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.15 152.62 Td (3,084) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 152.62 Td (2,400) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 152.62 Td (1,278) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 152.62 Td (1,475) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (33) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Balance Sheet Data:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 718.75 m 351.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 718.75 m 359.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 718.75 m 404.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 718.75 m 412.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 718.75 m 457.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 718.75 m 464.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 718.75 m 509.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 718.75 m 517.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 718.75 m 562.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 718.75 m 351.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 705.75 m 351.5 705.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 718.75 m 359.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 718.75 m 404.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 705.75 m 404.5 705.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 718.75 m 412.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 718.75 m 457.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 705.75 m 457.5 705.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 718.75 m 464.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 718.75 m 509.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 705.75 m 509.5 705.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 718.75 m 517.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 718.75 m 562.5 718.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 705.75 m 562.5 705.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 692.75 m 351.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 692.75 m 359.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 692.75 m 404.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 692.75 m 412.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 692.75 m 457.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 692.75 m 464.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 692.75 m 509.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 692.75 m 517.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 692.75 m 562.5 692.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 723.00 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 400.95 722.98 Td (As of December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 710.00 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.50 709.98 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 373.50 709.98 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 426.70 709.98 Td (2011) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 478.50 709.98 Td (2010) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 531.50 709.98 Td (2009) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 697.00 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 409.65 696.98 Td (\(in thousands\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 683.48 Td (Consolidated Balance Sheet Data:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 669.32 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.00 668.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.10 668.42 Td (69,866) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 668.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 373.10 668.42 Td (90,545) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.00 668.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.10 668.42 Td (94,072) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 668.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 668.42 Td (47,254) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.00 668.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 668.42 Td (22,869) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 654.32 Td (Working capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.10 653.42 Td (161,066) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.10 653.42 Td (161,519) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.10 653.42 Td (180,010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 653.42 Td (35,268) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 653.42 Td (2,924) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 639.32 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.10 638.42 Td (391,497) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.10 638.42 Td (326,906) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.10 638.42 Td (290,956) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.10 638.42 Td (127,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 638.42 Td (66,663) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 624.32 Td (Convertible senior notes, notes payable and bank loans, less) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 614.32 Td (current portion) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.10 613.42 Td (91,549) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 373.10 613.42 Td (86,865) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.10 613.42 Td (82,198) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 613.42 Td (800) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 613.42 Td (14,035) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 599.32 Td (Total liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.10 598.42 Td (190,986) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.10 598.42 Td (165,671) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.10 598.42 Td (157,713) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 598.42 Td (74,811) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.10 598.42 Td (71,277) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 584.32 Td (Total stockholders equity \(deficit\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.10 583.42 Td (200,511) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.10 583.42 Td (161,235) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.10 583.42 Td (133,243) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 583.42 Td (52,545) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.80 583.47 Td (\(77,800) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 583.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 739.23 Td (Item7.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 739.23 Td (Managements Discussion and Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 718.00 Td (Company Overview) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 701.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 701.00 Td (e are the leading global provider of software and services that enable mobile, fixed-line and cable service providers to deliver ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.00 Td (hosted, or cloud-based, Unified Communications and other voice and multimedia services over their Internet protocol, or IP) Tj ET Q q 0 0 0 rg BT 544.59 689.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.00 Td (based networks. Our core communications platform consists of three of) Tj ET Q q 0 0 0 rg BT 335.85 677.00 Td (ferings: ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 368.90 677.00 Td (Br) Tj ET Q q 0 0 0 rg BT 378.53 677.00 Td (oadW) Tj ET Q q 0 0 0 rg BT 400.94 677.00 Td (orks, Br) Tj ET Q q 0 0 0 rg BT 432.79 677.00 Td (oadCloud and Br) Tj ET Q q 0 0 0 rg BT 501.87 677.00 Td (oadT) Tj ET Q q 0 0 0 rg BT 521.51 677.00 Td (ouch.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 656.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 656.00 Td (e began selling BroadW) Tj ET Q q 0 0 0 rg BT 154.19 656.00 Td (orks in 2001. Over 600 service providers in more than 76 countries have purchased and/or are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 644.00 Td (delivering services utilizing our software, including 19 of the top 25 telecommunications service providers globally) Tj ET Q q 0 0 0 rg BT 511.18 644.00 Td (, as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 632.00 Td (measured by revenue for the year ended December31, 2012. ) Tj ET Q q 0 0 0 rg BT 295.83 632.00 Td (W) Tj ET Q q 0 0 0 rg BT 304.46 632.00 Td (e sell our products to service providers both directly and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 620.00 Td (indirectly through distribution partners, such as telecommunications equipment vendors, ) Tj ET Q q 0 0 0 rg BT 406.13 620.00 Td (V) Tj ET Q q 0 0 0 rg BT 412.07 620.00 Td (ARs and other distributors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 594.00 Td (Executive Summary) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 577.00 Td (Our management team monitors and analyzes a number of key industry trends and performance indicators to manage our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 565.00 Td (business and evaluate our financial and operating performance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 544.00 Td (In 2013, we saw the continuation of the trend towards cloud-based and hosted communications by service providers and others. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 532.00 Td (In 2014, we believe this trend will continue and possibly accelerate, as service providers further seek speed and flexibility for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 520.00 Td (the delivery of communications services. Our goal is to provide our service provider customers with the service and software ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 508.00 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 508.00 Td (ferings they need to ef) Tj ET Q q 0 0 0 rg BT 147.38 508.00 Td (fectively address this market opportunity and their end-user customer needs. ) Tj ET Q q 0 0 0 rg BT 454.79 508.00 Td (As a result, in 2014, we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 496.00 Td (will continue our strategic investments in research and development of existing and new products, including client software and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 484.00 Td (cloud-based services, as well as in sales and marketing headcount to support our product of) Tj ET Q q 0 0 0 rg BT 415.00 484.00 Td (ferings and increase our go-to-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 472.00 Td (market ef) Tj ET Q q 0 0 0 rg BT 87.85 472.00 Td (forts. ) Tj ET Q q 0 0 0 rg BT 113.50 472.00 Td (W) Tj ET Q q 0 0 0 rg BT 122.14 472.00 Td (e increased our hiring in 2013, adding approximately 1) Tj ET Q q 0 0 0 rg BT 341.43 472.00 Td (14 employees, and expect to continue to grow in 2014. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 451.00 Td (BroadCloud PBX, our cloud-based PBX of) Tj ET Q q 0 0 0 rg BT 222.59 451.00 Td (fering, is a particularly key area of investment focus for us. ) Tj ET Q q 0 0 0 rg BT 461.49 451.00 Td (W) Tj ET Q q 0 0 0 rg BT 470.13 451.00 Td (e believe that many of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 439.00 Td (our service provider customers are interested in accessing the capabilities of our BroadW) Tj ET Q q 0 0 0 rg BT 405.73 439.00 Td (orks features and functions through a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 427.00 Td (service of) Tj ET Q q 0 0 0 rg BT 88.96 427.00 Td (fering hosted and managed by us, reducing cost and increasing speed and ease of use for end-users. ) Tj ET Q q 0 0 0 rg BT 488.00 427.00 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 537.34 427.00 Td (, in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 415.00 Td (2013, we increased our investment in BroadCloud PBX, including through the acquisition of Hosted IP) Tj ET Q q 0 0 0 rg BT 462.91 415.00 Td ( Communications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 403.00 Td (\(Europe\) Limited, located in the United Kingdom, and finocom ) Tj ET Q q 0 0 0 rg BT 305.77 403.00 Td (AG, located in Germany) Tj ET Q q 0 0 0 rg BT 403.42 403.00 Td (. In 2014, we expect that we will ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 391.00 Td (continue to invest in, and expand the availability of, BroadCloud PBX in the UK, Germany and other select European markets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 379.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 379.00 Td (e believe that delivering innovative solutions to our existing customer base to meet their growing cloud-based needs will help ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 367.00 Td (service providers get to market more quickly and drive our revenue growth.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 346.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 346.00 Td (e believe conver) Tj ET Q q 0 0 0 rg BT 123.97 346.00 Td (ged and mobile operators desire UC solutions to deliver to their enterprise customer base to raise average ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 334.00 Td (revenue per user) Tj ET Q q 0 0 0 rg BT 115.52 334.00 Td (. Our UC-One functionality) Tj ET Q q 0 0 0 rg BT 225.41 334.00 Td (, which is either delivered via a cloud-based platform managed by us or via server ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 322.00 Td (software that resides within the service provider) Tj ET Q q 0 0 0 rg BT 242.53 322.00 Td () Tj ET Q q 0 0 0 rg BT 245.31 322.00 Td (s network, seeks to address this evolution and allows service providers and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 310.00 Td (operators to rapidly and ef) Tj ET Q q 0 0 0 rg BT 155.34 310.00 Td (ficiently deliver a UC experience regardless of end-user device and whether or not the end-user has ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.00 Td (fixed line or wireless access. In addition, we have announced a significant expansion in the video calling and video ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.00 Td (conferencing capabilities of our of) Tj ET Q q 0 0 0 rg BT 187.54 286.00 Td (ferings. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 265.00 Td (Recognizing the importance of mobile applications and the growing desire for end-users for seamless communications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 253.00 Td (wherever they are, across a wide range of devices, we have architected mobility into our solutions and products and have made ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 241.00 Td (integrating with existing mobile networks simple and a core competency of our platform. ) Tj ET Q q 0 0 0 rg BT 409.17 241.00 Td (W) Tj ET Q q 0 0 0 rg BT 417.81 241.00 Td (e have optimized our client, cloud ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 229.00 Td (and software solutions to enable mobility in all of our services, across a wide range of personal and/or business devices. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 208.00 Td (During 2013, our UC and ) Tj ET Q q 0 0 0 rg BT 154.81 208.00 Td (T) Tj ET Q q 0 0 0 rg BT 160.57 208.00 Td (runking solutions experienced strong growth, while our consumer fixed line broadband applications ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 196.00 Td (showed a decline in sales. ) Tj ET Q q 0 0 0 rg BT 155.90 196.00 Td (W) Tj ET Q q 0 0 0 rg BT 164.54 196.00 Td (e believe our UC solutions growth was lar) Tj ET Q q 0 0 0 rg BT 332.93 196.00 Td (gely driven by increased market acceptance of hosted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 184.00 Td (Unified Communications of) Tj ET Q q 0 0 0 rg BT 162.03 184.00 Td (ferings and our SIP) Tj ET Q q 0 0 0 rg BT 239.15 184.00 Td ( ) Tj ET Q q 0 0 0 rg BT 241.46 184.00 Td (T) Tj ET Q q 0 0 0 rg BT 247.22 184.00 Td (runking of) Tj ET Q q 0 0 0 rg BT 288.98 184.00 Td (ferings growth from the move by service provider customers to IP-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 172.00 Td (based trunks. ) Tj ET Q q 0 0 0 rg BT 105.09 172.00 Td (W) Tj ET Q q 0 0 0 rg BT 113.73 172.00 Td (e expect the decrease in consumer fixed line broadband applications will continue in 2014.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 151.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 151.00 Td (e also believe that the migration of wireless networks to ) Tj ET Q q 0 0 0 rg BT 284.51 151.00 Td (V) Tj ET Q q 0 0 0 rg BT 290.44 151.00 Td (oL) Tj ET Q q 0 0 0 rg BT 300.63 151.00 Td (TE \(voice over L) Tj ET Q q 0 0 0 rg BT 368.29 151.00 Td (TE\) could drive significant growth for us over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 139.00 Td (the next several years, although we think the impact in 2014 will be modest. ) Tj ET Q q 0 0 0 rg BT 356.97 139.00 Td (W) Tj ET Q q 0 0 0 rg BT 365.61 139.00 Td (e believe we are well-positioned to meet carrier ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 127.00 Td (demand for ) Tj ET Q q 0 0 0 rg BT 98.13 127.00 Td (V) Tj ET Q q 0 0 0 rg BT 104.07 127.00 Td (oL) Tj ET Q q 0 0 0 rg BT 114.26 127.00 Td (TE-based UC and consumer solutions, especially with regard to our UC of) Tj ET Q q 0 0 0 rg BT 412.34 127.00 Td (ferings for ) Tj ET Q q 0 0 0 rg BT 456.59 127.00 Td (V) Tj ET Q q 0 0 0 rg BT 462.52 127.00 Td (oL) Tj ET Q q 0 0 0 rg BT 472.71 127.00 Td (TE. ) Tj ET Q q 0 0 0 rg BT 489.75 127.00 Td (W) Tj ET Q q 0 0 0 rg BT 498.39 127.00 Td (e executed our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 115.00 Td (first agreements with service providers for ) Tj ET Q q 0 0 0 rg BT 221.98 115.00 Td (V) Tj ET Q q 0 0 0 rg BT 227.92 115.00 Td (oL) Tj ET Q q 0 0 0 rg BT 238.11 115.00 Td (TE consumer and enterprise opportunities in 2013 and expect to execute ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 103.00 Td (additional agreements in 2014 to support ) Tj ET Q q 0 0 0 rg BT 215.90 103.00 Td (V) Tj ET Q q 0 0 0 rg BT 221.83 103.00 Td (oL) Tj ET Q q 0 0 0 rg BT 232.02 103.00 Td (TE of) Tj ET Q q 0 0 0 rg BT 254.89 103.00 Td (ferings by our service provider customers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.00 Td (Management also analyzes trends of billings from existing customers relative to billings from new customers as we believe ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 70.00 Td (billings are a key indicator of growth and performance of our business and reflect the level of selling activity in any particular ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 58.00 Td (time frame. Indeed, we saw considerable growth in billings during the fourth quarter of 2013. In 2013, we saw continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 46.00 Td (growth in revenue and billings from our existing customer base, driven by both the growth of existing BroadW) Tj ET Q q 0 0 0 rg BT 493.00 46.00 Td (orks-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (applications, deployment of new BroadW) Tj ET Q q 0 0 0 rg BT 216.10 742.10 Td (orks applications and the adoption of BroadCloud PBX. Due to our current market ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (penetration among service providers globally) Tj ET Q q 0 0 0 rg BT 230.41 730.10 Td (, growth from the acquisition of new customers was lower in 2013 and we expect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (this trend to continue in 2014. ) Tj ET Q q 0 0 0 rg BT 172.30 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 180.94 718.10 Td (e have increasingly focused our selling ef) Tj ET Q q 0 0 0 rg BT 346.81 718.10 Td (forts on our existing customers by) Tj ET Q q 0 0 0 rg BT 482.53 718.10 Td (, for example, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (increasing our go-to-market assistance to such service providers to help them accelerate the sale of UC of) Tj ET Q q 0 0 0 rg BT 471.88 706.10 Td (ferings to their end-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (users.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (Key Financial Highlights) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 653.10 Td (Some of our key GAAP) Tj ET Q q 0 0 0 rg BT 145.73 653.10 Td ( financial highlights for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.18 653.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.76 653.10 Td ( include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 636.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 636.10 Td (T) Tj ET Q q 0 0 0 rg BT 145.41 636.10 Td (otal revenue increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 249.80 636.10 Td (8%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.13 636.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.96 636.10 Td ($13.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.86 636.10 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.13 636.10 Td ($178.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.03 636.10 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.23 636.10 Td ($164.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 523.12 636.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 624.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 160.00 624.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 607.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 607.10 Td (Gross profit increased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.08 607.10 Td ($137.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.98 607.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.81 607.10 Td (77%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.14 607.10 Td ( of revenue, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.31 607.10 Td ($132.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.21 607.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.04 607.10 Td (80%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.37 607.10 Td ( of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 595.10 Td (revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.31 595.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 208.31 595.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 578.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 578.10 Td (Loss from operations was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.54 578.10 Td ($7.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.43 578.10 Td (, compared to income from operations of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.49 578.10 Td ($25.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.38 578.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.04 578.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 551.04 578.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 561.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 561.10 Td (Net loss was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.05 561.10 Td ($8.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.94 561.10 Td (, compared to net income of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.63 561.10 Td ($12.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.52 561.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.18 561.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.18 561.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 544.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 544.10 Td (Net loss per diluted share was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 262.19 544.10 Td ($0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.69 544.10 Td ( per share compared to net income per diluted share of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.88 544.10 Td ($0.43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.38 544.10 Td ( per ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 532.10 Td (share for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.76 532.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.76 532.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 515.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 515.10 Td (Revenue plus net change in deferred revenue increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.17 515.10 Td (15%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.50 515.10 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.28 515.10 Td ($195.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.17 515.10 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.37 515.10 Td ($168.9 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 503.10 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.89 503.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.55 503.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.55 503.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 486.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 486.10 Td (Deferred revenue increased ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.43 486.10 Td ($16.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 306.32 486.10 Td (, compared to an increase of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.54 486.10 Td ($4.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.43 486.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.09 486.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 507.09 486.10 Td (; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 469.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 469.10 Td (Cash provided by operating activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.96 469.10 Td ($31.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.85 469.10 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.05 469.10 Td ($30.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.95 469.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.61 469.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.61 469.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 448.10 Td (Some of our key non-GAAP) Tj ET Q q 0 0 0 rg BT 164.06 448.10 Td ( financial highlights for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.51 448.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.09 448.10 Td ( include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 431.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 431.10 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 187.41 431.10 Td ( gross profit increased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 288.77 431.10 Td ($145.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.66 431.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.49 431.10 Td (82%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.82 431.10 Td ( of revenue, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.00 431.10 Td ($136.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.89 431.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 419.10 Td (83%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.33 419.10 Td ( of revenue in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.08 419.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 236.08 419.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 402.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 402.10 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 187.41 402.10 Td ( income from operations was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.99 402.10 Td ($38.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.88 402.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.71 402.10 Td (21%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.04 402.10 Td ( of total revenue, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.49 402.10 Td ($43.1 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 390.10 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.89 390.10 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 184.72 390.10 Td (26%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 203.05 390.10 Td ( of total revenue, in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.58 390.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.58 390.10 Td (;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 373.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 373.10 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 187.41 373.10 Td ( net income was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.61 373.10 Td ($36.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.50 373.10 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.70 373.10 Td ($40.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.59 373.10 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.37 373.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.37 373.10 Td (; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 356.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 356.10 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 187.41 356.10 Td ( net income per diluted share was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.75 356.10 Td ($1.22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.25 356.10 Td ( per common share, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.81 356.10 Td ($1.44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.31 356.10 Td ( per common ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 344.10 Td (share in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 173.88 344.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.88 344.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.10 Td (For a discussion of these non-GAAP) Tj ET Q q 0 0 0 rg BT 196.56 323.10 Td ( financial measures and a reconciliation of GAAP) Tj ET Q q 0 0 0 rg BT 395.29 323.10 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 459.91 323.10 Td ( financial results, please ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 311.10 Td (refer to Non-GAAP) Tj ET Q q 0 0 0 rg BT 133.49 311.10 Td ( Financial Measures included elsewhere in this Management) Tj ET Q q 0 0 0 rg BT 382.58 311.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 451.75 311.10 Td (Analysis of Financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 299.10 Td (Condition and Results of Operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.10 Td (Components of Operating Results) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 239.10 Td (e derive our revenue primarily from the sale of license software, subscription and maintenance support, and professional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (services. ) Tj ET Q q 0 0 0 rg BT 87.03 227.10 Td (W) Tj ET Q q 0 0 0 rg BT 95.66 227.10 Td (e recognize revenue when all revenue recognition criteria have been met in accordance with revenue recognition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (guidance. ) Tj ET Q q 0 0 0 rg BT 90.91 215.10 Td (This guidance provides that revenue should be recognized when persuasive evidence of an arrangement exists, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 203.10 Td (delivery has occurred, the price is fixed or determinable and collection is probable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (Our total revenue consists of the following:) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 74.00 165.10 Td (License softwar) Tj ET Q q 0 0 0 rg BT 136.69 165.10 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.12 165.10 Td (. ) Tj ET Q q 0 0 0 rg BT 145.94 165.10 Td (W) Tj ET Q q 0 0 0 rg BT 154.58 165.10 Td (e derive license software revenue from the sale of perpetual software licenses. ) Tj ET Q q 0 0 0 rg BT 468.98 165.10 Td (W) Tj ET Q q 0 0 0 rg BT 477.62 165.10 Td (e generally price our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 153.10 Td (software based on the types of features and applications provided and on the number of subscriber licenses sold. ) Tj ET Q q 0 0 0 rg BT 501.08 153.10 Td (These factors ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 141.10 Td (impact the average selling price of our licenses and the comparability of average selling prices. Our license software revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (may vary significantly from quarter to quarter or from year to year as a result of long sales and deployment cycles, variations in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (customer ordering practices and the application of management) Tj ET Q q 0 0 0 rg BT 306.85 117.10 Td (s judgment in applying complex revenue recognition rules. Our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 105.10 Td (deferred license software revenue balance consists of software orders that do not meet all the criteria for revenue recognition. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 93.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 93.10 Td (e are unable to predict the proportion of orders that will meet all the criteria for revenue recognition relative to those orders ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 81.10 Td (that will not meet all such criteria and, as a result, we cannot forecast whether recognized license software revenue and deferred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 69.10 Td (license software revenue will continue to increase or decrease in a given period. ) Tj ET Q q 0 0 0 rg BT 371.53 69.10 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.98 69.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.56 69.10 Td (, our deferred license ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 57.10 Td (software revenue balance was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 172.16 57.10 Td ($20.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.05 57.10 Td (, the current portion of which was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.79 57.10 Td ($19.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.68 57.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (36) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 228.71 742.10 Td (. Subscription and maintenance support revenue includes recurring revenue from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (annual maintenance support contracts for our software licenses and, to a much lesser extent, from subscriptions related to our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (delivery of BroadCloud services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 701.10 Td (Our annual maintenance support contracts provide for software updates, upgrades and technical support. Our typical ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.10 Td (warranty on licensed software is 90 days and, during this period, our customers are entitled to receive maintenance and support ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.10 Td (without the purchase of a maintenance contract. ) Tj ET Q q 0 0 0 rg BT 243.26 677.10 Td (After the expiration of the warranty period, our customers must purchase an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 665.10 Td (annual maintenance contract to continue receiving ongoing software maintenance and customer support.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 648.10 Td (Under our BroadCloud subscriptions, we are paid a recurring fee typically calculated based on the number of seats and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 636.10 Td (type of services purchased or a usage fee based on the actual number of transactions. ) Tj ET Q q 0 0 0 rg BT 391.35 636.10 Td (The recurring fee is typically billed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 624.10 Td (monthly or annually in advance based on the terms of the arrangement and the usage fee is billed one month in arrears.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 607.10 Td (Our deferred subscription and maintenance support revenue balance consists of subscription and maintenance support ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 595.10 Td (orders that do not meet all the criteria for revenue recognition. ) Tj ET Q q 0 0 0 rg BT 301.02 595.10 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.46 595.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.04 595.10 Td (, our deferred subscription and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 583.10 Td (maintenance support revenue balance was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 220.76 583.10 Td ($47.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.65 583.10 Td (, the current portion of which was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.39 583.10 Td ($41.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.28 583.10 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 74.00 566.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 83.63 566.10 Td (ofessional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 200.00 566.10 Td (. Professional services and other revenue primarily includes revenue from professional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (service engagements consisting of implementation, training and consulting services. Our professional services and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (deferred revenue balance consists of orders that do not meet all the criteria for revenue recognition. ) Tj ET Q q 0 0 0 rg BT 449.00 542.10 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.44 542.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.03 542.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (our deferred professional services and other revenue balance was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.93 530.10 Td ($10.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.83 530.10 Td (, the current portion of which was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.57 530.10 Td ($10.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.46 530.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 504.10 Td (Cost of Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 487.10 Td (Our total cost of revenue consists of the following:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 470.10 Td ( ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 470.10 Td (Cost of license softwar) Tj ET Q q 0 0 0 rg BT 231.02 470.10 Td (e r) Tj ET Q q 0 0 0 rg BT 241.48 470.10 Td (evenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 269.23 470.10 Td (. ) Tj ET Q q 0 0 0 rg BT 273.68 470.10 Td (A) Tj ET Q q 0 0 0 rg BT 280.35 470.10 Td ( majority of the cost of license software revenue consists of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 458.10 Td (amortization of acquired technology) Tj ET Q q 0 0 0 rg BT 284.58 458.10 Td (, personnel-related expenses, and royalties paid to third parties ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 446.10 Td (whose technology or products are sold as part of BroadW) Tj ET Q q 0 0 0 rg BT 369.41 446.10 Td (orks. ) Tj ET Q q 0 0 0 rg BT 391.08 446.10 Td (A) Tj ET Q q 0 0 0 rg BT 397.75 446.10 Td ( significant amount of the royalty fees ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 434.10 Td (are for the underlying embedded data base technology within BroadW) Tj ET Q q 0 0 0 rg BT 420.49 434.10 Td (orks for which we currently incur a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 422.10 Td (fixed expense per quarter) Tj ET Q q 0 0 0 rg BT 240.79 422.10 Td (. Personnel-related expenses include salaries, benefits, bonuses and stock-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 410.10 Td (compensation. Such costs are expensed in the period in which they are incurred.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 393.10 Td ( ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 393.10 Td (Cost of subscription and maintenance support r) Tj ET Q q 0 0 0 rg BT 330.74 393.10 Td (evenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.50 393.10 Td (. Cost of subscription and maintenance support ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 381.10 Td (revenue consists primarily of personnel-related expenses and other direct costs associated with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 369.10 Td (support and maintenance of our software licenses and BroadCloud services, including maintenance and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 357.10 Td (support expenses due to our use of third party software, amortization of acquired technology and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 345.10 Td (operating and depreciation expenses associated with the delivery of BroadCloud services. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 328.10 Td ( ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 328.10 Td (Cost of pr) Tj ET Q q 0 0 0 rg BT 179.64 328.10 Td (ofessional services and other r) Tj ET Q q 0 0 0 rg BT 302.03 328.10 Td (evenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.79 328.10 Td (. Cost of professional services and other revenue consists ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 316.10 Td (primarily of personnel-related expenses and other direct costs associated with the delivery of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 304.10 Td (professional services. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (Gross Profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 261.10 Td (Gross profit is the calculation of total revenue minus cost of revenue. Our gross profit as a percentage of revenue, or gross ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 249.10 Td (mar) Tj ET Q q 0 0 0 rg BT 65.37 249.10 Td (gin, has been and will continue to be af) Tj ET Q q 0 0 0 rg BT 222.08 249.10 Td (fected by a variety of factors, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 232.10 Td ( ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 232.10 Td (Mix of license softwar) Tj ET Q q 0 0 0 rg BT 228.23 232.10 Td (e, subscription and maintenance support and pr) Tj ET Q q 0 0 0 rg BT 419.79 232.10 Td (ofessional services and other ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 220.10 Td (r) Tj ET Q q 0 0 0 rg BT 143.52 220.10 Td (evenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.27 220.10 Td (. ) Tj ET Q q 0 0 0 rg BT 176.09 220.10 Td (W) Tj ET Q q 0 0 0 rg BT 184.73 220.10 Td (e generate higher gross mar) Tj ET Q q 0 0 0 rg BT 295.06 220.10 Td (gins on license software revenue compared to subscription and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 208.10 Td (maintenance support or professional services and other revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 191.10 Td ( ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 191.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 150.74 191.10 Td (owth or decline of license softwar) Tj ET Q q 0 0 0 rg BT 285.63 191.10 Td (e r) Tj ET Q q 0 0 0 rg BT 296.09 191.10 Td (evenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.85 191.10 Td (. ) Tj ET Q q 0 0 0 rg BT 328.30 191.10 Td (A) Tj ET Q q 0 0 0 rg BT 334.97 191.10 Td ( significant portion of cost of license software revenue is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 179.10 Td (fixed and is expensed in the period in which it is incurred. ) Tj ET Q q 0 0 0 rg BT 374.48 179.10 Td (This cost consists primarily of the royalty fees ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 167.10 Td (to our embedded database provider and amortization of acquired technology) Tj ET Q q 0 0 0 rg BT 444.52 167.10 Td (. If license software revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 155.10 Td (increases, these fixed fees will decline as a percentage of revenue. If license software revenue declines, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 143.10 Td (these fixed fees will increase as a percentage of revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 126.10 Td ( ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 126.10 Td (Impact of deferr) Tj ET Q q 0 0 0 rg BT 204.61 126.10 Td (ed r) Tj ET Q q 0 0 0 rg BT 220.07 126.10 Td (evenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.83 126.10 Td (. If any revenue recognition criteria has not been met, the applicable revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 114.10 Td (derived from the arrangement is deferred, including license software, subscription and maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 102.10 Td (support, and professional services and other revenue, until all elements of revenue recognition criteria ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 90.10 Td (have been met. However) Tj ET Q q 0 0 0 rg BT 239.00 90.10 Td (, the cost of revenue, including the costs of license software, subscription and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 78.10 Td (maintenance support and professional services and other) Tj ET Q q 0 0 0 rg BT 365.63 78.10 Td (, is typically expensed in the period in which it is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 66.10 Td (incurred. ) Tj ET Q q 0 0 0 rg BT 178.13 66.10 Td (Therefore, if relatively more revenue is deferred in a particular period, gross mar) Tj ET Q q 0 0 0 rg BT 501.14 66.10 Td (gin would ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 54.10 Td (decline in that period. Because the ability to recognize revenue on orders depends lar) Tj ET Q q 0 0 0 rg BT 479.69 54.10 Td (gely on the terms of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 742.10 Td (the sale arrangement, and because we are not able to predict the proportion of orders that will not meet ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 730.10 Td (all the criteria for revenue recognition, we cannot forecast whether any historical trends in gross mar) Tj ET Q q 0 0 0 rg BT 541.88 730.10 Td (gin ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 718.10 Td (will continue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 701.10 Td ( ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 140.00 701.10 Td (Intangible amortization r) Tj ET Q q 0 0 0 rg BT 240.74 701.10 Td (elated to mer) Tj ET Q q 0 0 0 rg BT 293.13 701.10 Td (gers and acquisitions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.19 701.10 Td ( Over the last several years, we acquired a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 689.10 Td (number of businesses which resulted in the recognition of intangible assets. ) Tj ET Q q 0 0 0 rg BT 444.20 689.10 Td (These intangible assets are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 677.10 Td (amortized over their useful lives, resulting in additional expense impacting gross profit over the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 665.10 Td (applicable period. ) Tj ET Q q 0 0 0 rg BT 213.96 665.10 Td (W) Tj ET Q q 0 0 0 rg BT 222.59 665.10 Td (e may undertake additional strategic transactions in the future that would result in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 653.10 Td (additional intangible amortization expense.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (Revenue Plus Net Change in Deferred Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 610.10 Td (e believe revenue we recognize in a particular period plus the net change in our deferred revenue balance is a key measure of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (our sales activity for that period. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 Td (Revenue plus the net change in deferred revenue is as follows \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 566.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 542.8 m 436.5 542.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 529.8 m 436.5 529.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 542.8 m 444.5 542.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 542.8 m 499.5 542.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 529.8 m 499.5 529.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 542.8 m 507.5 542.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 542.8 m 562.5 542.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 529.8 m 562.5 529.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 499.8 m 436.5 499.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 499.8 m 499.5 499.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 499.8 m 562.5 499.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 469.8 m 436.5 469.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 469.8 m 499.5 469.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 469.8 m 562.5 469.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 547.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 428.10 547.03 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 534.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 400.50 534.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.50 534.03 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 534.03 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 520.37 Td (Beginning of period deferred revenue balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 519.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 519.47 Td (61,149) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 519.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 519.47 Td (57,136) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 519.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 519.47 Td (59,264) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 505.37 Td (End of period deferred revenue balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 504.47 Td (77,662) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 504.47 Td (61,149) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 504.47 Td (57,136) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 490.37 Td (Increase \(decrease\) in deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 489.47 Td (16,513) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 489.47 Td (4,013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 489.52 Td (\(2,128) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 489.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 475.37 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.15 474.47 Td (178,493) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 474.47 Td (164,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 474.47 Td (138,064) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 460.37 Td (Revenue plus net change in deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 459.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.15 459.47 Td (195,006) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 459.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 459.47 Td (168,855) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 459.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 459.47 Td (135,936) Tj ET Q BT /F2 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 429.30 Td (Operating Expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 412.30 Td (Operating expenses consist of sales and marketing, research and development and general and administrative expenses. Salaries ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 400.30 Td (and other personnel costs are the most significant component of each of these expense categories. ) Tj ET Q q 0 0 0 rg BT 442.46 400.30 Td (W) Tj ET Q q 0 0 0 rg BT 451.10 400.30 Td (e grew our total headcount ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 388.30 Td (to 725 employees at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 132.76 388.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.34 388.30 Td ( from 61) Tj ET Q q 0 0 0 rg BT 245.41 388.30 Td (1 employees at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 307.89 388.30 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.47 388.30 Td (, and we expect to continue to hire new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 376.30 Td (employees to support our anticipated growth.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 355.30 Td (Sales and marketing expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 169.69 355.30 Td (. Sales and marketing expenses consist primarily of salaries and personnel costs for our sales and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 343.30 Td (marketing employees, including stock-based compensation, commissions, benefits and bonuses. ) Tj ET Q q 0 0 0 rg BT 436.32 343.30 Td (Additional expenses include ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 331.30 Td (marketing programs, consulting, travel and other related overhead. ) Tj ET Q q 0 0 0 rg BT 318.89 331.30 Td (W) Tj ET Q q 0 0 0 rg BT 327.53 331.30 Td (e expect our sales and marketing expenses to increase in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 319.30 Td (the foreseeable future as we further increase the number of our sales and marketing professionals and expand our marketing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 307.30 Td (activities. ) Tj ET Q q 0 0 0 rg BT 90.92 307.30 Td (W) Tj ET Q q 0 0 0 rg BT 99.56 307.30 Td (e expect sales and marketing expenses to increase in the foreseeable future. In 2013, sales and marketing expenses ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 295.30 Td (grew as a percentage of revenue compared with 2012; however we expect that in 2014, sales and marketing expenses will ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 283.30 Td (decrease as a percentage of total revenue.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 262.30 Td (Resear) Tj ET Q q 0 0 0 rg BT 77.40 262.30 Td (ch and development expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.41 262.30 Td (. Research and development expenses consist primarily of salaries and personnel costs for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 250.30 Td (development employees, including stock-based compensation, benefits and bonuses. ) Tj ET Q q 0 0 0 rg BT 390.20 250.30 Td (Additional expenses include costs related ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 238.30 Td (to development, quality assurance and testing of new software and enhancement of existing software, consulting, travel and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 226.30 Td (other related overhead. ) Tj ET Q q 0 0 0 rg BT 144.21 226.30 Td (W) Tj ET Q q 0 0 0 rg BT 152.85 226.30 Td (e engage third-party international and domestic consulting firms for various research and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.30 Td (development ef) Tj ET Q q 0 0 0 rg BT 111.74 214.30 Td (forts, such as software development, documentation, quality assurance and software support. ) Tj ET Q q 0 0 0 rg BT 485.06 214.30 Td (W) Tj ET Q q 0 0 0 rg BT 493.70 214.30 Td (e intend to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 202.30 Td (continue to invest in our research and development ef) Tj ET Q q 0 0 0 rg BT 264.19 202.30 Td (forts, including by hiring additional development personnel and by using ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 190.30 Td (outside consulting firms for various research and development ef) Tj ET Q q 0 0 0 rg BT 309.74 190.30 Td (forts. ) Tj ET Q q 0 0 0 rg BT 332.89 190.30 Td (W) Tj ET Q q 0 0 0 rg BT 341.53 190.30 Td (e believe continuing to invest in research and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.30 Td (development ef) Tj ET Q q 0 0 0 rg BT 111.74 178.30 Td (forts is essential to maintaining our competitive position. ) Tj ET Q q 0 0 0 rg BT 341.80 178.30 Td (W) Tj ET Q q 0 0 0 rg BT 350.44 178.30 Td (e expect research and development expenses to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 166.30 Td (increase in the foreseeable future. In 2013, research and development grew as a percentage of revenue compared with 2012; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.30 Td (however we expect that in 2014, research and development expenses will decrease as a percentage of total revenue.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 133.30 Td (General and administrative expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 198.58 133.30 Td (. General and administrative expenses consist primarily of salary and personnel costs for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 121.30 Td (administration, finance and accounting, legal, information systems and human resources employees, including stock-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 109.30 Td (compensation, benefits and bonuses. ) Tj ET Q q 0 0 0 rg BT 198.31 109.30 Td (Additional expenses include consulting and professional fees, travel, insurance and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 97.30 Td (corporate expenses. ) Tj ET Q q 0 0 0 rg BT 131.17 97.30 Td (W) Tj ET Q q 0 0 0 rg BT 139.81 97.30 Td (e expect general and administrative expenses to increase in the foreseeable future. In 2013, general and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 85.30 Td (administrative expenses grew as a percentage of revenue compared with 2012; however we expect that in 2014, general and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 73.30 Td (administrative expenses will decrease as a percentage of total revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (38) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Stock-Based Compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 725.25 Td (e include stock-based compensation as part of cost of revenue and operating expenses in connection with the grant of stock ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (options and other equity awards to our directors, employees and consultants. Historically) Tj ET Q q 0 0 0 rg BT 405.10 713.25 Td (, stock-based compensation has been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (the fastest growing component of our employee-related expenses. ) Tj ET Q q 0 0 0 rg BT 315.01 701.25 Td (W) Tj ET Q q 0 0 0 rg BT 323.65 701.25 Td (e apply the fair value method in accordance with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (authoritative guidance for determining the cost of stock-based compensation. ) Tj ET Q q 0 0 0 rg BT 360.83 689.25 Td (The total cost of the grant is measured based on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (the estimated fair value of the award at the date of grant. ) Tj ET Q q 0 0 0 rg BT 278.33 677.25 Td (The fair value is then recognized as stock-based compensation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (expense over the requisite service period, which is the vesting period, of the award. For the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.81 665.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 545.39 665.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 653.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.44 653.25 Td (201) Tj ET Q q 0 0 0 rg BT 104.07 653.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 109.07 653.25 Td (, we recorded stock-based compensation expense of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.99 653.25 Td ($41.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.88 653.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.88 653.25 Td ($15.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.77 653.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.21 653.25 Td ($7.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.10 653.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 552.76 653.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 632.25 Td (Based on stock options and other equity awards outstanding as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.12 632.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.71 632.25 Td (, we expect to recognize future expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 620.25 Td (related to the non-vested portions of such options and other equity awards in the amount of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.58 620.25 Td ($38.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.47 620.25 Td ( over a weighted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 608.25 Td (average period of approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 182.72 608.25 Td (1.35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 200.22 608.25 Td ( years.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 582.25 Td (Other Expense \(Income\), Net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 565.25 Td (Other expense \(income\), net consists primarily of interest income and interest expense. Interest income represents interest ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 553.25 Td (received on our cash and cash equivalents and restricted cash. Interest expense consists primarily of the interest related to our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 541.25 Td (1.50% convertible senior notes due in 2018, or Notes, the five installment loans with ) Tj ET Q q 0 0 0 rg BT 391.14 541.25 Td (T) Tj ET Q q 0 0 0 rg BT 396.55 541.25 Td (ekes that were paid in full in September ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 529.25 Td (2013 and an installment bank loan with Bank of ) Tj ET Q q 0 0 0 rg BT 244.14 529.25 Td (America Leasing and Capital, LLC, or Bank of ) Tj ET Q q 0 0 0 rg BT 434.64 529.25 Td (America, that was paid in full ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 517.25 Td (in March 2012.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.80 491.25 Td (ax Expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (Income tax expense consists of U.S. federal, state and foreign income taxes. ) Tj ET Q q 0 0 0 rg BT 356.39 474.25 Td (W) Tj ET Q q 0 0 0 rg BT 365.02 474.25 Td (e are required to pay income taxes in certain ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (states and foreign jurisdictions. Historically) Tj ET Q q 0 0 0 rg BT 224.04 462.25 Td (, we have not been required to pay U.S. federal income taxes due to our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (accumulated net operating losses. For the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.98 450.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.57 450.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.01 450.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.01 450.25 Td (, we have net operating loss carryforwards ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (to utilize in the U.S. For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 210.24 438.25 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 283.45 438.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 288.45 438.25 Td (, we paid alternative minimum tax in the U.S. due to the taxable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.25 Td (income generated in the period.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 400.25 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.71 400.25 Td (Accounting Policies and Significant Judgments and Estimates) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 383.25 Td (Our management) Tj ET Q q 0 0 0 rg BT 121.92 383.25 Td (s discussion and analysis of our financial condition and results of operations is based on our consolidated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 371.25 Td (financial statements, which have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 346.00 371.25 Td (. ) Tj ET Q q 0 0 0 rg BT 350.82 371.25 Td (The preparation of these consolidated financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.25 Td (statements requires us to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 308.93 359.25 Td (fect the reported amounts of assets and liabilities, disclosure of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 347.25 Td (contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 335.25 Td (expenses during the reported period. In accordance with GAAP) Tj ET Q q 0 0 0 rg BT 302.97 335.25 Td (, we base our estimates on historical experience and on various ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.25 Td (other assumptions that we believe are reasonable under the circumstances. ) Tj ET Q q 0 0 0 rg BT 349.06 323.25 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 437.47 323.25 Td (fer from these estimates under ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 311.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 311.25 Td (ferent assumptions or conditions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.25 Td (While our significant accounting policies are more fully described in Note 2 to our consolidated financial statements appearing ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (elsewhere in this ) Tj ET Q q 0 0 0 rg BT 119.15 278.25 Td (Annual Report on Form 10-K, we believe the following accounting policies are critical to the process of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.25 Td (making significant judgments and estimates in the preparation of our consolidated financial statements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 240.25 Td (Revenue Recognition) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 223.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 223.25 Td (e derive our revenue fromthe sale of software licenses and related maintenance for those licenses, subscription and usage ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 211.25 Td (fees related to our cloud of) Tj ET Q q 0 0 0 rg BT 157.28 211.25 Td (ferings and the sale ofprofessional services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (rendered, the arrangement fee is fixed or determinable and collectability of the related receivable is probable. In making ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (judgments regarding revenue recognition, we analyze various factors, including the nature and terms of the specific transaction, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (the creditworthiness of our customers, our historical experience, accuracy of prior estimates and overall market and economic ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (conditions. Moreover) Tj ET Q q 0 0 0 rg BT 135.69 142.25 Td (, in connection with the sale of a number of products and services under a single contractual arrangement ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (\(a multiple element arrangement\), we make judgments as to whether there is suf) Tj ET Q q 0 0 0 rg BT 370.54 130.25 Td (ficient vendor specific objective evidence ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (\(VSOE\) to enable the allocation of fair value among the various elements in software arrangements that contain multiple ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (elements and as to relative selling prices for multiple element arrangements that do not contain software elements. In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (determining relative selling prices for products and services, we consider) Tj ET Q q 0 0 0 rg BT 341.72 94.25 Td (, among other things, our use of discounts from list ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (prices, prices we char) Tj ET Q q 0 0 0 rg BT 136.44 82.25 Td (ge for similar of) Tj ET Q q 0 0 0 rg BT 200.96 82.25 Td (ferings and our historical pricing practices. Changes in judgments related to these items, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (or deterioration in market or economic conditions, could materially impact the timing and amount of revenue recognized.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 87 0 obj <> endobj 88 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (39) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (License Software Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 725.25 Td (e sell software licenses to service providers through our direct sales force and indirectly through distribution partners.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 704.25 Td (For direct sales, we generally consider a purchase order or executed sales quote, when combined with a master license ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 692.25 Td (agreement, to constitute evidence of an arrangement. In the case of sales through distribution partners, we generally consider a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 680.25 Td (purchase order or executed sales quote, when combined with a reseller or similar agreement with the distribution partner) Tj ET Q q 0 0 0 rg BT 531.66 680.25 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 668.25 Td (evidence of the distribution partner) Tj ET Q q 0 0 0 rg BT 190.88 668.25 Td () Tj ET Q q 0 0 0 rg BT 193.66 668.25 Td (s customer) Tj ET Q q 0 0 0 rg BT 236.30 668.25 Td (, to constitute evidence of an arrangement. For sales through distribution partners ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (for which we are not able to ascertain proof of the distribution partner) Tj ET Q q 0 0 0 rg BT 329.72 656.25 Td () Tj ET Q q 0 0 0 rg BT 332.50 656.25 Td (s customer) Tj ET Q q 0 0 0 rg BT 375.14 656.25 Td (, we defer revenue until we are able to do so.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 635.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 635.25 Td (e consider delivery to have occurred when the customer is given electronic access to the licensed software and a license key ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 623.25 Td (for the software has been delivered or made available. Instances where all ordered software features are not delivered are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 611.25 Td (considered to be partial deliveries. Since we cannot determine ) Tj ET Q q 0 0 0 rg BT 300.28 611.25 Td (VSOE of an undelivered software feature in the case of a partial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 599.25 Td (delivery) Tj ET Q q 0 0 0 rg BT 82.11 599.25 Td (, we defer revenue recognition on all elements of such order until delivery for all ordered software features is complete.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (Acceptance of our licensed software generally occurs upon delivery) Tj ET Q q 0 0 0 rg BT 320.90 578.25 Td (. From time to time, we have agreed with certain customers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (to a specific set of acceptance criteria. In such cases, we may defer revenue until these acceptance criteria have been met.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 545.25 Td (Our sales generally consist of multiple elements: software licenses; maintenance support; and professional services. ) Tj ET Q q 0 0 0 rg BT 514.96 545.25 Td (W) Tj ET Q q 0 0 0 rg BT 523.60 545.25 Td (e ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 533.25 Td (calculate the amount of revenue allocated to the software license by determining the fair value of the undelivered elements, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 521.25 Td (which often are maintenance support and professional services, and subtracting it from the total order amount. ) Tj ET Q q 0 0 0 rg BT 493.01 521.25 Td (W) Tj ET Q q 0 0 0 rg BT 501.65 521.25 Td (e establish ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 509.25 Td (VSOE of the fair value of maintenance support based on the renewal price as stated in the agreement and as char) Tj ET Q q 0 0 0 rg BT 500.75 509.25 Td (ged in the first ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 497.25 Td (optional renewal period under the arrangement. Our ) Tj ET Q q 0 0 0 rg BT 260.29 497.25 Td (VSOE for professional services is determined based on an analysis of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 485.25 Td (historical daily rates when these professional services are sold separately from the software license.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.25 Td (The warranty period for our licensed software is generally 90 days. During this period, the customer receives technical support ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.25 Td (and has the right to unspecified product upgrades on an if-and-when available basis. For these periods, we defer a portion of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.25 Td (license fee and recognize it ratably over the warranty period. ) Tj ET Q q 0 0 0 rg BT 294.98 440.25 Td (The revenue is reflected under the subscription and maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 428.25 Td (support revenue line item in the consolidated income statement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 407.25 Td (Our license software revenue is subject to significant fluctuation as a result of the application of accounting regulations and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 395.25 Td (related interpretations and policies regarding revenue recognition. ) Tj ET Q q 0 0 0 rg BT 315.83 395.25 Td (W) Tj ET Q q 0 0 0 rg BT 324.46 395.25 Td (e do not believe license revenue to be the only meaningful ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 383.25 Td (measure of our level of sales activity during the periods reported because of the impact of software license orders for these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 371.25 Td (periods that were not yet recognized as revenue and therefore were recorded as deferred license software revenue. Our deferred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.25 Td (license software revenue balance consists of software orders that do not meet all the criteria for revenue recognition. ) Tj ET Q q 0 0 0 rg BT 517.69 359.25 Td (W) Tj ET Q q 0 0 0 rg BT 526.32 359.25 Td (e are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 347.25 Td (unable to predict the proportion of orders that will meet all the criteria for revenue recognition relative to those orders that will ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 335.25 Td (not meet all such criteria. ) Tj ET Q q 0 0 0 rg BT 153.30 335.25 Td (As a result, we cannot forecast whether historical trends in recognized license software revenue, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.25 Td (corresponding changes in deferred license revenue, will continue.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 297.25 Td (Subscription and Maintenance Support Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 280.25 Td (e typically sell software in combination with maintenance support. Maintenance support is generally renewable annually at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 268.25 Td (the option of the customer) Tj ET Q q 0 0 0 rg BT 154.42 268.25 Td (. Rates for maintenance support, including subsequent renewal rates, are typically established based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 256.25 Td (upon a specific percentage of net license fees as set forth in the arrangement with the customer) Tj ET Q q 0 0 0 rg BT 428.18 256.25 Td (. Maintenance support revenue is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 244.25 Td (recognized ratably over the maintenance period, assuming all other revenue recognition criteria have been met.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 223.25 Td (Under our BroadCloud subscriptions, we are paid a recurring fee calculated based on the number of seats and type of services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 211.25 Td (purchased or a usage fee based on actual number of transactions. ) Tj ET Q q 0 0 0 rg BT 311.38 211.25 Td (T) Tj ET Q q 0 0 0 rg BT 316.79 211.25 Td (ypically) Tj ET Q q 0 0 0 rg BT 348.35 211.25 Td (, the recurring fee is billed monthly or annually ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 199.25 Td (based on the terms of the arrangement and the usage fee is billed one month in arrears. Revenue is recognized ratably over the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 187.25 Td (contract term beginning with the date our service is made available to customers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 166.25 Td (e enter into arrangements with multiple-deliverables that generally include subscription and professional services. ) Tj ET Q q 0 0 0 rg BT 516.09 166.25 Td (T) Tj ET Q q 0 0 0 rg BT 521.50 166.25 Td (o treat ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (upon delivery) Tj ET Q q 0 0 0 rg BT 104.61 142.25 Td (. If the deliverables have standalone value upon delivery) Tj ET Q q 0 0 0 rg BT 329.71 142.25 Td (, we account for each deliverable separately) Tj ET Q q 0 0 0 rg BT 504.24 142.25 Td (. Subscription ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (services have standalone value as such services are often sold separately) Tj ET Q q 0 0 0 rg BT 338.68 130.25 Td (. In determining whether professional services have ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (standalone value, we consider the following factors for each professional services agreement: availability of the services from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (other vendors; the nature of the professional services; the timing of when the professional services contract was signed in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (comparison to the subscription service start date; and the contractual dependence of the subscription service on the customer) Tj ET Q q 0 0 0 rg BT 548.26 94.25 Td () Tj ET Q q 0 0 0 rg BT 551.04 94.25 Td (s ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (satisfaction with the professional services work.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 61.25 Td (Per the accounting guidance, when multiple-deliverables included in an arrangement are separated into dif) Tj ET Q q 0 0 0 rg BT 475.21 61.25 Td (ferent units of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 49.25 Td (accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy) Tj ET Q q 0 0 0 rg BT 559.15 49.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 742.10 Td (e determine the relative selling price for a deliverable based on its ) Tj ET Q q 0 0 0 rg BT 324.46 742.10 Td (VSOE, if available, or our best estimate of selling price, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (BESP) Tj ET Q q 0 0 0 rg BT 72.79 730.10 Td (, if ) Tj ET Q q 0 0 0 rg BT 86.22 730.10 Td (VSOE is not available. ) Tj ET Q q 0 0 0 rg BT 180.19 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 188.83 730.10 Td (e have determined that third-party evidence is not a practical alternative due to dif) Tj ET Q q 0 0 0 rg BT 516.56 730.10 Td (ferences in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (our service of) Tj ET Q q 0 0 0 rg BT 104.79 718.10 Td (ferings compared to other parties and the availability of relevant third-party pricing information. ) Tj ET Q q 0 0 0 rg BT 492.26 718.10 Td (The amount of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (revenue allocated to delivered items is limited by contingent revenue, if any) Tj ET Q q 0 0 0 rg BT 353.13 706.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 685.10 Td (e determined BESP) Tj ET Q q 0 0 0 rg BT 136.59 685.10 Td ( by considering our overall pricing objectives and market conditions. Significant pricing practices taken ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (into consideration include our discounting practices, our price lists, our go-to-market strategy) Tj ET Q q 0 0 0 rg BT 422.86 673.10 Td (, historical standalone sales and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (contract prices. ) Tj ET Q q 0 0 0 rg BT 113.03 661.10 Td (As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (changes in relative selling prices, including both ) Tj ET Q q 0 0 0 rg BT 245.88 649.10 Td (VSOE and BESP) Tj ET Q q 0 0 0 rg BT 314.22 649.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 623.10 Td (Professional Services Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (Revenue from professional services is typically recognized as services are performed. Services are generally not considered ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (essential to the functionality of the licensed software.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (Software Development Costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 551.10 Td (Software development costs for software to be sold, leased or marketed that is incurred prior to the establishment of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 539.10 Td (technological feasibility are expensed as incurred as research and development expense. Software development costs incurred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 527.10 Td (subsequent to the establishment of technological feasibility) Tj ET Q q 0 0 0 rg BT 285.96 527.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 313.36 527.10 Td (, are capitalized until the software is available for general ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 515.10 Td (release to customers. For each software release, judgment is required to evaluate when technological feasibility has occurred. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 503.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 503.10 Td (e have determined that technological feasibility has been established at approximately the same time as our general release of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 491.10 Td (such software to customers. ) Tj ET Q q 0 0 0 rg BT 163.40 491.10 Td (Therefore, to date, we have not capitalized any related software development costs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 465.10 Td (Internal-Use Software Development Costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 448.10 Td (Costs associated with customized internal-use software systems, which include development costs associated with our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 436.10 Td (BroadCloud platforms, that have reached the application development stage are capitalized. Such capitalized costs include costs ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (directly associated with the development of the applications. Capitalization of such costs begins when the preliminary project ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 412.10 Td (stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (Accounts Receivable and ) Tj ET Q q 0 0 0 rg BT 155.45 386.10 Td (Allowance for Doubtful ) Tj ET Q q 0 0 0 rg BT 255.37 386.10 Td (Accounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 369.10 Td (Accounts receivable are stated at realizable value, net of an allowance for doubtful accounts that is maintained for estimated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 357.10 Td (losses that would result from the inability of some customers to make payments. ) Tj ET Q q 0 0 0 rg BT 373.65 357.10 Td (The allowance is based on an analysis of past ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 345.10 Td (due amounts and ongoing credit evaluations. Customers are generally evaluated for creditworthiness through a credit review ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 333.10 Td (process at the time of each order) Tj ET Q q 0 0 0 rg BT 179.39 333.10 Td (. Our collection experience has been consistent with our estimates.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 307.10 Td (Business Combinations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (In a business combination, we allocate the purchase price to the acquired business) Tj ET Q q 0 0 0 rg BT 380.54 290.10 Td ( identifiable assets and liabilities at their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (acquisition date fair values. ) Tj ET Q q 0 0 0 rg BT 162.28 278.10 Td (The excess of the purchase price over the amount allocated to the identifiable assets and liabilities, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (if any) Tj ET Q q 0 0 0 rg BT 72.40 266.10 Td (, is recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 175.25 266.10 Td (The excess, if any) Tj ET Q q 0 0 0 rg BT 246.79 266.10 Td (, of the fair value of the identifiable assets acquired and liabilities assumed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (over the consideration transferred is recognized as a gain within other income in the consolidated statements of operations as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (the acquisition date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 221.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 221.10 Td (o date, the assets acquired and liabilities assumed in our business combinations have primarily consisted of acquired working ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 209.10 Td (capital and definite-lived intangible assets. ) Tj ET Q q 0 0 0 rg BT 223.10 209.10 Td (The carrying value of acquired working capital approximates its fair value, given ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 197.10 Td (the short-term nature of these assets and liabilities. ) Tj ET Q q 0 0 0 rg BT 255.04 197.10 Td (W) Tj ET Q q 0 0 0 rg BT 263.68 197.10 Td (e estimate the fair value of definite-lived intangible assets acquired using ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 185.10 Td (a discounted cash flow approach, which includes an analysis of the future cash flows expected to be generated by such assets ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 173.10 Td (and the risk associated with achieving such cash flows. ) Tj ET Q q 0 0 0 rg BT 272.54 173.10 Td (The key assumptions used in the discounted cash flow model include ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 161.10 Td (the discount rate that is applied to the discretely forecasted future cash flows to calculate the present value of those cash flows ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 149.10 Td (and the estimate of future cash flows attributable to the acquired intangible assets, which include revenue, operating expenses ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 137.10 Td (and taxes. Our estimates are inherently uncertain and subject to refinement. ) Tj ET Q q 0 0 0 rg BT 353.50 137.10 Td (As a result, during the measurement period, which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 125.10 Td (may be up to one year from the acquisition date, we may record adjustments to the fair value of assets acquired and liabilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 113.10 Td (assumed, with the corresponding of) Tj ET Q q 0 0 0 rg BT 192.29 113.10 Td (fset to goodwill.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 87.10 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (Goodwill represents the excess of \(a\)the aggregate of the fair value of consideration transferred in a business combination over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (\(b\)the fair value of assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to annual impairment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (tests as described below) Tj ET Q q 0 0 0 rg BT 145.71 46.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (41) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 742.10 Td (e test goodwill for impairment annually on December31, or more frequently if events or changes in business circumstances ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (indicate the asset might be impaired. Examples of such events or circumstances include the following:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 713.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 713.10 Td (a significant adverse change in our business climate;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 696.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 696.10 Td (unanticipated competition;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 679.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 679.10 Td (a loss of key personnel;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 662.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 662.10 Td (a more likely than not expectation that a significant portion of our business will be sold; or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 645.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 645.10 Td (the testing for recoverability of a significant asset group within the reporting unit.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 624.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 624.10 Td (e first may assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 612.10 Td (its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 600.10 Td (included in GAAP) Tj ET Q q 0 0 0 rg BT 123.33 600.10 Td (. ) Tj ET Q q 0 0 0 rg BT 128.15 600.10 Td (T) Tj ET Q q 0 0 0 rg BT 133.56 600.10 Td (o the extent our assessment identifies adverse conditions, or if we elect to bypass the qualitative ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 588.10 Td (assessment, goodwill is tested for impairment at the reporting unit level using a two-step approach. ) Tj ET Q q 0 0 0 rg BT 448.34 588.10 Td (The first step is to compare ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 576.10 Td (the fair value of the reporting unit to the carrying value of the net assets assigned to the reporting unit. If the fair value of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 564.10 Td (reporting unit is greater than the carrying value of the net assets assigned to the reporting unit, the assigned goodwill is not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 552.10 Td (considered impaired. If the fair value is less than the reporting unit) Tj ET Q q 0 0 0 rg BT 319.36 552.10 Td (s carrying value, step two is required to measure the amount ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 540.10 Td (of the impairment, if any) Tj ET Q q 0 0 0 rg BT 149.04 540.10 Td (. In the second step, the fair value of goodwill is determined by deducting the fair value of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 528.10 Td (reporting unit) Tj ET Q q 0 0 0 rg BT 107.49 528.10 Td (s identifiable assets and liabilities from the fair value of the reporting unit as a whole, as if the reporting unit had ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 516.10 Td (just been acquired and the purchase price were being initially allocated. If the carrying value of goodwill exceeds the implied ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 504.10 Td (fair value, an impairment char) Tj ET Q q 0 0 0 rg BT 170.60 504.10 Td (ge would be recorded to operating expenses in the consolidated statements of operations in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 492.10 Td (period the determination is made.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 471.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 471.10 Td (e have determined that we have one reporting unit, BroadSoft, Inc., which is the consolidated entity) Tj ET Q q 0 0 0 rg BT 456.48 471.10 Td (. Based on the results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (our annual goodwill impairment testing, there was no indication of impairment as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.92 459.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.51 459.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.51 459.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 493.51 459.10 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.84 459.10 Td (201) Tj ET Q q 0 0 0 rg BT 521.46 459.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.46 459.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 447.10 Td (, there can be no assurance that goodwill will not be impaired at any time in the future.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 94.92 421.10 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 404.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 404.10 Td (e acquired intangible assets in connection with certain of our business acquisitions. ) Tj ET Q q 0 0 0 rg BT 393.10 404.10 Td (These assets were recorded at their ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 392.10 Td (estimated fair values at the acquisition date and are amortized over their respective estimated useful lives using a method of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 380.10 Td (amortization that reflects the pattern in which the economic benefits of the intangible assets are used. Estimated useful lives are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 368.10 Td (determined based on our historical use of similar assets and the expectation of future realization of cash flows attributable to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 356.10 Td (the intangible assets. Changes in circumstances, such as technological advances or changes to our business model, could result ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 344.10 Td (in the actual useful lives dif) Tj ET Q q 0 0 0 rg BT 160.62 344.10 Td (fering from our current estimates. In those cases where we determine that the useful life of an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 332.10 Td (intangible asset should be shortened, we amortize the net book value in excess of the estimated salvage value over its revised ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 320.10 Td (remaining useful life. ) Tj ET Q q 0 0 0 rg BT 138.13 320.10 Td (W) Tj ET Q q 0 0 0 rg BT 146.76 320.10 Td (e did not revise our previously assigned useful life estimates attributed to any of our intangible assets ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td (during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 143.30 308.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 221.88 308.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.88 308.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.88 308.10 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.21 308.10 Td (201) Tj ET Q q 0 0 0 rg BT 274.84 308.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.84 308.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 287.10 Td (The estimated useful lives used in computing amortization of intangible assets are as follows:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 276.30 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 256.37 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 255.47 Td (3 - 8years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 241.37 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 240.47 Td (2-6years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 226.37 Td (Non-compete agreement) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 225.47 Td (1 year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 211.37 Td (Tradenames) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 210.47 Td (1-7 years) Tj ET Q BT /F2 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 180.30 Td (Impairment of Long-Lived ) Tj ET Q q 0 0 0 rg BT 162.12 180.30 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 163.30 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 163.30 Td (e review our long-lived assets, including property and equipment and intangible assets, for impairment whenever events or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 151.30 Td (changes in circumstances indicate the carrying amount of an asset or an asset group may not be recoverable. ) Tj ET Q q 0 0 0 rg BT 484.93 151.30 Td (T) Tj ET Q q 0 0 0 rg BT 490.34 151.30 Td (ypical indicators ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 139.30 Td (that an asset may be impaired include, but are not limited to:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 122.30 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 122.30 Td (a significant adverse change in the extent or manner in which a long-lived asset is being used or in its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 110.30 Td (physical condition;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 93.30 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 93.30 Td (a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 81.30 Td (projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset; or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 64.30 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 64.30 Td (a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 52.30 Td (significantly before the end of its previously estimated useful life.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (42) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (undiscounted net cash flows expected to be generated. ) Tj ET Q q 0 0 0 rg BT 269.09 730.10 Td (Assets to be disposed of are recorded at the lower of the carrying amount ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (or fair value less costs to sell. Recoverability measurement and estimating of undiscounted cash flows for assets to be held and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (used is done at the lowest possible levels for which there are identifiable cash flows. If such assets are considered impaired, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (generally the amount of impairment recognized would be equal to the amount by which the carrying amount of the assets ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (exceeds the fair value of the assets, which we would compute using a discounted cash flow approach. Estimating future cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (flows attributable to our long-lived assets requires significant judgment and projections may vary from cash flows eventually ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (realized. ) Tj ET Q q 0 0 0 rg BT 86.46 658.10 Td (There were no triggering events to cause us to record an impairment char) Tj ET Q q 0 0 0 rg BT 378.94 658.10 Td (ge during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.18 658.10 Td (December31, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 646.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.00 646.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 95.00 646.10 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 108.33 646.10 Td (201) Tj ET Q q 0 0 0 rg BT 122.96 646.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.96 646.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 620.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.80 620.10 Td (axes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 603.10 Td (e use the liability method of accounting for income taxes as set forth in the authoritative guidance for accounting for income ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (taxes. ) Tj ET Q q 0 0 0 rg BT 75.37 591.10 Td (This method requires an asset and liability approach for the recognition of deferred tax assets and liabilities for the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (expected future tax consequences attributable to temporary dif) Tj ET Q q 0 0 0 rg BT 299.44 579.10 Td (ferences between the carrying amounts of assets and liabilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (for financial reporting purposes and their respective tax bases, and for operating loss and tax credit carryforwards. Deferred tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (assets and liabilities are measured by applying enacted statutory tax rates applicable to the future years in which deferred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (amounts are expected to be settled or realized.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (Based upon our cumulative operating results through June30, 201) Tj ET Q q 0 0 0 rg BT 315.14 522.10 Td (1 and an assessment of our expected future results of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (operations, we determined that there was significant positive evidence regarding the realization of our U.S. deferred tax assets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (After weighing both the positive and negative evidence, coupled with the continued success in commercializing our core ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (products and services both inside and outside the U.S., we believe that it is more likely than not that our U.S. deferred tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (assets will be realized. ) Tj ET Q q 0 0 0 rg BT 141.91 474.10 Td (A) Tj ET Q q 0 0 0 rg BT 148.58 474.10 Td ( portion of the U.S. valuation allowance was released in the period ended June30, 201) Tj ET Q q 0 0 0 rg BT 494.23 474.10 Td (1 based on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (amount of U.S. net deferred tax assets then expected to be remaining as of December31, 201) Tj ET Q q 0 0 0 rg BT 422.56 462.10 Td (1. ) Tj ET Q q 0 0 0 rg BT 432.01 462.10 Td (As of December31, 201) Tj ET Q q 0 0 0 rg BT 529.66 462.10 Td (1, we ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (reversed all of the remaining valuation allowance on the U.S. deferred tax assets because it was more likely than not that those ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (deferred tax assets would be realized. ) Tj ET Q q 0 0 0 rg BT 202.25 438.10 Td (The release of the U.S. valuation allowance was recorded as a tax benefit on our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (consolidated statements of operations for 201) Tj ET Q q 0 0 0 rg BT 231.53 426.10 Td (1. ) Tj ET Q q 0 0 0 rg BT 240.98 426.10 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.42 426.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.00 426.10 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.44 426.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.44 426.10 Td (, we had a remaining valuation allowance of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (approximately $3.3 million and $5.6 million, respectively) Tj ET Q q 0 0 0 rg BT 280.14 414.10 Td (, which primarily relates to certain foreign NOLs and tax credits that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (more likely than not will not be realized.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 381.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 381.10 Td (e operate in various tax jurisdictions and are subject to audit by various tax authorities. ) Tj ET Q q 0 0 0 rg BT 407.81 381.10 Td (W) Tj ET Q q 0 0 0 rg BT 416.45 381.10 Td (e recognize and measure benefits ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 369.10 Td (for uncertain tax positions using a two-step approach. ) Tj ET Q q 0 0 0 rg BT 266.71 369.10 Td (The first step is to evaluate the tax position taken or expected to be taken ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 357.10 Td (in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 345.10 Td (will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions that are more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 333.10 Td (likely than not to be sustained upon audit, the second step is to measure the tax benefit as the lar) Tj ET Q q 0 0 0 rg BT 434.17 333.10 Td (gest amount that is more than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (50% likely to be realized upon settlement. Significant judgment is required to evaluate uncertain tax positions. Changes in facts ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 309.10 Td (and circumstances could have a material impact on our ef) Tj ET Q q 0 0 0 rg BT 280.00 309.10 Td (fective tax rate and results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (43) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Results of Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Comparison of the ) Tj ET Q q 0 0 0 rg BT 129.00 725.25 Td (Y) Tj ET Q q 0 0 0 rg BT 134.00 725.25 Td (ears Ended ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 182.89 725.25 Td (December31, 2013) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 262.04 725.25 Td ( and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 282.60 725.25 Td (2012) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 302.60 725.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 708.25 Td (Revenue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 697.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 673.95 m 307.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 673.95 m 315.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 673.95 m 355.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 673.95 m 363.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 673.95 m 408.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 673.95 m 416.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 673.95 m 456.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 660.95 m 307.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 660.95 m 315.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 660.95 m 355.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 673.95 m 408.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 660.95 m 408.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 673.95 m 416.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 660.95 m 416.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 673.95 m 456.5 673.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 660.95 m 456.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 660.95 m 509.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 660.95 m 517.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 660.95 m 562.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 631.95 m 307.5 631.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 631.95 m 355.5 631.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 631.95 m 408.5 631.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 631.95 m 456.5 631.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 631.95 m 509.5 631.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 631.95 m 562.5 631.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 559.95 m 307.5 559.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 559.95 m 355.5 559.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 559.95 m 408.5 559.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 559.95 m 456.5 559.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 559.95 m 509.5 559.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 545.95 m 307.5 545.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 543.95 m 307.5 543.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 545.95 m 355.5 545.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 543.95 m 355.5 543.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 545.95 m 408.5 545.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 543.95 m 408.5 543.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 545.95 m 456.5 545.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 543.95 m 456.5 543.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 545.95 m 509.5 545.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 543.95 m 509.5 543.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 485.95 m 307.5 485.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 485.95 m 355.5 485.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 485.95 m 408.5 485.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 485.95 m 456.5 485.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 485.95 m 509.5 485.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 471.95 m 307.5 471.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 469.95 m 307.5 469.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 485.95 m 355.5 485.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 471.95 m 355.5 471.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 469.95 m 355.5 469.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 471.95 m 408.5 471.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 469.95 m 408.5 469.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 471.95 m 456.5 471.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 469.95 m 456.5 469.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 471.95 m 509.5 471.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 469.95 m 509.5 469.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 678.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 678.18 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.30 673.18 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.85 665.18 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 665.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.50 665.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.50 665.18 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 636.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.45 636.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 652.18 Td (Per) Tj ET Q q 0 0 0 rg BT 333.79 652.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 644.18 Td (of ) Tj ET Q q 0 0 0 rg BT 330.47 644.18 Td (T) Tj ET Q q 0 0 0 rg BT 335.07 644.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.30 636.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.45 636.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 652.18 Td (Per) Tj ET Q q 0 0 0 rg BT 434.79 652.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 644.18 Td (of ) Tj ET Q q 0 0 0 rg BT 431.47 644.18 Td (T) Tj ET Q q 0 0 0 rg BT 436.07 644.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.30 636.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.45 636.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 636.18 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 623.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 623.20 Td (\(dollars in thousands\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 609.68 Td (Revenue by Type:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 595.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 594.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 594.62 Td (94,408) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 594.62 Td (53) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 594.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 594.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 594.62 Td (89,750) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 594.62 Td (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 594.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 594.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 594.62 Td (4,658) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 594.62 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 594.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 580.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 579.62 Td (69,357) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 579.62 Td (39) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 579.62 Td (58,249) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 579.62 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 579.62 Td (11,108) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 579.62 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 565.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 564.62 Td (14,728) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 564.62 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 564.62 Td (16,843) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 564.62 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.80 564.67 Td (\(2,115) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.65 564.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 564.67 Td (\(13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 564.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 550.52 Td (Total revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 549.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 549.62 Td (178,493) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.60 549.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 549.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 549.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 549.62 Td (164,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.60 549.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 549.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 549.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 549.62 Td (13,651) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 549.62 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 549.62 Td (%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 535.68 Td (Revenue by Geography:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 521.52 Td (Americas) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 520.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 520.62 Td (113,268) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 520.62 Td (63) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 520.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 520.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 520.62 Td (107,514) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 520.62 Td (65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 520.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 520.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 520.62 Td (5,754) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 520.62 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 520.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 506.52 Td (EMEA) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 505.62 Td (44,235) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 505.62 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 505.62 Td (39,334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 505.62 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 505.62 Td (4,901) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 505.62 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 491.52 Td (APAC) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 490.62 Td (20,990) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 490.62 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 490.62 Td (17,994) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 490.62 Td (11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 490.62 Td (2,996) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 490.62 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 476.52 Td (Total revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 475.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 475.62 Td (178,493) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.60 475.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 475.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 475.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 475.62 Td (164,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.60 475.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 475.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 475.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 475.62 Td (13,651) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 475.62 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 475.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 450.45 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 450.45 Td (otal revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.21 450.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.21 450.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 143.71 450.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.46 450.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.46 450.45 Td (8%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 209.79 450.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 225.63 450.45 Td ($13.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.52 450.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.79 450.45 Td ($178.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.69 450.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.89 450.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.89 450.45 Td (. ) Tj ET Q q 0 0 0 rg BT 435.71 450.45 Td (This growth was driven by a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.45 Td (5%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.33 438.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 65.83 438.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.58 438.45 Td ( in license software revenue and a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 236.58 438.45 Td (19%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.91 438.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.41 438.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.16 438.45 Td ( in subscription and maintenance support revenue, partially of) Tj ET Q q 0 0 0 rg BT 537.41 438.45 Td (fset ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.45 Td (by a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.44 426.45 Td (13%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 87.77 426.45 Td ( decrease in professional services and other revenue. Deferred revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.35 426.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.10 426.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.10 426.45 Td ($16.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.99 426.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.65 426.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.65 426.45 Td (, compared ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.45 Td (to an increase of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 118.30 414.45 Td ($4.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 167.19 414.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 179.97 414.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 199.97 414.45 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 393.45 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 393.45 Td (otal revenue from the ) Tj ET Q q 0 0 0 rg BT 143.15 393.45 Td (Americas for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 198.13 393.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.13 393.45 Td ( increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.38 393.45 Td (5%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.71 393.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.54 393.45 Td ($5.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.44 393.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.71 393.45 Td ($1) Tj ET Q q 0 0 0 rg BT 376.34 393.45 Td (13.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.23 393.45 Td ( compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.94 393.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.94 393.45 Td (. ) Tj ET Q q 0 0 0 rg BT 504.76 393.45 Td (The increase ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 381.45 Td (in revenue from the ) Tj ET Q q 0 0 0 rg BT 130.53 381.45 Td (Americas for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.50 381.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.50 381.45 Td ( was due to growth in subscription revenue associated with our BroadCloud of) Tj ET Q q 0 0 0 rg BT 519.15 381.45 Td (ferings ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 369.45 Td (and maintenance support revenue. In Europe, Middle East and ) Tj ET Q q 0 0 0 rg BT 301.31 369.45 Td (Africa, or EMEA, total revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.58 369.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.58 369.45 Td ( increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.84 369.45 Td (12%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.17 369.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 357.45 Td ($4.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.89 357.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 114.17 357.45 Td ($44.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.06 357.45 Td ( compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.76 357.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.76 357.45 Td (. ) Tj ET Q q 0 0 0 rg BT 247.58 357.45 Td (The increase in EMEA) Tj ET Q q 0 0 0 rg BT 338.94 357.45 Td ( revenue in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.86 357.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.86 357.45 Td ( was primarily due to growth in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 345.45 Td (maintenance support revenue due to an increase in software sales and subscription revenue from recent acquisitions, partially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 333.45 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 333.45 Td (fset by a decrease in professional service revenue. In ) Tj ET Q q 0 0 0 rg BT 270.83 333.45 Td (Asia Pacific, or ) Tj ET Q q 0 0 0 rg BT 334.71 333.45 Td (AP) Tj ET Q q 0 0 0 rg BT 346.57 333.45 Td (AC, total revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.04 333.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.04 333.45 Td ( increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.30 333.45 Td (17%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.63 333.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.46 333.45 Td ($3.0 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 321.45 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 321.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.17 321.45 Td ($21.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.06 321.45 Td ( compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.76 321.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.76 321.45 Td (. ) Tj ET Q q 0 0 0 rg BT 227.58 321.45 Td (The increase in ) Tj ET Q q 0 0 0 rg BT 290.61 321.45 Td (AP) Tj ET Q q 0 0 0 rg BT 302.48 321.45 Td (AC revenue was primarily due to the growth in software license ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 309.45 Td (revenue, partially of) Tj ET Q q 0 0 0 rg BT 130.62 309.45 Td (fset by a decrease in professional services revenue.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 283.45 Td (License Softwar) Tj ET Q q 0 0 0 rg BT 113.79 283.45 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.45 Td (License software revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.83 266.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.83 266.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.33 266.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 229.08 266.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.08 266.45 Td (5%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.41 266.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.24 266.45 Td ($4.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.13 266.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.41 266.45 Td ($94.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.30 266.45 Td (. ) Tj ET Q q 0 0 0 rg BT 396.12 266.45 Td (The increase in revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.01 266.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 528.01 266.45 Td ( was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.45 Td (primarily related to growth in hosted UC software license revenue, as well as growth in SIP) Tj ET Q q 0 0 0 rg BT 416.21 254.45 Td ( ) Tj ET Q q 0 0 0 rg BT 418.53 254.45 Td (T) Tj ET Q q 0 0 0 rg BT 424.28 254.45 Td (runking software license revenue, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.45 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 242.45 Td (fset by a decrease in consumer applications software license revenue. Deferred license software revenue increased ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 230.45 Td (by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 230.45 Td ($1.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 111.39 230.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 124.17 230.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 144.17 230.45 Td (, compared to a decrease of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.05 230.45 Td ($2.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.95 230.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.72 230.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.72 230.45 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 204.45 Td (Subscription and Maintenance Support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 187.45 Td (Subscription and maintenance support revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.83 187.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.83 187.45 Td ( increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.08 187.45 Td (19%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.41 187.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.24 187.45 Td ($1) Tj ET Q q 0 0 0 rg BT 372.87 187.45 Td (1.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.76 187.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.04 187.45 Td ($69.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.93 187.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 175.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 175.45 Td (. ) Tj ET Q q 0 0 0 rg BT 74.82 175.45 Td (The increase in subscription and maintenance support revenue was the result of growth in our subscription revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 163.45 Td (associated with our BroadCloud platform, which included contributions from recent acquisitions and growth in the installed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 151.45 Td (base of customers who purchase maintenance support. Deferred subscription and maintenance support revenue increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 139.45 Td ($1) Tj ET Q q 0 0 0 rg BT 59.63 139.45 Td (1.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.52 139.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 116.30 139.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 136.30 139.45 Td (, compared to an increase of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.52 139.45 Td ($6.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.42 139.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 313.19 139.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 333.19 139.45 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 113.45 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.63 113.45 Td (ofessional Services and Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 96.45 Td (Professional services and other revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 224.94 96.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.94 96.45 Td ( decreased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.85 96.45 Td (13%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.18 96.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.01 96.45 Td ($2.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.90 96.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.18 96.45 Td ($14.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.07 96.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.27 96.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.27 96.45 Td (. ) Tj ET Q q 0 0 0 rg BT 536.09 96.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 84.45 Td (decrease in professional services and other revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.57 84.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.57 84.45 Td ( was primarily due to the timing of revenue recognition on orders. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 72.45 Td (Deferred professional services and other revenue increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 72.45 Td ($3.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.89 72.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.67 72.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.67 72.45 Td (, compared to remaining approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 60.45 Td (unchanged in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 106.09 60.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 126.09 60.45 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (44) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Cost of Revenue and Gross Profit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 731.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 694.95 m 307.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 694.95 m 315.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 694.95 m 355.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 694.95 m 408.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 694.95 m 416.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 694.95 m 456.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 694.95 m 509.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 694.95 m 517.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 694.95 m 562.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 657.95 m 307.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 657.95 m 355.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 657.95 m 408.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 657.95 m 456.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 657.95 m 509.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 657.95 m 562.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 585.95 m 307.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 585.95 m 408.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 585.95 m 509.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 571.95 m 307.5 571.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 569.95 m 307.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 585.95 m 408.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 571.95 m 408.5 571.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 569.95 m 408.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 585.95 m 509.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 571.95 m 509.5 571.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 569.95 m 509.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 511.95 m 307.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 511.95 m 408.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 511.95 m 509.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 497.95 m 307.5 497.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 495.95 m 307.5 495.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 511.95 m 408.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 497.95 m 408.5 497.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 495.95 m 408.5 495.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 511.95 m 509.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 497.95 m 509.5 497.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 495.95 m 509.5 495.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 712.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 712.18 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.30 707.18 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.85 699.18 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 699.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.50 699.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.50 699.18 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 662.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.45 662.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 333.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 331.65 678.18 Td (of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.85 670.18 Td (Related) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.30 662.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.45 662.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 434.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.65 678.18 Td (of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.85 670.18 Td (Related) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.30 662.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.45 662.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 662.18 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 649.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 649.20 Td (\(dollars in thousands\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 635.68 Td (Cost of Revenue:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 621.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 620.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 620.62 Td (9,241) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 620.62 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 620.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 620.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 620.62 Td (8,643) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 620.62 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 620.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 620.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 620.62 Td (598) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 620.62 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 620.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 606.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 605.62 Td (21,368) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 605.62 Td (31) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 605.62 Td (14,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 605.62 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 605.62 Td (6,537) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 605.62 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 591.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 590.62 Td (10,771) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 590.62 Td (73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 590.62 Td (9,012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 590.62 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 590.62 Td (1,759) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 590.62 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 576.52 Td (Total cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 575.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 575.62 Td (41,380) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 575.62 Td (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 575.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 575.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 575.62 Td (32,486) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 575.62 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 575.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 575.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 575.62 Td (8,894) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 575.62 Td (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 575.62 Td (%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 561.68 Td (Gross Profit:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 547.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 546.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 546.62 Td (85,167) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 546.62 Td (90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 546.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 546.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 546.62 Td (81,107) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 546.62 Td (90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 546.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 546.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 546.62 Td (4,060) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 546.62 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 546.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 532.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 531.62 Td (47,989) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 531.62 Td (69) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 531.62 Td (43,418) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 531.62 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 531.62 Td (4,571) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 531.62 Td (11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 517.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 516.62 Td (3,957) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 516.62 Td (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 516.62 Td (7,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 516.62 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.80 516.67 Td (\(3,874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.65 516.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 516.67 Td (\(49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 516.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 502.52 Td (Total gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 501.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 501.62 Td (137,113) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 501.62 Td (77) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 501.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 501.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 501.62 Td (132,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 501.62 Td (80) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 501.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 501.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 501.62 Td (4,757) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 501.62 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 501.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 476.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 476.45 Td (, our gross mar) Tj ET Q q 0 0 0 rg BT 146.20 476.45 Td (gin decreased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.67 476.45 Td (77%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.00 476.45 Td ( as compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.53 476.45 Td (80%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.86 476.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.64 476.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.64 476.45 Td ( and our gross profit increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.00 476.45 Td (4%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.33 476.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.16 476.45 Td ($4.8 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.45 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 464.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.17 464.45 Td ($137.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.06 464.45 Td (. ) Tj ET Q q 0 0 0 rg BT 157.88 464.45 Td (W) Tj ET Q q 0 0 0 rg BT 166.52 464.45 Td (e experienced an increase in both license software revenue gross profit and subscription and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.45 Td (maintenance support gross profit, of) Tj ET Q q 0 0 0 rg BT 194.51 452.45 Td (fset by a decrease in professional services and other gross profit for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.64 452.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.64 452.45 Td (. ) Tj ET Q q 0 0 0 rg BT 491.46 452.45 Td (The total gross ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.45 Td (profit growth is primarily due to growth in license software and subscription and maintenance support revenue relative to the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 428.45 Td (respective cost of revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 407.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 407.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 407.45 Td (, license software gross mar) Tj ET Q q 0 0 0 rg BT 197.56 407.45 Td (gin remained approximately unchanged at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.33 407.45 Td (90%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.67 407.45 Td ( compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.37 407.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.37 407.45 Td ( and license software ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 395.45 Td (gross profit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.33 395.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 136.08 395.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 151.08 395.45 Td (5%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 164.41 395.45 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.19 395.45 Td ($85.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 231.08 395.45 Td (. License software cost of revenue increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.94 395.45 Td (7%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.27 395.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.10 395.45 Td ($0.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 501.00 395.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.27 395.45 Td ($9.2 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 383.45 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 383.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 95.55 383.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 115.55 383.45 Td (. ) Tj ET Q q 0 0 0 rg BT 120.37 383.45 Td (This increase was primarily due to a $0.8 million increase in personnel-related costs driven by an increase in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 371.45 Td (headcount and compensation increases, of which $0.5 million related to stock-based compensation expense. ) Tj ET Q q 0 0 0 rg BT 484.14 371.45 Td (The increase in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.45 Td (license software gross profit was driven by revenue growth relative to lower growth in license software cost of revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 338.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 338.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 338.45 Td (, subscription and maintenance services gross mar) Tj ET Q q 0 0 0 rg BT 286.43 338.45 Td (gin decreased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.90 338.45 Td (69%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.23 338.45 Td ( as compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.76 338.45 Td (75%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.09 338.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.87 338.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.87 338.45 Td ( and subscription ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 326.45 Td (and maintenance services gross profit increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 255.76 326.45 Td (1) Tj ET Q q 0 0 0 rg BT 260.39 326.45 Td (1%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.72 326.45 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.49 326.45 Td ($48.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.39 326.45 Td (. Subscription and maintenance services cost of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 314.45 Td (revenue increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 136.90 314.45 Td (44%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 155.23 314.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.06 314.45 Td ($6.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.95 314.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.23 314.45 Td ($21.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.12 314.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.90 314.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.90 314.45 Td ( as compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.43 314.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.43 314.45 Td (. ) Tj ET Q q 0 0 0 rg BT 412.25 314.45 Td (The increase in subscription and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.45 Td (maintenance services cost of revenue was primarily due to an increase of $4.0 million in personnel-related costs driven by an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.45 Td (increase in headcount and compensation increases, of which $1.8 million related to stock-based compensation expense. ) Tj ET Q q 0 0 0 rg BT 532.17 290.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 278.45 Td (increase in headcount was reflective of our continued investment in our product of) Tj ET Q q 0 0 0 rg BT 379.71 278.45 Td (ferings, primarily investment in our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.45 Td (BroadCloud of) Tj ET Q q 0 0 0 rg BT 109.54 266.45 Td (fering, which includes the impact of the acquisitions we made during 2012 and 2013. ) Tj ET Q q 0 0 0 rg BT 452.61 266.45 Td (The increase was also due ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.45 Td (to a $1.3 million increase in amortization of acquired intangibles and a $0.8 million increase in direct third-party telephony ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.45 Td (expenses. ) Tj ET Q q 0 0 0 rg BT 90.92 242.45 Td (The increase in subscription and maintenance services gross profit was driven by revenue growth relative to lower ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 230.45 Td (growth in subscription and maintenance services cost of revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 209.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 209.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 209.45 Td (, professional services and other gross mar) Tj ET Q q 0 0 0 rg BT 256.44 209.45 Td (gin decreased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.91 209.45 Td (27%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.24 209.45 Td ( as compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.77 209.45 Td (46%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.10 209.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.88 209.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.88 209.45 Td ( and professional services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 197.45 Td (and other gross profit decreased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 192.73 197.45 Td (49%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.06 197.45 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.84 197.45 Td ($4.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.73 197.45 Td (. Professional services and other cost of revenue increased ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.20 197.45 Td (20%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.53 197.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.36 197.45 Td ($1.8 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 185.45 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 185.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.17 185.45 Td ($10.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.06 185.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 164.72 185.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 184.72 185.45 Td (. ) Tj ET Q q 0 0 0 rg BT 189.54 185.45 Td (The increase in professional services cost of revenue was primarily due to an increase of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 173.45 Td ($1.5 million in personnel-related costs driven by an increase in headcount and compensation increases, of which $0.7 million ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 161.45 Td (related to stock-based compensation expense. ) Tj ET Q q 0 0 0 rg BT 234.76 161.45 Td (The decrease in professional services and other gross profit was driven by an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 149.45 Td (increase in professional services and other cost of revenue and a decrease in professional services and other revenue. ) Tj ET Q q 0 0 0 rg BT 518.79 149.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 137.45 Td (decrease in professional services and other revenue was primarily due to the timing of revenue recognition on orders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (45) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Operating Expenses) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 731.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 694.95 m 307.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 694.95 m 315.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 694.95 m 355.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 694.95 m 408.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 694.95 m 416.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 694.95 m 456.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 694.95 m 509.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 694.95 m 517.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 694.95 m 562.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 665.95 m 307.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 665.95 m 355.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 665.95 m 408.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 665.95 m 456.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 665.95 m 509.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 665.95 m 562.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 607.95 m 307.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 607.95 m 355.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 607.95 m 408.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 607.95 m 456.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 607.95 m 509.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 593.95 m 307.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 591.95 m 307.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 593.95 m 355.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 591.95 m 355.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 593.95 m 408.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 591.95 m 408.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 593.95 m 456.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 591.95 m 456.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 593.95 m 509.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 591.95 m 509.5 591.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 712.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 712.18 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.30 707.18 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.85 699.18 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 699.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.50 699.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.50 699.18 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 670.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.45 670.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 333.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 678.18 Td (of ) Tj ET Q q 0 0 0 rg BT 330.47 678.18 Td (T) Tj ET Q q 0 0 0 rg BT 335.07 678.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.30 670.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.45 670.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 434.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 678.18 Td (of ) Tj ET Q q 0 0 0 rg BT 431.47 678.18 Td (T) Tj ET Q q 0 0 0 rg BT 436.07 678.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.30 670.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.45 670.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 670.18 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 657.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 657.20 Td (\(dollars in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 643.52 Td (Sales and marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 642.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 642.62 Td (62,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 642.62 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 642.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 642.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 642.62 Td (47,911) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 642.62 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 642.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 642.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 642.62 Td (14,263) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 642.62 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 642.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 628.52 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 627.62 Td (49,696) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 627.62 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 627.62 Td (36,178) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 627.62 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 627.62 Td (13,518) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 627.62 Td (37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 613.52 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 612.62 Td (32,580) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 612.62 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 612.62 Td (22,863) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 612.62 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 612.62 Td (9,717) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 612.62 Td (43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 598.52 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 597.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 597.62 Td (144,450) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 597.62 Td (81) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 597.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 597.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 597.62 Td (106,952) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 597.62 Td (65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 597.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 597.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 597.62 Td (37,498) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 597.62 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 597.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 572.45 Td (Sales and Marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 132.76 572.45 Td (. Sales and marketing expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.06 572.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.81 572.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.81 572.45 Td (30%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.14 572.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.97 572.45 Td ($14.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.87 572.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.14 572.45 Td ($62.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.04 572.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.70 572.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.70 572.45 Td (. ) Tj ET Q q 0 0 0 rg BT 507.51 572.45 Td (The increase ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 560.45 Td (was primarily due to a $12.5 million increase in personnel-related costs driven by an increase in headcount and compensation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.45 Td (costs, of which $8.7 million related to stock-based compensation expense. ) Tj ET Q q 0 0 0 rg BT 348.92 548.45 Td (The increase was also due to a $1.1 million increase ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 536.45 Td (in travel expenses.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 515.45 Td (Resear) Tj ET Q q 0 0 0 rg BT 77.40 515.45 Td (ch and Development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 159.59 515.45 Td (. Research and development expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.53 515.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.29 515.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.29 515.45 Td (37%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.62 515.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.45 515.45 Td ($13.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.34 515.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.62 515.45 Td ($49.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.51 515.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.17 515.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 556.17 515.45 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 503.45 Td (This increase was primarily due to a $12.5 million increase in personnel-related costs driven by an increase in headcount and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 491.45 Td (compensation costs, of which $8.7 million related to stock-based compensation expense. ) Tj ET Q q 0 0 0 rg BT 406.96 491.45 Td (The increase in headcount was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 479.45 Td (reflective of our continued investment in our product of) Tj ET Q q 0 0 0 rg BT 272.53 479.45 Td (ferings, which includes the impact of the acquisitions we made during ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 467.45 Td (2012 and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.44 467.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 109.44 467.45 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 446.45 Td (General and ) Tj ET Q q 0 0 0 rg BT 102.59 446.45 Td (Administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 161.47 446.45 Td (. General and administrative expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.97 446.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.72 446.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.72 446.45 Td (43%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.05 446.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.88 446.45 Td ($9.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.77 446.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.05 446.45 Td ($32.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.94 446.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.60 446.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.60 446.45 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 434.45 Td (This increase was primarily due to a $7.9 million increase in personnel-related costs driven by an increase in headcount and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 422.45 Td (compensation costs, of which $6.2 million related to stock-based compensation expense. ) Tj ET Q q 0 0 0 rg BT 406.96 422.45 Td (The increase was also due to a $1.1 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 410.45 Td (million increase in third-party costs related to acquisitions in 2013.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 384.45 Td (\(Loss\) Income from Operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 367.45 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 367.45 Td (e had losses from operations of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.83 367.45 Td ($7.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 234.72 367.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.38 367.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.38 367.45 Td (, compared to income of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.35 367.45 Td ($25.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.24 367.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.02 367.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.02 367.45 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 341.45 Td (Other \(Income\) Expense) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 330.65 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 307.15 m 320.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 307.15 m 328.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 307.15 m 368.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 307.15 m 376.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 307.15 m 414.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 307.15 m 422.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 307.15 m 463.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 307.15 m 320.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 294.15 m 320.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 307.15 m 328.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 294.15 m 328.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 307.15 m 368.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 294.15 m 368.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 307.15 m 414.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 294.15 m 414.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 307.15 m 422.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 294.15 m 422.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 307.15 m 463.5 307.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 294.15 m 463.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 294.15 m 509.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 294.15 m 517.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 294.15 m 562.5 294.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 265.15 m 320.5 265.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 265.15 m 368.5 265.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 265.15 m 414.5 265.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 265.15 m 463.5 265.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 265.15 m 509.5 265.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 265.15 m 562.5 265.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 222.14999999999998 m 320.5 222.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 222.14999999999998 m 368.5 222.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 222.14999999999998 m 414.5 222.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 222.14999999999998 m 463.5 222.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 222.14999999999998 m 509.5 222.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 208.14999999999998 m 320.5 208.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 206.14999999999998 m 320.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 208.14999999999998 m 368.5 208.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 206.14999999999998 m 368.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 208.14999999999998 m 414.5 208.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 206.14999999999998 m 414.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 208.14999999999998 m 463.5 208.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 206.14999999999998 m 463.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 208.14999999999998 m 509.5 208.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 206.14999999999998 m 509.5 206.14999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 311.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 329.10 311.38 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 487.80 306.38 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 503.35 298.38 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 298.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 317.00 298.38 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.50 298.38 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 269.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.95 269.38 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 334.95 285.38 Td (Per) Tj ET Q q 0 0 0 rg BT 346.79 285.38 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 334.95 277.38 Td (of ) Tj ET Q q 0 0 0 rg BT 343.47 277.38 Td (T) Tj ET Q q 0 0 0 rg BT 348.07 277.38 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 333.30 269.38 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 380.95 269.38 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 429.45 285.38 Td (Per) Tj ET Q q 0 0 0 rg BT 441.29 285.38 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 429.45 277.38 Td (of ) Tj ET Q q 0 0 0 rg BT 437.97 277.38 Td (T) Tj ET Q q 0 0 0 rg BT 442.57 277.38 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.80 269.38 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 475.95 269.38 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 269.38 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 256.40 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.30 256.40 Td (\(dollars in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 242.72 Td (Interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.00 241.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.30 241.87 Td (\(454) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.65 241.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 360.00 241.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.00 241.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.30 241.87 Td (\(455) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.65 241.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.00 241.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.00 241.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 241.82 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 241.82 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 241.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 227.72 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.10 226.82 Td (7,400) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.65 226.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.65 226.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.10 226.82 Td (6,925) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 226.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.65 226.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 226.82 Td (475) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 545.30 226.82 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 226.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 212.72 Td (Total other expense, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.00 211.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.10 211.82 Td (6,946) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.65 211.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.65 211.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.00 211.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.10 211.82 Td (6,470) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 211.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.65 211.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.00 211.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 211.82 Td (476) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 545.30 211.82 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 211.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 189.65 Td (* ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 113.00 189.65 Td (Less than 1%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 168.65 Td (Interest income remained approximately unchanged for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.36 168.65 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.36 168.65 Td (. Interest expense increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.30 168.65 Td ($0.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.19 168.65 Td ( compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.90 168.65 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.90 168.65 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 142.65 Td (\(Benefit from\) Provision for Income T) Tj ET Q q 0 0 0 rg BT 207.12 142.65 Td (axes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 125.65 Td (Benefit from income taxes was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 176.90 125.65 Td ($5.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 225.80 125.65 Td ( for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.26 125.65 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.84 125.65 Td (, compared to provision for income taxes of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 113.65 Td ($6.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.89 113.65 Td ( for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 176.35 113.65 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.94 113.65 Td (. For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.13 113.65 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.71 113.65 Td (, in addition to the tax impact of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 101.65 Td (net loss for the year) Tj ET Q q 0 0 0 rg BT 128.46 101.65 Td (, the tax provision was primarily impacted by the release of the valuation allowance on a foreign ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 89.65 Td (jurisdiction. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (46) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Comparison of the ) Tj ET Q q 0 0 0 rg BT 129.00 742.25 Td (Y) Tj ET Q q 0 0 0 rg BT 134.00 742.25 Td (ears Ended ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 182.89 742.25 Td (December31, 2012) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 262.04 742.25 Td ( and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 282.60 742.25 Td (201) Tj ET Q q 0 0 0 rg BT 297.05 742.25 Td (1) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 302.05 742.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Revenue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 714.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 690.95 m 307.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 690.95 m 315.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 690.95 m 355.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 690.95 m 363.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 690.95 m 408.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 690.95 m 416.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 690.95 m 456.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 677.95 m 307.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 677.95 m 315.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 677.95 m 355.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 690.95 m 408.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 677.95 m 408.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 690.95 m 416.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 677.95 m 416.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 690.95 m 456.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 677.95 m 456.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 677.95 m 509.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 677.95 m 517.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 677.95 m 562.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 648.95 m 307.5 648.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 648.95 m 355.5 648.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 648.95 m 408.5 648.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 648.95 m 456.5 648.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 648.95 m 509.5 648.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 648.95 m 562.5 648.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 576.95 m 307.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 576.95 m 355.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 576.95 m 408.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 576.95 m 456.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 576.95 m 509.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 562.95 m 307.5 562.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 560.95 m 307.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 562.95 m 355.5 562.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 560.95 m 355.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 562.95 m 408.5 562.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 560.95 m 408.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 562.95 m 456.5 562.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 560.95 m 456.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 562.95 m 509.5 562.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 560.95 m 509.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 502.95 m 307.5 502.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 502.95 m 355.5 502.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 502.95 m 408.5 502.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 502.95 m 456.5 502.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 502.95 m 509.5 502.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 488.95 m 307.5 488.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 486.95 m 307.5 486.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 502.95 m 355.5 502.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 488.95 m 355.5 488.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 486.95 m 355.5 486.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 488.95 m 408.5 488.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 486.95 m 408.5 486.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 488.95 m 456.5 488.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 486.95 m 456.5 486.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 488.95 m 509.5 488.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 486.95 m 509.5 486.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 695.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 695.18 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.30 690.18 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.85 682.18 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 682.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.50 682.18 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.70 682.18 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 653.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.45 653.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 669.18 Td (Per) Tj ET Q q 0 0 0 rg BT 333.79 669.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 661.18 Td (of ) Tj ET Q q 0 0 0 rg BT 330.47 661.18 Td (T) Tj ET Q q 0 0 0 rg BT 335.07 661.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.30 653.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.45 653.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 669.18 Td (Per) Tj ET Q q 0 0 0 rg BT 434.79 669.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 661.18 Td (of ) Tj ET Q q 0 0 0 rg BT 431.47 661.18 Td (T) Tj ET Q q 0 0 0 rg BT 436.07 661.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.30 653.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.45 653.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 653.18 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 640.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 640.20 Td (\(dollars in thousands\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 626.68 Td (Revenue by Type:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 612.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 611.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 611.62 Td (89,750) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 611.62 Td (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 611.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 611.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 611.62 Td (77,289) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 611.62 Td (56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 611.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 611.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 611.62 Td (12,461) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 611.62 Td (16) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 611.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 597.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 596.62 Td (58,249) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 596.62 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 596.62 Td (42,462) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 596.62 Td (31) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 596.62 Td (15,787) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 596.62 Td (37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 582.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 581.62 Td (16,843) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 581.62 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 581.62 Td (18,313) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 581.62 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.80 581.67 Td (\(1,470) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.65 581.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 545.30 581.67 Td (\(8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 581.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 567.52 Td (Total revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 566.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 566.62 Td (164,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.60 566.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 566.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 566.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 566.62 Td (138,064) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.60 566.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 566.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 566.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 566.62 Td (26,778) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 566.62 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 566.62 Td (%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 552.68 Td (Revenue by Geography:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 538.52 Td (Americas) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 537.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 537.62 Td (107,514) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 537.62 Td (65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 537.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 537.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 537.62 Td (87,866) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 537.62 Td (64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 537.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 537.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 537.62 Td (19,648) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 537.62 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 537.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 523.52 Td (EMEA) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 522.62 Td (39,334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 522.62 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 522.62 Td (24,866) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 522.62 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 522.62 Td (14,468) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 522.62 Td (58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 508.52 Td (APAC) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 507.62 Td (17,994) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 507.62 Td (11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 507.62 Td (25,332) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 507.62 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.80 507.67 Td (\(7,338) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.65 507.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 507.67 Td (\(29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 507.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 493.52 Td (Total revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 492.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 492.62 Td (164,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.60 492.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 492.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 492.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 492.62 Td (138,064) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.60 492.62 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 492.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 492.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 492.62 Td (26,778) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 492.62 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 492.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 467.45 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 467.45 Td (otal revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.21 467.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.21 467.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 143.71 467.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.46 467.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.46 467.45 Td (19%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.79 467.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.63 467.45 Td ($26.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.52 467.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.79 467.45 Td ($164.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.69 467.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.89 467.45 Td (201) Tj ET Q q 0 0 0 rg BT 430.52 467.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.52 467.45 Td (. ) Tj ET Q q 0 0 0 rg BT 440.34 467.45 Td (This growth was driven by a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 455.45 Td (16% increase in license software revenue and a 37% increase in subscription and maintenance support revenue, partially of) Tj ET Q q 0 0 0 rg BT 542.41 455.45 Td (fset ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 443.45 Td (by an 8% decrease in professional services and other revenue. Deferred revenue increased by $4.0 million for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 443.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 443.45 Td (, compared ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 431.45 Td (to a decrease of $2.1 million in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 176.63 431.45 Td (201) Tj ET Q q 0 0 0 rg BT 191.26 431.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.26 431.45 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 410.45 Td (Revenue from the ) Tj ET Q q 0 0 0 rg BT 123.59 410.45 Td (Americas for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 178.56 410.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 198.56 410.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.06 410.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.82 410.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.82 410.45 Td (22%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.15 410.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.98 410.45 Td ($19.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.87 410.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.15 410.45 Td ($107.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.04 410.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.24 410.45 Td (201) Tj ET Q q 0 0 0 rg BT 487.87 410.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.87 410.45 Td (. ) Tj ET Q q 0 0 0 rg BT 497.69 410.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.74 410.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.49 410.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 398.45 Td (the ) Tj ET Q q 0 0 0 rg BT 64.17 398.45 Td (Americas revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.29 398.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 173.29 398.45 Td ( was due to growth in software license sales for our hosted UC and consumer of) Tj ET Q q 0 0 0 rg BT 492.75 398.45 Td (ferings and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.45 Td (associated maintenance support revenue. EMEA) Tj ET Q q 0 0 0 rg BT 243.54 386.45 Td ( revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.35 386.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.35 386.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.85 386.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.60 386.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.60 386.45 Td (58%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.93 386.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.76 386.45 Td ($14.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.66 386.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.93 386.45 Td ($39.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.83 386.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.45 Td (compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 102.20 374.45 Td (201) Tj ET Q q 0 0 0 rg BT 116.83 374.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.83 374.45 Td (. ) Tj ET Q q 0 0 0 rg BT 126.65 374.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 144.70 374.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.45 374.45 Td ( in EMEA) Tj ET Q q 0 0 0 rg BT 218.01 374.45 Td ( revenue in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 264.93 374.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.93 374.45 Td ( was primarily due to growth in software license sales and related ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.45 Td (maintenance support, particularly our hosted UC applications, and the recognition of consumer applications revenue related to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 350.45 Td (an arrangement that had been deferred in prior periods. ) Tj ET Q q 0 0 0 rg BT 272.13 350.45 Td (AP) Tj ET Q q 0 0 0 rg BT 283.99 350.45 Td (AC revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.69 350.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.69 350.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.19 350.45 Td (decreased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.61 350.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.61 350.45 Td (29%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.94 350.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.77 350.45 Td ($7.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.66 350.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 523.94 350.45 Td ($18.0 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 338.45 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 338.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 136.09 338.45 Td (201) Tj ET Q q 0 0 0 rg BT 150.72 338.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 155.72 338.45 Td (. ) Tj ET Q q 0 0 0 rg BT 160.54 338.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 178.59 338.45 Td (decrease) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.00 338.45 Td ( in ) Tj ET Q q 0 0 0 rg BT 225.23 338.45 Td (AP) Tj ET Q q 0 0 0 rg BT 237.09 338.45 Td (AC revenue was primarily due to the recognition of revenue in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.63 338.45 Td (201) Tj ET Q q 0 0 0 rg BT 505.25 338.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.25 338.45 Td ( on a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 326.45 Td (sizeable order for our call center application from a lar) Tj ET Q q 0 0 0 rg BT 268.32 326.45 Td (ge incumbent provider that had been deferred in prior periods.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 300.45 Td (License Softwar) Tj ET Q q 0 0 0 rg BT 113.79 300.45 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 283.45 Td (License software revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.83 283.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.83 283.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.33 283.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 229.08 283.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.08 283.45 Td (16%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 262.41 283.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.24 283.45 Td ($12.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.13 283.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.41 283.45 Td ($89.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.30 283.45 Td (, compared to 201) Tj ET Q q 0 0 0 rg BT 473.13 283.45 Td (1. ) Tj ET Q q 0 0 0 rg BT 482.95 283.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 501.00 283.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.75 283.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 271.45 Td (revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.31 271.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 118.31 271.45 Td ( was primarily due to growth in sales of software licenses. ) Tj ET Q q 0 0 0 rg BT 353.07 271.45 Td (This growth was most significant in license sales ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 259.45 Td (for our hosted UC and consumer applications. Deferred license software revenue decreased by $2.2 million in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.08 259.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.08 259.45 Td (, compared ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 247.45 Td (to a decrease of $5.0 million in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 176.63 247.45 Td (201) Tj ET Q q 0 0 0 rg BT 191.26 247.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.26 247.45 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 221.45 Td (Subscription and Maintenance Support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 204.45 Td (Subscription and maintenance support revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.83 204.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.83 204.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.33 204.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.08 204.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.08 204.45 Td (37%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.41 204.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.24 204.45 Td ($15.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.13 204.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.41 204.45 Td ($58.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.30 204.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 192.45 Td (201) Tj ET Q q 0 0 0 rg BT 64.63 192.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.63 192.45 Td (. ) Tj ET Q q 0 0 0 rg BT 74.45 192.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 92.50 192.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 125.25 192.45 Td ( in subscription and maintenance support revenue for 2012 was primarily due to growth in our installed base ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 180.45 Td (of customers and licenses and subscription revenue contributions from certain of our recent acquisitions. Deferred subscription ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 168.45 Td (and maintenance support revenue increased by $6.4 million in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.04 168.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.04 168.45 Td (, compared to an increase of $5.9 million in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.93 168.45 Td (201) Tj ET Q q 0 0 0 rg BT 512.56 168.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 517.56 168.45 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 142.45 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.63 142.45 Td (ofessional Services and Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 125.45 Td (Professional services and other revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 224.94 125.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.94 125.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.44 125.45 Td (decreased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.85 125.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.85 125.45 Td (8%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.18 125.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.01 125.45 Td ($1.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.90 125.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.18 125.45 Td ($16.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.07 125.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.27 125.45 Td (201) Tj ET Q q 0 0 0 rg BT 520.90 125.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.90 125.45 Td (. ) Tj ET Q q 0 0 0 rg BT 530.72 125.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 113.45 Td (decrease in professional services and other revenue for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.57 113.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.57 113.45 Td ( was primarily due to the recognition of revenue in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.06 113.45 Td (201) Tj ET Q q 0 0 0 rg BT 511.69 113.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.69 113.45 Td ( for a new ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 101.45 Td (call center application that had been deferred in prior periods, partially of) Tj ET Q q 0 0 0 rg BT 343.03 101.45 Td (fset by growth in demand for our professional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 89.45 Td (services. Deferred professional services and other revenue remained approximately unchanged in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.50 89.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.50 89.45 Td (, compared to a decrease ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 77.45 Td (of $3.0 million in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 122.50 77.45 Td (201) Tj ET Q q 0 0 0 rg BT 137.13 77.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 142.13 77.45 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (47) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Cost of Revenue and Gross Profit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 731.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 694.95 m 307.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 694.95 m 315.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 694.95 m 355.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 694.95 m 408.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 694.95 m 416.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 694.95 m 456.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 694.95 m 509.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 694.95 m 517.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 694.95 m 562.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 657.95 m 307.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 657.95 m 355.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 657.95 m 408.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 657.95 m 456.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 657.95 m 509.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 657.95 m 562.5 657.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 585.95 m 307.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 585.95 m 408.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 585.95 m 509.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 571.95 m 307.5 571.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 569.95 m 307.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 585.95 m 408.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 571.95 m 408.5 571.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 569.95 m 408.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 585.95 m 509.5 585.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 571.95 m 509.5 571.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 569.95 m 509.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 511.95 m 307.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 511.95 m 408.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 511.95 m 509.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 497.95 m 307.5 497.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 495.95 m 307.5 495.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 511.95 m 408.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 497.95 m 408.5 497.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 495.95 m 408.5 495.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 511.95 m 509.5 511.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 497.95 m 509.5 497.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 495.95 m 509.5 495.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 712.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 712.18 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.30 707.18 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.85 699.18 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 699.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.50 699.18 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.70 699.18 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 662.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.45 662.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 333.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 331.65 678.18 Td (of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.85 670.18 Td (Related) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.30 662.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.45 662.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 434.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.65 678.18 Td (of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.85 670.18 Td (Related) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.30 662.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.45 662.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 662.18 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 649.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 649.20 Td (\(dollars in thousands\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 635.68 Td (Cost of Revenue:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 621.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 620.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 620.62 Td (8,643) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 620.62 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 620.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 620.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 620.62 Td (6,077) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 620.62 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 620.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 620.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 620.62 Td (2,566) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 620.62 Td (42) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 620.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 606.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 605.62 Td (14,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 605.62 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 605.62 Td (10,419) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 605.62 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 605.62 Td (4,412) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 605.62 Td (42) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 591.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 590.62 Td (9,012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 590.62 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 590.62 Td (8,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 590.62 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 590.62 Td (534) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 590.62 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 576.52 Td (Total cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 575.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 575.62 Td (32,486) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 575.62 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 575.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 575.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 575.62 Td (24,974) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 575.62 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 575.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 575.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 575.62 Td (7,512) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 575.62 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 575.62 Td (%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 561.68 Td (Gross Profit:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 547.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 546.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 546.62 Td (81,107) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 546.62 Td (90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 546.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 546.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 546.62 Td (71,212) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 546.62 Td (92) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 546.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 546.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 546.62 Td (9,895) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 546.62 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 546.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 532.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 531.62 Td (43,418) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 531.62 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 531.62 Td (32,043) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 531.62 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 531.62 Td (11,375) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 531.62 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 517.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 516.62 Td (7,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 516.62 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 516.62 Td (9,835) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 516.62 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.80 516.67 Td (\(2,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.65 516.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 516.67 Td (\(20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 516.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 502.52 Td (Total gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 501.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 501.62 Td (132,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 501.62 Td (80) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 501.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 501.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.10 501.62 Td (113,090) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 501.62 Td (82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 501.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 501.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 501.62 Td (19,266) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 501.62 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 501.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 476.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 476.45 Td (, gross mar) Tj ET Q q 0 0 0 rg BT 130.37 476.45 Td (gin decreased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.84 476.45 Td (80%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.17 476.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.37 476.45 Td (82%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.70 476.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.48 476.45 Td (201) Tj ET Q q 0 0 0 rg BT 319.11 476.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.11 476.45 Td (, and our gross profit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.21 476.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.96 476.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.96 476.45 Td (17%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 481.29 476.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.12 476.45 Td ($19.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 551.02 476.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.45 Td (to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.28 464.45 Td ($132.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 119.17 464.45 Td (. ) Tj ET Q q 0 0 0 rg BT 123.99 464.45 Td (W) Tj ET Q q 0 0 0 rg BT 132.63 464.45 Td (e experienced an increase in both license software revenue gross profit and subscription and maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.45 Td (support gross profit and a decrease in professional services and other gross profit for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.46 452.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.46 452.45 Td (. ) Tj ET Q q 0 0 0 rg BT 415.28 452.45 Td (The total gross profit growth is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.45 Td (primarily due to growth in license software and subscription and maintenance support revenue relative to the respective cost of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 428.45 Td (revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 407.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 407.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 407.45 Td (, license software gross mar) Tj ET Q q 0 0 0 rg BT 197.56 407.45 Td (gin decreased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.03 407.45 Td (90%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.36 407.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.57 407.45 Td (92%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.90 407.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.67 407.45 Td (201) Tj ET Q q 0 0 0 rg BT 386.30 407.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.30 407.45 Td (, and license software gross profit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 395.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 87.75 395.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 102.75 395.45 Td (14%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.08 395.45 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 133.86 395.45 Td ($81.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.75 395.45 Td (. License software cost of revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.86 395.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.61 395.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.61 395.45 Td (42%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.94 395.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.77 395.45 Td ($2.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.67 395.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.94 395.45 Td ($8.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.84 395.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 383.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 383.45 Td (. ) Tj ET Q q 0 0 0 rg BT 74.82 383.45 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 95.10 383.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.85 383.45 Td ( of license software cost of revenue was primarily due to a $1.0 million increase in equipment and resold ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 371.45 Td (third party software costs and a $0.8 million increase in personnel-related costs driven by an increase in headcount and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.45 Td (compensation increases. ) Tj ET Q q 0 0 0 rg BT 149.51 359.45 Td (The increase in license software gross profit was driven by revenue growth relative to lower growth in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 347.45 Td (license software cost of revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 326.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 326.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 326.45 Td (, subscription and maintenance services gross mar) Tj ET Q q 0 0 0 rg BT 286.43 326.45 Td (gin remained approximately unchanged at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.20 326.45 Td (75%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.53 326.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.73 326.45 Td (201) Tj ET Q q 0 0 0 rg BT 547.36 326.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.36 326.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 314.45 Td (and subscription and maintenance services gross profit increased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.08 314.45 Td (35%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.41 314.45 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.19 314.45 Td ($43.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.08 314.45 Td (. Subscription and maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.45 Td (services cost of revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.29 302.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 186.04 302.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.04 302.45 Td (42%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.38 302.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.21 302.45 Td ($4.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.10 302.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.38 302.45 Td ($14.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.27 302.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.04 302.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.04 302.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.25 302.45 Td (201) Tj ET Q q 0 0 0 rg BT 457.88 302.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.88 302.45 Td (. ) Tj ET Q q 0 0 0 rg BT 467.70 302.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.74 302.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 518.50 302.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.45 Td (subscription and maintenance services cost of revenue was primarily due to an increase of $1.3 million in personnel-related ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 278.45 Td (costs driven by an increase in headcount and compensation increases, a $1.1 million increase in amortization of acquired ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 266.45 Td (intangibles, a $0.4 million increase in consulting fees and a $0.4 million increase in line costs. ) Tj ET Q q 0 0 0 rg BT 428.62 266.45 Td (The increase in subscription and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.45 Td (maintenance services gross profit was driven by revenue growth relative to lower growth in subscription and maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.45 Td (services cost of revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 221.45 Td (For ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.39 221.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.39 221.45 Td (, professional services and other gross mar) Tj ET Q q 0 0 0 rg BT 256.44 221.45 Td (gin decreased to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.91 221.45 Td (46%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.24 221.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.44 221.45 Td (54%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.77 221.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.55 221.45 Td (201) Tj ET Q q 0 0 0 rg BT 445.18 221.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.18 221.45 Td (, and professional services ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 209.45 Td (and other gross profit decreased by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 192.73 209.45 Td (20%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.06 209.45 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.84 209.45 Td ($7.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.73 209.45 Td (. Professional services and other cost of revenue increased ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.20 209.45 Td (6%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.53 209.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.36 209.45 Td ($0.5 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 197.45 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 197.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.17 197.45 Td ($9.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 143.06 197.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 159.72 197.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 179.72 197.45 Td (. ) Tj ET Q q 0 0 0 rg BT 184.54 197.45 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.59 197.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.34 197.45 Td ( in professional services cost of revenue was primarily due to an increase in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 185.45 Td (personnel-related costs and consulting fees. ) Tj ET Q q 0 0 0 rg BT 226.43 185.45 Td (The decrease in professional services and other gross profit was driven by the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 173.45 Td (recognition of revenue in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.30 173.45 Td (201) Tj ET Q q 0 0 0 rg BT 167.92 173.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 172.92 173.45 Td ( for a new call center application from a lar) Tj ET Q q 0 0 0 rg BT 345.71 173.45 Td (ge ) Tj ET Q q 0 0 0 rg BT 357.10 173.45 Td (AP) Tj ET Q q 0 0 0 rg BT 368.96 173.45 Td (AC incumbent provider that had been deferred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 161.45 Td (in prior periods.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (48) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Operating Expenses) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 731.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 707.95 m 307.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 694.95 m 307.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 707.95 m 315.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 694.95 m 315.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 707.95 m 355.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 694.95 m 355.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 707.95 m 363.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 707.95 m 408.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 694.95 m 408.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 707.95 m 416.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 694.95 m 416.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 707.95 m 456.5 707.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 694.95 m 456.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 694.95 m 509.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 694.95 m 517.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 694.95 m 562.5 694.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 665.95 m 307.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 665.95 m 355.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 665.95 m 408.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 665.95 m 456.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 665.95 m 509.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 665.95 m 562.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 607.95 m 307.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 607.95 m 355.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 607.95 m 408.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 607.95 m 456.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 607.95 m 509.5 607.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 593.95 m 307.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 591.95 m 307.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 593.95 m 355.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 591.95 m 355.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 593.95 m 408.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 591.95 m 408.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 593.95 m 456.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 591.95 m 456.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 593.95 m 509.5 593.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 591.95 m 509.5 591.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 712.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 712.18 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.30 707.18 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.85 699.18 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 699.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.50 699.18 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.70 699.18 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 670.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.45 670.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 333.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 678.18 Td (of ) Tj ET Q q 0 0 0 rg BT 330.47 678.18 Td (T) Tj ET Q q 0 0 0 rg BT 335.07 678.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.30 670.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.45 670.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 686.18 Td (Per) Tj ET Q q 0 0 0 rg BT 434.79 686.18 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 678.18 Td (of ) Tj ET Q q 0 0 0 rg BT 431.47 678.18 Td (T) Tj ET Q q 0 0 0 rg BT 436.07 678.18 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.30 670.18 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.45 670.18 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 670.18 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 657.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 657.20 Td (\(dollars in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 643.52 Td (Sales and marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 642.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 642.62 Td (47,911) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 642.62 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 642.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 642.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 642.62 Td (38,376) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 642.62 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 642.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 642.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 642.62 Td (9,535) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 642.62 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 642.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 628.52 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 627.62 Td (36,178) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 627.62 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 627.62 Td (27,744) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 627.62 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 627.62 Td (8,434) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 627.62 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 613.52 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.10 612.62 Td (22,863) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 612.62 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 612.62 Td (19,534) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 612.62 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 612.62 Td (3,329) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 612.62 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 598.52 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 597.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.10 597.62 Td (106,952) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 597.62 Td (65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 597.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 597.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.10 597.62 Td (85,654) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 597.62 Td (62) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 597.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 597.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.10 597.62 Td (21,298) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 597.62 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 597.62 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 572.45 Td (Sales and Marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 132.76 572.45 Td (. Sales and marketing expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.06 572.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.81 572.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.81 572.45 Td (25%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.14 572.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.97 572.45 Td ($9.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.87 572.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.14 572.45 Td ($47.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.04 572.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.70 572.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.70 572.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 560.45 Td (201) Tj ET Q q 0 0 0 rg BT 64.63 560.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.63 560.45 Td (. ) Tj ET Q q 0 0 0 rg BT 74.45 560.45 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.73 560.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.48 560.45 Td ( was primarily due to a $7.2 million increase in personnel-related costs driven by an increase in headcount ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.45 Td (and higher sales commissions, a $0.7 million increase in outside consulting fees and a $0.7 million increase in travel expenses.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 527.45 Td (Resear) Tj ET Q q 0 0 0 rg BT 77.40 527.45 Td (ch and Development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 159.59 527.45 Td (. Research and development expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.53 527.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.29 527.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.29 527.45 Td (30%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.62 527.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.45 527.45 Td ($8.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.34 527.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.62 527.45 Td ($36.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.51 527.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.17 527.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 551.17 527.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 515.45 Td (compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 102.20 515.45 Td (201) Tj ET Q q 0 0 0 rg BT 116.83 515.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.83 515.45 Td (. ) Tj ET Q q 0 0 0 rg BT 126.65 515.45 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 146.93 515.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 179.68 515.45 Td ( was primarily due to an $8.0 million increase in personnel-related costs driven by an increase ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 503.45 Td (in headcount and compensation increases. ) Tj ET Q q 0 0 0 rg BT 220.32 503.45 Td (The increase in headcount was reflective of our continued investment in our product ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 491.45 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 491.45 Td (ferings, as well as the impact of the acquisitions we made during ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.47 491.45 Td (201) Tj ET Q q 0 0 0 rg BT 334.10 491.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.10 491.45 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.54 491.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 378.54 491.45 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 470.45 Td (General and ) Tj ET Q q 0 0 0 rg BT 102.59 470.45 Td (Administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 161.47 470.45 Td (. General and administrative expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.97 470.45 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.72 470.45 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.72 470.45 Td (17%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.05 470.45 Td (, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.88 470.45 Td ($3.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.77 470.45 Td (, to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.05 470.45 Td ($22.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.94 470.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.60 470.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.60 470.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 458.45 Td (compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 102.20 458.45 Td (201) Tj ET Q q 0 0 0 rg BT 116.83 458.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.83 458.45 Td (. ) Tj ET Q q 0 0 0 rg BT 126.65 458.45 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 146.93 458.45 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 179.68 458.45 Td ( was primarily due to a $2.0 million increase in personnel-related costs driven by an increase in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 446.45 Td (headcount and compensation increases, a $0.7 million increase in equipment and software costs, a $0.6 million increase in bad ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 434.45 Td (debt expense and an increase of $0.3 million in outside consulting fees.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 408.45 Td (Income from Operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 391.45 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 391.45 Td (e had income from operations of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.37 391.45 Td ($25.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.26 391.45 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.92 391.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.92 391.45 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.13 391.45 Td ($27.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.02 391.45 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.80 391.45 Td (201) Tj ET Q q 0 0 0 rg BT 420.42 391.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.42 391.45 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 365.45 Td (Other \(Income\) Expense) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 354.65 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 331.15 m 307.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 331.15 m 315.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 331.15 m 355.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 331.15 m 363.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 331.15 m 408.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 331.15 m 416.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 331.15 m 456.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 331.15 m 307.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 318.15 m 307.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 331.15 m 315.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 318.15 m 315.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 331.15 m 355.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 318.15 m 355.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 331.15 m 408.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 318.15 m 408.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 331.15 m 416.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 318.15 m 416.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 331.15 m 456.5 331.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 318.15 m 456.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 318.15 m 509.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 318.15 m 517.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 318.15 m 562.5 318.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 289.15 m 307.5 289.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 289.15 m 355.5 289.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 289.15 m 408.5 289.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 289.15 m 456.5 289.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 289.15 m 509.5 289.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 289.15 m 562.5 289.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 246.14999999999998 m 307.5 246.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 246.14999999999998 m 355.5 246.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 246.14999999999998 m 408.5 246.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 246.14999999999998 m 456.5 246.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 246.14999999999998 m 509.5 246.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 232.14999999999998 m 307.5 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 230.14999999999998 m 307.5 230.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 232.14999999999998 m 355.5 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 230.14999999999998 m 355.5 230.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 232.14999999999998 m 408.5 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 230.14999999999998 m 408.5 230.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 232.14999999999998 m 456.5 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 230.14999999999998 m 456.5 230.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 232.14999999999998 m 509.5 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 230.14999999999998 m 509.5 230.14999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 335.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 335.38 Td (Year ended December31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.30 330.38 Td (Period-to-Period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.85 322.38 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 322.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.50 322.38 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.70 322.38 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 293.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.45 293.38 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 309.38 Td (Per) Tj ET Q q 0 0 0 rg BT 333.79 309.38 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.95 301.38 Td (of ) Tj ET Q q 0 0 0 rg BT 330.47 301.38 Td (T) Tj ET Q q 0 0 0 rg BT 335.07 301.38 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.30 293.38 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.45 293.38 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 309.38 Td (Per) Tj ET Q q 0 0 0 rg BT 434.79 309.38 Td (cent) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.95 301.38 Td (of ) Tj ET Q q 0 0 0 rg BT 431.47 301.38 Td (T) Tj ET Q q 0 0 0 rg BT 436.07 301.38 Td (otal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.30 293.38 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.45 293.38 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.65 293.38 Td (Percentage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 280.40 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 280.40 Td (\(dollars in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 266.72 Td (Interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 265.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.30 265.82 Td (\(455) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 265.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.00 265.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 265.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.30 265.87 Td (\(278) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.65 265.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 448.00 265.82 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 265.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.30 265.87 Td (\(177) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.65 265.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 265.82 Td (64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 265.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 251.72 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 250.82 Td (6,925) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 250.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 250.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 250.82 Td (3,592) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 250.82 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 250.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 250.82 Td (3,333) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 250.82 Td (93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 250.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 236.72 Td (Total other expense, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.00 235.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 235.82 Td (6,470) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 235.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 235.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.00 235.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.15 235.82 Td (3,314) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 235.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.65 235.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.00 235.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 235.82 Td (3,156) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 235.82 Td (95) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 235.82 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 213.65 Td (* ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 113.00 213.65 Td (Less than 1%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 192.65 Td (Interest income ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 114.42 192.65 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.17 192.65 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 167.17 192.65 Td ($0.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.06 192.65 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.72 192.65 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.72 192.65 Td (. Interest expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.92 192.65 Td (increased) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.67 192.65 Td ( by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.67 192.65 Td ($3.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.56 192.65 Td ( compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 481.26 192.65 Td (201) Tj ET Q q 0 0 0 rg BT 495.89 192.65 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.89 192.65 Td (. ) Tj ET Q q 0 0 0 rg BT 505.71 192.65 Td (This ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.99 192.65 Td (increase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.75 192.65 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 180.65 Td (in interest expense was primarily due to a full year's recognition of interest expense in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.42 180.65 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.42 180.65 Td ( on our Notes issued in June ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.68 180.65 Td (201) Tj ET Q q 0 0 0 rg BT 546.31 180.65 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 551.31 180.65 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 154.65 Td (Provision for \(Benefit from\) Income T) Tj ET Q q 0 0 0 rg BT 207.12 154.65 Td (axes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 137.65 Td (Provision for income taxes was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 178.03 137.65 Td ($6.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.92 137.65 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 243.58 137.65 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.58 137.65 Td (, compared to benefit from income taxes of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.80 137.65 Td ($8.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.69 137.65 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.35 137.65 Td (201) Tj ET Q q 0 0 0 rg BT 518.98 137.65 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 523.98 137.65 Td (. ) Tj ET Q q 0 0 0 rg BT 528.80 137.65 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 125.65 Td (provision for income taxes for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 173.58 125.65 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.58 125.65 Td ( was positively impacted by $1.9 million due to the recognition of research and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 113.65 Td (development tax credits relating to prior years. ) Tj ET Q q 0 0 0 rg BT 239.20 113.65 Td (These credits were not recorded until an acceptance for the credits was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 101.65 Td (established. ) Tj ET Q q 0 0 0 rg BT 99.25 101.65 Td (The benefit from income taxes for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.64 101.65 Td (201) Tj ET Q q 0 0 0 rg BT 253.27 101.65 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 258.27 101.65 Td ( related primarily to an $8.9 million benefit due to the discrete release of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 89.65 Td (the U.S. tax valuation allowance, partially of) Tj ET Q q 0 0 0 rg BT 228.93 89.65 Td (fset by foreign taxes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (49) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.68 742.25 Td (ces) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Resour) Tj ET Q q 0 0 0 rg BT 77.96 725.25 Td (ces) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 708.25 Td (Since the beginning of 2009, we have funded our operations principally with cash provided by operating activities, which has ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 696.25 Td (resulted primarily from growth in net income and deferred revenue. Cash flow from operations was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.43 696.25 Td ($31.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.32 696.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.32 696.25 Td ($30.0 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 684.25 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 684.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.33 684.25 Td ($28.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.22 684.25 Td ( for the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 233.57 684.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.16 684.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.16 684.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.16 684.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.60 684.25 Td (201) Tj ET Q q 0 0 0 rg BT 371.23 684.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.23 684.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 428.89 684.25 Td (. In June 201) Tj ET Q q 0 0 0 rg BT 480.18 684.25 Td (1, we completed an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 672.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 672.25 Td (fering of our Notes with net proceeds from the of) Tj ET Q q 0 0 0 rg BT 254.85 672.25 Td (fering of approximately $1) Tj ET Q q 0 0 0 rg BT 361.95 672.25 Td (15.7 million.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (Cash and Cash Equivalents, ) Tj ET Q q 0 0 0 rg BT 165.65 646.25 Td (Accounts Receivable and W) Tj ET Q q 0 0 0 rg BT 276.08 646.25 Td (orking Capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (The following table presents a summary of our cash and cash equivalents, accounts receivable, working capital and cash flows ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 617.25 Td (as of the dates and for the periods indicated \(in thousands\).) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 606.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 575.95 m 494.5 575.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 575.95 m 562.5 575.95 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.75 588.03 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 456.00 580.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 508.75 588.03 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.00 580.03 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 566.52 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.00 566.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 566.52 Td (69,866) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.00 566.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 566.52 Td (90,545) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 552.52 Td (Accounts receivable, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 552.52 Td (66,595) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 552.52 Td (48,980) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 538.52 Td (Working capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 538.52 Td (161,066) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 538.52 Td (161,519) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 523.65 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 500.15 m 436.5 500.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 500.15 m 444.5 500.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 500.15 m 499.5 500.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 500.15 m 507.5 500.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 500.15 m 562.5 500.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 487.15 m 436.5 487.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 487.15 m 499.5 487.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 487.15 m 562.5 487.15 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 504.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 428.10 504.38 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 491.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 400.50 491.38 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.50 491.38 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 491.38 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 477.72 Td (Cash provided by \(used in\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 462.72 Td (Operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 461.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 461.82 Td (31,934) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 461.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 461.82 Td (30,019) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 461.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 461.82 Td (28,514) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 447.72 Td (Investing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 446.87 Td (\(57,406) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.65 446.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.80 446.87 Td (\(34,153) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.65 446.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.80 446.87 Td (\(99,136) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 446.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 432.72 Td (Financing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 431.82 Td (4,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 431.82 Td (458) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 431.82 Td (117,492) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 406.65 Td (Our cash and cash equivalents at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 183.29 406.65 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.87 406.65 Td ( were held for working capital and other general corporate purposes and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 394.65 Td (were invested primarily in demand deposit accounts or money market funds. ) Tj ET Q q 0 0 0 rg BT 358.62 394.65 Td (W) Tj ET Q q 0 0 0 rg BT 367.26 394.65 Td (e do not enter into investments for trading or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 382.65 Td (speculative purposes. Restricted cash, which totaled ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.49 382.65 Td ($0.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.38 382.65 Td ( at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.60 382.65 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.19 382.65 Td ( and is not included in cash and cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 370.65 Td (equivalents, consisted primarily of certificates of deposit that secure letters of credit related to operating leases for of) Tj ET Q q 0 0 0 rg BT 516.87 370.65 Td (fice space.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 344.65 Td (Operating ) Tj ET Q q 0 0 0 rg BT 93.43 344.65 Td (Activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 327.65 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 327.65 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.78 327.65 Td (, net cash provided by operating activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.22 327.65 Td ($31.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.11 327.65 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.32 327.65 Td ($30.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.21 327.65 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 315.65 Td (for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.16 315.65 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.16 315.65 Td (. ) Tj ET Q q 0 0 0 rg BT 88.98 315.65 Td (The increase was primarily due to a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 234.20 315.65 Td ($9.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.09 315.65 Td ( increase from the aggregate changes in non-cash items and a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.49 315.65 Td ($13.3 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 303.65 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 303.65 Td ( increase from the net change in other current and long-term assets and liabilities, partially of) Tj ET Q q 0 0 0 rg BT 450.80 303.65 Td (fset by a decrease in net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 291.65 Td (income of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 92.76 291.65 Td ($21.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 146.66 291.65 Td (. Non-cash items primarily consist of stock-based compensation expense, depreciation and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 279.65 Td (amortization, non-cash interest on convertible debt, amortization of software licenses, tax windfall benefits from stock option ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 267.65 Td (exercises and change in deferred income taxes. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 246.65 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 246.65 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.78 246.65 Td (, net cash provided by operating activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.22 246.65 Td ($30.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.11 246.65 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.32 246.65 Td ($28.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.21 246.65 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 234.65 Td (for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.16 234.65 Td (201) Tj ET Q q 0 0 0 rg BT 78.79 234.65 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 83.79 234.65 Td (. ) Tj ET Q q 0 0 0 rg BT 88.61 234.65 Td (The increase was primarily due to a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 233.83 234.65 Td ($28.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.72 234.65 Td ( increase from the aggregate changes in non-cash items, partially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 222.65 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 222.65 Td (fset by a decrease in net income of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 199.20 222.65 Td ($20.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.09 222.65 Td ( and a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.47 222.65 Td ($6.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.36 222.65 Td ( decrease from the net change in other current and long-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 210.65 Td (term asset and liabilities. Non-cash items primarily consist of stock-based compensation expense, depreciation and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 198.65 Td (amortization, non-cash interest on convertible debt, amortization of software licenses and change in deferred income taxes. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 177.65 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 177.65 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 200.41 177.65 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.41 177.65 Td (, operating activities provided ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.31 177.65 Td ($28.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.21 177.65 Td ( in net cash compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 481.17 177.65 Td ($19.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.06 177.65 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 165.65 Td (2010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 165.65 Td (. ) Tj ET Q q 0 0 0 rg BT 74.82 165.65 Td (The increase was primarily due to an increase in net income of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.05 165.65 Td ($24.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.94 165.65 Td (, partially of) Tj ET Q q 0 0 0 rg BT 430.91 165.65 Td (fset by a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.29 165.65 Td ($13.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.18 165.65 Td ( decrease ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 153.65 Td (from the net change in other current and long-term asset and liabilities and a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.67 153.65 Td ($1.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.56 153.65 Td ( decrease from the aggregate changes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 141.65 Td (in non-cash items. Non-cash items primarily consist of stock-based compensation expense, release of tax valuation allowances, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 129.65 Td (depreciation and amortization, non-cash interest on convertible debt, amortization of software licenses and change in deferred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 117.65 Td (income taxes.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 91.65 Td (Investing ) Tj ET Q q 0 0 0 rg BT 88.97 91.65 Td (Activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 74.65 Td (Our investing activities have consisted primarily of purchases of marketable securities and property and equipment and the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 62.65 Td (acquisitions of businesses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 742.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.78 742.10 Td (, net cash used in investing activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.69 742.10 Td ($57.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.58 742.10 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.78 742.10 Td ($34.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.67 742.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 730.10 Td ( ) Tj ET Q q 0 0 0 rg BT 72.32 730.10 Td (This increase was primarily attributable to a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 250.87 730.10 Td ($12.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.76 730.10 Td ( increase in cash used for acquisitions, an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.76 730.10 Td ($8.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.66 730.10 Td ( increase ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (in net purchases of marketable securities and a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.81 718.10 Td ($1.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.71 718.10 Td ( increase in purchases of property and equipment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 697.10 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.78 697.10 Td (, net cash used in investing activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.69 697.10 Td ($34.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.58 697.10 Td (, compared to $99.1 million for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (201) Tj ET Q q 0 0 0 rg BT 64.63 685.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.63 685.10 Td (. ) Tj ET Q q 0 0 0 rg BT 74.45 685.10 Td (This decrease was primarily attributable to a $73.6 million decrease in net purchases of marketable securities, of) Tj ET Q q 0 0 0 rg BT 523.55 685.10 Td (fset by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (an $8.4 million increase in cash used for acquisitions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 652.10 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 652.10 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 200.41 652.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.41 652.10 Td (, net cash used in investing activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.31 652.10 Td ($99.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.21 652.10 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.41 652.10 Td ($24.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.30 652.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (2010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 640.10 Td (. ) Tj ET Q q 0 0 0 rg BT 74.82 640.10 Td (This increase was attributed to an increase of $1) Tj ET Q q 0 0 0 rg BT 267.15 640.10 Td (18.6 million in marketable securities purchased with excess cash, and a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 628.10 Td ($14.6 million increase in cash used for acquisitions, partially of) Tj ET Q q 0 0 0 rg BT 303.93 628.10 Td (fset by proceeds from the sale and maturity of marketable ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 616.10 Td (securities of $58.2 million.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (Financing ) Tj ET Q q 0 0 0 rg BT 93.42 590.10 Td (Activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 573.10 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 573.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.78 573.10 Td (, net cash provided by financing activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.22 573.10 Td ($4.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.11 573.10 Td (, compared to net cash used ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 561.10 Td (in financing activities of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.97 561.10 Td ($0.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 198.86 561.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.52 561.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.52 561.10 Td (. Net cash provided by financing activities in 2013 consisted of our tax windfall ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 549.10 Td (benefits from stock option exercises of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 207.73 549.10 Td ($7.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.63 549.10 Td ( and proceeds from the exercise of stock options of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.23 549.10 Td ($1.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.12 549.10 Td (, partially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 537.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 537.10 Td (fset by taxes paid on the vesting of restricted stock units of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.87 537.10 Td ($3.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.77 537.10 Td ( and payments of notes payable of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.89 537.10 Td ($1.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.78 537.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 516.10 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 516.10 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.78 516.10 Td (, net cash used in financing activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 373.78 516.10 Td ($0.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.68 516.10 Td (, compared to net cash provided ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 504.10 Td (by financing activities of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.19 504.10 Td ($1) Tj ET Q q 0 0 0 rg BT 161.82 504.10 Td (17.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 210.71 504.10 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.37 504.10 Td (201) Tj ET Q q 0 0 0 rg BT 242.00 504.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.00 504.10 Td (. Net cash used in financing activities in 2012 consisted of taxes paid on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 492.10 Td (vesting of restricted stock units of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.31 492.10 Td ($2.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 237.20 492.10 Td ( and payments of notes payable of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.32 492.10 Td ($0.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.21 492.10 Td (, of) Tj ET Q q 0 0 0 rg BT 438.36 492.10 Td (fset by proceeds from the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 480.10 Td (exercise of stock options of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 162.47 480.10 Td ($2.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.36 480.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.19 459.10 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 200.41 459.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.41 459.10 Td (, net cash provided by financing activities was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.85 459.10 Td ($1) Tj ET Q q 0 0 0 rg BT 402.48 459.10 Td (17.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.37 459.10 Td (, compared to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.57 459.10 Td ($29.2 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 447.10 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 91.67 447.10 Td (2010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 111.67 447.10 Td (. ) Tj ET Q q 0 0 0 rg BT 116.49 447.10 Td (The principal source of cash generated from financing activities was related to the issuance of the Notes, which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 435.10 Td (generated $1) Tj ET Q q 0 0 0 rg BT 100.99 435.10 Td (15.7 million, net of issuance costs. ) Tj ET Q q 0 0 0 rg BT 241.25 435.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 291.16 435.10 Td (, net cash provided by financing activities included proceeds from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 423.10 Td (common stock issued upon the exercise of stock options of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 288.29 423.10 Td ($3.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.18 423.10 Td (, partially of) Tj ET Q q 0 0 0 rg BT 386.15 423.10 Td (fset by payments of notes payable and bank ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 411.10 Td (loans of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.44 411.10 Td ($1.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 133.33 411.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 Td (Borr) Tj ET Q q 0 0 0 rg BT 70.37 385.10 Td (owings and Cr) Tj ET Q q 0 0 0 rg BT 132.42 385.10 Td (edit Facilities) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 368.10 Td (Convertible Senior Notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 Td (In June 201) Tj ET Q q 0 0 0 rg BT 96.29 351.10 Td (1, we issued $120.0 million aggregate principal amount of our Notes, with net proceeds of approximately $1) Tj ET Q q 0 0 0 rg BT 529.98 351.10 Td (16 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 339.10 Td (million. ) Tj ET Q q 0 0 0 rg BT 83.71 339.10 Td (The Notes are our senior unsecured obligations, with interest payable semi-annually in cash at a rate of 1.50%per ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (annum, and will mature on July1, 2018, unless earlier repurchased, redeemed or converted.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (The initial conversion rate for the Notes is approximately $41.99 per share. ) Tj ET Q q 0 0 0 rg BT 353.06 306.10 Td (The conversion price will be subject to adjustment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (in some events, but will not be adjusted for accrued interest. Upon conversion, we will pay cash up to the aggregate principal ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (amount of the Notes to be converted and deliver shares of our common stock in respect of the remainder) Tj ET Q q 0 0 0 rg BT 467.24 282.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 494.64 282.10 Td (, of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (conversion obligation in excess of the aggregate principal amount of the Notes being converted.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 249.10 Td (Conversion Prior to ) Tj ET Q q 0 0 0 rg BT 130.83 249.10 Td (April1, 2018:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (Note holders may convert their Notes at their option prior to ) Tj ET Q q 0 0 0 rg BT 293.00 232.10 Td (April1, 2018 only if any of the following occur:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 215.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 215.10 Td (if, for ten consecutive trading days, the trading price per Note is less than 98% of the product of the last ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 203.10 Td (reported sale price of the common stock and the applicable conversion rate of the Notes on such day) Tj ET Q q 0 0 0 rg BT 540.60 203.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 191.10 Td (then the Notes may be converted at any time during the five business days following such ten day period;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 174.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 174.10 Td (if the closing price of our common stock exceeds 130% of the conversion price of the Notes for at least ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 162.10 Td (20 of the final 30 trading days of a calendar quarter) Tj ET Q q 0 0 0 rg BT 345.07 162.10 Td (, then the Notes may be converted at any time during ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 150.10 Td (the following calendar quarter;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 133.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 133.10 Td (upon the occurrence of certain corporate events specified in the indenture governing the Notes, or the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 121.10 Td (Indenture; or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 104.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.00 104.10 Td (if we call the Notes for redemption.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 83.10 Td (Conversion on or ) Tj ET Q q 0 0 0 rg BT 121.39 83.10 Td (After ) Tj ET Q q 0 0 0 rg BT 144.43 83.10 Td (April1, 2018:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (The Notes will be convertible, regardless of the foregoing circumstances, at any time on or after ) Tj ET Q q 0 0 0 rg BT 435.98 66.10 Td (April1, 2018 through the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 54.10 Td (second scheduled trading day immediately preceding the maturity date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (51) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Redemption by Holders:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 725.10 Td (Holders of the Notes may require us to repurchase some or all of the Notes for cash, subject to certain exceptions, upon a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 713.10 Td (fundamental change, as defined in the Indenture, at a repurchase price equal to the principal amount of the Notes being ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 701.10 Td (repurchased, plus any accrued and unpaid interest up to but excluding the relevant repurchase date. In addition, if a make-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.10 Td (whole fundamental change, as defined in the Indenture, occurs prior to the maturity date, we will in some cases increase the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.10 Td (conversion rate for a holder that elects to convert its Notes in connection with such make-whole fundamental change.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 656.10 Td (Redemption by BroadSoft:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 639.10 Td (e may not redeem the Notes prior to July1, 2015. Beginning July1, 2015, we may redeem for cash all or part of the Notes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.10 Td (\(except for the Notes that we are required to repurchase as described above\) if the last reported sale price of our common stock ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (exceeds 140% of the applicable conversion price of the Notes for at least 20 of the final 30 trading days ending on the trading ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (day immediately prior to the date of the redemption notice. ) Tj ET Q q 0 0 0 rg BT 288.35 603.10 Td (The redemption price of any Notes we call for redemption prior to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (the maturity date will equal the sum of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, plus ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (a make-whole premium payment.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 553.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.64 553.10 Td (ekes Loan) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 536.10 Td (In connection with our acquisition of Movial ) Tj ET Q q 0 0 0 rg BT 231.36 536.10 Td (Applications Oy in October 201) Tj ET Q q 0 0 0 rg BT 359.30 536.10 Td (1, we assumed five installment loans with ) Tj ET Q q 0 0 0 rg BT 529.09 536.10 Td (T) Tj ET Q q 0 0 0 rg BT 534.50 536.10 Td (ekes, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 524.10 Td (the Finnish Funding ) Tj ET Q q 0 0 0 rg BT 132.51 524.10 Td (Agency for ) Tj ET Q q 0 0 0 rg BT 180.09 524.10 Td (T) Tj ET Q q 0 0 0 rg BT 185.50 524.10 Td (echnology and Innovation, which we repaid in full in September 2013. ) Tj ET Q q 0 0 0 rg BT 470.53 524.10 Td (The terms of the loans ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 512.10 Td (were governed by the Finnish ) Tj ET Q q 0 0 0 rg BT 170.81 512.10 Td (Act on State Lending and State Guarantees, Government Decree on Research, Development and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 500.10 Td (Innovation Funding and the proceeds were used to fund approved research and development projects. ) Tj ET Q q 0 0 0 rg BT 458.30 500.10 Td (The repayment terms ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.10 Td (were determined on a per project basis, and the interest rate on each loan was variable, with the interest rate equal to three ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.10 Td (percent at the time of repayment.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (Operating and Capital Expenditur) Tj ET Q q 0 0 0 rg BT 187.68 450.10 Td (e Requir) Tj ET Q q 0 0 0 rg BT 221.46 450.10 Td (ements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 433.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 433.10 Td (e believe the cash generated from operations, our current cash, cash equivalents and short-term and long-term investment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td (balances and interest income we earn on these balances will be suf) Tj ET Q q 0 0 0 rg BT 316.10 421.10 Td (ficient to meet our anticipated cash requirements through at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td (least the next 12 months. In the future, we expect our operating and capital expenditures to grow as we increase headcount, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (expand our business activities, grow our customer base and implement and enhance our information technology and enterprise ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 Td (resource planning system. ) Tj ET Q q 0 0 0 rg BT 156.09 385.10 Td (As sales grow) Tj ET Q q 0 0 0 rg BT 211.54 385.10 Td (, we expect our accounts receivable balance to increase. ) Tj ET Q q 0 0 0 rg BT 436.70 385.10 Td (Any such increase in accounts ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 373.10 Td (receivable may not be completely of) Tj ET Q q 0 0 0 rg BT 195.59 373.10 Td (fset by increases in accounts payable and accrued expenses, which would likely result in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 361.10 Td (greater working capital requirements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (If our available cash resources are insuf) Tj ET Q q 0 0 0 rg BT 208.63 340.10 Td (ficient to satisfy our liquidity requirements, we may seek to sell additional equity or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (convertible debt securities or enter into a credit facility) Tj ET Q q 0 0 0 rg BT 268.71 328.10 Td (. ) Tj ET Q q 0 0 0 rg BT 273.53 328.10 Td (The sale of equity and convertible debt securities may result in dilution ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (to our stockholders and those securities may have rights senior to those of our common shares. If we raise additional funds ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 304.10 Td (through the issuance of convertible debt securities, these securities could contain covenants that would restrict our operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 292.10 Td (e may require additional capital beyond our currently anticipated amounts. ) Tj ET Q q 0 0 0 rg BT 358.81 292.10 Td (Additional capital may not be available on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (reasonable terms, or at all.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (Contractual Obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 237.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 237.10 Td (e have contractual obligations for non-cancelable of) Tj ET Q q 0 0 0 rg BT 266.14 237.10 Td (fice space, notes payable and other short-term and long-term liabilities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 225.10 Td (The following table discloses aggregate information about our contractual obligations as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.12 225.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.70 225.10 Td ( and periods in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 213.10 Td (which payments are due \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 202.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 178.79999999999995 m 330.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 178.79999999999995 m 338.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 178.79999999999995 m 388.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 178.79999999999995 m 396.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 178.79999999999995 m 446.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 178.79999999999995 m 454.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 178.79999999999995 m 504.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 178.79999999999995 m 512.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 178.79999999999995 m 562.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 165.79999999999995 m 330.5 165.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 165.79999999999995 m 388.5 165.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 165.79999999999995 m 446.5 165.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 165.79999999999995 m 504.5 165.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 178.79999999999995 m 562.5 178.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 165.79999999999995 m 562.5 165.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 121.79999999999995 m 330.5 121.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 119.79999999999995 m 330.5 119.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 121.79999999999995 m 388.5 121.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 119.79999999999995 m 388.5 119.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 121.79999999999995 m 446.5 121.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 119.79999999999995 m 446.5 119.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 121.79999999999995 m 504.5 121.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 119.79999999999995 m 504.5 119.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 121.79999999999995 m 562.5 121.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 119.79999999999995 m 562.5 119.79999999999995 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 183.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.40 183.03 Td (Payments Due by Year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 170.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.25 170.03 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 355.00 170.03 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.65 170.03 Td (2015-2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 459.65 170.03 Td (2017-2018) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 518.95 170.03 Td (After 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 156.37 Td (Convertible Senior Notes, including interest *) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.00 155.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.10 155.47 Td (128,100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.00 155.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.15 155.47 Td (1,800) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 155.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 155.47 Td (3,600) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 155.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.10 155.47 Td (122,700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 155.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 155.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 141.37 Td (Operating lease obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.15 140.47 Td (13,715) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.15 140.47 Td (2,816) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 140.47 Td (5,065) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 140.47 Td (4,228) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 140.47 Td (1,606) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 126.37 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.00 125.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.10 125.47 Td (141,815) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.00 125.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.15 125.47 Td (4,616) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 125.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 125.47 Td (8,665) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 125.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.10 125.47 Td (126,928) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 125.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 125.47 Td (1,606) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 103.30 Td (* ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 103.30 Td (Contractual interest obligations related to our Notes totaled $8.1 million at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.49 103.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.07 103.30 Td (, including ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 501.35 103.30 Td ($1.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.24 103.30 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 91.30 Td ($3.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 125.89 91.30 Td (, and $2.7 million due in years 2014, 2015-2016, 2017-2018, respectively) Tj ET Q q 0 0 0 rg BT 419.36 91.30 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 70.30 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.44 70.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.03 70.30 Td (, we had unrecognized tax benefits of $4.9 million. ) Tj ET Q q 0 0 0 rg BT 358.90 70.30 Td (W) Tj ET Q q 0 0 0 rg BT 367.54 70.30 Td (e do not expect to recognize any of these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 58.30 Td (benefits in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.43 58.30 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 114.43 58.30 Td (. Furthermore, we are not able to provide a reliable estimate of the timing of future payments relating to these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 46.30 Td (unrecognized benefits.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 113 0 obj <> endobj 114 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (52) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 728.25 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 129.43 728.25 Td (Arrangements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 711.25 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.44 711.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.03 711.25 Td (, we did not have any significant of) Tj ET Q q 0 0 0 rg BT 293.92 711.25 Td (f-balance sheet arrangements, as defined in Item303\(a\)\(4\)\(ii\) of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 699.25 Td (SEC Regulation S-K.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 98.89 673.25 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 176.48 673.25 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (In addition to our GAAP) Tj ET Q q 0 0 0 rg BT 149.07 656.25 Td ( operating results, we use certain non-GAAP) Tj ET Q q 0 0 0 rg BT 327.82 656.25 Td ( financial measures when planning, monitoring, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 644.25 Td (evaluating our performance. ) Tj ET Q q 0 0 0 rg BT 165.32 644.25 Td (W) Tj ET Q q 0 0 0 rg BT 173.96 644.25 Td (e consider these non-GAAP) Tj ET Q q 0 0 0 rg BT 285.51 644.25 Td ( financial measures to be useful metrics for management and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 632.25 Td (investors because they exclude the ef) Tj ET Q q 0 0 0 rg BT 198.37 632.25 Td (fect of certain non-cash expenses, such as stock-based compensation expense, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 620.25 Td (amortization of acquired intangibles expense, non-cash interest expense on our Notes and non-cash tax provision, so ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 608.25 Td (management and investors can compare our core business operating results over multiple periods. ) Tj ET Q q 0 0 0 rg BT 443.59 608.25 Td (While we believe that these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 596.25 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 95.19 596.25 Td ( financial measures are useful in evaluating our business, this information should be considered as supplemental in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (nature and is not meant as a substitute for other GAAP) Tj ET Q q 0 0 0 rg BT 268.47 584.25 Td ( metrics. In addition, other companies, including companies in our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 572.25 Td (industry) Tj ET Q q 0 0 0 rg BT 82.13 572.25 Td (, may calculate such measures dif) Tj ET Q q 0 0 0 rg BT 216.34 572.25 Td (ferently) Tj ET Q q 0 0 0 rg BT 246.78 572.25 Td (, which reduces its usefulness as a comparative measure. ) Tj ET Q q 0 0 0 rg BT 475.69 572.25 Td (W) Tj ET Q q 0 0 0 rg BT 484.33 572.25 Td (e believe that these ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 95.19 560.25 Td ( measures reflect our ongoing business in a manner that allows for meaningful period-to-period comparisons and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.25 Td (analysis of trends in our business, as they exclude certain expenses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 527.25 Td (The presentation of non-GAAP) Tj ET Q q 0 0 0 rg BT 175.43 527.25 Td ( net income, non-GAAP) Tj ET Q q 0 0 0 rg BT 272.27 527.25 Td ( net income per share, non-GAAP) Tj ET Q q 0 0 0 rg BT 407.97 527.25 Td ( gross profit, non-GAAP) Tj ET Q q 0 0 0 rg BT 506.49 527.25 Td ( operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 515.25 Td (income and other non-GAAP) Tj ET Q q 0 0 0 rg BT 167.10 515.25 Td ( financial measures in this ) Tj ET Q q 0 0 0 rg BT 273.47 515.25 Td (Annual Report on Form 10-K is not meant to be a substitute for net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 503.25 Td (income, net income per share, gross profit, income from operations or other financial measures presented in accordance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (with GAAP) Tj ET Q q 0 0 0 rg BT 96.40 491.25 Td (, but rather should be evaluated in conjunction with such data. Our definition of non-GAAP) Tj ET Q q 0 0 0 rg BT 467.05 491.25 Td ( net income, non-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 479.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.86 479.25 Td ( net income per share, non-GAAP) Tj ET Q q 0 0 0 rg BT 221.44 479.25 Td ( gross profit, non-GAAP) Tj ET Q q 0 0 0 rg BT 328.83 479.25 Td ( income from operations and other non-GAAP) Tj ET Q q 0 0 0 rg BT 518.96 479.25 Td ( financial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td (measures may dif) Tj ET Q q 0 0 0 rg BT 120.35 467.25 Td (fer from similarly titled non-GAAP) Tj ET Q q 0 0 0 rg BT 262.18 467.25 Td ( measures used by other companies and may dif) Tj ET Q q 0 0 0 rg BT 453.61 467.25 Td (fer from period to period. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (In reporting non-GAAP) Tj ET Q q 0 0 0 rg BT 145.17 455.25 Td ( measures in the future, we may make other adjustments for expenses and gains we do not consider ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 443.25 Td (reflective of core operating performance in a particular period and may modify non-GAAP) Tj ET Q q 0 0 0 rg BT 417.81 443.25 Td ( net income, non-GAAP) Tj ET Q q 0 0 0 rg BT 523.53 443.25 Td ( net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 431.25 Td (income per share, non-GAAP) Tj ET Q q 0 0 0 rg BT 177.36 431.25 Td ( gross profit, non-GAAP) Tj ET Q q 0 0 0 rg BT 284.76 431.25 Td ( income from operations and such other non-GAAP) Tj ET Q q 0 0 0 rg BT 495.72 431.25 Td ( measures by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 419.25 Td (excluding these expenses and gains.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 95.37 398.25 Td ( net income and net income per shar) Tj ET Q q 0 0 0 rg BT 240.80 398.25 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.23 398.25 Td (. ) Tj ET Q q 0 0 0 rg BT 250.05 398.25 Td (W) Tj ET Q q 0 0 0 rg BT 258.69 398.25 Td (e define non-GAAP) Tj ET Q q 0 0 0 rg BT 338.30 398.25 Td ( net income as net income plus stock-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (compensation expense, amortization expense for acquired intangible assets, non-cash interest expense on our Notes, and non-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (cash tax expense included in the GAAP) Tj ET Q q 0 0 0 rg BT 208.48 374.25 Td ( tax provision. ) Tj ET Q q 0 0 0 rg BT 268.29 374.25 Td (W) Tj ET Q q 0 0 0 rg BT 276.93 374.25 Td (e define non-GAAP) Tj ET Q q 0 0 0 rg BT 356.54 374.25 Td ( income per share as non-GAAP) Tj ET Q q 0 0 0 rg BT 485.85 374.25 Td ( net income ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (divided by the weighted average shares outstanding.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 341.25 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 95.37 341.25 Td ( gr) Tj ET Q q 0 0 0 rg BT 106.39 341.25 Td (oss pr) Tj ET Q q 0 0 0 rg BT 130.19 341.25 Td (ofit, license gr) Tj ET Q q 0 0 0 rg BT 187.31 341.25 Td (oss pr) Tj ET Q q 0 0 0 rg BT 211.11 341.25 Td (ofit, maintenance and services gr) Tj ET Q q 0 0 0 rg BT 343.77 341.25 Td (oss pr) Tj ET Q q 0 0 0 rg BT 367.57 341.25 Td (ofit and pr) Tj ET Q q 0 0 0 rg BT 409.43 341.25 Td (ofessional services and other gr) Tj ET Q q 0 0 0 rg BT 536.82 341.25 Td (oss ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 329.25 Td (pr) Tj ET Q q 0 0 0 rg BT 58.52 329.25 Td (ofit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.86 329.25 Td (. ) Tj ET Q q 0 0 0 rg BT 76.67 329.25 Td (W) Tj ET Q q 0 0 0 rg BT 85.31 329.25 Td (e define non-GAAP) Tj ET Q q 0 0 0 rg BT 164.92 329.25 Td ( gross profit as gross profit plus stock-based compensation expense and amortization expense for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 317.25 Td (acquired intangible assets. ) Tj ET Q q 0 0 0 rg BT 157.56 317.25 Td (W) Tj ET Q q 0 0 0 rg BT 166.20 317.25 Td (e consider non-GAAP) Tj ET Q q 0 0 0 rg BT 254.70 317.25 Td ( gross profit to be a useful metric for management and our investors because ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 305.25 Td (it excludes the ef) Tj ET Q q 0 0 0 rg BT 117.85 305.25 Td (fect of certain non-cash expenses so management and investors can compare our sales mar) Tj ET Q q 0 0 0 rg BT 480.02 305.25 Td (gins over multiple ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 293.25 Td (periods.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 272.25 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 95.37 272.25 Td ( operating income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.13 272.25 Td (. ) Tj ET Q q 0 0 0 rg BT 172.95 272.25 Td (W) Tj ET Q q 0 0 0 rg BT 181.59 272.25 Td (e define non-GAAP) Tj ET Q q 0 0 0 rg BT 261.20 272.25 Td ( operating income as income from operations plus stock-based ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 260.25 Td (compensation expense and amortization expense for acquired intangible assets. ) Tj ET Q q 0 0 0 rg BT 369.16 260.25 Td (W) Tj ET Q q 0 0 0 rg BT 377.79 260.25 Td (e consider non-GAAP) Tj ET Q q 0 0 0 rg BT 466.29 260.25 Td ( operating income to be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 248.25 Td (a useful metric for management and investors because it excludes the ef) Tj ET Q q 0 0 0 rg BT 337.21 248.25 Td (fect of certain non-cash expenses so management and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 236.25 Td (investors can compare our core business operating results over multiple periods.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 215.25 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 95.37 215.25 Td ( operating expenses, sales and marketing expense, r) Tj ET Q q 0 0 0 rg BT 303.00 215.25 Td (esear) Tj ET Q q 0 0 0 rg BT 324.29 215.25 Td (ch and development expense and general and ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 203.25 Td (administrative expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.92 203.25 Td (. ) Tj ET Q q 0 0 0 rg BT 146.74 203.25 Td (W) Tj ET Q q 0 0 0 rg BT 155.38 203.25 Td (e define non-GAAP) Tj ET Q q 0 0 0 rg BT 234.99 203.25 Td ( operating expenses as operating expense plus stock-based compensation expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 191.25 Td (allocated to sales and marketing, research and development and general and administrative expenses. Similarly) Tj ET Q q 0 0 0 rg BT 493.36 191.25 Td (, we define non-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 179.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.86 179.25 Td ( sales and marketing, research and development and general and administrative expenses as the relevant GAAP) Tj ET Q q 0 0 0 rg BT 521.88 179.25 Td ( measure ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 167.25 Td (plus stock-based compensation expense allocated to the particular expense item.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (53) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 722.5 m 423.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 722.5 m 492.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 722.5 m 561.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 619.5 m 423.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 605.5 m 423.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 603.5 m 423.5 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 619.5 m 492.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 605.5 m 492.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 603.5 m 492.5 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 619.5 m 561.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 605.5 m 561.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 603.5 m 561.5 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 484.5 m 423.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 470.5 m 423.5 470.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 468.5 m 423.5 468.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 484.5 m 492.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 470.5 m 492.5 470.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 468.5 m 492.5 468.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 484.5 m 561.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 470.5 m 561.5 470.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 468.5 m 561.5 468.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 364.5 m 423.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 350.5 m 423.5 350.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 348.5 m 423.5 348.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 364.5 m 492.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 350.5 m 492.5 350.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 348.5 m 492.5 348.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 364.5 m 561.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 350.5 m 561.5 350.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 348.5 m 561.5 348.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 739.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.55 739.73 Td (Years Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 726.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.50 726.73 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 451.50 726.73 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.70 726.73 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 713.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 434.70 713.73 Td (\(In thousands\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.00 700.23 Td (Non-GAAP cost of revenue:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 685.07 Td (GAAP license cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 684.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 684.17 Td (9,241) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 684.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 684.17 Td (8,643) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.00 684.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 684.17 Td (6,077) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 670.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.65 669.17 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 669.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 669.17 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 669.17 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ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 609.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 609.17 Td (7,152) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.00 609.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 609.17 Td (5,042) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 595.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.65 594.17 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 594.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 594.17 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 594.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.65 594.17 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.65 594.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 550.07 Td (GAAP subscription and maintenance support cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 549.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 549.17 Td (21,368) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg 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0 0 0 rg BT 537.65 504.17 Td (334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 490.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 489.17 Td (3,023) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 489.17 Td (1,722) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.65 489.17 Td (591) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 475.07 Td (Non-GAAP subscription and maintenance support cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 474.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 474.17 Td (15,682) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 474.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 474.17 Td (12,270) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.00 474.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 474.17 Td (9,494) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 460.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.65 459.17 Td (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 459.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 459.17 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 459.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.65 459.17 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.65 459.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 415.07 Td (GAAP professional services and other cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 414.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 414.17 Td (10,771) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 414.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 414.17 Td (9,012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.00 414.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 414.17 Td (8,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 400.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.65 399.17 Td (73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 399.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 399.17 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 399.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.65 399.17 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.65 399.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 385.07 Td (Less:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 370.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 369.17 Td (1,100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 369.17 Td (439) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.65 369.17 Td (251) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 355.07 Td (Non-GAAP professional services and other cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 354.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 354.17 Td (9,671) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 354.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 354.17 Td (8,573) Tj ET 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722.5 m 424.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 722.5 m 493.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 722.5 m 562.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 620.5 m 424.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 620.5 m 493.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 620.5 m 562.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 606.5 m 424.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 604.5 m 424.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 620.5 m 493.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 606.5 m 493.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 604.5 m 493.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 620.5 m 562.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 606.5 m 562.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 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216.5 m 562.5 216.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 214.5 m 562.5 214.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 739.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 414.55 739.73 Td (Years Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 726.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.50 726.73 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 726.73 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.70 726.73 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 713.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.70 713.73 Td (\(In thousands\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 53.00 700.23 Td (Non-GAAP gross profit:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 686.07 Td (GAAP gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.15 685.17 Td (137,113) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.15 685.17 Td (132,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 685.17 Td (113,090) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 671.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 670.17 Td (77) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 670.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 670.17 Td (80) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 670.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 670.17 Td (82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 670.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 656.07 Td (Plus:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 641.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 640.17 Td (4,861) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 640.17 Td (1,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 640.17 Td (916) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 626.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 625.17 Td (3,879) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 625.17 Td (2,660) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 625.17 Td (1,295) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 611.07 Td (Non-GAAP gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 610.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.15 610.17 Td (145,853) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 610.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.15 610.17 Td (136,847) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 610.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 610.17 Td (115,301) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 596.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 595.17 Td (82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 595.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 595.17 Td (83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 595.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 595.17 Td (84) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 595.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 551.07 Td (GAAP license gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.15 550.17 Td (85,167) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 550.17 Td (81,107) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 550.17 Td (71,212) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 536.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 535.17 Td (90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 535.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 535.17 Td (90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 535.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 535.17 Td (92) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 535.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 521.07 Td (Plus:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 506.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 505.17 Td (1,098) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 505.17 Td (553) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 505.17 Td (331) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 491.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.65 490.17 Td (856) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 490.17 Td (938) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 490.17 Td (704) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 476.07 Td (Non-GAAP license gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 475.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.15 475.17 Td (87,121) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 475.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 475.17 Td (82,598) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 475.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 475.17 Td (72,247) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 461.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 460.17 Td (92) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 460.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 460.17 Td (92) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 460.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 460.17 Td (93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 460.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 416.07 Td (GAAP subscription and maintenance support gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 415.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.15 415.17 Td (47,989) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 415.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 415.17 Td (43,418) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 415.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 415.17 Td (32,043) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 401.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 400.17 Td (69) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 400.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 400.17 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 400.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 400.17 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 400.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 386.07 Td (Plus:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 371.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 370.17 Td (2,663) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 370.17 Td (839) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 370.17 Td (334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 356.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 355.17 Td (3,023) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 355.17 Td (1,722) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 355.17 Td (591) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 341.07 Td (Non-GAAP subscription and maintenance support gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 340.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.15 340.17 Td (53,675) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 340.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 340.17 Td (45,979) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 340.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 340.17 Td (32,968) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 326.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 325.17 Td (77) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 325.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 325.17 Td (79) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 325.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 325.17 Td (78) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 325.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 281.07 Td (GAAP professional services and other gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 280.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 280.17 Td (3,957) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 280.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 280.17 Td (7,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 280.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 280.17 Td (9,835) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 266.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 265.17 Td (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 265.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 265.17 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 265.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 265.17 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 265.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 251.07 Td (Plus:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 236.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 235.17 Td (1,100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 235.17 Td (439) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 235.17 Td (251) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 221.07 Td (Non-GAAP professional services and other gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 220.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 220.17 Td (5,057) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 220.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 220.17 Td (8,270) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 220.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 220.17 Td (10,086) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 206.07 Td (\(percent of related revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 205.17 Td (34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 205.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 205.17 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 205.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 205.17 Td (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 205.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 190.20 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 179.45 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (55) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 722.5 m 424.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 722.5 m 493.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 722.5 m 562.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 620.5 m 424.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 620.5 m 493.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 620.5 m 562.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 606.5 m 424.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 604.5 m 424.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 606.5 m 493.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 604.5 m 493.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 606.5 m 562.5 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 604.5 m 562.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 500.5 m 424.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 500.5 m 493.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 500.5 m 562.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 486.5 m 424.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 484.5 m 424.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 486.5 m 493.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 484.5 m 493.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 486.5 m 562.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 484.5 m 562.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 380.5 m 424.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 380.5 m 493.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 380.5 m 562.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 366.5 m 424.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 364.5 m 424.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 366.5 m 493.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 364.5 m 493.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 366.5 m 562.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 364.5 m 562.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 260.5 m 424.5 260.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 260.5 m 493.5 260.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 260.5 m 562.5 260.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 246.5 m 424.5 246.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 244.5 m 424.5 244.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 246.5 m 493.5 246.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 244.5 m 493.5 244.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 246.5 m 562.5 246.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 244.5 m 562.5 244.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 140.5 m 424.5 140.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 140.5 m 493.5 140.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 140.5 m 562.5 140.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 126.5 m 424.5 126.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 124.5 m 424.5 124.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 126.5 m 493.5 126.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 124.5 m 493.5 124.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 126.5 m 562.5 126.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 124.5 m 562.5 124.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 739.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 414.55 739.73 Td (Years Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 726.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.50 726.73 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 726.73 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.70 726.73 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 713.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.70 713.73 Td (\(In thousands\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 53.00 700.23 Td (Non-GAAP income from operations:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 686.07 Td (GAAP income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.45 685.17 Td (\(7,337) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 685.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 685.17 Td (25,404) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 685.17 Td (27,436) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 671.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.95 670.17 Td (\(4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 670.17 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 670.17 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 670.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 670.17 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 670.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 656.07 Td (Plus:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 641.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 640.17 Td (41,684) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 640.17 Td (15,022) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 640.17 Td (7,201) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 626.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.80 625.17 Td (3,879) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 625.17 Td (2,660) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 625.17 Td (1,295) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 611.07 Td (Non-GAAP income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 610.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 610.17 Td (38,226) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 610.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 610.17 Td (43,086) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 610.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 610.17 Td (35,932) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 596.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 595.17 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 595.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 595.17 Td (26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 595.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 595.17 Td (26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 595.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 551.07 Td (GAAP operating expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.75 550.17 Td (144,450) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.15 550.17 Td (106,952) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 550.17 Td (85,654) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 536.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 535.17 Td (81) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 535.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 535.17 Td (65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 535.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 535.17 Td (62) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 535.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 521.07 Td (Less:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 506.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 505.17 Td (36,823) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 505.17 Td (13,191) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 505.17 Td (6,285) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 491.07 Td (Non-GAAP operating expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 490.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.75 490.17 Td (107,627) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 490.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 490.17 Td (93,761) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 490.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 490.17 Td (79,369) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 476.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 475.17 Td (60) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 475.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 475.17 Td (57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 475.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 475.17 Td (57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 475.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 431.07 Td (GAAP sales and marketing expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 430.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 430.17 Td (62,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 430.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 430.17 Td (47,911) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 430.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 430.17 Td (38,376) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 416.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 415.17 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 415.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 415.17 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 415.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 415.17 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 415.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 401.07 Td (Less:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 386.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 385.17 Td (14,336) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 385.17 Td (5,609) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 385.17 Td (1,984) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 371.07 Td (Non-GAAP sales and marketing expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 370.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 370.17 Td (47,838) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 370.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 370.17 Td (42,302) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 370.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 370.17 Td (36,392) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 356.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 355.17 Td (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 355.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 355.17 Td (26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 355.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 355.17 Td (26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 355.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 311.07 Td (GAAP research and development expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 310.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 310.17 Td (49,696) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 310.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 310.17 Td (36,178) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 310.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 310.17 Td (27,744) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 296.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 295.17 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 295.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 295.17 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 295.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 295.17 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 295.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 281.07 Td (Less:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 266.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 265.17 Td (13,225) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 265.17 Td (4,498) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 265.17 Td (1,901) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 251.07 Td (Non-GAAP research and development expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 250.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 250.17 Td (36,471) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 250.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 250.17 Td (31,680) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 250.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 250.17 Td (25,843) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 236.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 235.17 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 235.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 235.17 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 235.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 235.17 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 235.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 191.07 Td (GAAP general and administrative expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 190.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 190.17 Td (32,580) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 190.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 190.17 Td (22,863) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 190.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 190.17 Td (19,534) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 176.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 175.17 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 175.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 175.17 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 175.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 175.17 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 175.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 161.07 Td (Less:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 146.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.80 145.17 Td (9,262) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 145.17 Td (3,084) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 145.17 Td (2,400) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 131.07 Td (Non-GAAP general and administrative expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 130.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 130.17 Td (23,318) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 130.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 130.17 Td (19,779) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 130.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 130.17 Td (17,134) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 116.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 115.17 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 115.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 115.17 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 115.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 115.17 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 115.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 100.20 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (56) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 722.5 m 424.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 722.5 m 493.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 722.5 m 562.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 590.5 m 424.5 590.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 590.5 m 493.5 590.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 590.5 m 562.5 590.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 576.5 m 424.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 574.5 m 424.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 576.5 m 493.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 574.5 m 493.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 576.5 m 562.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 574.5 m 562.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 574.5 m 424.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 576.5 m 424.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 574.5 m 493.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 576.5 m 493.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 574.5 m 562.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 576.5 m 562.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 440.5 m 424.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 440.5 m 493.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 440.5 m 562.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 426.5 m 424.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 424.5 m 424.5 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 426.5 m 493.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 424.5 m 493.5 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 426.5 m 562.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 424.5 m 562.5 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 305.5 m 424.5 305.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 305.5 m 493.5 305.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 305.5 m 562.5 305.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 291.5 m 424.5 291.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 289.5 m 424.5 289.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 291.5 m 493.5 291.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 289.5 m 493.5 289.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 291.5 m 562.5 291.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 289.5 m 562.5 289.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 739.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 414.55 739.73 Td (Years Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 726.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.50 726.73 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 726.73 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.70 726.73 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 713.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 397.30 713.73 Td (\(In thousands, except per share data\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 53.00 700.23 Td (Non-GAAP net income and income per share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 686.07 Td (GAAP net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.45 685.17 Td (\(8,874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 685.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 685.17 Td (12,076) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 685.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 685.17 Td (32,297) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 671.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.95 670.17 Td (\(5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 670.17 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 670.17 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 670.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 670.17 Td (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 670.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 656.07 Td (Adjusted for:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 641.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 640.17 Td (41,684) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 640.17 Td (15,022) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 640.17 Td (7,201) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 626.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.80 625.17 Td (3,879) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 625.17 Td (2,660) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 625.17 Td (1,295) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 611.07 Td (Non-cash interest expense on our notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.80 610.17 Td (5,504) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 610.17 Td (5,120) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 610.17 Td (2,561) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 596.07 Td (Non-cash tax provision \(benefit\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.45 595.17 Td (\(6,145) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 595.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 595.17 Td (6,023) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.80 595.22 Td (\(8,879) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 595.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 581.07 Td (Non-GAAP net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 580.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.75 580.17 Td (36,048) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 580.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 580.17 Td (40,901) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 580.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 580.17 Td (34,475) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 566.07 Td (\(percent of total revenue\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 565.17 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 565.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 565.17 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 565.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 565.17 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 565.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 521.07 Td (GAAP net income per basic common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 520.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.45 520.17 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 520.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 520.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 520.17 Td (0.44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 520.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 520.17 Td (1.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 506.07 Td (Adjusted for:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 491.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 490.17 Td (1.48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 490.17 Td (0.54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 490.17 Td (0.27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 476.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 475.17 Td (0.14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 475.17 Td (0.10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 475.17 Td (0.05) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 461.07 Td (Non-cash interest expense on our notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 460.17 Td (0.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 460.17 Td (0.18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 460.17 Td (0.10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 446.07 Td (Non-cash tax provision \(benefit\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.45 445.17 Td (\(0.22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 445.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 445.17 Td (0.22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 445.22 Td (\(0.33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 445.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 431.07 Td (Non-GAAP net income per basic common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 430.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 430.17 Td (1.27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 430.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 430.17 Td (1.48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 430.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 430.17 Td (1.30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 386.07 Td (GAAP net income per diluted common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 385.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.45 385.17 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 385.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 385.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 385.17 Td (0.43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 385.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 385.17 Td (1.15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 371.07 Td (Adjusted for:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 356.07 Td (Stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 355.17 Td (1.43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 355.17 Td (0.53) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 355.17 Td (0.26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 341.07 Td (Amortization of acquired intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 340.17 Td (0.13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 340.17 Td (0.09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 340.17 Td (0.05) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 326.07 Td (Non-cash interest expense on our notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 325.17 Td (0.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 325.17 Td (0.18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 325.17 Td (0.09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 311.07 Td (Non-cash tax provision \(benefit\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.45 310.17 Td (\(0.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 310.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 310.17 Td (0.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 310.22 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 310.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 296.07 Td (Non-GAAP net income per diluted common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.00 295.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 295.17 Td (1.22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 295.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 295.17 Td (1.44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 295.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 295.17 Td (1.23) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 280.20 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (57) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 739.23 Td (Item7A.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 739.23 Td (Quantitative and Qualitative Disclosures About Market Risk) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 718.00 Td (e are exposed to market risk related to changes in interest rates and foreign currency exchange rates. ) Tj ET Q q 0 0 0 rg BT 461.61 718.00 Td (W) Tj ET Q q 0 0 0 rg BT 470.25 718.00 Td (e do not use derivative ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.00 Td (financial instruments for speculative, hedging or trading purposes, although in the future we may enter into interest rate or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.00 Td (exchange rate hedging arrangements to manage the risks described below) Tj ET Q q 0 0 0 rg BT 343.40 694.00 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 668.00 Td (Inter) Tj ET Q q 0 0 0 rg BT 69.07 668.00 Td (est Rate Risk) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 651.00 Td (The interest rate is fixed on all of our outstanding loan balances; consequently) Tj ET Q q 0 0 0 rg BT 362.04 651.00 Td (, we do not have exposure to risks due to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.00 Td (increases in the variable rates tied to indexes. ) Tj ET Q q 0 0 0 rg BT 233.36 639.00 Td (W) Tj ET Q q 0 0 0 rg BT 242.00 639.00 Td (e maintain a short-term investment portfolio consisting mainly of highly liquid ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.00 Td (short-term money market funds, which we consider to be cash equivalents. Our restricted cash consists primarily of certificates ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 615.00 Td (of deposit that secure letters of credit related to operating leases for of) Tj ET Q q 0 0 0 rg BT 329.71 615.00 Td (fice space. ) Tj ET Q q 0 0 0 rg BT 374.22 615.00 Td (These securities and investments earn interest ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.00 Td (at variable rates and, as a result, decreases in market interest rates would generally result in decreased interest income. ) Tj ET Q q 0 0 0 rg BT 525.18 603.00 Td (W) Tj ET Q q 0 0 0 rg BT 533.81 603.00 Td (e do ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.00 Td (not enter into investments for trading or speculative purposes. ) Tj ET Q q 0 0 0 rg BT 299.39 591.00 Td (At ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.89 591.00 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.47 591.00 Td (, we had long-term debt of $120.0 million ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 579.00 Td (associated with our Notes, which are fixed rate instruments. ) Tj ET Q q 0 0 0 rg BT 291.69 579.00 Td (W) Tj ET Q q 0 0 0 rg BT 300.33 579.00 Td (e would not expect a 10% change in interest rates to have a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 567.00 Td (material impact on our results of operations.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 541.00 Td (For) Tj ET Q q 0 0 0 rg BT 64.63 541.00 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 103.43 541.00 Td (ency Exchange Risk) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 524.00 Td (Most of our sales contracts are currently denominated in U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 330.30 524.00 Td (Therefore, we have minimal foreign currency exchange ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 512.00 Td (risk with respect to our revenue. ) Tj ET Q q 0 0 0 rg BT 181.17 512.00 Td (W) Tj ET Q q 0 0 0 rg BT 190.21 512.00 Td (ith international operations, we face exposure to adverse movements in foreign currency ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 500.00 Td (exchange rates. ) Tj ET Q q 0 0 0 rg BT 113.95 500.00 Td (These exposures may change over time as business practices evolve and if our exposure increases, adverse ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.00 Td (movement in foreign currency exchange rates could have a material adverse impact on our financial results. Historically) Tj ET Q q 0 0 0 rg BT 530.00 488.00 Td (, our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 476.00 Td (primary exposures have been related to non-U.S.dollar denominated operating expenses in Canada, Europe and the ) Tj ET Q q 0 0 0 rg BT 514.58 476.00 Td (AP) Tj ET Q q 0 0 0 rg BT 526.44 476.00 Td (AC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 464.00 Td (region. ) Tj ET Q q 0 0 0 rg BT 80.00 464.00 Td (As a result, our results of operations would generally be adversely af) Tj ET Q q 0 0 0 rg BT 354.73 464.00 Td (fected by a decline in the value of the U.S. dollar ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.00 Td (relative to these foreign currencies. However) Tj ET Q q 0 0 0 rg BT 229.52 452.00 Td (, we believe this exposure is not material at this time. ) Tj ET Q q 0 0 0 rg BT 444.19 452.00 Td (As we continue to grow our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.00 Td (international operations, our exposure to foreign currency risk could become more significant. ) Tj ET Q q 0 0 0 rg BT 429.14 440.00 Td (W) Tj ET Q q 0 0 0 rg BT 437.78 440.00 Td (e do not currently engage in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 428.00 Td (currency hedging activities to limit the risk of exchange rate fluctuations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 411.00 Td (Fluctuations in foreign currencies impact the amount of total assets and liabilities that we report for our foreign subsidiaries ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 399.00 Td (upon the translation of these amounts into U.S. Dollars. In particular) Tj ET Q q 0 0 0 rg BT 323.71 399.00 Td (, the amount of cash and cash equivalents that we report in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 387.00 Td (U.S. Dollars would be impacted by a significant fluctuation in foreign currency exchange rates. Based on our cash and cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 375.00 Td (equivalent balances held in foreign currencies at December 31, 2013, if overall foreign currency exchange rates in comparison ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 363.00 Td (to the U.S. Dollar uniformly weakened by 10%, the amount of cash and cash equivalents we would report in U.S. Dollars ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 351.00 Td (would decrease by approximately $1.1 million, assuming constant foreign currency cash and cash equivalents balances) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.12156862745098039 0.28627450980392155 0.49019607843137253 rg BT 525.96 351.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 339.00 Td (although the actual ef) Tj ET Q q 0 0 0 rg BT 136.17 339.00 Td (fects may dif) Tj ET Q q 0 0 0 rg BT 188.19 339.00 Td (fer materially from this hypothetical analysis.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (58) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 739.23 Td (Item8.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 739.23 Td (Financial Statements and Supplementary Data) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 212.90 709.00 Td (Index to Consolidated Financial Statements) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 698.20 Td () Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 678.43 Td (Report of Independent Register) Tj ET Q q 0 0 0 rg BT 188.08 678.43 Td (ed Public ) Tj ET Q q 0 0 0 rg BT 229.76 678.43 Td (Accounting Firm) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 549.00 678.38 Td (59) Tj ET Q BT /F3 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0.2 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 53 658.86259765625 m 316.701171875 658.86259765625 l s q 0 0.2 1 rg BT 53.00 660.43 Td (Consolidated Balance Sheets as of December) Tj ET Q q 0 0.2 1 rg BT 243.08 660.43 Td (31, 2013 and 201) Tj ET Q BT 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current assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 568.41 Td (12,597) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 568.41 Td (10,796) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.00 555.21 Td (Total current assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 554.41 Td (247,281) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.75 554.41 Td (227,128) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 541.21 Td (Long-term assets:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 527.21 Td (Property and equipment, net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 526.41 Td (10,110) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 538.75 526.41 Td (7,361) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 513.21 Td (Long-term investments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 512.41 Td (23,340) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 512.41 Td (30,102) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 499.21 Td (Restricted cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 482.50 498.41 Td (581) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.50 498.41 Td (584) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 485.21 Td (Intangible assets, net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 484.41 Td (20,390) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 484.41 Td (11,247) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 471.21 Td (Goodwill) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 470.41 Td (65,192) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 470.41 Td (37,529) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 457.21 Td (Deferred tax assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 456.41 Td (16,482) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.50 456.41 Td (629) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 443.21 Td (Other long-term assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.75 442.41 Td (8,121) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 442.41 Td (12,326) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.00 429.21 Td (Total long-term assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 428.41 Td (144,216) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 428.41 Td (99,778) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 101.00 415.21 Td (Total assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 447.00 414.41 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 414.41 Td (391,497) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.00 414.41 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.75 414.41 Td (326,906) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 401.35 Td (Liabilities and stockholders equity:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 387.21 Td (Current liabilities:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 373.21 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 447.00 372.41 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 372.41 Td (14,957) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.00 372.41 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 372.41 Td (15,686) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 359.21 Td (Notes payable and bank loans, current portion) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 358.41 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.50 358.41 Td (555) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 345.21 Td (Deferred revenue, current portion) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 344.41 Td (71,258) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 344.41 Td (49,368) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 113.00 331.21 Td (Total current liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 330.41 Td (86,215) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 330.41 Td (65,609) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 317.21 Td (Convertible senior notes) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 316.41 Td (91,549) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 316.41 Td (86,451) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 303.21 Td (Notes payable and bank loans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 302.41 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.50 302.41 Td (414) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 289.21 Td (Deferred revenue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.75 288.41 Td (6,404) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.25 288.41 Td (11,781) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 275.21 Td (Deferred tax liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.75 274.41 Td (3,506) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 550.00 274.41 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 261.21 Td (Other long-term liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.75 260.41 Td (3,312) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 538.75 260.41 Td (1,416) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 113.00 247.21 Td (Total liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 246.41 Td (190,986) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.75 246.41 Td (165,671) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 233.21 Td (Commitments and contingencies \(Note 12\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 219.35 Td (Stockholders equity:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 205.21 Td (Preferred stock, $0.01 par value per share; 5,000,000 shares authorized at December31, 2013 and) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 80.00 196.21 Td (December31, 2012; no shares issued and outstanding at December31, 2013 and December31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 80.00 187.21 Td (2012) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 186.41 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 550.00 186.41 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 173.21 Td (Common stock, par value $0.01 per share; 100,000,000 shares authorized at December31, 2013 and) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 80.00 164.21 Td (December31, 2012; 28,305,143 and 27,913,471 shares issued and outstanding at December31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 80.00 155.21 Td (2013 and December31, 2012, respectively) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 482.50 154.41 Td (283) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.50 154.41 Td (279) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 141.21 Td (Additional paid-in capital) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 140.41 Td (254,736) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.75 140.41 Td (208,073) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 127.21 Td (Accumulated other comprehensive loss) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 472.75 126.41 Td (\(1,525) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 126.41 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 535.75 126.41 Td (\(3,008) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 559.00 126.41 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 113.21 Td (Accumulated deficit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 468.25 112.41 Td (\(52,983) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 112.41 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 531.25 112.41 Td (\(44,109) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 559.00 112.41 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 99.21 Td (Total stockholders equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 98.41 Td (200,511) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.75 98.41 Td (161,235) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 85.21 Td (Total liabilities and stockholders equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 447.00 84.41 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 84.41 Td (391,497) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.00 84.41 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.75 84.41 Td (326,906) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.30 59.45 Td (The accompanying notes are an integral part of these consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (61) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 742.25 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 742.25 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 189.15 725.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.97 725.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.52 725.25 Td (A) Tj ET Q q 0 0 0 rg BT 290.00 725.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.92 725.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 391.68 725.25 Td (TIONS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.55 713.25 Td (\(in thousands, except per) Tj ET Q q 0 0 0 rg BT 334.04 713.25 Td ( shar) Tj ET Q q 0 0 0 rg BT 355.26 713.25 Td (e data\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 702.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 678.95 m 446.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 678.95 m 454.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 678.95 m 504.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 678.95 m 512.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 678.95 m 562.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 606.95 m 446.5 606.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 606.95 m 504.5 606.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 606.95 m 562.5 606.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 532.95 m 446.5 532.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 532.95 m 504.5 532.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 532.95 m 562.5 532.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 517.95 m 446.5 517.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 517.95 m 504.5 517.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 517.95 m 562.5 517.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 443.95000000000005 m 446.5 443.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 443.95000000000005 m 504.5 443.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 443.95000000000005 m 562.5 443.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 428.95000000000005 m 446.5 428.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 428.95000000000005 m 504.5 428.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 428.95000000000005 m 562.5 428.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 369.95000000000005 m 446.5 369.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 369.95000000000005 m 504.5 369.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 369.95000000000005 m 562.5 369.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 354.95000000000005 m 446.5 354.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 354.95000000000005 m 504.5 354.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 354.95000000000005 m 562.5 354.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 324.95000000000005 m 446.5 324.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 310.95000000000005 m 446.5 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 308.95000000000005 m 446.5 308.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 324.95000000000005 m 504.5 324.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 310.95000000000005 m 504.5 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 308.95000000000005 m 504.5 308.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 324.95000000000005 m 562.5 324.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 310.95000000000005 m 562.5 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 308.95000000000005 m 562.5 308.95000000000005 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 683.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.60 683.18 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 670.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.00 670.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.00 670.18 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.20 670.18 Td (2011) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 656.68 Td (Revenue:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 642.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 641.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 641.62 Td (94,408) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 641.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 641.62 Td (89,750) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 641.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 641.62 Td (77,289) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 627.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 626.62 Td (69,357) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 626.62 Td (58,249) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 626.62 Td (42,462) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 612.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 611.62 Td (14,728) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 611.62 Td (16,843) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 611.62 Td (18,313) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 597.52 Td (Total revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.10 596.62 Td (178,493) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.10 596.62 Td (164,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.10 596.62 Td (138,064) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 582.68 Td (Cost of revenue:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 568.52 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 567.62 Td (9,241) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 567.62 Td (8,643) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 567.62 Td (6,077) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 553.52 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 552.62 Td (21,368) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 552.62 Td (14,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 552.62 Td (10,419) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 538.52 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 537.62 Td (10,771) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 537.62 Td (9,012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 537.62 Td (8,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 523.52 Td (Total cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 522.62 Td (41,380) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 522.62 Td (32,486) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 522.62 Td (24,974) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 508.52 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.10 507.62 Td (137,113) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.10 507.62 Td (132,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.10 507.62 Td (113,090) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 493.68 Td (Operating expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 479.52 Td (Sales and marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 478.62 Td (62,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 478.62 Td (47,911) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 478.62 Td (38,376) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 464.52 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 463.62 Td (49,696) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 463.62 Td (36,178) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 463.62 Td (27,744) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 449.52 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 448.62 Td (32,580) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 448.62 Td (22,863) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 448.62 Td (19,534) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 434.52 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.10 433.62 Td (144,450) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.10 433.62 Td (106,952) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 433.62 Td (85,654) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 419.52 Td (\(Loss\) income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.80 418.67 Td (\(7,337) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 418.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 418.62 Td (25,404) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 418.62 Td (27,436) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 404.68 Td (Other expense \(income\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 390.52 Td (Interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.30 389.67 Td (\(454) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 389.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.30 389.67 Td (\(455) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 389.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 389.67 Td (\(278) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 389.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 375.52 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 374.62 Td (7,400) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 374.62 Td (6,925) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 374.62 Td (3,592) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 360.52 Td (Total other expense, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 359.62 Td (6,946) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 359.62 Td (6,470) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 359.62 Td (3,314) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 345.52 Td (\(Loss\) income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.80 344.67 Td (\(14,283) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 344.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 344.62 Td (18,934) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 344.62 Td (24,122) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 330.52 Td (\(Benefit from\) provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.80 329.67 Td (\(5,409) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 329.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 329.62 Td (6,858) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 329.67 Td (\(8,175) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 329.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 315.52 Td (Net \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 314.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.80 314.67 Td (\(8,874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 314.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 314.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 314.62 Td (12,076) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 314.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 314.62 Td (32,297) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 300.68 Td (Net \(loss\) income per common share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 286.52 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 285.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.80 285.67 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 285.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 285.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 285.62 Td (0.44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 285.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 285.62 Td (1.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 271.52 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 270.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.80 270.67 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 270.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 270.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.15 270.62 Td (0.43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 270.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 270.62 Td (1.15) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 256.68 Td (Weighted average common shares outstanding:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 242.52 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 241.62 Td (28,116) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 241.62 Td (27,581) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 241.62 Td (26,603) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 227.52 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 226.62 Td (28,116) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 226.62 Td (28,353) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 226.62 Td (27,987) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 212.68 Td (Stock-based compensation expense included above:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 198.52 Td (Cost of revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 197.62 Td (4,861) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 197.62 Td (1,831) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 197.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 197.62 Td (916) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 183.52 Td (Sales and marketing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 182.62 Td (14,336) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 182.62 Td (5,609) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 182.62 Td (1,984) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 168.52 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 167.62 Td (13,225) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 167.62 Td (4,498) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 167.62 Td (1,901) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 153.52 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 152.62 Td (9,262) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.15 152.62 Td (3,084) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 152.62 Td (2,400) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.30 127.45 Td (The accompanying notes are an integral part of these consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (62) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 742.25 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 742.25 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.75 725.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 214.57 725.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 249.13 725.25 Td (A) Tj ET Q q 0 0 0 rg BT 255.60 725.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 320.52 725.25 Td ( COMPREHENSIVE INCOME) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.55 713.25 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 702.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 678.95 m 446.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 678.95 m 454.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 678.95 m 504.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 678.95 m 512.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 678.95 m 562.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 678.95 m 446.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 665.95 m 446.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 678.95 m 454.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 678.95 m 504.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 665.95 m 504.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 678.95 m 512.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 678.95 m 562.5 678.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 665.95 m 562.5 665.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 605.95 m 446.5 605.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 605.95 m 504.5 605.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 605.95 m 562.5 605.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 590.95 m 446.5 590.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 590.95 m 504.5 590.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 590.95 m 562.5 590.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 576.95 m 446.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 574.95 m 446.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 576.95 m 504.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 574.95 m 504.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 576.95 m 562.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 574.95 m 562.5 574.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 683.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.60 683.18 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 670.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.00 670.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.00 670.18 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.20 670.18 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 656.52 Td (Net \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 655.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.80 655.67 Td (\(8,874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 655.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 655.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 655.62 Td (12,076) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 655.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 655.62 Td (32,297) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 641.52 Td (Other comprehensive income \(loss\), net of tax:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 626.52 Td (Foreign currency translation adjustment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 625.62 Td (1,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.30 625.67 Td (\(495) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 625.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 625.67 Td (\(798) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 625.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 611.52 Td (Unrealized gain \(loss\) on investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.65 610.62 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.65 610.62 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 545.30 610.67 Td (\(23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 610.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.00 596.52 Td (Total other comprehensive income \(loss\), net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 595.62 Td (1,483) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.30 595.67 Td (\(451) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 595.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.30 595.67 Td (\(821) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 595.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 581.52 Td (Comprehensive \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 580.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.80 580.67 Td (\(7,391) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 580.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 580.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 580.62 Td (11,625) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 580.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 580.62 Td (31,476) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.30 549.45 Td (The accompanying notes are an integral part of these consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 135 0 obj <> endobj 136 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (63) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 742.25 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 742.25 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 157.90 725.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 217.72 725.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 252.28 725.25 Td (A) Tj ET Q q 0 0 0 rg BT 258.75 725.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 323.67 725.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 338.22 725.25 Td (OCKHOLDERS) Tj ET Q q 0 0 0 rg BT 412.49 725.25 Td ( EQUITY) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.55 713.25 Td (\(in thousands\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 681.75 m 351.5 681.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 681.75 m 355.5 681.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 681.75 m 395.5 681.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 668.75 m 307.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 668.75 m 351.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 668.75 m 395.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 668.75 m 307.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 668.75 m 351.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 668.75 m 395.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 668.75 m 442.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 668.75 m 506.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 668.75 m 562.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 548.75 m 307.5 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 548.75 m 307.5 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 536.75 m 307.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 534.75 m 307.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 548.75 m 351.5 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 536.75 m 351.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 534.75 m 351.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 548.75 m 395.5 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 536.75 m 395.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 534.75 m 395.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 548.75 m 442.5 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 536.75 m 442.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 534.75 m 442.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 548.75 m 506.5 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 536.75 m 506.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 534.75 m 506.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 548.75 m 562.5 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 536.75 m 562.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 534.75 m 562.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 424.75 m 307.5 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 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631.00 Td (1,654) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 631.00 Td (16) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.65 631.00 Td (3,354) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 631.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 631.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 618.70 Td (Stock-based compensation expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 618.00 Td (6,640) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 618.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 618.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.65 618.00 Td (6,640) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 618.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 618.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 605.70 Td (Equity component of convertible senior notes issuance) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 605.00 Td (39,151) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 605.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 605.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.65 605.00 Td (39,151) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 605.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 605.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 592.70 Td (Tax windfall benefits on exercises of stock options) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 592.00 Td (61) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 592.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 592.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.65 592.00 Td (61) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 592.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 592.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 579.70 Td (Foreign currency translation adjustment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.60 579.00 Td (\(798) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 579.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 579.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 579.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.65 579.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.60 579.00 Td (\(798) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.30 579.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 579.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 566.70 Td (Unrealized loss on investments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.60 566.00 Td (\(23) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 566.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 566.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 566.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.65 566.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.60 566.00 Td (\(23) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.30 566.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 566.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 553.70 Td (Net income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.00 553.00 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 553.00 Td (32,297) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 553.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 553.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.65 553.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 553.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.65 553.00 Td (32,297) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 540.00 Td (Balance December 31, 2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.00 540.00 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.25 540.00 Td (133,243) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.60 540.00 Td (27,106) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.65 540.00 Td (271) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.60 540.00 Td (191,714) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.60 540.00 Td (\(2,557) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.30 540.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.95 540.00 Td (\(56,185) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.65 540.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 527.70 Td (Issuance of common stock for exercise of stock options and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 519.70 Td (vesting of RSUs, net of effect of early exercises and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 511.70 Td (withholding tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.30 511.00 Td (827) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.65 511.00 Td (807) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.65 511.00 Td (8) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.65 511.00 Td (819) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 511.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 511.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 498.70 Td (Stock-based compensation expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 498.00 Td (15,022) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 498.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 498.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.65 498.00 Td (15,022) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 498.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 498.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 485.70 Td (Tax windfall benefits on exercises of stock options) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.30 485.00 Td (579) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 485.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 485.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.65 485.00 Td (579) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 485.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 485.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 472.70 Td (Tax shortfall on exercises of stock options) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.60 472.00 Td (\(61) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 472.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 472.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 472.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.95 472.00 Td (\(61) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.65 472.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 472.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 472.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 459.70 Td (Foreign currency translation adjustment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.60 457.00 Td (\(495) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 457.00 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.65 457.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 457.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 457.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.60 457.00 Td (\(495) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.30 457.00 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 457.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 444.70 Td (Unrealized gain on investments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 442.00 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.65 442.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 442.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 442.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 442.00 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 442.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 429.70 Td (Net income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 429.00 Td (12,076) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 429.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 429.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.65 429.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 429.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.65 429.00 Td (12,076) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 416.00 Td (Balance December 31, 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.00 416.00 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.25 416.00 Td (161,235) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.60 416.00 Td (27,913) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.65 416.00 Td (279) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.60 416.00 Td (208,073) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.60 416.00 Td (\(3,008) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.30 416.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.95 416.00 Td (\(44,109) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.65 416.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 403.70 Td (Issuance of common stock for exercise of stock options and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 395.70 Td (vesting of RSUs, net of effect of withholding tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.60 395.00 Td (\(1,692) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 395.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.65 395.00 Td (392) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.65 395.00 Td (4) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.95 395.00 Td (\(1,696) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.65 395.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 395.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 395.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 382.70 Td (Stock-based compensation expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 382.00 Td (41,684) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 382.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 382.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.65 382.00 Td (41,684) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 382.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 382.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 369.70 Td (Tax windfall benefits on exercises of stock options) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 369.00 Td (6,675) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 369.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 369.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.65 369.00 Td (6,675) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 369.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.65 369.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 356.70 Td (Foreign currency translation adjustment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 354.00 Td (1,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.65 354.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 354.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 354.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.30 354.00 Td (1,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 354.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 341.70 Td (Unrealized gain on investments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.30 339.00 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.65 339.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 339.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 339.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.30 339.00 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 339.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 326.70 Td (Net loss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.60 326.00 Td (\(8,874) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 326.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 326.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.65 326.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.65 326.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.30 326.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.95 326.00 Td (\(8,874) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.65 326.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 313.00 Td (Balance December 31, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.00 313.00 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.25 313.00 Td (200,511) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.60 313.00 Td (28,305) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.65 313.00 Td (283) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.60 313.00 Td (254,736) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.60 313.00 Td (\(1,525) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.30 313.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.95 313.00 Td (\(52,983) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.65 313.00 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.30 282.25 Td (The accompanying notes are an integral part of these consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 137 0 obj <> endobj 138 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 24.60 Td (64) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 749.25 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 749.25 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 188.65 734.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.47 734.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.02 734.25 Td (A) Tj ET Q q 0 0 0 rg BT 289.50 734.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.42 734.25 Td ( CASH FLOWS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.55 724.25 Td (\(in thousands\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 701.75 m 455 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 701.75 m 463 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 701.75 m 513 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 701.75 m 521 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 701.75 m 571 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 701.75 m 455 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 689.75 m 455 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 701.75 m 463 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 701.75 m 513 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 689.75 m 513 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 701.75 m 521 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 701.75 m 571 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 689.75 m 571 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 451.75 m 455 451.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 451.75 m 513 451.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 451.75 m 571 451.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 437.75 m 455 437.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 437.75 m 513 437.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 437.75 m 571 437.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 325.75 m 455 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 325.75 m 513 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 325.75 m 571 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 311.75 m 455 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 311.75 m 513 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 311.75 m 571 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 227.75 m 455 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 227.75 m 513 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 227.75 m 571 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 213.75 m 455 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 213.75 m 513 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 213.75 m 571 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 199.75 m 455 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 199.75 m 513 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 199.75 m 571 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 171.75 m 455 171.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 171.75 m 513 171.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 171.75 m 571 171.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 158.75 m 455 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 156.75 m 455 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 158.75 m 513 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 156.75 m 513 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 158.75 m 571 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 156.75 m 571 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 130.75 m 455 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 128.75 m 455 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 130.75 m 513 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 128.75 m 513 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 130.75 m 571 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 128.75 m 571 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 116.75 m 455 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 114.75 m 455 114.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 116.75 m 513 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 114.75 m 513 114.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 116.75 m 571 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 114.75 m 571 114.75 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 42.50 705.90 Td () Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 446.80 705.87 Td (Year ended December31,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 42.50 693.90 Td () Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 422.00 693.87 Td (2013) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 480.00 693.87 Td (2012) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 538.20 693.87 Td (2011) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 42.50 681.15 Td (Cash flows from operating activities:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 667.01 Td (Net \(loss\) income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.50 666.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 666.21 Td (\(8,874) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 666.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 465.50 666.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.75 666.21 Td (12,076) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.50 666.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.75 666.21 Td (32,297) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 653.01 Td (Adjustment to reconcile net \(loss\) income to net cash provided by operating activities:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 639.01 Td (Depreciation and amortization) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 431.25 638.21 Td (7,822) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 638.21 Td (5,242) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 547.25 638.21 Td (3,119) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 625.01 Td (Amortization of software licenses) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 431.25 624.21 Td (2,987) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 624.21 Td (2,910) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 547.25 624.21 Td (1,820) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 611.01 Td (Stock-based compensation expense) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 426.75 610.21 Td (41,684) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.75 610.21 Td (15,022) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 547.25 610.21 Td (7,201) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 597.01 Td (Release of tax valuation allowance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 596.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 500.50 596.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.25 596.21 Td (\(8,946) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 596.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 583.01 Td (Provision for \(recoveries of\) doubtful accounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 438.00 582.21 Td (149) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 582.21 Td (644) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 555.50 582.21 Td (\(56) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 582.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 569.01 Td (\(Benefit from\) provision for deferred income taxes) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 568.21 Td (\(7,058) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 568.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 568.21 Td (5,667) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 558.50 568.21 Td (66) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 555.01 Td (Excess tax benefit related to share-based compensation) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 554.21 Td (\(7,492) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 554.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 493.00 554.21 Td (\(579) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 554.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 555.50 554.21 Td (\(61) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 554.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 541.01 Td (Non-cash interest expense on convertible senior notes) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 431.25 540.21 Td (5,504) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 540.21 Td (5,120) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 547.25 540.21 Td (2,560) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 527.01 Td (Other) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 526.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 500.50 526.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 558.50 526.21 Td (24) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 78.50 513.01 Td (Changes in operating assets and liabilities, net of acquisitions:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 102.50 499.01 Td (Accounts receivable) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.75 498.21 Td (\(16,334) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 498.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 486.25 498.21 Td (\(2,557) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 498.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.25 498.21 Td (\(5,997) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 498.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 102.50 485.01 Td (Other current and long-term assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 484.21 Td (\(1,128) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 484.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 481.75 484.21 Td (\(16,414) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 484.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 551.00 484.21 Td (\(511) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 484.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 102.50 471.01 Td (Accounts payable, accrued expenses and other long-term liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 470.21 Td (\(1,799) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 470.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 486.25 470.21 Td (\(1,125) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 470.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 554.00 470.21 Td (238) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 102.50 457.01 Td (Current and long-term deferred revenue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 426.75 456.21 Td (16,473) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 456.21 Td (4,013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.25 456.21 Td (\(3,240) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 456.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 120.50 443.01 Td (Net cash provided by operating activities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 426.75 442.21 Td (31,934) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.75 442.21 Td (30,019) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.75 442.21 Td (28,514) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 42.50 429.15 Td (Cash flows from investing activities:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 415.01 Td (Purchases of property and equipment) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 414.21 Td (\(5,789) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 414.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 486.25 414.21 Td (\(3,923) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 414.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.25 414.21 Td (\(2,421) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 414.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 401.01 Td (Payments for acquisitions, net of cash acquired) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.75 400.21 Td (\(37,793) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 400.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 481.75 400.21 Td (\(25,177) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 400.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 539.75 400.21 Td (\(16,748) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 400.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 387.01 Td (Purchases of marketable securities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 419.25 386.21 Td (\(117,067) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 386.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 477.25 386.21 Td (\(179,886) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 386.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 535.25 386.21 Td (\(137,305) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 386.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 373.01 Td (Proceeds from sale of marketable securities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 372.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 372.21 Td (3,000) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.75 372.21 Td (11,267) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 359.01 Td (Proceeds from maturities of marketable securities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 422.25 358.21 Td (103,240) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 480.25 358.21 Td (171,458) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.75 358.21 Td (46,962) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 345.01 Td (Purchase of intangible assets resulting from contingent consideration) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 344.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 500.50 344.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 551.00 344.21 Td (\(905) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 344.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 331.01 Td (Change in restricted cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 447.00 330.21 Td (3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 330.21 Td (375) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 558.50 330.21 Td (14) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 120.50 317.01 Td (Net cash used in investing activities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.75 316.21 Td (\(57,406) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 316.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 481.75 316.21 Td (\(34,153) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 316.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 539.75 316.21 Td (\(99,136) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 316.21 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 42.50 303.15 Td (Cash flows from financing activities:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 289.01 Td (Proceeds from issuance of convertible senior notes, net of issuance costs) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 288.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 500.50 288.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 538.25 288.21 Td (115,688) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 275.01 Td (Proceeds from the exercise of stock options) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 431.25 274.21 Td (1,285) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 274.21 Td (2,459) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 547.25 274.21 Td (3,943) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 261.01 Td (Taxes paid on vesting of RSUs) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 260.21 Td (\(2,977) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 260.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 486.25 260.21 Td (\(2,198) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 260.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 551.00 260.21 Td (\(574) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 260.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 247.01 Td (Excess tax benefit related to share-based compensation) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 431.25 246.21 Td (7,492) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 246.21 Td (579) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 558.50 246.21 Td (61) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.50 233.01 Td (Notes payable and bank loanspayments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 435.00 232.21 Td (\(969) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 232.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 493.00 232.21 Td (\(382) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 232.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.25 232.21 Td (\(1,626) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 232.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 120.50 219.01 Td (Net cash provided by financing activities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 431.25 218.21 Td (4,831) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 218.21 Td (458) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 538.25 218.21 Td (117,492) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 42.50 205.01 Td (Effect of exchange rate changes on cash and cash equivalents) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 439.50 204.21 Td (\(38) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 204.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 204.21 Td (149) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 555.50 204.21 Td (\(52) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 567.50 204.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 42.50 191.01 Td (Net \(decrease\) increase in cash and cash equivalents) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.75 190.21 Td (\(20,679) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.50 190.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 486.25 190.21 Td (\(3,527) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.50 190.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.75 190.21 Td (46,818) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 42.50 177.01 Td (Cash and cash equivalents, beginning of period) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 426.75 176.21 Td (90,545) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.75 176.21 Td (94,072) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.75 176.21 Td (47,254) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 42.50 163.01 Td (Cash and cash equivalents, end of period) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.50 162.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 426.75 162.21 Td (69,866) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 465.50 162.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.75 162.21 Td (90,545) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.50 162.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.75 162.21 Td (94,072) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 42.50 149.15 Td (Supplemental disclosures:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 42.50 135.01 Td (Cash paid for interest) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.50 134.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 431.25 134.21 Td (1,895) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 465.50 134.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 496.00 134.21 Td (905) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.50 134.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 547.25 134.21 Td (1,032) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 42.50 121.01 Td (Cash paid for income taxes) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.50 120.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 438.00 120.21 Td (422) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 465.50 120.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 489.25 120.21 Td (1,363) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.50 120.21 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 554.00 120.21 Td (385) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.30 92.25 Td (The accompanying notes are an integral part of these consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 139 0 obj <> endobj 140 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (65) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.25 Td (1.Natur) Tj ET Q q 0 0 0 rg BT 92.87 705.25 Td (e of Business) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 688.25 Td (BroadSoft, Inc. \(BroadSoft or the Company\), a Delaware corporation, was formed in 1998. ) Tj ET Q q 0 0 0 rg BT 434.70 688.25 Td (The Company is the leading ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 676.25 Td (global provider of software and services that enable mobile, fixed-line and cable service providers to deliver hosted, or cloud-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 664.25 Td (based, Unified Communications and other voice and multimedia services over their Internet protocol, or IP) Tj ET Q q 0 0 0 rg BT 477.10 664.25 Td (, based networks. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 652.25 Td (s core communications platform consists of three of) Tj ET Q q 0 0 0 rg BT 316.98 652.25 Td (ferings: ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 350.02 652.25 Td (Br) Tj ET Q q 0 0 0 rg BT 359.65 652.25 Td (oadW) Tj ET Q q 0 0 0 rg BT 382.07 652.25 Td (orks, Br) Tj ET Q q 0 0 0 rg BT 413.92 652.25 Td (oadCloud and Br) Tj ET Q q 0 0 0 rg BT 482.99 652.25 Td (oadT) Tj ET Q q 0 0 0 rg BT 502.64 652.25 Td (ouch.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (2.Summary of Significant ) Tj ET Q q 0 0 0 rg BT 170.62 626.25 Td (Accounting Policies) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 609.25 Td (Principles of Consolidation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (The accompanying consolidated financial statements include the accounts and results of operations of the Company and its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (wholly owned subsidiaries. ) Tj ET Q q 0 0 0 rg BT 160.60 580.25 Td (All intercompany balances and transactions have been eliminated in the accompanying consolidated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 568.25 Td (financial statements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (Use of Estimates) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 525.25 Td (The preparation of financial statements in conformity with United States generally accepted accounting principles \(U.S. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 513.25 Td (GAAP\) requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 343.41 513.25 Td (fect the reported amounts of assets and liabilities at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 501.25 Td (the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 511.85 501.25 Td (Actual ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 489.25 Td (amounts could dif) Tj ET Q q 0 0 0 rg BT 121.53 489.25 Td (fer from these estimates.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (Revision of Prior Period ) Tj ET Q q 0 0 0 rg BT 151.90 463.25 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 445.05 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 108.93 445.05 Td (revised the presentation of excess tax benefit related to share based compensation in the statement of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 431.85 Td (cash flows for the years ended December 31, 2012 and 201) Tj ET Q q 0 0 0 rg BT 309.64 431.85 Td (1. ) Tj ET Q q 0 0 0 rg BT 320.44 431.85 Td (This item was previously reflected as a cash inflow ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 418.65 Td (from operating activities rather than financing activities. ) Tj ET Q q 0 0 0 rg BT 299.77 418.65 Td (The revision decreased cash flows from operating activities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 405.45 Td (and increased cash flows from financing activities by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.53 405.45 Td ($0.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.31 405.45 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.69 405.45 Td ($0.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.48 405.45 Td ( for the years ended December ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (31, 2012 and 201) Tj ET Q q 0 0 0 rg BT 125.47 392.25 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 188.90 392.25 Td (. ) Tj ET Q q 0 0 0 rg BT 194.20 392.25 Td (There was no impact on cash and cash equivalents. ) Tj ET Q q 0 0 0 rg BT 421.26 392.25 Td (The Company concluded that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 379.05 Td (the correction was immaterial to all prior annual and quarterly periods.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 353.05 Td (Cash Equivalents and Restricted Cash) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 336.05 Td (The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.05 Td (equivalents. Cash equivalents are held in money market accounts. Restricted cash consists primarily of certificates of deposit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 312.05 Td (that are securing letters of credit related to operating leases for of) Tj ET Q q 0 0 0 rg BT 310.04 312.05 Td (fice space. ) Tj ET Q q 0 0 0 rg BT 354.55 312.05 Td (The Company had long-term restricted cash of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.66 312.05 Td ($0.6 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 300.05 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 300.05 Td ( at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.61 300.05 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 169.19 300.05 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.63 300.05 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 208.63 300.05 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 274.05 Td (Investments in Marketable Securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.05 Td (Marketable debt securities that the Company does not intend to hold to maturity are classified as available-for) Tj ET Q q 0 0 0 rg BT 488.61 257.05 Td (-sale, are carried ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 245.05 Td (at fair value and are included on the Company) Tj ET Q q 0 0 0 rg BT 237.21 245.05 Td (s consolidated balance sheet as either short-term or long-term investments ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 233.05 Td (depending on their maturity) Tj ET Q q 0 0 0 rg BT 160.21 233.05 Td (. Investments with original maturities greater than three months that mature less than one year from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 221.05 Td (the consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 209.05 Td (from the consolidated balance sheet date are classified as long-term investments. ) Tj ET Q q 0 0 0 rg BT 374.39 209.05 Td (A) Tj ET Q q 0 0 0 rg BT 380.87 209.05 Td (vailable-for) Tj ET Q q 0 0 0 rg BT 427.31 209.05 Td (-sale investments are marked-to-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 197.05 Td (market at the end of each reporting period, with unrealized holding gains or losses, which represent temporary changes in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 185.05 Td (fair value of the investment, reflected in accumulated other comprehensive income \(loss\), a separate component of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 173.05 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 173.05 Td ( equity) Tj ET Q q 0 0 0 rg BT 129.48 173.05 Td (. ) Tj ET Q q 0 0 0 rg BT 134.30 173.05 Td (The Company) Tj ET Q q 0 0 0 rg BT 194.01 173.05 Td (s primary objective when investing excess cash is preservation of principal. ) Tj ET Q q 0 0 0 rg BT 498.19 173.05 Td (The following ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 161.05 Td (table summarizes the Company's investments:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td () Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 141 0 obj <> endobj 142 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (66) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 724.5 m 359 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 724.5 m 367 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 724.5 m 422 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 724.5 m 500 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 724.5 m 508 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 724.5 m 563 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 703.5 m 359 703.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 703.5 m 422 703.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 703.5 m 500 703.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 703.5 m 563 703.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 675.5 m 422 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 675.5 m 563 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 660.5 m 422 660.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 660.5 m 563 660.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 660.5 m 422 660.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 660.5 m 563 660.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 615.5 m 422 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 615.5 m 563 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 600.5 m 422 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 600.5 m 563 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 600.5 m 422 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 600.5 m 563 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 570.5 m 422 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 570.5 m 563 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 555.5 m 422 555.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 555.5 m 563 555.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 728.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.75 728.73 Td (December 31, 2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.75 728.73 Td (December 31, 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 707.75 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 304.15 715.73 Td (Contracted) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 307.90 707.73 Td (Maturity) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 378.20 715.73 Td (Carrying) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.35 707.73 Td (V) Tj ET Q q 0 0 0 rg BT 389.39 707.73 Td (alue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 445.15 715.73 Td (Contracted) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 448.90 707.73 Td (Maturity) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 519.20 715.73 Td (Carrying) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 525.35 707.73 Td (V) Tj ET Q q 0 0 0 rg BT 530.39 707.73 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 694.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.50 694.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.20 694.75 Td (\(inthousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.50 694.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.20 694.75 Td (\(inthousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 681.07 Td (Money market funds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 307.65 680.17 Td (demand) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 680.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 680.17 Td (48,256) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 448.65 680.17 Td (demand) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 680.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 680.17 Td (63,189) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 666.07 Td (Total cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 665.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 665.17 Td (48,256) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 665.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 665.17 Td (63,189) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 651.07 Td (U.S. agency notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.90 650.17 Td (2 - 329 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 650.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 650.17 Td (35,534) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.40 650.17 Td (17 - 304 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 650.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 650.17 Td (25,632) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 636.07 Td (Commercial paper) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.40 635.17 Td (7 - 31 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.65 635.17 Td (4,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.90 635.17 Td (3 - 214 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 635.17 Td (27,489) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 621.07 Td (Corporate bonds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.40 620.17 Td (10 - 325 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 620.17 Td (53,131) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.40 620.17 Td (31 - 227 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 620.17 Td (19,954) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 606.07 Td (Total short-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 605.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 605.17 Td (93,664) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 605.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 605.17 Td (73,075) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 591.07 Td (U.S. agency notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.90 590.17 Td (386 - 605 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 590.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 590.17 Td (15,006) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.90 590.17 Td (399 - 610 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 590.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 590.17 Td (18,135) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 576.07 Td (Corporate bonds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.90 575.17 Td (407 - 472 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.65 575.17 Td (8,334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.90 575.17 Td (389 - 560 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 575.17 Td (11,967) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 561.07 Td (Total long-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 560.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 560.17 Td (23,340) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 560.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 560.17 Td (30,102) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 532.00 Td (The following table summarizes the Company's investments at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.92 532.00 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 532.00 Td ( \(in thousands\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 486.5 m 358 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 486.5 m 426 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 486.5 m 494 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 486.5 m 562 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 486.5 m 358 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 486.5 m 426 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 486.5 m 494 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 486.5 m 562 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 441.5 m 358 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 427.5 m 358 427.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 425.5 m 358 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 441.5 m 426 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 427.5 m 426 427.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 425.5 m 426 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 441.5 m 494 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 427.5 m 494 427.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 425.5 m 494 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 441.5 m 562 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 427.5 m 562 427.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 425.5 m 562 425.5 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.70 490.73 Td (Cost) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 385.55 506.73 Td (Gross) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 376.90 498.73 Td (Unrealized) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 385.45 490.73 Td (Gains) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 453.55 506.73 Td (Gross) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 444.90 498.73 Td (Unrealized) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.35 490.73 Td (Losses) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.65 490.73 Td (Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 476.17 Td (U.S. agency notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 476.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.65 476.17 Td (50,533) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.50 476.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 476.17 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 476.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.80 476.22 Td (\(11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.15 476.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.50 476.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 476.17 Td (50,540) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 461.17 Td (Commercial paper) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.65 461.17 Td (4,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 461.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.15 461.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 461.17 Td (4,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 446.17 Td (Corporate bonds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.65 446.17 Td (61,448) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 446.17 Td (41) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.80 446.22 Td (\(24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.15 446.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 446.17 Td (61,465) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 431.17 Td (Total investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 431.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 431.17 Td (116,980) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.50 431.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 431.17 Td (59) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 431.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.80 431.22 Td (\(35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.15 431.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.50 431.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.65 431.17 Td (117,004) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 403.00 Td (The following table summarizes the Company's investments at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.92 403.00 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 403.00 Td ( \(in thousands\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 357.5 m 358 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 357.5 m 426 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 357.5 m 494 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 357.5 m 562 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 357.5 m 358 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 357.5 m 426 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 357.5 m 494 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 357.5 m 562 357.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 312.5 m 358 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 312.5 m 426 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 312.5 m 494 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 312.5 m 358 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 298.5 m 358 298.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 296.5 m 358 296.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 312.5 m 426 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 298.5 m 426 298.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 296.5 m 426 296.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 312.5 m 494 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 298.5 m 494 298.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 296.5 m 494 296.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 312.5 m 562 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 298.5 m 562 298.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 296.5 m 562 296.5 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.70 361.73 Td (Cost) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 385.55 377.73 Td (Gross) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 376.90 369.73 Td (Unrealized) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 385.45 361.73 Td (Gains) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 453.55 377.73 Td (Gross) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 444.90 369.73 Td (Unrealized) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.35 361.73 Td (Losses) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.65 361.73 Td (Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 347.17 Td (U.S. agency notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 347.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.65 347.17 Td (43,750) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.50 347.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 347.17 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 347.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.15 347.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.50 347.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 347.17 Td (43,767) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 332.17 Td (Commercial paper) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.65 332.17 Td (27,487) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.15 332.17 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.15 332.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 332.17 Td (27,489) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 317.17 Td (Corporate bonds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.65 317.17 Td (31,921) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 317.17 Td (11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.80 317.22 Td (\(11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.15 317.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 317.17 Td (31,921) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 302.17 Td (Total investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 302.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 302.17 Td (103,158) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.50 302.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 302.17 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.50 302.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.80 302.22 Td (\(11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.15 302.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.50 302.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.65 302.17 Td (103,177) Tj ET Q BT /F2 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 272.00 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 272.00 Td (alue Measurements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.00 Td (The following table summarizes the carrying and fair value of the Company) Tj ET Q q 0 0 0 rg BT 356.35 255.00 Td (s financial assets \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 244.20 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 220.70000000000005 m 389 220.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 220.70000000000005 m 397 220.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 220.70000000000005 m 447 220.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 220.70000000000005 m 505 220.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 220.70000000000005 m 513 220.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 220.70000000000005 m 563 220.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 199.70000000000005 m 389 199.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 199.70000000000005 m 447 199.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 199.70000000000005 m 505 199.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 199.70000000000005 m 563 199.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 155.70000000000005 m 389 155.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 155.70000000000005 m 447 155.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 155.70000000000005 m 505 155.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 155.70000000000005 m 563 155.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 141.70000000000005 m 389 141.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 139.70000000000005 m 389 139.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 141.70000000000005 m 447 141.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 139.70000000000005 m 447 139.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 141.70000000000005 m 505 141.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 139.70000000000005 m 505 139.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 141.70000000000005 m 563 141.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 139.70000000000005 m 563 139.70000000000005 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 224.95 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.25 224.93 Td (December 31, 2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.25 224.93 Td (December 31, 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 203.95 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 347.70 211.93 Td (Carrying) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 353.85 203.93 Td (V) Tj ET Q q 0 0 0 rg BT 358.89 203.93 Td (alue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 403.65 203.93 Td (Fair Value) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 211.93 Td (Carrying) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 469.85 203.93 Td (V) Tj ET Q q 0 0 0 rg BT 474.89 203.93 Td (alue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 519.65 203.93 Td (Fair Value) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 190.43 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 176.27 Td (Cash equivalents and certificates of deposit *) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.50 175.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.65 175.37 Td (48,837) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.50 175.37 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 175.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 175.37 Td (48,837) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.50 175.37 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.50 175.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 175.37 Td (63,795) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.50 175.37 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.50 175.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 175.37 Td (63,795) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 161.27 Td (Short and long-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.60 160.37 Td (117,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.60 160.37 Td (117,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.60 160.37 Td (103,177) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.60 160.37 Td (103,177) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 146.27 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.50 145.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.60 145.37 Td (165,841) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 145.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.60 145.37 Td (165,841) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.50 145.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.60 145.37 Td (166,972) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.50 145.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.60 145.37 Td (166,972) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 123.20 Td (* ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.50 123.20 Td (Includes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.88 123.20 Td ($0.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.77 123.20 Td ( of restricted cash as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.73 123.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.31 123.20 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.75 123.20 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.75 123.20 Td ( and excludes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.68 123.20 Td ($21.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.57 123.20 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.50 111.20 Td ($27.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 166.39 111.20 Td ( of operating cash balances as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.84 111.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.42 111.20 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.86 111.20 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.86 111.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 469.52 111.20 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 90.20 Td (The carrying amounts of the Company) Tj ET Q q 0 0 0 rg BT 206.96 90.20 Td (s other financial instruments, accounts receivable, accounts payable and accrued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 78.20 Td (expenses, approximate their respective fair values due to their short term nature. \(See Note9 ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 422.42 78.20 Td (Borr) Tj ET Q q 0 0 0 rg BT 440.94 78.20 Td (owings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.28 78.20 Td ( for additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 66.20 Td (information on fair value of debt.\)) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 143 0 obj <> endobj 144 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (67) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (The Company uses a three-tier fair value measurement hierarchy to classify and disclose all assets and liabilities measured at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (subsequent to their initial measurement. ) Tj ET Q q 0 0 0 rg BT 211.50 707.10 Td (The three tiers are defined as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 690.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.50 690.10 Td (Level 1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.33 690.10 Td (. Observable inputs based on unadjusted quoted prices in active markets for identical instruments and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.50 678.10 Td (include the Company) Tj ET Q q 0 0 0 rg BT 209.82 678.10 Td (s investments in money market funds and certificates of deposit;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 661.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.50 661.10 Td (Level 2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.33 661.10 Td (. Inputs valued using quoted market prices for similar instruments, nonbinding market prices that are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.50 649.10 Td (corroborated by observable market data and include the Company) Tj ET Q q 0 0 0 rg BT 388.07 649.10 Td (s investments and marketable securities in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.50 637.10 Td (U.S. agency notes, commercial paper and corporate bonds; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 620.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.50 620.10 Td (Level 3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.33 620.10 Td (. Unobservable inputs for which there is little or no market data, which require the Company to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.50 608.10 Td (develop its own assumptions.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (Assets Measur) Tj ET Q q 0 0 0 rg BT 107.18 582.10 Td (ed at Fair V) Tj ET Q q 0 0 0 rg BT 154.68 582.10 Td (alue on a Recurring Basis) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (The Company evaluates its financial assets subject to fair value measurements on a recurring basis to determine the appropriate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (level of classification for each reporting period. ) Tj ET Q q 0 0 0 rg BT 242.02 553.10 Td (This determination requires significant judgments to be made. ) Tj ET Q q 0 0 0 rg BT 492.61 553.10 Td (There were no ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (transfers between classification levels during the periods. ) Tj ET Q q 0 0 0 rg BT 280.91 541.10 Td (The following table summarizes the values \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 530.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 498.8 m 404 498.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 498.8 m 457 498.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 498.8 m 510 498.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 498.8 m 563 498.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 468.8 m 404 468.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 468.8 m 457 468.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 468.8 m 510 468.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 468.8 m 563 468.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 453.8 m 404 453.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 453.8 m 457 453.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 453.8 m 510 453.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 453.8 m 563 453.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 408.8 m 404 408.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 408.8 m 457 408.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 408.8 m 510 408.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 408.8 m 563 408.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 393.8 m 404 393.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 393.8 m 457 393.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 393.8 m 510 393.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 393.8 m 563 393.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 379.8 m 404 379.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 377.8 m 404 377.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 379.8 m 457 379.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 377.8 m 457 377.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 379.8 m 510 379.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 377.8 m 510 377.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 379.8 m 563 379.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 377.8 m 563 377.8 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.75 511.03 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 368.00 503.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.65 503.03 Td (Level 1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.65 503.03 Td (Level 2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.65 503.03 Td (Level3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 489.37 Td (Money market funds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.50 488.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 488.47 Td (48,256) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.50 488.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.60 488.47 Td (48,256) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.50 488.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 488.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.50 488.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 488.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 474.37 Td (Certificates of deposit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.15 473.47 Td (581) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.15 473.47 Td (581) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 473.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 473.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 459.37 Td (Total cash equivalents and certificates of deposit *) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 458.47 Td (48,837) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.60 458.47 Td (48,837) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 458.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 458.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 444.37 Td (U.S. agency notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 443.47 Td (50,540) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 443.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.60 443.47 Td (50,540) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 443.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 429.37 Td (Commercial paper) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.65 428.47 Td (4,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 428.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 428.47 Td (4,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 428.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 414.37 Td (Corporate bonds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 413.47 Td (61,465) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 413.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.60 413.47 Td (61,465) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 413.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 399.37 Td (Total investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.65 398.47 Td (117,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 398.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.60 398.47 Td (117,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 398.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 384.37 Td (Total cash equivalents, certificates of deposit and investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.50 383.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.65 383.47 Td (165,841) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.50 383.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.60 383.47 Td (48,837) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.50 383.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.60 383.47 Td (117,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.50 383.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 383.47 Td () Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 368.50 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 337 m 404 337 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 337 m 457 337 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 337 m 510 337 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 337 m 563 337 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 307 m 404 307 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 307 m 457 307 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 307 m 510 307 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 307 m 563 307 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 292 m 404 292 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 292 m 457 292 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 292 m 510 292 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 292 m 563 292 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 247 m 404 247 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 247 m 457 247 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 247 m 510 247 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 247 m 563 247 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 232 m 404 232 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 232 m 457 232 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 232 m 510 232 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 232 m 563 232 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 218 m 404 218 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 216 m 404 216 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 218 m 457 218 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 216 m 457 216 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 218 m 510 218 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 216 m 510 216 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 218 m 563 218 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 216 m 563 216 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.75 349.23 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 368.00 341.23 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.65 341.23 Td (Level 1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.65 341.23 Td (Level 2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.65 341.23 Td (Level3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 327.57 Td (Money market funds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.50 326.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 326.67 Td (63,189) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.50 326.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.60 326.67 Td (63,189) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.50 326.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 326.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.50 326.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 326.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 312.57 Td (Certificates of deposit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.15 311.67 Td (606) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.15 311.67 Td (606) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 311.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 311.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 297.57 Td (Total cash equivalents and certificates of deposit *) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 296.67 Td (63,795) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.60 296.67 Td (63,795) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 296.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 296.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 282.57 Td (U.S. agency notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 281.67 Td (43,767) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 281.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.60 281.67 Td (43,767) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 281.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 267.57 Td (Commercial paper) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 266.67 Td (27,489) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 266.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.60 266.67 Td (27,489) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 266.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 252.57 Td (Corporate bonds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 251.67 Td (31,921) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 251.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.60 251.67 Td (31,921) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 251.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 237.57 Td (Total investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.65 236.67 Td (103,177) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 236.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.60 236.67 Td (103,177) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 236.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 222.57 Td (Total cash equivalents, certificates of deposit and investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.50 221.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.65 221.67 Td (166,972) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.50 221.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.60 221.67 Td (63,795) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.50 221.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.60 221.67 Td (103,177) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.50 221.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 221.67 Td () Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 199.50 Td (* ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.50 199.50 Td (Includes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.88 199.50 Td ($0.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.77 199.50 Td ( of restricted cash as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.73 199.50 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.31 199.50 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.75 199.50 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.75 199.50 Td ( and excludes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.68 199.50 Td ($21.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.57 199.50 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.50 187.50 Td ($27.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 166.39 187.50 Td ( of operating cash balances as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.84 187.50 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.42 187.50 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.86 187.50 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.86 187.50 Td (, respectively) Tj ET Q q 0 0 0 rg BT 469.52 187.50 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 161.50 Td (Assets Measur) Tj ET Q q 0 0 0 rg BT 107.18 161.50 Td (ed at Fair V) Tj ET Q q 0 0 0 rg BT 154.68 161.50 Td (alue on a Nonr) Tj ET Q q 0 0 0 rg BT 214.58 161.50 Td (ecurring Basis) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 144.50 Td (The Company measures certain assets, including property and equipment, goodwill and intangible assets, at fair value on a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 132.50 Td (nonrecurring basis. ) Tj ET Q q 0 0 0 rg BT 128.46 132.50 Td (These assets are recognized at fair value when they are deemed to be other) Tj ET Q q 0 0 0 rg BT 426.73 132.50 Td (-than-temporarily impaired. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 120.50 Td (During the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 145.02 120.50 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.61 120.50 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 228.61 120.50 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 248.61 120.50 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.04 120.50 Td (201) Tj ET Q q 0 0 0 rg BT 282.67 120.50 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.67 120.50 Td (, there were no fair value measurements of assets or liabilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 108.50 Td (measured at fair value on a nonrecurring basis subsequent to their initial recognition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 82.50 Td (Concentration of Credit Risk) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 65.50 Td (Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 53.50 Td (equivalents, marketable securities and accounts receivable. ) Tj ET Q q 0 0 0 rg BT 287.18 53.50 Td (All of the Company) Tj ET Q q 0 0 0 rg BT 369.67 53.50 Td (s cash and cash equivalents and marketable ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 145 0 obj <> endobj 146 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (68) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (securities are held at financial institutions that management believes to be of high credit quality) Tj ET Q q 0 0 0 rg BT 430.40 731.10 Td (. ) Tj ET Q q 0 0 0 rg BT 435.22 731.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 494.93 731.10 Td (s cash and cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (equivalent accounts may exceed federally insured limits at times. ) Tj ET Q q 0 0 0 rg BT 312.56 719.10 Td (The Company has not experienced any losses on cash and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (cash equivalents to date. ) Tj ET Q q 0 0 0 rg BT 149.56 707.10 Td (T) Tj ET Q q 0 0 0 rg BT 154.97 707.10 Td (o manage accounts receivable risk, the Company evaluates the creditworthiness of its customers and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (maintains an allowance for doubtful accounts.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (The following customers represented 10% or more of revenue or accounts receivable:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 660.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 636.8 m 286 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 636.8 m 290 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 636.8 m 355 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 636.8 m 359 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 636.8 m 424 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 636.8 m 493 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 636.8 m 497 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 636.8 m 562 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 636.8 m 286 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 623.8 m 286 623.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 636.8 m 290 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 636.8 m 355 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 623.8 m 355 623.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 636.8 m 359 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 636.8 m 424 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 623.8 m 424 623.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 636.8 m 493 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 623.8 m 493 623.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 636.8 m 497 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 636.8 m 562 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 623.8 m 562 623.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 610.8 m 286 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 610.8 m 290 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 610.8 m 355 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 610.8 m 359 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 610.8 m 424 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 610.8 m 493 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 610.8 m 497 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 610.8 m 562 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 610.8 m 355 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 610.8 m 424 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 610.8 m 493 610.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 610.8 m 562 610.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 641.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.70 641.03 Td (YearEndedDecember31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.25 641.03 Td (December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 628.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 245.00 628.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 314.00 628.03 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.20 628.03 Td (2011) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.00 628.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.00 628.03 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 615.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 307.30 615.03 Td (Revenue) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 459.25 615.03 Td (AccountsReceivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 601.37 Td (Company A) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.50 600.47 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 600.47 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 600.47 Td (11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 600.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 600.47 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.15 600.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 600.47 Td (16) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 600.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 578.30 Td (* ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.50 578.30 Td (Represented less than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.64 578.30 Td (10%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.97 578.30 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 552.30 Td (Accounts Receivable and ) Tj ET Q q 0 0 0 rg BT 154.95 552.30 Td (Allowance for Doubtful ) Tj ET Q q 0 0 0 rg BT 254.87 552.30 Td (Accounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 535.30 Td (Accounts receivable are derived from sales to customers. Each customer is evaluated for creditworthiness through a credit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 523.30 Td (review process at the time of each order) Tj ET Q q 0 0 0 rg BT 208.60 523.30 Td (. ) Tj ET Q q 0 0 0 rg BT 213.04 523.30 Td (Accounts receivable are stated at realizable value, net of an allowance for doubtful ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 511.30 Td (accounts that is maintained for estimated losses that would result from the inability of some customers to make payments as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 499.30 Td (they become due. ) Tj ET Q q 0 0 0 rg BT 122.07 499.30 Td (The allowance is based on an analysis of past due amounts and ongoing credit evaluations. Collection ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 487.30 Td (experience has been consistent with the Company) Tj ET Q q 0 0 0 rg BT 251.66 487.30 Td (s estimates.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 461.30 Td (Property and Equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.30 Td (Property and equipment are stated at cost, less accumulated depreciation and amortization. Replacements and major ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.30 Td (improvements are capitalized; maintenance and repairs are char) Tj ET Q q 0 0 0 rg BT 303.91 432.30 Td (ged to expense as incurred.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 411.30 Td (Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets per the table below:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 400.50 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 380.57 Td (Equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.90 379.67 Td (3 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 365.57 Td (Software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.05 364.67 Td (1.5 - 3 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 350.57 Td (Furniture and fixtures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.90 349.67 Td (5 years) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.50 Td (Leasehold improvements are amortized over the shorter of the term of the lease and the estimated useful life of the assets.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 298.50 Td (Business Combinations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 281.50 Td (In a business combination, the Company allocates the purchase price to the acquired business) Tj ET Q q 0 0 0 rg BT 425.87 281.50 Td ( identifiable assets and liabilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 269.50 Td (at their acquisition date fair values. ) Tj ET Q q 0 0 0 rg BT 192.32 269.50 Td (The excess of the purchase price over the amount allocated to the identifiable assets and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.50 Td (liabilities, if any) Tj ET Q q 0 0 0 rg BT 114.11 257.50 Td (, is recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 216.97 257.50 Td (The excess, if any) Tj ET Q q 0 0 0 rg BT 288.51 257.50 Td (, of the fair value of the identifiable assets acquired and liabilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 245.50 Td (assumed over the consideration transferred is recognized as a gain within other income in the consolidated statement of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 233.50 Td (operations as of the acquisition date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 212.50 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 212.50 Td (o date, the assets acquired and liabilities assumed in the Company) Tj ET Q q 0 0 0 rg BT 321.79 212.50 Td (s business combinations have primarily consisted of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 200.50 Td (acquired working capital, definite-lived intangible assets and goodwill. ) Tj ET Q q 0 0 0 rg BT 335.91 200.50 Td (The carrying value of acquired working capital ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 188.50 Td (approximates its fair value, given the short-term nature of these assets and liabilities. ) Tj ET Q q 0 0 0 rg BT 393.11 188.50 Td (The Company estimates the fair value of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 176.50 Td (definite-lived intangible assets acquired using a discounted cash flow approach, which includes an analysis of the future cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 164.50 Td (flows expected to be generated by such assets and the risk associated with achieving such cash flows. ) Tj ET Q q 0 0 0 rg BT 457.53 164.50 Td (The key assumptions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 152.50 Td (used in the discounted cash flow model include the discount rate that is applied to the discretely forecasted future cash flows to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 140.50 Td (calculate the present value of those cash flows and the estimate of future cash flows attributable to the acquired intangible, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 128.50 Td (which include revenue, operating expenses and taxes. ) Tj ET Q q 0 0 0 rg BT 266.18 128.50 Td (The Company's estimates are inherently uncertain and subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 116.50 Td (refinement. ) Tj ET Q q 0 0 0 rg BT 97.26 116.50 Td (As a result, during the measurement period, which may be up to one year from the acquisition date, the Company ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 104.50 Td (may record adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding of) Tj ET Q q 0 0 0 rg BT 485.58 104.50 Td (fset to goodwill.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 147 0 obj <> endobj 148 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (69) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (Goodwill represents the excess of\(a\)the aggregate of the fair value of consideration transferred in a business combination, over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (\(b\)the fair value of assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to annual impairment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (tests as described below) Tj ET Q q 0 0 0 rg BT 145.21 690.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (The Company tests goodwill for impairment annually on December31, or more frequently if events or changes in business ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (circumstances indicate the asset might be impaired. ) Tj ET Q q 0 0 0 rg BT 257.58 657.25 Td (The Company may first assess qualitative factors to determine if it is more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (necessary to perform the two-step goodwill impairment test included in U.S. GAAP) Tj ET Q q 0 0 0 rg BT 384.16 633.25 Td (. ) Tj ET Q q 0 0 0 rg BT 388.98 633.25 Td (T) Tj ET Q q 0 0 0 rg BT 394.39 633.25 Td (o the extent the assessment identifies ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 621.25 Td (adverse conditions, or if the Company elects to bypass the qualitative assessment, goodwill is tested for impairment at the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 609.25 Td (reporting unit level using a two-step approach. ) Tj ET Q q 0 0 0 rg BT 238.16 609.25 Td (The first step is to compare the fair value of the reporting unit to the carrying ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 597.25 Td (value of the net assets assigned to the reporting unit. If the fair value of the reporting unit is greater than the carrying value of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 585.25 Td (the net assets assigned to the reporting unit, the assigned goodwill is not considered impaired. If the fair value is less than the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 573.25 Td (reporting unit) Tj ET Q q 0 0 0 rg BT 106.99 573.25 Td (s carrying value, step two is performed to measure the amount of the impairment, if any) Tj ET Q q 0 0 0 rg BT 457.63 573.25 Td (. In the second step, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 561.25 Td (fair value of goodwill is determined by deducting the fair value of the reporting unit) Tj ET Q q 0 0 0 rg BT 388.29 561.25 Td (s identifiable assets and liabilities from the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 549.25 Td (fair value of the reporting unit as a whole, as if the reporting unit had just been acquired and the purchase price were being ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 537.25 Td (initially allocated. If the carrying value of goodwill exceeds the implied fair value, an impairment char) Tj ET Q q 0 0 0 rg BT 459.44 537.25 Td (ge would be recorded to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 525.25 Td (operating expenses in the consolidated statement of operations in the period the determination is made.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 504.25 Td (The Company has determined that it has ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.63 504.25 Td (one) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 228.06 504.25 Td ( reporting unit, BroadSoft, Inc., which is the consolidated entity) Tj ET Q q 0 0 0 rg BT 482.64 504.25 Td (. Based on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 492.25 Td (results of the Company) Tj ET Q q 0 0 0 rg BT 145.32 492.25 Td (s annual goodwill impairment testing, there was no indication of impairment as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.80 492.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.39 492.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 480.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 480.25 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 82.83 480.25 Td (201) Tj ET Q q 0 0 0 rg BT 97.46 480.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 102.46 480.25 Td (. \(See Note4 ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 157.17 480.25 Td (Goodwill and Intangibles.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.89 480.25 Td (\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (Identifiable Intangible ) Tj ET Q q 0 0 0 rg BT 144.69 454.25 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (The Company acquired intangible assets in connection with certain of its business acquisitions. ) Tj ET Q q 0 0 0 rg BT 432.57 437.25 Td (These assets were recorded at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (their estimated fair values at the acquisition date and are amortized over their respective estimated useful lives using a method ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (of amortization that reflects the pattern in which the economic benefits of the intangible assets are used. Estimated useful lives ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (are determined based on the Company) Tj ET Q q 0 0 0 rg BT 205.84 401.25 Td (s historical use of similar assets and the expectation of future realization of revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (attributable to the intangible assets. In those cases where the Company determines that the useful life of an intangible asset ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (should be shortened, the Company amortizes the net book value in excess of the estimated salvage value over its revised ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (remaining useful life. ) Tj ET Q q 0 0 0 rg BT 137.63 365.25 Td (The Company did not revise the useful life estimates attributed to any of the Company) Tj ET Q q 0 0 0 rg BT 486.43 365.25 Td (s intangible assets ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 142.80 353.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 221.38 353.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.38 353.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.38 353.25 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 259.71 353.25 Td (201) Tj ET Q q 0 0 0 rg BT 274.34 353.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.34 353.25 Td (. \(See Note4 ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 334.05 353.25 Td (Goodwill and Intangibles) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.27 353.25 Td (.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (The estimated useful lives used in computing amortization are as follows:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 321.45 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 301.52 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 300.62 Td (3-8years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 286.52 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 285.62 Td (2-6years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 271.52 Td (Non-compete agreement) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 270.62 Td (1 year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 256.52 Td (Tradenames) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 255.62 Td (1-7years) Tj ET Q BT /F2 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 225.45 Td (Impairment of Long-Lived ) Tj ET Q q 0 0 0 rg BT 161.62 225.45 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 208.45 Td (The Company reviews long-lived assets, including property and equipment and definite-lived intangible assets, for impairment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 196.45 Td (whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 184.45 Td (of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted net cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 172.45 Td (flows expected to be generated by the assets. ) Tj ET Q q 0 0 0 rg BT 230.83 172.45 Td (Assets to be disposed of are recorded at the lower of the carrying amount or fair ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 160.45 Td (value less costs to sell. Recoverability measurement and estimating of undiscounted cash flows for assets to be held and used is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 148.45 Td (done at the lowest possible levels for which there are identifiable cash flows. If such assets are considered impaired, the amount ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 136.45 Td (of impairment recognized would be equal to the amount by which the carrying amount of the assets exceeds the fair value of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 124.45 Td (the assets, which the Company would compute using a discounted cash flow approach. ) Tj ET Q q 0 0 0 rg BT 399.52 124.45 Td (There was no impairment of long-lived ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 112.45 Td (assets during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.63 112.45 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.21 112.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.21 112.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.21 112.45 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.54 112.45 Td (201) Tj ET Q q 0 0 0 rg BT 300.17 112.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.17 112.45 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 86.45 Td (Deferred Financing Costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 69.45 Td (The Company amortizes deferred financing costs using the ef) Tj ET Q q 0 0 0 rg BT 295.35 69.45 Td (fective-interest method and records such amortization as interest ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 57.45 Td (expense.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 149 0 obj <> endobj 150 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (70) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Revenue Recognition) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 714.25 Td (s revenue is generated from the sales of software licenses and related maintenance for those licenses, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (professional services and subscription and usage fees related to the cloud of) Tj ET Q q 0 0 0 rg BT 352.28 702.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 380.97 702.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 440.69 702.25 Td (s software licenses, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (subscription and maintenance contracts and professional services are sold directly through its own sales force and indirectly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (through distribution partners. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 652.25 Td (License Software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 73.50 635.25 Td (Revenue from software licenses is recognized when the following four basic criteria are met as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 618.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 139.50 618.25 Td (Persuasive evidence of an arrangement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.20 618.25 Td (For direct sales, an agreement signed by the Company and by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 606.25 Td (the customer) Tj ET Q q 0 0 0 rg BT 190.47 606.25 Td (, in conjunction with a non-cancelable purchase order or executed sales quote from the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 594.25 Td (customer) Tj ET Q q 0 0 0 rg BT 175.75 594.25 Td (, is deemed to represent persuasive evidence of an arrangement. For sales through distribution ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 582.25 Td (partners, a purchase order or executed sales quote, in conjunction with a reseller agreement with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 570.25 Td (distribution partner and evidence of the distribution partner's customer) Tj ET Q q 0 0 0 rg BT 420.82 570.25 Td (, is deemed to represent persuasive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 558.25 Td (evidence of an arrangement. Revenue is deferred for sales through a distribution partner without proof of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 546.25 Td (the distribution partner's customer) Tj ET Q q 0 0 0 rg BT 275.44 546.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 529.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 139.50 529.25 Td (Delivery has occurred.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.54 529.25 Td (Delivery is deemed to have occurred when the customer is given electronic ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 517.25 Td (access to the licensed software and a license key for the software has been delivered or made available. If ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 505.25 Td (an arrangement contains a requirement to deliver additional elements essential to the functionality of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 493.25 Td (delivered element, revenue associated with the arrangement is recognized when delivery of the final ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 481.25 Td (element has occurred.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 464.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 139.50 464.25 Td (Fees are fixed or determinable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.09 464.25 Td () Tj ET Q q 0 0 0 rg BT 270.41 464.25 Td (The Company considers the fee to be fixed or determinable unless the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 452.25 Td (fee is subject to refund or adjustment or is not payable within normal payment terms. If the fee is subject ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 440.25 Td (to refund or adjustment, revenue is recognized when the refund or adjustment right lapses. If payment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 428.25 Td (terms exceed the Company) Tj ET Q q 0 0 0 rg BT 250.85 428.25 Td (s normal terms, revenue is recognized as the amounts become due and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 416.25 Td (payable or upon the receipt of cash if collection is not probable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 399.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 139.50 399.25 Td (Collection is probable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.00 399.25 Td (Each customer is evaluated for creditworthiness through a credit review process ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 387.25 Td (at the inception of an arrangement. Collection is deemed probable if, based upon the Company) Tj ET Q q 0 0 0 rg BT 521.05 387.25 Td (s ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 375.25 Td (evaluation, the Company expects that the customer will be able to pay amounts under the arrangement as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 363.25 Td (payments become due. If it is determined that collection is not probable, revenue is deferred and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.50 351.25 Td (recognized upon cash collection.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (The warranty period for the Company) Tj ET Q q 0 0 0 rg BT 204.17 330.25 Td (s licensed software is generally ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.63 330.25 Td (90 days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.46 330.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 309.25 Td (The Company delivers its licensed software primarily by utilizing electronic media. Revenue includes amounts billed for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 297.25 Td (shipping and handling and such amounts represent less than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.40 297.25 Td (1%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.73 297.25 Td ( of revenue. Cost of license software revenue includes shipping ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 285.25 Td (and handling costs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 259.25 Td (Subscription and Maintenance Support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (The Company typically sells annual maintenance support contracts in combination with license software sales. Maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (support enables the customer to continue receiving software maintenance and support after the warranty period has expired. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (Maintenance support is renewable at the option of the customer) Tj ET Q q 0 0 0 rg BT 303.04 218.25 Td (. ) Tj ET Q q 0 0 0 rg BT 307.85 218.25 Td (When customers prepay for the annual maintenance support, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (the related revenue is deferred and recognized ratably over the term of the maintenance period. Generally) Tj ET Q q 0 0 0 rg BT 470.31 206.25 Td (, rates for maintenance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (support, including subsequent renewal rates, are established based upon a specific percentage of net license fees as set forth in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (the arrangement. Maintenance support includes the right to unspecified product upgrades on an if-and-when available basis. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 161.25 Td (s subscription revenue is generated from a recurring fee and/or a usage based fee from customers purchasing the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (Company's cloud of) Tj ET Q q 0 0 0 rg BT 129.45 149.25 Td (fering. Under these arrangements, the Company is generally paid a recurring fee calculated based on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (number of seats and type of service purchased or a usage fee based on the actual number of transactions. Revenue related to the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (recurring fee is recognized ratably over the contract term beginning with the date our service is made available to the customer) Tj ET Q q 0 0 0 rg BT 555.96 125.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (The usage fee is recognized as revenue in the period in which the transactions occur) Tj ET Q q 0 0 0 rg BT 384.92 113.25 Td (. Subscription agreements do not provide ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (customers with the right to take possession of the underlying software at any time.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 151 0 obj <> endobj 152 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (71) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Professional Services and Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (Revenue from professional services includes implementation, training and consulting fees and is generally recognized as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (services are performed. Services are generally not considered essential to the functionality of the licensed software.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (Costs related to shipping and handling and billable travel expenses are included in cost of revenue.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 655.25 Td (Multiple Element ) Tj ET Q q 0 0 0 rg BT 123.58 655.25 Td (Arrangements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (The Company accounts for multiple element arrangements that consist of software and software-related services, collectively ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (referred to as software elements, in accordance with industry specific accounting guidance for software and software-related ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (transactions. For such transactions, the Company generally allocates revenue to the software license by determining the fair ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (value of the undelivered elements, which is usually maintenance support and professional services. ) Tj ET Q q 0 0 0 rg BT 447.81 602.25 Td (The Company establishes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (vendor) Tj ET Q q 0 0 0 rg BT 77.07 590.25 Td (-specific objective evidence \("VSOE"\) of the fair value of the maintenance support based on the renewal price as stated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (in the agreement and as char) Tj ET Q q 0 0 0 rg BT 163.43 578.25 Td (ged in the first optional renewal period under the arrangement. ) Tj ET Q q 0 0 0 rg BT 416.21 578.25 Td (VSOE for professional services is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (determined based on an analysis of our historical daily rates when these professional services are sold separately from the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (software license.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 533.25 Td (For the Company's cloud of) Tj ET Q q 0 0 0 rg BT 160.55 533.25 Td (fering, multiple element arrangements that include subscription and professional services, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 521.25 Td (Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 509.25 Td (the following hierarchy to determine the selling price to be used for allocating revenue to deliverables \(a\) vendor) Tj ET Q q 0 0 0 rg BT 500.52 509.25 Td (-specific ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 497.25 Td (objective evidence of fair value, \(b\) third-party evidence of selling price and \(c\) best estimate of the selling price. Best estimate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (of selling price reflects the Company) Tj ET Q q 0 0 0 rg BT 200.29 485.25 Td (s estimates of what the selling prices of elements would be if they were sold on a stand-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 473.25 Td (alone basis. Factors considered by the Company in developing relative selling prices for products and services include the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (discounting practices, price lists, go-to-market strategy) Tj ET Q q 0 0 0 rg BT 268.51 461.25 Td (, historical standalone sales and contract prices.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 435.25 Td (Research and Development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (Research and development expenses consist primarily of personnel and related expenses for the Company's research and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (development staf) Tj ET Q q 0 0 0 rg BT 117.91 406.25 Td (f, including salaries, benefits, bonuses and stock-based compensation and the cost of certain third-party ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (contractors. Research and development costs, other than software development expenses qualifying for capitalization, are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (expensed as incurred.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (Software Development Costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 339.25 Td (Software development costs for software to be sold, leased or marketed that is incurred prior to the establishment of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (technological feasibility are expensed as incurred as research and development expense. Software development costs incurred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 315.25 Td (subsequent to the establishment of technological feasibility) Tj ET Q q 0 0 0 rg BT 285.46 315.25 Td (, if any) Tj ET Q q 0 0 0 rg BT 312.86 315.25 Td (, are capitalized until the software is available for general ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 303.25 Td (release to customers. ) Tj ET Q q 0 0 0 rg BT 135.40 303.25 Td (The Company has determined that technological feasibility has been established at approximately the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 291.25 Td (same time as the general release of such software to customers. ) Tj ET Q q 0 0 0 rg BT 304.78 291.25 Td (Therefore, to date, the Company has not capitalized any related ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 279.25 Td (software development costs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (Internal-Use Software Development Costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (The Company capitalizes costs associated with customized internal-use software systems that have reached the application ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (development stage. Such capitalized costs include costs directly associated with the development of the applications. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (substantially complete and is ready for its intended purpose. Internal-use software is amortized on a straight-line basis over the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (estimated useful life. Costs incurred during the preliminary development stage, as well as maintenance and training costs, are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (expensed as incurred.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 159.25 Td (The Company capitalized ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 154.74 159.25 Td ($1.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 203.63 159.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.07 159.25 Td ($0.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.96 159.25 Td ( in internal-use software during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.67 159.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.25 159.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 147.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 147.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 147.25 Td (. Capitalized internal-use software is included in property and equipment. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (The Company recorded amortization expense related to these assets of approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.10 130.25 Td ($0.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.99 130.25 Td ( during the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 128.08 118.25 Td (. ) Tj ET Q q 0 0 0 rg BT 132.90 118.25 Td (The Company did not record any amortization expense related to these assets during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 128.08 106.25 Td ( or 201) Tj ET Q q 0 0 0 rg BT 156.04 106.25 Td (1.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 153 0 obj <> endobj 154 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (72) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Deferred Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (Deferred revenue represents amounts billed to or collected from customers for which the related revenue has not been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (recognized because one or more of the revenue recognition criteria have not been met. ) Tj ET Q q 0 0 0 rg BT 397.21 702.25 Td (The current portion of deferred revenue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (is expected to be recognized as revenue within ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.31 690.25 Td (12 months) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 280.26 690.25 Td ( from the balance sheet date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (Deferred revenue consists of the following \(in thousands\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 637.75 m 500 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 637.75 m 563 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 592.75 m 500 592.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 592.75 m 563 592.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 578.75 m 500 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 576.75 m 500 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 578.75 m 563 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 576.75 m 563 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 547.75 m 500 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 547.75 m 563 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 533.75 m 500 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 531.75 m 500 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 533.75 m 563 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 531.75 m 563 531.75 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 448.75 649.98 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.00 641.98 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.75 649.98 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.00 641.98 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 628.32 Td (License software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 627.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 627.42 Td (20,149) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 627.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 627.42 Td (18,375) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 613.32 Td (Subscription and maintenance support) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 612.42 Td (46,975) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 612.42 Td (35,701) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 598.32 Td (Professional services and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 597.42 Td (10,538) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 597.42 Td (7,073) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 583.32 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 582.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 582.42 Td (77,662) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 582.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 582.42 Td (61,149) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 568.32 Td (Current portion) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 567.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 567.42 Td (71,258) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 567.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 567.42 Td (49,368) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 553.32 Td (Non-current portion) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 552.42 Td (6,404) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 552.42 Td (11,781) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 538.32 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 537.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 537.42 Td (77,662) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 537.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 537.42 Td (61,149) Tj ET Q BT /F2 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 507.25 Td (Cost of Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (Cost of revenue includes \(a\)royalties paid to third parties whose technology or products are sold as part of the Company) Tj ET Q q 0 0 0 rg BT 534.93 490.25 Td (s ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (products, \(b\)direct costs to manufacture and distribute product, \(c\) direct costs to provide product support and professional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (support services, \(d\) direct costs associated with delivery of the Company's cloud of) Tj ET Q q 0 0 0 rg BT 385.76 466.25 Td (fering and \(e\)intangible asset amortization ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (expense related to acquired technology) Tj ET Q q 0 0 0 rg BT 204.90 454.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.30 428.25 Td (axes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (The Company uses the liability method of accounting for income taxes as set forth in the authoritative guidance for accounting ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 399.25 Td (for income taxes. ) Tj ET Q q 0 0 0 rg BT 120.96 399.25 Td (This method requires an asset and liability approach for the recognition of deferred tax assets and liabilities ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 387.25 Td (for the expected future tax consequences attributable to temporary dif) Tj ET Q q 0 0 0 rg BT 327.82 387.25 Td (ferences between the carrying amounts of assets and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (liabilities for financial reporting purposes and their respective tax bases, and for operating loss and tax credit carryforwards. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 363.25 Td (Deferred tax assets and liabilities are measured by applying enacted statutory tax rates applicable to the future years in which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 351.25 Td (deferred amounts are expected to be settled or realized.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (The Company currently has significant deferred tax assets, primarily resulting from net operating loss carryforwards and stock-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (based compensation expense. ) Tj ET Q q 0 0 0 rg BT 169.84 318.25 Td (The Company has a valuation allowance of approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.87 318.25 Td ($3.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.76 318.25 Td ( against its net deferred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (tax assets in certain foreign jurisdictions. Management weighs the positive and negative evidence to determine if it is more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (likely than not that some or all of the deferred tax assets will be realized.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 273.25 Td (The Company accounts for uncertainty in income taxes using a two-step approach to recognize and measure tax benefits when ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 261.25 Td (the realization of the benefits is uncertain. ) Tj ET Q q 0 0 0 rg BT 219.81 261.25 Td (The first step is to determine whether the benefit is to be recognized; the second step ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 249.25 Td (is to determine the amount to be recognized. Income tax benefits should be recognized when, based on the technical merits of a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 237.25 Td (tax position, the entity believes that if a dispute arose with the taxing authority and were taken to a court of last resort, it is more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 225.25 Td (likely than not \(i.e., a probability of greater than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.44 225.25 Td (50 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.36 225.25 Td (\) that the tax position would be sustained as filed. If a position is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 213.25 Td (determined to be more likely than not of being sustained, the reporting enterprise should recognize the lar) Tj ET Q q 0 0 0 rg BT 471.69 213.25 Td (gest amount of tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.25 Td (benefit that is greater than 50 percent likely of being realized upon ultimate settlement with the taxing authority) Tj ET Q q 0 0 0 rg BT 495.10 201.25 Td (. ) Tj ET Q q 0 0 0 rg BT 499.92 201.25 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 189.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 189.25 Td (s practice is to recognize interest and penalties related to income tax matters in income tax expense.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 163.25 Td (Stock-Based Compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (The Company applies the fair value method for determining the cost of stock-based compensation for employees, directors and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 134.25 Td (consultants. Under this method, the total cost of the grant is measured based on the estimated fair value of the stock award at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (the date of the grant, using a binomial options pricing model, or binomial lattice model. ) Tj ET Q q 0 0 0 rg BT 402.02 122.25 Td (The total cost related to the portion of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 Td (awards granted that is ultimately expected to vest is recognized as stock-based compensation expense on a graded basis over the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 98.25 Td (requisite service period of the grant.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 155 0 obj <> endobj 156 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (73) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (Estimated Fair V) Tj ET Q q 0 0 0 rg BT 117.27 731.10 Td (alue of Shar) Tj ET Q q 0 0 0 rg BT 165.79 731.10 Td (e-Based Payments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.10 Td (The binomial lattice model considers certain characteristics of fair value option pricing that are not considered under the Black-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 702.10 Td (Scholes model. Stock-based awards are combined into one grouping for purposes of valuation assumptions. Fair value of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 690.10 Td (stock options was estimated at the grant date, using the following weighted average assumptions:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 679.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 655.8 m 447 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 655.8 m 455 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 655.8 m 505 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 655.8 m 513 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 655.8 m 563 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 655.8 m 447 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 642.8 m 447 642.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 655.8 m 455 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 655.8 m 505 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 642.8 m 505 642.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 655.8 m 513 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 655.8 m 563 655.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 642.8 m 563 642.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 660.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 436.10 660.03 Td (YearendedDecember31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 647.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.50 647.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.50 647.03 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.70 647.03 Td (2011) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 633.53 Td (Average assumptions:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 619.37 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.65 618.47 Td (1.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.15 618.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 618.47 Td (1.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 618.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 618.47 Td (1.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 618.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 604.37 Td (Expected dividend yield) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.15 603.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.15 603.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 603.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 603.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 544.15 603.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 603.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 589.37 Td (Expected volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.15 588.47 Td (56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.15 588.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 588.47 Td (57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 588.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 544.15 588.47 Td (58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 588.47 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 574.37 Td (Expected term \(years\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.40 573.47 Td (7.5 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.40 573.47 Td (7.5 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 523.40 573.47 Td (7.6 years) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 548.30 Td (The Company has assumed no dividend yield because dividends are not expected to be paid in the near future, which is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 536.30 Td (consistent with the Company) Tj ET Q q 0 0 0 rg BT 168.66 536.30 Td (s history of not paying dividends. ) Tj ET Q q 0 0 0 rg BT 304.86 536.30 Td (The risk-free interest rate assumption is based upon observed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 524.30 Td (interest rates for constant maturity U.S.) Tj ET Q q 0 0 0 rg BT 209.28 524.30 Td (T) Tj ET Q q 0 0 0 rg BT 215.04 524.30 Td (reasury securities appropriate for the term of the Company) Tj ET Q q 0 0 0 rg BT 452.18 524.30 Td (s employee stock options. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 512.30 Td (The expected life of an option is derived from the binomial lattice model, and is based on several factors, including the contract ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 500.30 Td (life, exercise factor) Tj ET Q q 0 0 0 rg BT 125.99 500.30 Td (, post-vesting termination rate and volatility) Tj ET Q q 0 0 0 rg BT 300.86 500.30 Td (. ) Tj ET Q q 0 0 0 rg BT 305.68 500.30 Td (The expected exercise factor) Tj ET Q q 0 0 0 rg BT 419.93 500.30 Td (, which is the ratio of the fair value ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 488.30 Td (of common stock on the expected exercise date to the exercise price, and expected post-vesting termination rate, which is the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 476.30 Td (expected rate at which employees are likely to terminate after vesting occurs, are based on an analysis of actual historical and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 464.30 Td (expected behavior by option holders and analysis of comparable public companies. Expected volatility is based on the historical ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 452.30 Td (volatility of comparable public companies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 431.30 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 431.30 Td (s estimate of pre-vesting forfeitures, or forfeiture rate, is based on an analysis of historical behavior by option ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 419.30 Td (holders. ) Tj ET Q q 0 0 0 rg BT 83.76 419.30 Td (The estimated forfeiture rate is applied to the total estimated fair value of the awards, as derived from the binomial ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 407.30 Td (lattice model, to compute the stock-based compensation expense, net of pre-vesting forfeitures, to be recognized in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 395.30 Td (consolidated statements of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 369.30 Td (Net \(Loss\) Income Per Common Share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 352.30 Td (Basic net \(loss\) income per common share is computed based on the weighted average number of outstanding shares of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 340.30 Td (common stock. Diluted income per common share adjusts the basic weighted average common shares outstanding for the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 328.30 Td (potential dilution that could occur if stock options, restricted stock units \("RSUs"\) and convertible securities were exercised or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 316.30 Td (converted into common stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 299.30 Td (The following table presents a reconciliation of the numerator and denominator of the basic and diluted earnings per share ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 287.30 Td (computation. In the table below) Tj ET Q q 0 0 0 rg BT 175.76 287.30 Td (, net \(loss\) income represents the numerator and weighted average common shares outstanding ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 275.30 Td (represents the denominator:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 264.50 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 241 m 447 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 241 m 455 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 241 m 505 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 241 m 513 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 241 m 563 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 241 m 447 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 228 m 447 228 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 241 m 455 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 241 m 505 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 228 m 505 228 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 241 m 513 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 241 m 563 241 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 228 m 563 228 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 168 m 447 168 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 154 m 447 154 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 152 m 447 152 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 168 m 505 168 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 154 m 505 154 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 152 m 505 152 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 168 m 563 168 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 154 m 563 154 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 152 m 563 152 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 245.25 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.20 245.23 Td (Year EndedDecember 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 232.25 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.50 232.23 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.50 232.23 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.70 232.23 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.05 217.25 Td (\(in thousands, except per share data\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 203.57 Td (Net \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 202.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.30 202.72 Td (\(8,874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 202.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.50 202.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 202.67 Td (12,076) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.50 202.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 202.67 Td (32,297) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 188.57 Td (Weighted average basic common shares outstanding) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 187.67 Td (28,116) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 187.67 Td (27,581) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 187.67 Td (26,603) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 173.57 Td (Dilutive effect of stock-based awards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.15 172.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 172.67 Td (772) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 172.67 Td (1,384) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 158.57 Td (Weighted average diluted common shares outstanding) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 157.67 Td (28,116) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 157.67 Td (28,353) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 157.67 Td (27,987) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 143.57 Td (\(Loss\) earnings per share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 128.57 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 127.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.30 127.72 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 127.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.50 127.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 127.67 Td (0.44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.50 127.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 127.67 Td (1.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 113.57 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 112.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.30 112.72 Td (\(0.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.15 112.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.50 112.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 112.67 Td (0.43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.50 112.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 112.67 Td (1.15) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 87.50 Td (Due to the cash settlement feature of the principal amount of the convertible senior notes, we only include the impact of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 75.50 Td (premium feature in our diluted earnings per common share calculation when the average stock price exceeds the conversion ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 63.50 Td (price of the Notes, which did not occur during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.37 63.50 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.95 63.50 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.95 63.50 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.95 63.50 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.28 63.50 Td (201) Tj ET Q q 0 0 0 rg BT 432.91 63.50 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.91 63.50 Td (.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 157 0 obj <> endobj 158 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (For the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 126.69 731.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.28 731.10 Td (, the weighted average number of shares outstanding used in the computation of diluted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (loss per share does not include the ef) Tj ET Q q 0 0 0 rg BT 196.78 719.10 Td (fect of stock-based awards convertible to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.38 719.10 Td (944,499) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.88 719.10 Td ( shares of common stock as the ef) Tj ET Q q 0 0 0 rg BT 530.94 719.10 Td (fect ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (would have been anti-dilutive given the Company's loss for the year) Tj ET Q q 0 0 0 rg BT 321.24 707.10 Td (. For the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.32 707.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.91 707.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.91 707.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.91 707.10 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.34 707.10 Td (201) Tj ET Q q 0 0 0 rg BT 544.97 707.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.97 707.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (certain stock options were not included in the computation of diluted earnings per share as their ef) Tj ET Q q 0 0 0 rg BT 441.98 695.10 Td (fect was anti-dilutive because ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (the exercise prices exceeded the average market price of the Company) Tj ET Q q 0 0 0 rg BT 333.80 683.10 Td (s common stock during these periods. ) Tj ET Q q 0 0 0 rg BT 487.21 683.10 Td (The weighted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (average ef) Tj ET Q q 0 0 0 rg BT 90.67 671.10 Td (fect of potentially dilutive securities that have been excluded from the calculation of diluted net income per common ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (share because the ef) Tj ET Q q 0 0 0 rg BT 129.55 659.10 Td (fect was anti-dilutive was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 234.51 659.10 Td (1,927,664) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.51 659.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.51 659.10 Td (575,327) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.01 659.10 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.45 659.10 Td (96,932) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.95 659.10 Td ( for the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.31 659.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 518.89 659.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 523.89 659.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.89 659.10 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (201) Tj ET Q q 0 0 0 rg BT 64.13 647.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.13 647.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 121.79 647.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (Foreign Currency) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 Td (The functional currency of operations located outside the United States is the respective local currency) Tj ET Q q 0 0 0 rg BT 459.81 604.10 Td (. ) Tj ET Q q 0 0 0 rg BT 464.63 604.10 Td (The financial statements ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (of each operation are translated into U.S.dollars using period-end exchange rates for assets and liabilities and average exchange ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (rates during the period for revenue and expenses. ) Tj ET Q q 0 0 0 rg BT 248.41 580.10 Td (T) Tj ET Q q 0 0 0 rg BT 254.17 580.10 Td (ranslation ef) Tj ET Q q 0 0 0 rg BT 303.69 580.10 Td (fects are included in accumulated other comprehensive income.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (3.) Tj ET Q q 0 0 0 rg BT 66.45 554.10 Td (Acquisitions) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 537.10 Td (Finocom ) Tj ET Q q 0 0 0 rg BT 88.86 537.10 Td (AG) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (On December 16, 2013, the Company completed its acquisition of all outstanding shares of finocom ) Tj ET Q q 0 0 0 rg BT 452.47 520.10 Td (AG \("finocom"\), a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (provider of cloud-delivered IP-based communication services. ) Tj ET Q q 0 0 0 rg BT 301.18 508.10 Td (The acquisition enables the Company to extend its BroadCloud ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (delivery platform to customers in Germany) Tj ET Q q 0 0 0 rg BT 221.86 496.10 Td (, and other select European markets. ) Tj ET Q q 0 0 0 rg BT 369.40 496.10 Td (The total cash consideration paid for finocom ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.55 484.10 Td ($9.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 116.44 484.10 Td (. ) Tj ET Q q 0 0 0 rg BT 123.76 484.10 Td (The Company funded the acquisition with cash on hand. ) Tj ET Q q 0 0 0 rg BT 351.87 484.10 Td (The Company incurred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.12 484.10 Td ($0.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.01 484.10 Td ( of transaction ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (costs for financial advisory and legal services related to the acquisition that are included in general and administrative expenses ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (as incurred, in the Company) Tj ET Q q 0 0 0 rg BT 165.31 460.10 Td (s consolidated statements of operations for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.40 460.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.98 460.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (The consolidated financial statements include the results of finocom from the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 440.04 443.10 Td (The purchase price has been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (preliminarily allocated to the assets acquired and liabilities assumed based on estimated fair values as of the acquisition date. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (The Company has not finalized the purchase price allocation for this acquisition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the acquisition date of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (December 16, 2013 \(in thousands\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 217.60000000000002 m 518 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 203.60000000000002 m 518 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 201.60000000000002 m 518 201.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 357.27 Td (Accounts receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 357.27 Td (243) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 342.27 Td (Other current assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.15 342.27 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 327.27 Td (Deferred tax asset) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.65 327.27 Td (1,080) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 312.27 Td (Property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.15 312.27 Td (64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 297.27 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 297.27 Td (275) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 282.27 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.65 282.27 Td (2,610) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 267.27 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.65 267.27 Td (1,236) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 252.27 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.65 252.27 Td (5,686) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 237.27 Td (Deferred tax liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.30 237.32 Td (\(1,322) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.15 237.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 222.27 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 222.32 Td (\(199) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.15 222.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 207.27 Td ( Total consideration) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.50 207.27 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.65 207.27 Td (9,680) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (The trade name represents the fair value of the finocom trade name that the Company intends to use for a fixed period of time. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (Customer relationships represent the fair value of the underlying relationships and agreements with finocom customers. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (Developed technology represents the fair value of finocom's intellectual property) Tj ET Q q 0 0 0 rg BT 373.04 155.10 Td (. ) Tj ET Q q 0 0 0 rg BT 377.85 155.10 Td (The trade name, customer relationships and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (developed technology are being amortized on a straight-line basis over a period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.77 143.10 Td (seven) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.54 143.10 Td ( years, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.14 143.10 Td (eight) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.14 143.10 Td ( years and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.17 143.10 Td (five) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.72 143.10 Td ( years, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 131.10 Td (, which in general reflects the cash flows generated from such assets. ) Tj ET Q q 0 0 0 rg BT 377.71 131.10 Td (The weighted-average amortization period for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (depreciable intangible assets acquired is approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.75 119.10 Td (seven) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.52 119.10 Td ( years. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (The excess of purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.93 102.10 Td ($5.7 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 90.10 Td ( was recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 190.13 90.10 Td (The initial purchase price allocation is preliminary as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.43 90.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.02 90.10 Td (. Changes to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (amounts recorded as assets or liabilities as additional information is received may result in a corresponding adjustment to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (goodwill. ) Tj ET Q q 0 0 0 rg BT 89.88 66.10 Td (The goodwill balance is attributable to the assembled workforce and the expected syner) Tj ET Q q 0 0 0 rg BT 440.13 66.10 Td (gies, including ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td (complementary products that enhance the Company's overall product portfolio. In accordance with U.S. GAAP) Tj ET Q q 0 0 0 rg BT 493.96 54.10 Td (, goodwill ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 159 0 obj <> endobj 160 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (associated with this acquisition will not be amortized but will be tested for impairment on an annual basis. Goodwill associated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (with this acquisition is not deductible for tax purposes. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 693.10 Td (HIPCOM) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 676.10 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 676.10 Td (August 12, 2013, the Company completed its acquisition of all outstanding shares of Hosted IP) Tj ET Q q 0 0 0 rg BT 443.81 676.10 Td ( Communications \(Europe\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 664.10 Td (Limited \("HIPCOM"\), a provider of hosted business ) Tj ET Q q 0 0 0 rg BT 261.35 664.10 Td (V) Tj ET Q q 0 0 0 rg BT 267.28 664.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 280.80 664.10 Td ( services. ) Tj ET Q q 0 0 0 rg BT 320.33 664.10 Td (The acquisition enables the Company to extend its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 652.10 Td (BroadCloud delivery platform to customers in the United Kingdom, and other select European markets. ) Tj ET Q q 0 0 0 rg BT 466.44 652.10 Td (The total cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 640.10 Td (consideration paid for HIPCOM was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 199.20 640.10 Td ($26.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.09 640.10 Td (. ) Tj ET Q q 0 0 0 rg BT 257.91 640.10 Td (The Company funded the acquisition with cash on hand. ) Tj ET Q q 0 0 0 rg BT 486.01 640.10 Td (The Company ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 628.10 Td (incurred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.32 628.10 Td ($0.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 134.21 628.10 Td ( of transaction costs for financial advisory and legal services related to the acquisition that are included in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 616.10 Td (general and administrative expenses as incurred, in the Company) Tj ET Q q 0 0 0 rg BT 312.47 616.10 Td (s consolidated statements of operations for the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 128.08 604.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (The consolidated financial statements include the results of HIPCOM from the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 445.61 587.10 Td (The purchase price has been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (preliminarily allocated to the assets acquired and liabilities assumed based on estimated fair values as of the acquisition date. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (The Company has not finalized the purchase price allocation for this acquisition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the acquisition date of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (August 12, 2013 \(in thousands\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 361.6 m 518 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 347.6 m 518 347.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 345.6 m 518 345.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 501.27 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.50 501.27 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 501.27 Td (215) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 486.27 Td (Accounts receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.65 486.27 Td (1,187) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 471.27 Td (Other current assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 471.27 Td (289) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 456.27 Td (Property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 456.27 Td (311) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 441.27 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 441.27 Td (310) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 426.27 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.65 426.27 Td (7,128) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 411.27 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 411.27 Td (465) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 396.27 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.65 396.27 Td (18,280) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 381.27 Td (Deferred tax liability, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 381.32 Td (\(966) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.15 381.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 366.27 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 366.32 Td (\(876) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.15 366.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 351.27 Td ( Total consideration) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.50 351.27 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.65 351.27 Td (26,343) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (The trade name represents the fair value of the HIPCOM trade name that the Company intends to use for a fixed period of time. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (Customer relationships represent the fair value of the underlying relationships and agreements with HIPCOM customers. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (Developed technology represents the fair value of HIPCOM's intellectual property) Tj ET Q q 0 0 0 rg BT 378.61 299.10 Td (. ) Tj ET Q q 0 0 0 rg BT 383.43 299.10 Td (The trade name, customer relationships and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (developed technology are being amortized on a straight-line basis over a period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.77 287.10 Td (one) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.21 287.10 Td ( year) Tj ET Q q 0 0 0 rg BT 414.52 287.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.52 287.10 Td (seven) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.29 287.10 Td ( years and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.33 287.10 Td (two) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.33 287.10 Td ( years, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 275.10 Td (, which in general reflects the estimated cash flows to be generated from such assets. ) Tj ET Q q 0 0 0 rg BT 440.75 275.10 Td (The weighted-average ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (amortization period for depreciable intangible assets acquired is approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 263.10 Td (six) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.67 263.10 Td ( years. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (The excess of purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.93 246.10 Td ($18.3 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 234.10 Td ( was recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 190.13 234.10 Td (The initial purchase price allocation is preliminary as of December 31, 2013. Changes to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (amounts recorded as assets or liabilities as additional information is received may result in a corresponding adjustment to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (goodwill. ) Tj ET Q q 0 0 0 rg BT 89.88 210.10 Td (The goodwill balance is attributable to the assembled workforce and the expected syner) Tj ET Q q 0 0 0 rg BT 440.13 210.10 Td (gies, including ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (complementary products that enhance the Company's overall product portfolio. In accordance with U.S. GAAP) Tj ET Q q 0 0 0 rg BT 493.96 198.10 Td (, goodwill ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (associated with this acquisition will not be amortized but will be tested for impairment on an annual basis. Goodwill associated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (with this acquisition is not deductible for tax purposes. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (Adaption T) Tj ET Q q 0 0 0 rg BT 94.98 148.10 Td (echnologies V) Tj ET Q q 0 0 0 rg BT 151.93 148.10 Td (entures, Ltd.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 131.10 Td (August6, 2012, the Company completed its acquisition of substantially all the assets of ) Tj ET Q q 0 0 0 rg BT 415.85 131.10 Td (Adaption ) Tj ET Q q 0 0 0 rg BT 455.38 131.10 Td (T) Tj ET Q q 0 0 0 rg BT 460.79 131.10 Td (echnologies ) Tj ET Q q 0 0 0 rg BT 510.88 131.10 Td (V) Tj ET Q q 0 0 0 rg BT 516.99 131.10 Td (entures, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (Ltd. \(Adaption\), a provider of hosted business ) Tj ET Q q 0 0 0 rg BT 245.11 119.10 Td (V) Tj ET Q q 0 0 0 rg BT 251.04 119.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 264.56 119.10 Td ( solutions. ) Tj ET Q q 0 0 0 rg BT 308.00 119.10 Td (The acquisition enabled the Company to enhance its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (BroadCloud Software-as-a-Service delivery platform.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (The total cash consideration paid for ) Tj ET Q q 0 0 0 rg BT 197.79 86.10 Td (Adaption was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 255.55 86.10 Td ($22.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.45 86.10 Td ( and the Company funded the acquisition with cash on hand. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (The Company incurred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 144.75 74.10 Td ($0.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.64 74.10 Td ( of transaction costs for financial advisory and legal services related to the acquisition that ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (are included in general and administrative expenses as incurred, in the Company) Tj ET Q q 0 0 0 rg BT 374.39 62.10 Td (s consolidated statements of operations for the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (year ended December31, 2012.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 161 0 obj <> endobj 162 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (76) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (The consolidated financial statements include the results of ) Tj ET Q q 0 0 0 rg BT 288.32 731.10 Td (Adaption from the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 443.38 731.10 Td (The purchase price has been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (allocated to the assets acquired and liabilities assumed based on fair values as of the acquisition date. ) Tj ET Q q 0 0 0 rg BT 455.86 719.10 Td (The Company finalized ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (the purchase price allocation for this acquisition in 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (The following table summarizes the fair value of the assets acquired and liabilities assumed at the acquisition date of ) Tj ET Q q 0 0 0 rg BT 518.52 686.10 Td (August6, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (2012 \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 663.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 532.8 m 562 532.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 518.8 m 562 518.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 516.8 m 562 516.8 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 643.37 Td (Accounts receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 642.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 642.47 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 628.37 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 627.47 Td (110) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 613.37 Td (Property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 612.47 Td (239) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 598.37 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 597.47 Td (140) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 583.37 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 582.47 Td (200) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 568.37 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 567.47 Td (4,700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 553.37 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 552.47 Td (16,747) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 538.37 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.80 537.52 Td (\(155) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 537.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 523.37 Td (Total consideration) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 522.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 522.47 Td (22,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 497.30 Td (Developed technology represents purchased technology that reached technological feasibility and for which ) Tj ET Q q 0 0 0 rg BT 482.68 497.30 Td (Adaption had ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 485.30 Td (substantially completed development as of the date of acquisition. Fair value was determined using estimated future discounted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 473.30 Td (cash flows related to the projected income stream of the developed technology for a discrete projection period. Key ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 461.30 Td (assumptions included a discount factor of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.35 461.30 Td (13%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 236.68 461.30 Td ( and estimates of revenue growth, cost of revenue, operating expenses and taxes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 440.30 Td (The customer relationships, trade name and developed technology are being amortized on a straight-line basis over a period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 428.30 Td (three years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 93.08 428.30 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.08 428.30 Td (two years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 136.68 428.30 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.62 428.30 Td (five years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.77 428.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 250.43 428.30 Td (, which reflects the cash flows generated from such assets. ) Tj ET Q q 0 0 0 rg BT 486.28 428.30 Td (The weighted-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 416.30 Td (average amortization period for depreciable intangible assets acquired is approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.58 416.30 Td (four years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.84 416.30 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 395.30 Td (The excess of purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.93 395.30 Td ($16.7 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 383.30 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 383.30 Td ( was recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 187.63 383.30 Td (The goodwill balance is attributable to expected syner) Tj ET Q q 0 0 0 rg BT 403.76 383.30 Td (gies, including complementary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 371.30 Td (products that enhance the Company) Tj ET Q q 0 0 0 rg BT 195.57 371.30 Td (s overall product portfolio. In accordance with U.S. GAAP) Tj ET Q q 0 0 0 rg BT 430.24 371.30 Td (, goodwill associated with this ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 359.30 Td (acquisition will not be amortized but will be tested for impairment on an annual basis. Goodwill associated with this acquisition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 347.30 Td (is not deductible for tax purposes.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 321.30 Td (Movial) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 304.30 Td (On October21, 201) Tj ET Q q 0 0 0 rg BT 128.56 304.30 Td (1, the Company completed its acquisition of all of the outstanding shares of Movial ) Tj ET Q q 0 0 0 rg BT 464.33 304.30 Td (Applications Oy ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 292.30 Td (\(Movial\), a client developer for IP) Tj ET Q q 0 0 0 rg BT 195.18 292.30 Td ( communications services. ) Tj ET Q q 0 0 0 rg BT 303.30 292.30 Td (The acquisition enabled the Company to enhance its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 280.30 Td (BroadT) Tj ET Q q 0 0 0 rg BT 79.35 280.30 Td (ouch platform.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 259.30 Td (The total cash consideration paid for Movial was approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.04 259.30 Td ($6.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.93 259.30 Td ( and the Company funded the acquisition with cash ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 247.30 Td (on hand. ) Tj ET Q q 0 0 0 rg BT 86.26 247.30 Td (The Company incurred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.51 247.30 Td ($0.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.40 247.30 Td ( of transaction costs for financial advisory and legal services related to the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 235.30 Td (acquisition that are included in general and administrative expenses as incurred, in the Company) Tj ET Q q 0 0 0 rg BT 438.27 235.30 Td (s consolidated statements of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 223.30 Td (operations for the year ended December31, 201) Tj ET Q q 0 0 0 rg BT 241.83 223.30 Td (1.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 202.30 Td (The consolidated financial statements include the results of Movial from the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 435.60 202.30 Td (The purchase price has been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 190.30 Td (allocated to the assets acquired and liabilities assumed based on fair values as of the acquisition date. ) Tj ET Q q 0 0 0 rg BT 455.86 190.30 Td (The Company finalized ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 178.30 Td (the purchase price allocation for this acquisition in 2012.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 157.30 Td (The following table summarizes the fair value of the assets acquired and liabilities assumed at the acquisition date of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 145.30 Td (October21, 201) Tj ET Q q 0 0 0 rg BT 113.84 145.30 Td (1 \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 134.50 Td () Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 163 0 obj <> endobj 164 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (77) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 647.5 m 562 647.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 633.5 m 562 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 631.5 m 562 631.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 728.07 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 727.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 727.17 Td (83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 713.07 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 712.17 Td (220) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 698.07 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 697.17 Td (1,718) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 683.07 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 682.17 Td (5,250) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 668.07 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.80 667.22 Td (\(302) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 667.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 653.07 Td (Debt) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 652.22 Td (\(1,009) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 652.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 638.07 Td (Total consideration) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 637.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 637.17 Td (5,960) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 612.00 Td (Developed technology represents purchased technology that reached technological feasibility and for which Movial had ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 600.00 Td (substantially completed development as of the date of acquisition. Fair value was determined using estimated future discounted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 588.00 Td (cash flows related to the projected income stream of the developed technology for a discrete projection period. Key ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 576.00 Td (assumptions included a discount factor of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.35 576.00 Td (15%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 236.68 576.00 Td ( and estimates of revenue growth, cost of revenue, operating expenses and taxes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 555.00 Td (The customer relationships and developed technology are being amortized on a straight-line basis over a period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.52 555.00 Td (three years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.10 555.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 543.00 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.44 543.00 Td (five years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 105.58 543.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 158.25 543.00 Td (, which in general reflects the cash flows generated from such assets. ) Tj ET Q q 0 0 0 rg BT 436.30 543.00 Td (The weighted-average ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 531.00 Td (amortization period for depreciable intangible assets acquired is approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 531.00 Td (five years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.14 531.00 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 510.00 Td (The excess of purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.93 510.00 Td ($5.3 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.00 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 498.00 Td ( was recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 187.63 498.00 Td (The goodwill balance is attributable to expected syner) Tj ET Q q 0 0 0 rg BT 403.76 498.00 Td (gies, including complementary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 486.00 Td (products that enhance the Company) Tj ET Q q 0 0 0 rg BT 195.57 486.00 Td (s overall product portfolio. In accordance with U.S. GAAP) Tj ET Q q 0 0 0 rg BT 430.24 486.00 Td (, goodwill associated with this ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 474.00 Td (acquisition will not be amortized but will be tested for impairment on an annual basis. Goodwill associated with this acquisition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 462.00 Td (is not deductible for tax purposes.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 436.00 Td (iLinc) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 419.00 Td (On September30, 201) Tj ET Q q 0 0 0 rg BT 139.11 419.00 Td (1, the Company completed its acquisition of all outstanding shares of iLinc Communications, Inc. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 407.00 Td (\(iLinc\). iLinc is a provider of web collaboration services for global businesses, governments and educational institutions. ) Tj ET Q q 0 0 0 rg BT 545.02 407.00 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 395.00 Td (acquisition of iLinc and its web collaboration SaaS of) Tj ET Q q 0 0 0 rg BT 264.27 395.00 Td (fering complements BroadSoft) Tj ET Q q 0 0 0 rg BT 390.35 395.00 Td (s BroadCloud services capabilities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 374.00 Td (The total cash consideration paid for iLinc was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 239.99 374.00 Td ($1) Tj ET Q q 0 0 0 rg BT 249.62 374.00 Td (1.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.51 374.00 Td ( and the Company funded the acquisition with cash on hand. ) Tj ET Q q 0 0 0 rg BT 537.73 374.00 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 362.00 Td (Company incurred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 126.70 362.00 Td ($0.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 175.59 362.00 Td ( of transaction costs for financial advisory and legal services related to the acquisition that are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 350.00 Td (included in general and administrative expenses as incurred, in the Company) Tj ET Q q 0 0 0 rg BT 359.69 350.00 Td (s consolidated statements of operations for the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 338.00 Td (year ended December31, 201) Tj ET Q q 0 0 0 rg BT 168.80 338.00 Td (1.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 317.00 Td (The consolidated financial statements include the results of iLinc from the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 427.82 317.00 Td (The purchase price has been ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 305.00 Td (allocated to the assets acquired and liabilities assumed based on fair values as of the acquisition date. ) Tj ET Q q 0 0 0 rg BT 455.86 305.00 Td (The Company finalized ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 293.00 Td (the purchase price allocation for this acquisition in 201) Tj ET Q q 0 0 0 rg BT 269.07 293.00 Td (1.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 269.00 Td (The following table summarizes the fair value of the assets acquired and liabilities assumed at the acquisition date of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.00 Td (September30, 201) Tj ET Q q 0 0 0 rg BT 124.39 257.00 Td (1 \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 246.20 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 70.70000000000005 m 562 70.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 56.700000000000045 m 562 56.700000000000045 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 54.700000000000045 m 562 54.700000000000045 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 226.27 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 225.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 225.37 Td (320) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 211.27 Td (Accounts receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 210.37 Td (504) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 196.27 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 195.37 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 181.27 Td (Property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 180.37 Td (34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 166.27 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 165.37 Td (1,400) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 151.27 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 150.37 Td (100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 136.27 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 135.37 Td (3,100) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 121.27 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 120.37 Td (4,895) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 106.27 Td (Deferred tax asset) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 105.37 Td (2,629) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 91.27 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.80 90.42 Td (\(830) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 90.37 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 76.27 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 75.42 Td (\(1,098) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 75.37 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 61.27 Td (Total consideration) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 60.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 60.37 Td (11,108) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 165 0 obj <> endobj 166 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (78) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (Developed technology represents purchased technology that reached technological feasibility and for which iLinc had ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (substantially completed development as of the date of acquisition. Fair value was determined using estimated future discounted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (cash flows related to the projected income stream of the developed technology for a discrete projection period. Key ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (assumptions included a discount factor of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.35 695.10 Td (1) Tj ET Q q 0 0 0 rg BT 222.98 695.10 Td (1.5%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 243.81 695.10 Td ( and estimates of revenue growth, cost of revenue, operating expenses and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (taxes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (The customer relationships, trade name and developed technology are being amortized on a straight-line basis over a period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (four years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.76 650.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.76 650.10 Td (three years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 138.34 650.10 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 160.28 650.10 Td (five years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 199.43 650.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 252.09 650.10 Td (, which in general reflects the cash flows generated from such assets. ) Tj ET Q q 0 0 0 rg BT 530.14 650.10 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (weighted-average amortization period for amortizable intangible assets acquired is approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.68 638.10 Td (four years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.94 638.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (The excess of purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.93 617.10 Td ($4.9 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 605.10 Td ( was recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 187.63 605.10 Td (The goodwill balance is attributable to expected syner) Tj ET Q q 0 0 0 rg BT 403.76 605.10 Td (gies, including complementary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (products that enhance the Company) Tj ET Q q 0 0 0 rg BT 195.57 593.10 Td (s overall product portfolio. In accordance with U.S. GAAP) Tj ET Q q 0 0 0 rg BT 430.24 593.10 Td (, goodwill associated with this ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (acquisition will not be amortized but will be tested for impairment on an annual basis. Goodwill associated with this acquisition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (is not deductible for tax purposes.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (Pro Forma Financial Information for ) Tj ET Q q 0 0 0 rg BT 208.33 543.10 Td (Acquisitions of finocom, HIPCOM and ) Tj ET Q q 0 0 0 rg BT 372.42 543.10 Td (Adaption \(unaudited\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (The businesses acquired in 2013 contributed aggregate revenue of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.35 526.10 Td ($2.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.24 526.10 Td ( and net losses of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.62 526.10 Td ($0.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.51 526.10 Td ( for the period ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (from the relevant acquisition date to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.67 514.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.26 514.10 Td (. ) Tj ET Q q 0 0 0 rg BT 280.08 514.10 Td (The businesses acquired in 2012 contributed aggregate revenue of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td ($1.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.39 502.10 Td ( and net losses of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 169.77 502.10 Td ($0.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.66 502.10 Td ( for the period from the acquisition date to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.55 502.10 Td (December31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.14 502.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (The unaudited pro forma statements of operations data below gives ef) Tj ET Q q 0 0 0 rg BT 328.67 481.10 Td (fect to the acquisitions as if they had occurred as of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (beginning of the comparable prior annual reporting period. ) Tj ET Q q 0 0 0 rg BT 287.30 469.10 Td (The following data includes adjustments for amortization of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (intangibles and acquisition costs. ) Tj ET Q q 0 0 0 rg BT 184.02 457.10 Td (The pro forma information as presented below is for informational purposes only and is not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (necessarily indicative of the results of operations that would have been achieved if the acquisitions had been in ef) Tj ET Q q 0 0 0 rg BT 503.05 445.10 Td (fect for the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (periods presented.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 422.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 398.8 m 483 398.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 398.8 m 493 398.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 398.8 m 563 398.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 398.8 m 483 398.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 385.8 m 483 385.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 398.8 m 493 398.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 398.8 m 563 398.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 385.8 m 563 385.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 403.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 444.10 403.03 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 390.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 439.50 390.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 519.50 390.03 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 377.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.85 377.05 Td (\(In thousands except per share data\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 363.37 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.50 362.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.65 362.47 Td (184,383) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.50 362.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.65 362.47 Td (173,576) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 348.37 Td (Net \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.30 347.52 Td (\(9,347) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.15 347.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 347.47 Td (7,776) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 333.37 Td (Net \(loss\) income per common share, basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.50 332.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.30 332.52 Td (\(0.33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.15 332.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.50 332.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 332.47 Td (0.28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 318.37 Td (Net \(loss\) income per common share, diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.50 317.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.30 317.52 Td (\(0.33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.15 317.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.50 317.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 317.47 Td (0.27) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 275.30 Td (4.Goodwill and Intangibles) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 258.30 Td (The Company has concluded it has a single reporting unit. ) Tj ET Q q 0 0 0 rg BT 284.73 258.30 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 334.07 258.30 Td (, on an annual basis management performs the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 246.30 Td (impairment assessment required under F) Tj ET Q q 0 0 0 rg BT 210.94 246.30 Td (ASB guidelines at the consolidated enterprise level. ) Tj ET Q q 0 0 0 rg BT 420.15 246.30 Td (The Company performed an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 234.30 Td (impairment test of the Company) Tj ET Q q 0 0 0 rg BT 181.70 234.30 Td (s goodwill and determined that no impairment of goodwill existed at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.59 234.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.17 234.30 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.17 234.30 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 562.17 234.30 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.30 Td (or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.33 222.30 Td (201) Tj ET Q q 0 0 0 rg BT 74.96 222.30 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.96 222.30 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.30 Td (The following table provides a summary of the changes in the carrying amounts of goodwill \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 190.50 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 135 m 562 135 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 90 m 562 90 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 90 m 562 90 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 76 m 562 76 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 74 m 562 74 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 169.67 Td (Balance as of December 31, 2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 169.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 169.67 Td (17,276) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 154.67 Td (Increase in goodwill related to acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 154.67 Td (19,924) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 139.67 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 139.67 Td (329) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 124.67 Td (Balance as of December 31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 124.67 Td (37,529) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 109.67 Td (Increase in goodwill related to acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 109.67 Td (26,106) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 94.67 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 94.67 Td (1,557) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 79.67 Td (Balance as of December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 79.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 79.67 Td (65,192) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 167 0 obj <> endobj 168 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (79) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (For the year ended December 31, 2013, the increase in "goodwill related to acquisitions" consists of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 731.10 Td ($18.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.89 731.10 Td ( of goodwill ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (related to the acquisition of HIPCOM, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.31 719.10 Td ($5.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.20 719.10 Td ( of goodwill related to the acquisition of finocom and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.26 719.10 Td ($2.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.15 719.10 Td ( of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (goodwill related to the acquisition of a development services company in September 2013. For the year ended December31, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (2012, the increase in goodwill related to acquisitions consists of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.94 695.10 Td ($3.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.83 695.10 Td ( of goodwill related to the acquisition in ) Tj ET Q q 0 0 0 rg BT 528.02 695.10 Td (April ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (2012 of a research and development workforce and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.19 683.10 Td ($16.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.08 683.10 Td ( of goodwill related to the acquisition of ) Tj ET Q q 0 0 0 rg BT 473.83 683.10 Td (Adaption in ) Tj ET Q q 0 0 0 rg BT 523.27 683.10 Td (August ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (2012. ) Tj ET Q q 0 0 0 rg BT 73.95 671.10 Td (Any changes in the goodwill amounts resulting from foreign currency translations are presented as Other in the above ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (table.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 638.10 Td (s acquired intangible assets are subject to amortization. ) Tj ET Q q 0 0 0 rg BT 332.01 638.10 Td (The following is a summary of intangible assets \(in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 615.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194 591.8 m 252 591.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 591.8 m 314 591.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 591.8 m 376 591.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 591.8 m 438 591.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 591.8 m 500 591.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 591.8 m 562 591.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194 562.8 m 252 562.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 562.8 m 314 562.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 562.8 m 376 562.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 562.8 m 438 562.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 562.8 m 500 562.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 562.8 m 562 562.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194 502.8 m 252 502.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 502.8 m 314 502.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 502.8 m 376 502.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 502.8 m 438 502.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 502.8 m 500 502.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 502.8 m 562 502.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194 487.8 m 252 487.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 487.8 m 314 487.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 487.8 m 376 487.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 487.8 m 438 487.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 487.8 m 500 487.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 487.8 m 562 487.8 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 252.25 596.03 Td (December 31, 2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.25 596.03 Td (December 31, 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 567.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 212.55 583.03 Td (Gr) Tj ET Q q 0 0 0 rg BT 222.18 583.03 Td (oss) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 206.70 575.03 Td (Carrying) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.45 567.03 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 261.80 575.03 Td (Accumulated) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 261.60 567.03 Td (Amortization) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 340.50 575.03 Td (Net) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.45 567.03 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 398.55 583.03 Td (Gr) Tj ET Q q 0 0 0 rg BT 408.18 583.03 Td (oss) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 392.70 575.03 Td (Carrying) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.45 567.03 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.80 575.03 Td (Accumulated) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.60 567.03 Td (Amortization) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.50 575.03 Td (Net) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 518.45 567.03 Td (Amount) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 553.37 Td (Customer relationships) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.50 552.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 220.65 552.47 Td (14,698) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 258.50 552.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.65 552.47 Td (3,362) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.50 552.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.65 552.47 Td (11,336) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.50 552.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.65 552.47 Td (5,255) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.50 552.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 552.47 Td (2,765) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.50 552.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 552.47 Td (2,490) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 538.37 Td (Developed technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 220.65 537.47 Td (12,948) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.65 537.47 Td (4,433) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.65 537.47 Td (8,515) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.65 537.47 Td (11,218) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 537.47 Td (2,643) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 537.47 Td (8,575) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 523.37 Td (Non-compete agreement) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.15 522.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.15 522.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.15 522.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.15 522.47 Td (111) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 481.15 522.47 Td (111) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 522.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 508.37 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 233.15 507.47 Td (874) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.15 507.47 Td (335) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.15 507.47 Td (539) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.15 507.47 Td (369) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 481.15 507.47 Td (187) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 507.47 Td (182) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 493.37 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.50 492.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 220.65 492.47 Td (28,520) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 258.50 492.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.65 492.47 Td (8,130) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.50 492.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.65 492.47 Td (20,390) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 382.50 492.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.65 492.47 Td (16,953) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.50 492.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 492.47 Td (5,706) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.50 492.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 492.47 Td (11,247) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 467.30 Td (Amortization expense on intangible assets was approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.16 467.30 Td ($3.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.05 467.30 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.05 467.30 Td ($2.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.94 467.30 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.38 467.30 Td ($1.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.27 467.30 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.05 467.30 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.05 467.30 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.05 467.30 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 528.05 467.30 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 455.30 Td (201) Tj ET Q q 0 0 0 rg BT 64.13 455.30 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.13 455.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 121.79 455.30 Td (. In addition, in 2013, the Company retired ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.37 455.30 Td ($1.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.26 455.30 Td ( of fully amortized intangible assets, impacting both ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 443.30 Td (the gross carrying amount and accumulated amortization by this amount. ) Tj ET Q q 0 0 0 rg BT 343.04 443.30 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.48 443.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.06 443.30 Td (, future amortization ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 431.30 Td (expense on intangible assets is expected to be as follows \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 420.50 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 320 m 562 320 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 320 m 562 320 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 305 m 562 305 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 400.57 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 399.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 399.67 Td (5,333) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 385.57 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 384.67 Td (4,729) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 370.57 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 369.67 Td (3,453) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 355.57 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 354.67 Td (2,338) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 340.57 Td (2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 339.67 Td (1,763) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 325.57 Td (2019 and thereafter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 324.67 Td (2,774) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 310.57 Td (Total amortization expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 309.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 309.67 Td (20,390) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 279.50 Td (5.Pr) Tj ET Q q 0 0 0 rg BT 77.37 279.50 Td (operty and Equipment ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 262.50 Td (Property and equipment consists of the following \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 251.70 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 228.20000000000005 m 500 228.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 228.20000000000005 m 508 228.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 228.20000000000005 m 563 228.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 215.20000000000005 m 500 215.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 215.20000000000005 m 563 215.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 155.20000000000005 m 500 155.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 155.20000000000005 m 563 155.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 125.20000000000005 m 500 125.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 125.20000000000005 m 563 125.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 111.20000000000005 m 500 111.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 109.20000000000005 m 500 109.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 111.20000000000005 m 563 111.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 109.20000000000005 m 563 109.20000000000005 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 232.45 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 480.25 232.43 Td (December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 219.45 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.00 219.43 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.00 219.43 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 205.77 Td (Equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 204.87 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 204.87 Td (13,421) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 204.87 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 204.87 Td (9,607) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 190.77 Td (Software) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 189.87 Td (5,256) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 189.87 Td (3,346) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 175.77 Td (Furniture and fixtures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 174.87 Td (1,098) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 544.15 174.87 Td (783) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 160.77 Td (Leasehold improvements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 159.87 Td (3,383) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 159.87 Td (3,167) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 144.87 Td (23,158) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 144.87 Td (16,903) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 130.77 Td (Less accumulated depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.30 129.92 Td (\(13,048) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 129.87 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.30 129.92 Td (\(9,542) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 559.15 129.87 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 115.77 Td (Property and equipment, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 114.87 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 114.87 Td (10,110) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 114.87 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 114.87 Td (7,361) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 89.70 Td (Depreciation and amortization expense related to property and equipment for the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.18 89.70 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.77 89.70 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.77 89.70 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 528.77 89.70 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 77.70 Td (201) Tj ET Q q 0 0 0 rg BT 64.13 77.70 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.13 77.70 Td ( was approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.94 77.70 Td ($3.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 198.83 77.70 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 203.83 77.70 Td ($2.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.72 77.70 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.16 77.70 Td ($1.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.05 77.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 373.71 77.70 Td (.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 169 0 obj <> endobj 170 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (80) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (6.) Tj ET Q q 0 0 0 rg BT 66.95 742.25 Td (Accounts payable and other) Tj ET Q q 0 0 0 rg BT 185.94 742.25 Td ( curr) Tj ET Q q 0 0 0 rg BT 207.14 742.25 Td (ent liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Accounts payable and other current liabilities consist of the following \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 714.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 690.95 m 493.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 690.95 m 497.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 690.95 m 562.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 690.95 m 493.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 677.95 m 493.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 690.95 m 497.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 690.95 m 562.5 690.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 677.95 m 562.5 677.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 632.95 m 493.5 632.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 632.95 m 562.5 632.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 618.95 m 493.5 618.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 616.95 m 493.5 616.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 618.95 m 562.5 618.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 616.95 m 562.5 616.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 695.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.75 695.18 Td (December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 682.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 682.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.50 682.18 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 668.52 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 667.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 667.62 Td (5,744) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 667.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 667.62 Td (7,237) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 653.52 Td (Accrued compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 652.62 Td (6,651) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 652.62 Td (6,371) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 638.52 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 637.62 Td (2,562) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 637.62 Td (2,078) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 622.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 622.62 Td (14,957) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.00 622.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 622.62 Td (15,686) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 592.45 Td (7.Softwar) Tj ET Q q 0 0 0 rg BT 101.20 592.45 Td (e Licenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 575.45 Td (The Company was previously party to an agreement that provided the Company the right to distribute certain third-party ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 563.45 Td (software on a per) Tj ET Q q 0 0 0 rg BT 118.94 563.45 Td (-user basis up to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 186.70 563.45 Td (35,000,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 231.70 563.45 Td ( licenses over a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.57 563.45 Td (four) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.03 563.45 Td (-year period, for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.77 563.45 Td ($6.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.66 563.45 Td (. ) Tj ET Q q 0 0 0 rg BT 433.48 563.45 Td (The arrangement required the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 551.45 Td (Company to pay a per) Tj ET Q q 0 0 0 rg BT 138.11 551.45 Td (-user license fee for licenses distributed in excess of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.87 551.45 Td (35,000,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.87 551.45 Td (. ) Tj ET Q q 0 0 0 rg BT 398.69 551.45 Td (The cost was amortized to cost of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 539.45 Td (revenue over the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 119.13 539.45 Td (3.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.63 539.45 Td (year period ended May 2012, based on the greater of actual usage or the straight line method. In 201) Tj ET Q q 0 0 0 rg BT 535.29 539.45 Td (1, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 527.45 Td (Company entered into a new agreement that provides the Company the right to distribute this third-party software on an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 515.45 Td (unlimited basis through May 2016 at a total cost of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.64 515.45 Td ($10.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.53 515.45 Td (. ) Tj ET Q q 0 0 0 rg BT 315.35 515.45 Td (T) Tj ET Q q 0 0 0 rg BT 320.76 515.45 Td (o the extent annual billed license software revenue over the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 503.45 Td (four) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.46 503.45 Td (-year period exceeds ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 151.69 503.45 Td ($460 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 203.08 503.45 Td (, the Company would be required to pay additional fees. ) Tj ET Q q 0 0 0 rg BT 430.06 503.45 Td (The additional cost of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.04 503.45 Td ($10.2 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 491.45 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 491.45 Td ( is being amortized to cost of revenue over the four) Tj ET Q q 0 0 0 rg BT 283.07 491.45 Td (-year period beginning June 2012 \(the expiration date of the previous ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 479.45 Td (agreement\), based on the straight line method.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 458.45 Td (Amortization expense related to these agreements was approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.90 458.45 Td ($2.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 378.79 458.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.79 458.45 Td ($2.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.68 458.45 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.12 458.45 Td ($1.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 501.01 458.45 Td ( for each of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 446.45 Td (years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 99.98 446.45 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 178.56 446.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 183.56 446.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 203.56 446.45 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.00 446.45 Td (201) Tj ET Q q 0 0 0 rg BT 237.63 446.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.63 446.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 295.29 446.45 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 420.45 Td (8.Income ) Tj ET Q q 0 0 0 rg BT 100.98 420.45 Td (T) Tj ET Q q 0 0 0 rg BT 106.73 420.45 Td (axes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 403.45 Td (The following table presents the components of the income before income taxes and the provision for \(benefit from\) income ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 391.45 Td (taxes \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 380.65 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 357.15 m 424 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 357.15 m 428 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 357.15 m 493 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 357.15 m 497 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 357.15 m 562 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 357.15 m 424 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 344.15 m 424 344.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 357.15 m 428 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 357.15 m 493 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 344.15 m 493 344.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 357.15 m 497 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 357.15 m 562 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 344.15 m 562 344.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 299.15 m 424 299.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 299.15 m 493 299.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 299.15 m 562 299.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 284.15 m 424 284.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 284.15 m 493 284.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 284.15 m 562 284.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 209.14999999999998 m 424 209.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 209.14999999999998 m 493 209.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 209.14999999999998 m 562 209.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 194.14999999999998 m 424 194.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 194.14999999999998 m 493 194.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 194.14999999999998 m 562 194.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 149.14999999999998 m 424 149.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 134.14999999999998 m 424 134.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 149.14999999999998 m 493 149.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 134.14999999999998 m 493 134.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 149.14999999999998 m 562 149.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 134.14999999999998 m 562 134.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 120.14999999999998 m 424 120.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 118.14999999999998 m 424 118.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 120.14999999999998 m 493 120.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 118.14999999999998 m 493 118.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 120.14999999999998 m 562 120.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 118.14999999999998 m 562 118.14999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 361.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 416.60 361.38 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 348.40 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.00 348.38 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.00 348.38 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.20 348.38 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 334.72 Td (\(Loss\) income before income taxes:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 319.72 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 318.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.30 318.87 Td (\(15,226) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 318.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 318.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.65 318.82 Td (23,429) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 318.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 318.82 Td (25,178) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 304.72 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 303.82 Td (943) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.30 303.87 Td (\(4,495) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 303.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 303.87 Td (\(1,056) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 303.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 289.72 Td (\(Loss\) income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 288.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.30 288.87 Td (\(14,283) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 288.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 288.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.65 288.82 Td (18,934) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 288.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 288.82 Td (24,122) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 259.72 Td (Provision for \(benefit from\) income taxes:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 244.72 Td (Current:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 82.50 229.72 Td (Federal and state) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 228.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 228.82 Td (7,718) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 228.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 228.82 Td (407) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 228.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 228.82 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 82.50 214.72 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 213.82 Td (1,423) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.30 213.87 Td (\(1,355) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 213.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 213.82 Td (760) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 199.72 Td (Total current) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 198.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 198.82 Td (9,141) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 198.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.80 198.87 Td (\(948) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 198.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 198.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 198.82 Td (764) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 184.72 Td (Deferred:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 82.50 169.72 Td (Federal and state) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 168.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.30 168.87 Td (\(15,240) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 168.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 168.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 168.82 Td (8,068) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 168.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 168.87 Td (\(8,946) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 168.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 82.50 154.72 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 153.82 Td (690) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.80 153.87 Td (\(262) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 153.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 153.82 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 139.72 Td (Total deferred) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 138.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.30 138.87 Td (\(14,550) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 138.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 138.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 138.82 Td (7,806) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 138.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 138.87 Td (\(8,939) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 138.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 106.50 124.72 Td (Provision for \(benefit from\) income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 123.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 123.87 Td (\(5,409) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 123.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 123.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 123.82 Td (6,858) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 123.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 123.87 Td (\(8,175) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 123.82 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 171 0 obj <> endobj 172 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (81) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (The following table presents the components of net deferred tax assets \(liabilities\) and the related valuation allowance \(in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 708.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 684.8 m 493 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 684.8 m 497 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 684.8 m 562 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 684.8 m 493 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 671.8 m 493 671.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 684.8 m 497 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 684.8 m 562 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 671.8 m 562 671.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 551.8 m 493 551.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 551.8 m 562 551.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 521.8 m 493 521.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 521.8 m 562 521.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 506.8 m 493 506.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 506.8 m 562 506.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 446.8 m 493 446.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 446.8 m 562 446.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 431.8 m 493 431.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 417.8 m 493 417.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 415.8 m 493 415.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 431.8 m 562 431.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 417.8 m 562 417.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 415.8 m 562 415.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 689.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.25 689.03 Td (December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 676.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.00 676.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.00 676.03 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 662.37 Td (Deferred tax assets:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 647.37 Td (Net operating loss carry-forward) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 646.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 646.47 Td (5,993) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 646.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 646.47 Td (9,140) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 632.37 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 631.47 Td (5,694) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 631.47 Td (3,616) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 617.37 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 616.47 Td (986) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 616.47 Td (704) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 602.37 Td (Research tax credit carry-forward) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 601.47 Td (1,291) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 601.47 Td (2,467) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 587.37 Td (Accrued expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 586.47 Td (2,009) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 586.47 Td (1,637) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 572.37 Td (Stock based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.65 571.47 Td (16,129) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 571.47 Td (5,370) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 557.37 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 556.47 Td (4,110) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 556.47 Td (880) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 542.37 Td (Total deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 541.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.65 541.47 Td (36,212) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 541.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 541.47 Td (23,814) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 527.37 Td (Valuation allowance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.30 526.52 Td (\(3,297) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 526.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 526.52 Td (\(5,558) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 526.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 512.37 Td (Net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 511.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.65 511.47 Td (32,915) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 511.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.65 511.47 Td (18,256) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 497.37 Td (Deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 482.37 Td (Acquired intangibles) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 481.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.30 481.52 Td (\(4,381) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 481.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 481.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 481.52 Td (\(1,568) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 481.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 467.37 Td (Convertible debt discount) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.30 466.52 Td (\(10,913) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 466.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.30 466.52 Td (\(12,082) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 466.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 452.37 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.80 451.52 Td (\(71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 451.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.80 451.52 Td (\(244) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 451.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 437.37 Td (Total deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 436.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.30 436.52 Td (\(15,365) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 436.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 436.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.30 436.52 Td (\(13,894) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 436.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.50 422.37 Td (Net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 421.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.65 421.47 Td (17,550) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 421.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 421.47 Td (4,362) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 396.30 Td (At ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 396.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.58 396.30 Td (, the Company had U.S. net operating loss carryforwards of approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.62 396.30 Td ($63.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.51 396.30 Td ( and research ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 384.30 Td (and experimentation tax credit carryforwards of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 243.30 384.30 Td ($2.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.20 384.30 Td (, which are scheduled to begin to expire in 2019. Utilization of net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 372.30 Td (operating loss and tax credit carryforwards may be subject to annual limitations due to the ownership change limitations as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 360.30 Td (provided by the Internal Revenue Code of 1986, as amended. ) Tj ET Q q 0 0 0 rg BT 297.02 360.30 Td (The Company has not recorded a deferred tax liability for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 348.30 Td (undistributed earnings of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 151.98 348.30 Td ($3.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 200.87 348.30 Td ( of certain foreign subsidiaries, since such earnings are considered to be reinvested ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 336.30 Td (indefinitely) Tj ET Q q 0 0 0 rg BT 94.95 336.30 Td (. If the earnings were distributed, the Company would be subject to federal income and foreign withholding taxes. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.30 Td (Determination of an unrecognized deferred income tax liability with respect to such earnings is not practicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 303.30 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 303.30 Td ( deferred tax asset should be reduced by a valuation allowance if, based on the weight of all available evidence, it is more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 291.30 Td (likely than not \(a likelihood of more than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.68 291.30 Td (50%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.01 291.30 Td (\) that some portion or the entire deferred tax asset will not be realized. ) Tj ET Q q 0 0 0 rg BT 518.34 291.30 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 279.30 Td (valuation allowance should be suf) Tj ET Q q 0 0 0 rg BT 185.39 279.30 Td (ficient to reduce the deferred tax asset to the amount that is more likely than not to be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 267.30 Td (realized. ) Tj ET Q q 0 0 0 rg BT 85.96 267.30 Td (The determination of whether a deferred tax asset is realizable is based on weighting all available evidence, including ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.30 Td (both positive and negative evidence. ) Tj ET Q q 0 0 0 rg BT 197.61 255.30 Td (The realization of deferred tax assets, including carryforwards and deductible temporary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 243.30 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 243.30 Td (ferences, depends upon the existence of suf) Tj ET Q q 0 0 0 rg BT 233.79 243.30 Td (ficient taxable income of the same character during the carryback or carryforward ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 231.30 Td (period. ) Tj ET Q q 0 0 0 rg BT 79.87 231.30 Td (The accounting guidance requires the consideration of all sources of taxable income available to realize the deferred tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 219.30 Td (asset, including the future reversal of existing temporary dif) Tj ET Q q 0 0 0 rg BT 288.97 219.30 Td (ferences, future taxable income exclusive of reversing temporary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 207.30 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 207.30 Td (ferences and carryforwards, taxable income in carryback years and tax-planning strategies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 186.30 Td (Based upon the Company) Tj ET Q q 0 0 0 rg BT 155.32 186.30 Td (s cumulative operating results through June30, 201) Tj ET Q q 0 0 0 rg BT 361.58 186.30 Td (1 and an assessment of its expected future results ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 174.30 Td (of operations, the Company determined that there was significant positive evidence regarding the realization of its U.S. deferred ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 162.30 Td (tax assets. ) Tj ET Q q 0 0 0 rg BT 92.00 162.30 Td (After weighing both the positive and negative evidence, coupled with the continued success in commercializing its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 150.30 Td (core products and services both inside and outside the U.S., the Company believes that it is more likely than not that its U.S. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 138.30 Td (deferred tax assets will be realized. ) Tj ET Q q 0 0 0 rg BT 191.94 138.30 Td (A) Tj ET Q q 0 0 0 rg BT 198.61 138.30 Td ( portion of the U.S. valuation allowance was released in the period ended June30, 201) Tj ET Q q 0 0 0 rg BT 544.25 138.30 Td (1 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 126.30 Td (based on the amount of U.S. net deferred tax assets then expected to be remaining as of December31, 201) Tj ET Q q 0 0 0 rg BT 474.54 126.30 Td (1. ) Tj ET Q q 0 0 0 rg BT 483.99 126.30 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 114.30 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 122.71 114.30 Td (1, the Company reversed all of the remaining valuation allowance on the U.S. deferred tax assets because it ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 102.30 Td (was more likely than not that those deferred tax assets would be realized. ) Tj ET Q q 0 0 0 rg BT 343.85 102.30 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.29 102.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.88 102.30 Td (, the Company has a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 90.30 Td (remaining valuation allowance of approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.38 90.30 Td ($3.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.27 90.30 Td (, which primarily relates to certain foreign NOLs and tax credits ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 78.30 Td (that are not more likely than not to be realized. ) Tj ET Q q 0 0 0 rg BT 238.97 78.30 Td (The Company will continue to evaluate the need for a valuation allowance in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 66.30 Td (foreign jurisdictions and may remove the valuation allowance in 2014, which may have an impact on the results of operations. ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 173 0 obj <> endobj 174 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (The following table presents the provisions for income taxes compared with income taxes based on the federal statutory tax rate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.33 719.10 Td (35%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.66 719.10 Td ( \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 708.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 684.8 m 424 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 684.8 m 428 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 684.8 m 493 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 684.8 m 497 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 684.8 m 562 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 684.8 m 424 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 671.8 m 424 671.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 684.8 m 428 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 684.8 m 493 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 671.8 m 493 671.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 684.8 m 497 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 684.8 m 562 684.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 671.8 m 562 671.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 551.8 m 424 551.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 537.8 m 424 537.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 535.8 m 424 535.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 551.8 m 493 551.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 537.8 m 493 537.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 535.8 m 493 535.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 551.8 m 562 551.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 537.8 m 562 537.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 535.8 m 562 535.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 689.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 416.60 689.03 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 676.05 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.00 676.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.00 676.03 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.20 676.03 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 662.37 Td (Tax provision based on federal statutory rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 661.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 661.52 Td (\(4,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 661.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 661.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 661.47 Td (6,437) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 661.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 661.47 Td (8,210) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 647.37 Td (State taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 646.47 Td (617) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 646.47 Td (723) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 646.47 Td (947) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 632.37 Td (Foreign rate differential) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 631.52 Td (\(157) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 631.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 631.47 Td (104) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 544.80 631.52 Td (\(54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 631.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 617.37 Td (Permanent items) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 616.47 Td (1,503) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.15 616.47 Td (67) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 616.47 Td (460) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 602.37 Td (Stock based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 601.52 Td (\(147) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 601.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 601.47 Td (938) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 601.47 Td (478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 587.37 Td (Change in income tax valuation allowance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 586.47 Td (333) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 586.47 Td (1,756) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.30 586.52 Td (\(16,388) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 586.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 572.37 Td (Business tax credits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 571.52 Td (\(1,829) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 571.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.30 571.52 Td (\(3,258) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 571.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 571.52 Td (\(1,204) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 571.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 557.37 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 556.52 Td (\(730) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 556.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.15 556.47 Td (91) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.80 556.52 Td (\(624) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 556.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 542.37 Td (Provision for \(benefit from\) income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 541.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 541.52 Td (\(5,409) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 541.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 541.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 541.47 Td (6,858) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 541.47 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.30 541.52 Td (\(8,175) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 541.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 516.30 Td (For the year ended December 31, 2012 the tax provision was positively impacted by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.13 516.30 Td ($1.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.03 516.30 Td ( due to the recognition of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 504.30 Td (business tax credits relating to prior years. ) Tj ET Q q 0 0 0 rg BT 220.94 504.30 Td (These credits were not recorded until the Company obtained a suf) Tj ET Q q 0 0 0 rg BT 484.01 504.30 Td (ficient history of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 492.30 Td (acceptance for the credits by the tax authorities.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 466.30 Td (Accounting for Uncertainty in Income T) Tj ET Q q 0 0 0 rg BT 215.54 466.30 Td (axes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 449.30 Td (The Company applies guidance for uncertainty in income taxes that requires the application of a more likely than not threshold ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 437.30 Td (to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 425.30 Td (Company to recognize a tax benefit measured at the lar) Tj ET Q q 0 0 0 rg BT 270.06 425.30 Td (gest amount of the tax benefit that, in the Company) Tj ET Q q 0 0 0 rg BT 478.35 425.30 Td (s judgment, is more ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 413.30 Td (likely than not to be realized upon settlement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 392.30 Td (During the year ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 141.13 392.30 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.71 392.30 Td (, the Company's unrecognized income tax benefits increased primarily due to tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 380.30 Td (exposures in certain foreign jurisdictions. Such exposures, if realized, would be of) Tj ET Q q 0 0 0 rg BT 378.12 380.30 Td (fset by foreign tax credits in the U.S. During ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 368.30 Td (the years ended December 31, 2012 and 201) Tj ET Q q 0 0 0 rg BT 226.84 368.30 Td (1, there was no material adjustment in the liability for unrecognized income tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 356.30 Td (benefits and no new tax positions for which the tax benefit was not recognized. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 335.30 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 335.30 Td ( reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 324.50 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 302 m 424 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 302 m 428 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 302 m 493 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 302 m 497 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 302 m 562 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 302 m 424 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 290 m 424 290 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 302 m 428 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 302 m 493 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 290 m 493 290 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 302 m 497 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 302 m 562 302 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 290 m 562 290 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 248 m 424 248 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 235 m 424 235 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 233 m 424 233 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 248 m 493 248 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 235 m 493 235 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 233 m 493 233 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 248 m 562 248 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 235 m 562 235 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 233 m 562 233 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 305.95 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 416.60 306.08 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 293.95 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.00 294.08 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.00 294.08 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.20 294.08 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 280.57 Td (Unrecognized tax benefits balance at January1,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 280.57 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 280.57 Td (821) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 280.57 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 280.57 Td (625) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 280.57 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 280.57 Td (618) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 266.57 Td (Additions for tax positions of prior years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 266.57 Td (4,054) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 266.57 Td (196) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 266.57 Td (77) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 252.57 Td (Settlements of tax positions of prior years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 252.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.15 252.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 544.80 252.62 Td (\(70) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.15 252.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 238.57 Td (Unrecognized tax benefits balance at December31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 238.57 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 238.57 Td (4,875) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 238.57 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 238.57 Td (821) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 238.57 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 238.57 Td (625) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 213.50 Td (The Company records interest and penalties as a component of its income tax provision. ) Tj ET Q q 0 0 0 rg BT 404.50 213.50 Td (The Company recorded interest and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.50 Td (penalties of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.37 201.50 Td ($0.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 147.26 201.50 Td ( for the year ended December 31, 2013. ) Tj ET Q q 0 0 0 rg BT 308.13 201.50 Td (The Company recorded no interest and penalties during the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 189.50 Td (years ended December 31, 2012 or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.39 189.50 Td (201) Tj ET Q q 0 0 0 rg BT 206.02 189.50 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.02 189.50 Td (. ) Tj ET Q q 0 0 0 rg BT 215.84 189.50 Td (The Company had not accrued interest with respect to uncertain tax positions in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 177.50 Td (prior years because unfavorable resolution of those positions would not result in cash tax due for those prior years.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 156.50 Td (The Company files income tax returns in the United States and in various foreign jurisdictions. ) Tj ET Q q 0 0 0 rg BT 431.46 156.50 Td (The Company is no longer ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 144.50 Td (subject to U.S. Federal income tax examinations for years prior to 2009, with the exception that operating loss or tax credit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 132.50 Td (carryforwards generated prior to 2008may be subject to tax audit adjustment. ) Tj ET Q q 0 0 0 rg BT 362.83 132.50 Td (The Company is no longer subject to state and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 120.50 Td (local or foreign income tax examinations by tax authorities for years prior to 2007.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 175 0 obj <> endobj 176 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (83) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (9.Borr) Tj ET Q q 0 0 0 rg BT 87.37 731.25 Td (owings) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (Convertible Senior Notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 697.25 Td (In June 201) Tj ET Q q 0 0 0 rg BT 95.79 697.25 Td (1, the Company issued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.39 697.25 Td ($120.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 248.28 697.25 Td ( aggregate principal amount of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 373.51 697.25 Td (1.50%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.34 697.25 Td ( convertible senior notes due in 2018 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 685.25 Td (\(the Notes\). ) Tj ET Q q 0 0 0 rg BT 107.90 685.25 Td (The Notes are senior unsecured obligations of the Company) Tj ET Q q 0 0 0 rg BT 347.19 685.25 Td (, with interest payable semi-annually in cash at a rate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 673.25 Td (of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.33 673.25 Td (1.50%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.16 673.25 Td (per annum, and will mature on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.90 673.25 Td (July1, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.07 673.25 Td (, unless earlier repurchased, redeemed or converted.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 652.25 Td (The Notes may be converted by the holders of Notes at their option on any day prior to the close of business on the scheduled ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 640.25 Td (trading day immediately preceding ) Tj ET Q q 0 0 0 rg BT 191.12 640.25 Td (April1, 2018 only under the following circumstances: \(a\)during the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.72 640.25 Td (five) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.27 640.25 Td ( business-day ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 628.25 Td (period after any ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 115.30 628.25 Td (ten) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.52 628.25 Td ( consecutive trading-day period \(the measurement period\) in which the trading price per Note for each day ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 616.25 Td (of that measurement period was less than ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.95 616.25 Td (98%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.28 616.25 Td ( of the product of the last reported sale price of the common stock and the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (applicable conversion rate on each such day; \(b\)during any calendar quarter \(and only during such quarter\) after the calendar ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (quarter ended September30, 201) Tj ET Q q 0 0 0 rg BT 181.58 592.25 Td (1, if the last reported sale price of the common stock for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.46 592.25 Td (20 or more trading days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.99 592.25 Td ( in a period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 580.25 Td ( consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.72 580.25 Td (130%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 529.05 580.25 Td ( of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 568.25 Td (applicable conversion price in ef) Tj ET Q q 0 0 0 rg BT 179.82 568.25 Td (fect on the last trading day of the immediately preceding calendar quarter; \(c\)upon the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 556.25 Td (occurrence of specified corporate events; or \(d\)if the Company calls the Notes for redemption. ) Tj ET Q q 0 0 0 rg BT 431.95 556.25 Td (The Notes will be convertible, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 544.25 Td (regardless of the foregoing circumstances, at any time from, and including, ) Tj ET Q q 0 0 0 rg BT 351.63 544.25 Td (April1, 2018 through the second scheduled trading ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 532.25 Td (day immediately preceding the maturity date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 511.25 Td (The initial conversion rate for the Notes is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 221.12 511.25 Td (23.8126) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.62 511.25 Td ( shares of the Company) Tj ET Q q 0 0 0 rg BT 350.82 511.25 Td (s common stock per ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.58 511.25 Td ($1,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.08 511.25 Td ( principal amount of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 499.25 Td (Notes, equivalent to a conversion price of approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.15 499.25 Td ($41.99) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 306.65 499.25 Td ( per share of the common stock. ) Tj ET Q q 0 0 0 rg BT 436.99 499.25 Td (The conversion price will be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 487.25 Td (subject to adjustment in some events, but will not be adjusted for accrued interest. In addition, if a make-whole fundamental ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 475.25 Td (change, as defined in the indenture governing the Notes \(the Indenture\), occurs prior to the maturity date, the Company will ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (in some cases increase the conversion rate for a holder that elects to convert its Notes in connection with such make-whole ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 451.25 Td (fundamental change. Upon conversion, the Company will pay cash up to the aggregate principal amount of the Notes to be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 439.25 Td (converted and deliver shares of the common stock in respect of the remainder) Tj ET Q q 0 0 0 rg BT 359.54 439.25 Td (, if any) Tj ET Q q 0 0 0 rg BT 386.94 439.25 Td (, of the conversion obligation in excess of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 427.25 Td (the aggregate principal amount of the Notes being converted.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (Holders of the Notes may require the Company to repurchase some or all of the Notes for cash, subject to certain exceptions, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (upon a fundamental change, as defined in the Indenture, at a repurchase price equal to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.74 394.25 Td (100%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.07 394.25 Td ( of the principal amount of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (Notes being repurchased, plus any accrued and unpaid interest up to but excluding the relevant repurchase date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 361.25 Td (The Company may not redeem the Notes prior to July1, 2015. Beginning July1, 2015, the Company may redeem for cash all ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 349.25 Td (or part of the Notes \(except for the Notes that the Company is required to repurchase as described above\) if the last reported ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 337.25 Td (sale price of the common stock exceeds ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 210.83 337.25 Td (140%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 234.16 337.25 Td ( of the applicable conversion price for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.82 337.25 Td (20 or more trading days) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.35 337.25 Td ( in a period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.94 337.25 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.94 337.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 325.25 Td (consecutive trading days ending on the trading day immediately prior to the date of the redemption notice. ) Tj ET Q q 0 0 0 rg BT 476.97 325.25 Td (The redemption ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 313.25 Td (price will equal the sum of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.91 313.25 Td (100%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 182.24 313.25 Td ( of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, plus a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 301.25 Td (make-whole premium payment. ) Tj ET Q q 0 0 0 rg BT 188.16 301.25 Td (The Company must make the make-whole premium payments on all Notes called for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (redemption prior to the maturity date, including Notes converted after the date the Company delivered the notice of redemption.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 268.25 Td (The Company has separately accounted for the liability and equity components of the convertible debt instrument by allocating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 256.25 Td (the gross proceeds from the issuance of the Notes between the liability component and the embedded conversion option, or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 244.25 Td (equity component. ) Tj ET Q q 0 0 0 rg BT 126.25 244.25 Td (This allocation was done by first estimating an interest rate at the time of issuance for similar notes that do ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 232.25 Td (not include the embedded conversion option. ) Tj ET Q q 0 0 0 rg BT 231.78 232.25 Td (This interest rate, estimated at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.51 232.25 Td (8%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.84 232.25 Td (, was used to compute the initial fair value of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 220.25 Td (the liability component of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 155.59 220.25 Td ($79.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 209.48 220.25 Td (. ) Tj ET Q q 0 0 0 rg BT 214.30 220.25 Td (The excess of the gross proceeds received from the issuance of the Notes over the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 208.25 Td (initial amount allocated to the liability component of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 262.78 208.25 Td ($40.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.67 208.25 Td (, was allocated to the embedded conversion option, or equity ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 196.25 Td (component. ) Tj ET Q q 0 0 0 rg BT 98.75 196.25 Td (This excess is reported as a debt discount and subsequently amortized as interest expense, using the interest ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 184.25 Td (method, through July 2018, the maturity date of the Notes. Of) Tj ET Q q 0 0 0 rg BT 296.78 184.25 Td (fering costs, consisting of the initial purchasers) Tj ET Q q 0 0 0 rg BT 487.93 184.25 Td ( discount and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 172.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 172.25 Td (fering expenses payable by the Company) Tj ET Q q 0 0 0 rg BT 221.67 172.25 Td (, were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 248.60 172.25 Td ($4.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.49 172.25 Td (. ) Tj ET Q q 0 0 0 rg BT 302.31 172.25 Td (These of) Tj ET Q q 0 0 0 rg BT 336.84 172.25 Td (fering costs were allocated to the liability component ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 160.25 Td (and the equity component based on the relative valuations of such components. ) Tj ET Q q 0 0 0 rg BT 368.59 160.25 Td (As a result, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.36 160.25 Td ($2.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.25 160.25 Td ( of the of) Tj ET Q q 0 0 0 rg BT 501.44 160.25 Td (fering costs ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 148.25 Td (were classified as debt issuance costs and recorded on the balance sheet in other assets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 127.25 Td (The fair value of the Notes as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.12 127.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 259.70 127.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.14 127.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.14 127.25 Td ( was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.69 127.25 Td ($123.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 378.58 127.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.02 127.25 Td ($135.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.91 127.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 509.57 127.25 Td (. ) Tj ET Q q 0 0 0 rg BT 514.39 127.25 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 115.25 Td (carrying amount of the equity component of the Notes was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.21 115.25 Td ($28.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.11 115.25 Td ( at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.32 115.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.91 115.25 Td (. ) Tj ET Q q 0 0 0 rg BT 436.73 115.25 Td (The unamortized of) Tj ET Q q 0 0 0 rg BT 515.40 115.25 Td (fering costs ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 103.25 Td (at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.22 103.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 137.80 103.25 Td ( were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 162.23 103.25 Td ($1.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.12 103.25 Td ( which is being amortized as interest expense through the July 2018 maturity date of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 91.25 Td (the Notes. ) Tj ET Q q 0 0 0 rg BT 92.37 91.25 Td (The remaining ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.46 91.25 Td ($1.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.35 91.25 Td ( of of) Tj ET Q q 0 0 0 rg BT 223.83 91.25 Td (fering costs were allocated to the equity component.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 177 0 obj <> endobj 178 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (84) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (The following table shows the amounts recorded within the Company) Tj ET Q q 0 0 0 rg BT 331.39 731.10 Td (s financial statements with respect to the Notes \(in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 708.30 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 677.8 m 500 677.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 677.8 m 563 677.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 649.8 m 500 649.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 649.8 m 563 649.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 636.8 m 500 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 634.8 m 500 634.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 636.8 m 563 636.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 634.8 m 563 634.8 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 448.75 689.88 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.00 681.88 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.75 689.88 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.00 681.88 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 668.37 Td (Convertible debt principal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 668.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.65 668.37 Td (120,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 668.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.65 668.37 Td (120,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 654.37 Td (Unamortized debt discount) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.30 654.42 Td (\(28,451) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 654.37 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 528.30 654.42 Td (\(33,549) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 559.15 654.37 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 640.37 Td (Net carrying amount of convertible debt) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 640.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 640.37 Td (91,549) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 640.37 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 640.37 Td (86,451) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 612.30 Td (The following table presents the interest expense recognized related to the Notes \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 601.50 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 570 m 505 570 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 570 m 513 570 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 570 m 563 570 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 557 m 505 557 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 557 m 563 557 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 512 m 505 512 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 512 m 563 512 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 498 m 505 498 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 496 m 505 496 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 498 m 563 498 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 496 m 563 496 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 574.25 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 489.35 582.23 Td (Y) Tj ET Q q 0 0 0 rg BT 494.24 582.23 Td (ear) Tj ET Q q 0 0 0 rg BT 505.20 582.23 Td ( ended) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 485.25 574.23 Td (December) Tj ET Q q 0 0 0 rg BT 519.75 574.23 Td (31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 561.25 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.50 561.23 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.50 561.23 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 547.57 Td (Contractual interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.50 546.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 546.67 Td (1,800) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.50 546.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 546.67 Td (1,800) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 532.57 Td (Amortization of debt issuance costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 531.67 Td (406) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 544.15 531.67 Td (406) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 517.57 Td (Accretion of debt discount) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 516.67 Td (5,098) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 516.67 Td (4,714) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 502.57 Td (Net interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.50 501.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 501.67 Td (7,304) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.50 501.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 501.67 Td (6,920) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 476.50 Td (The net proceeds from the Note of) Tj ET Q q 0 0 0 rg BT 187.04 476.50 Td (fering were approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.61 476.50 Td ($1) Tj ET Q q 0 0 0 rg BT 305.24 476.50 Td (15.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.13 476.50 Td (, after deducting discounts to the initial purchasers ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 464.50 Td (and of) Tj ET Q q 0 0 0 rg BT 74.59 464.50 Td (fering expenses payable by the Company) Tj ET Q q 0 0 0 rg BT 238.61 464.50 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 438.50 Td (Installment Bank Loans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 421.50 Td (In May 2008, the Company amended a software license and maintenance agreement that provided the Company the right to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 409.50 Td (distribute third party software for a one-time fee of approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.07 409.50 Td ($6.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.96 409.50 Td (. ) Tj ET Q q 0 0 0 rg BT 369.78 409.50 Td (The agreement was financed with an ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 397.50 Td (installment bank loan with an ef) Tj ET Q q 0 0 0 rg BT 177.90 397.50 Td (fective interest rate of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.85 397.50 Td (4.0%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 288.68 397.50 Td (. ) Tj ET Q q 0 0 0 rg BT 293.50 397.50 Td (The loan provided for a payment of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.17 397.50 Td ($0.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.06 397.50 Td ( at loan inception ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 385.50 Td (and scheduled principal repayments of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 206.39 385.50 Td ($0.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 255.28 385.50 Td ( each quarter commencing July1, 2008, with the final payment due on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 373.50 Td (April1, 2012. ) Tj ET Q q 0 0 0 rg BT 107.56 373.50 Td (At March31, 2012, the loan was paid in full.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 352.50 Td (In connection with the acquisition of Movial ) Tj ET Q q 0 0 0 rg BT 229.74 352.50 Td (Applications Oy in October 201) Tj ET Q q 0 0 0 rg BT 357.68 352.50 Td (1, the Company assumed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.73 352.50 Td (five) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.27 352.50 Td ( installment loans ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 340.50 Td (with ) Tj ET Q q 0 0 0 rg BT 69.60 340.50 Td (T) Tj ET Q q 0 0 0 rg BT 75.01 340.50 Td (ekes, the Finnish Funding ) Tj ET Q q 0 0 0 rg BT 180.29 340.50 Td (Agency for ) Tj ET Q q 0 0 0 rg BT 227.87 340.50 Td (T) Tj ET Q q 0 0 0 rg BT 233.28 340.50 Td (echnology and Innovation, which loans were repaid in full by the Company ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 328.50 Td (during 2013. ) Tj ET Q q 0 0 0 rg BT 102.93 328.50 Td (The loans were governed by the Finnish ) Tj ET Q q 0 0 0 rg BT 265.39 328.50 Td (Act on State Lending and State Guarantees, Government Decree on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 316.50 Td (Research, Development and Innovation Funding and were used to fund approved research and development projects. ) Tj ET Q q 0 0 0 rg BT 520.00 316.50 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 304.50 Td (repayment terms were determined on a per project basis and the interest rate on each loan is variable, with the interest rate equal ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 292.50 Td (to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.78 292.50 Td (three) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.76 292.50 Td ( percent at the time of repayment. ) Tj ET Q q 0 0 0 rg BT 216.38 292.50 Td (As of December 31, 2012, the aggregate balance of the loans was approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.98 292.50 Td ($1.0 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 280.50 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.39 280.50 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 254.50 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 254.50 Td (alue of Borrowings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 237.50 Td (Fair value for the Company) Tj ET Q q 0 0 0 rg BT 162.81 237.50 Td (s borrowings is estimated using quoted market price of the Notes at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.97 237.50 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 513.55 237.50 Td (, quoted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 225.50 Td (market prices for similar instruments and by observable market data. ) Tj ET Q q 0 0 0 rg BT 326.73 225.50 Td (The Company believes its creditworthiness and the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 213.50 Td (financial market in which it operates has not materially changed since entering into the arrangements. If measured at fair value ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.50 Td (in the financial statements, long-term debt \(including the current portion\) would be classified as Level 2 in the fair value ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 189.50 Td (hierarchy) Tj ET Q q 0 0 0 rg BT 86.60 189.50 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 168.50 Td (The aggregate maturities of borrowings as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 231.94 168.50 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.53 168.50 Td ( were as follows \(in thousands\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 128 m 563 128 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 114 m 563 114 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 112 m 563 112 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 148.57 Td (2013 - 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 147.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 147.67 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 132.67 Td (2017 and thereafter, and thereafter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.65 132.67 Td (120,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 117.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.65 117.67 Td (120,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 179 0 obj <> endobj 180 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (85) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (10.Stockholders) Tj ET Q q 0 0 0 rg BT 125.65 742.25 Td ( Equity \(Deficit\)) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 716.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.63 716.25 Td (eferr) Tj ET Q q 0 0 0 rg BT 78.70 716.25 Td (ed Stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 699.25 Td (Pursuant to the Company) Tj ET Q q 0 0 0 rg BT 154.16 699.25 Td (s amended and restated certificate of incorporation filed on June21, 2010 in connection with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 687.25 Td (closing of the initial public of) Tj ET Q q 0 0 0 rg BT 168.41 687.25 Td (fering of the Company's common stock \(the "IPO"\), the Company is authorized to issue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.92 687.25 Td (5,000,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 561.92 687.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 675.25 Td (shares of preferred stock. ) Tj ET Q q 0 0 0 rg BT 153.38 675.25 Td (The board of directors has the authority) Tj ET Q q 0 0 0 rg BT 311.02 675.25 Td (, without action by its stockholders, to designate and issue ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 663.25 Td (shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. ) Tj ET Q q 0 0 0 rg BT 510.76 663.25 Td (These ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 651.25 Td (rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 639.25 Td (liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (any or all of which may be greater than the rights of common stock. ) Tj ET Q q 0 0 0 rg BT 323.91 627.25 Td (The issuance of the Company) Tj ET Q q 0 0 0 rg BT 445.54 627.25 Td (s preferred stock could ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 615.25 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.40 615.25 Td (fect the voting power of holders of common stock and the likelihood that such holders will receive dividend ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.25 Td (payments and payments upon liquidation and could have the ef) Tj ET Q q 0 0 0 rg BT 302.26 603.25 Td (fect of delaying, preventing or deterring a change in control. ) Tj ET Q q 0 0 0 rg BT 545.87 603.25 Td (T) Tj ET Q q 0 0 0 rg BT 551.28 603.25 Td (o ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 591.25 Td (date, the board of directors has not designated any rights, preference or powers of any preferred stock and no shares of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 579.25 Td (preferred stock have been issued.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 553.25 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 553.25 Td (1.Stock-based Compensation) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (Equity Incentive Plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 519.25 Td (In 1999, the Company adopted the 1999 Stock Incentive Plan \(the 1999 Plan\). ) Tj ET Q q 0 0 0 rg BT 373.42 519.25 Td (The 1999 Plan provided for the grant of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 507.25 Td (incentive stock options, nonqualified stock options, restricted stock awards and stock appreciation rights. ) Tj ET Q q 0 0 0 rg BT 472.00 507.25 Td (The 1999 Plan ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 495.25 Td (terminated in June 2009 whereby no new options or awards are permitted to be granted. In ) Tj ET Q q 0 0 0 rg BT 413.56 495.25 Td (April 2009, the Company adopted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 483.25 Td (the 2009 Equity Incentive Plan. ) Tj ET Q q 0 0 0 rg BT 178.18 483.25 Td (This plan provides for the grant of incentive stock options, nonqualified stock options, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 471.25 Td (restricted stock awards, restricted stock units \(RSUs\) and stock appreciation rights. In June 2010, in connection with the IPO, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 459.25 Td (the 2009 Equity Incentive Plan was amended and restated to provide for) Tj ET Q q 0 0 0 rg BT 337.63 459.25 Td (, among other things, annual increases in the share ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (reserve \(as amended and restated, the 2009 Plan\). ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (The term of stock-based grants is up to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 207.80 426.25 Td (10 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.39 426.25 Td (, except that certain stock-based grants made after 2005 have a term of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.27 426.25 Td (five ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.60 414.25 Td (. ) Tj ET Q q 0 0 0 rg BT 75.42 414.25 Td (The requisite vesting period for grants made under the 2009 Plan is typically ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.51 414.25 Td (four years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.77 414.25 Td (. On January1, 2012 and 2013, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 402.25 Td (1,219,787) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 89.50 402.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 108.94 402.25 Td (1,250,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.94 402.25 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 229.09 402.25 Td (, were added to the 2009 Plan. ) Tj ET Q q 0 0 0 rg BT 352.12 402.25 Td (At ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.62 402.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.20 402.25 Td (, the Company had ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.24 402.25 Td (1) Tj ET Q q 0 0 0 rg BT 525.87 402.25 Td (18,663) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.37 402.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (shares of common stock available for issuance under the 2009 Plan.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 369.25 Td (Stock-based compensation expense recognized by the Company is as follows \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 358.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 334.95000000000005 m 424 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 334.95000000000005 m 428 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 334.95000000000005 m 493 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 334.95000000000005 m 497 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 334.95000000000005 m 562 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 334.95000000000005 m 424 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 321.95000000000005 m 424 321.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 334.95000000000005 m 428 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 334.95000000000005 m 493 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 321.95000000000005 m 493 321.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 334.95000000000005 m 497 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 334.95000000000005 m 562 334.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 321.95000000000005 m 562 321.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 276.95000000000005 m 424 276.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 276.95000000000005 m 493 276.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 276.95000000000005 m 562 276.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 262.95000000000005 m 424 262.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 260.95000000000005 m 424 260.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 262.95000000000005 m 493 262.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 260.95000000000005 m 493 260.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 262.95000000000005 m 562 262.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 260.95000000000005 m 562 260.95000000000005 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 339.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 416.60 339.18 Td (Year ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 326.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.00 326.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.00 326.18 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 521.20 326.18 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 312.52 Td (Stock options) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 311.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 311.62 Td (8,644) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 311.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 311.62 Td (6,512) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 311.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 311.62 Td (2,394) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 297.52 Td (Restricted stock units) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 296.62 Td (28,020) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 296.62 Td (8,388) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 296.62 Td (4,807) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 282.52 Td (Performance stock units) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 281.62 Td (5,020) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 281.62 Td (122) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.15 281.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 267.52 Td (Total recognized stock-based compensation expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 266.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 266.62 Td (41,684) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.50 266.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.65 266.62 Td (15,022) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.50 266.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.65 266.62 Td (7,201) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 181 0 obj <> endobj 182 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (86) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Stock Options) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (The following table presents a summary related to stock options for the following periods:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 703.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 647.95 m 345 647.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 647.95 m 398 647.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 647.95 m 456 647.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 647.95 m 519 647.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 572.95 m 345 572.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 558.95 m 345 558.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 556.95 m 345 556.95 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 298.50 668.18 Td (Number) Tj ET Q q 0 0 0 rg BT 326.80 668.18 Td ( of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 303.40 660.18 Td (Options) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 295.65 652.18 Td (Outstanding) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 358.75 676.18 Td (W) Tj ET Q q 0 0 0 rg BT 366.31 676.18 Td (eighted) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.05 668.18 Td (A) Tj ET Q q 0 0 0 rg BT 366.23 668.18 Td (verage) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.60 660.18 Td (Exer) Tj ET Q q 0 0 0 rg BT 376.89 660.18 Td (cise) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.10 652.18 Td (Price) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 414.25 684.18 Td (W) Tj ET Q q 0 0 0 rg BT 421.81 684.18 Td (eighted) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 416.55 676.18 Td (A) Tj ET Q q 0 0 0 rg BT 421.73 676.18 Td (verage) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.80 668.18 Td (Remaining) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 409.80 660.18 Td (Contractual) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.50 652.18 Td (T) Tj ET Q q 0 0 0 rg BT 413.10 652.18 Td (erm\(years\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 473.50 668.18 Td (Aggr) Tj ET Q q 0 0 0 rg BT 490.68 668.18 Td (egate) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.30 660.18 Td (Intrinsic) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 481.35 652.18 Td (V) Tj ET Q q 0 0 0 rg BT 486.39 652.18 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.20 637.20 Td (\(in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 622.62 Td (Balance, December 31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.10 622.62 Td (1,474,346) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 622.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.65 622.62 Td (23.50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 608.52 Td (Granted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.65 607.62 Td (560,905) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.65 607.62 Td (33.01) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 593.52 Td (Exercised) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.30 592.67 Td (\(201,448) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.15 592.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.65 592.62 Td (6.35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 578.52 Td (Canceled, expired or forfeited) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.30 577.67 Td (\(87,734) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.15 577.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.65 577.62 Td (32.45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 562.62 Td (Balance, December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.10 562.62 Td (1,746,069) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 562.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.65 562.62 Td (28.09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.00 562.62 Td (8.06) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 562.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.65 562.62 Td (10,042) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 542.62 Td (Vested at December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.65 542.62 Td (715,075) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 542.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.65 542.62 Td (19.85) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.00 542.62 Td (6.82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 542.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.65 542.62 Td (8,880) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 522.62 Td (Exercisable at December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.65 522.62 Td (715,075) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 522.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.65 522.62 Td (19.85) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.00 522.62 Td (6.82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 522.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.65 522.62 Td (8,880) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 497.45 Td (In ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.33 497.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 80.33 497.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.33 497.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 105.33 497.45 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 124.77 497.45 Td (201) Tj ET Q q 0 0 0 rg BT 139.40 497.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 144.40 497.45 Td (, the Company granted stock options with a weighted-average grant date fair value of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.89 497.45 Td ($18.09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.39 497.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.39 497.45 Td ($20.14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.89 497.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 485.45 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.44 485.45 Td ($21.86) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 93.94 485.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 146.60 485.45 Td (. ) Tj ET Q q 0 0 0 rg BT 151.42 485.45 Td (The intrinsic value of stock options exercised in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 345.81 485.45 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.81 485.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.81 485.45 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.81 485.45 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.25 485.45 Td (201) Tj ET Q q 0 0 0 rg BT 424.88 485.45 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.88 485.45 Td ( was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.43 485.45 Td ($5.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.32 485.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.32 485.45 Td ($22.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.22 485.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 473.45 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.44 473.45 Td ($59.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 120.33 473.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 172.99 473.45 Td (, and cash received from stock options exercised was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.36 473.45 Td ($1.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.25 473.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.25 473.45 Td ($2.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.14 473.45 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.58 473.45 Td ($3.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.47 473.45 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 461.45 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 461.45 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 440.45 Td (At ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 440.45 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.58 440.45 Td (, unrecognized stock-based compensation expense, net of estimated forfeitures, relating to unvested stock ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 428.45 Td (options was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 99.50 428.45 Td ($9.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.39 428.45 Td ( which amount is scheduled to be recognized as stock-based compensation expense over a weighted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 416.45 Td (average period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.96 416.45 Td (1.4 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.06 416.45 Td (. ) Tj ET Q q 0 0 0 rg BT 162.88 416.45 Td (T) Tj ET Q q 0 0 0 rg BT 168.29 416.45 Td (o the extent the actual forfeiture rate is dif) Tj ET Q q 0 0 0 rg BT 336.37 416.45 Td (ferent than what the Company has anticipated at ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 404.45 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 128.08 404.45 Td (, stock-based compensation expense will be dif) Tj ET Q q 0 0 0 rg BT 316.46 404.45 Td (ferent from expectations. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 378.45 Td (Restricted Stock Units) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 361.45 Td (The following table presents a summary of activity for RSUs \(excluding RSUs that are subject to performance-based vesting ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 349.45 Td (conditions \(PSUs\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 134.22 349.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 297.95000000000005 m 490 297.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 297.95000000000005 m 563 297.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 237.95000000000005 m 490 237.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 223.95000000000005 m 490 223.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 221.95000000000005 m 490 221.95000000000005 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.50 310.18 Td (Number) Tj ET Q q 0 0 0 rg BT 466.80 310.18 Td (of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.40 302.18 Td (RSUs) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.75 318.18 Td (W) Tj ET Q q 0 0 0 rg BT 521.31 318.18 Td (eighted) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 504.60 310.18 Td (A) Tj ET Q q 0 0 0 rg BT 509.78 310.18 Td (verageGrant) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 503.15 302.18 Td (DateFair) Tj ET Q q 0 0 0 rg BT 535.66 302.18 Td () Tj ET Q q 0 0 0 rg BT 537.51 302.18 Td (V) Tj ET Q q 0 0 0 rg BT 542.56 302.18 Td (alue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 287.62 Td (Balance, December 31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.65 287.62 Td (638,299) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.50 287.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 287.62 Td (34.25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 273.52 Td (Granted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.15 272.62 Td (1,518,023) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 272.62 Td (32.59) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 258.52 Td (Vested) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.30 257.67 Td (\(287,683) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 257.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 257.62 Td (32.72) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 243.52 Td (Forfeited) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.30 242.67 Td (\(76,806) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 242.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 242.62 Td (32.54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 227.62 Td (Balance, December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.15 227.62 Td (1,791,833) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.50 227.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 227.62 Td (33.16) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 206.45 Td (During 2013, the Company granted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.92 206.45 Td (1,510,176) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 233.92 206.45 Td ( RSUs to certain of) Tj ET Q q 0 0 0 rg BT 310.39 206.45 Td (ficers and employees, which vest over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.62 206.45 Td (three) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.60 206.45 Td ( or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.93 206.45 Td (four years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.19 206.45 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 194.45 Td (following the vesting commencement date, and granted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.88 194.45 Td (7,847) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.38 194.45 Td ( RSUs to certain directors that vest quarterly through ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 182.45 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 128.08 182.45 Td (. ) Tj ET Q q 0 0 0 rg BT 132.53 182.45 Td (At ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 145.03 182.45 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.62 182.45 Td (, unrecognized stock-based compensation expense related to unvested RSUs was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 170.45 Td ($24.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.39 170.45 Td (, which is scheduled to be recognized over a weighted average period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.39 170.45 Td (1.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.89 170.45 Td ( years.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 149.45 Td (During 2012, the Company granted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.92 149.45 Td (352,600) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.42 149.45 Td ( RSUs to certain of) Tj ET Q q 0 0 0 rg BT 302.89 149.45 Td (ficers and employees, which vest over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.12 149.45 Td (four years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.38 149.45 Td ( following the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 137.45 Td (date of grant, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 105.03 137.45 Td (128,309) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 137.53 137.45 Td ( RSUs to certain employees that vest over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 307.49 137.45 Td (three years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.08 137.45 Td ( following the date of grant and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 137.45 Td (4,925) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.15 137.45 Td ( RSUs to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 125.45 Td (certain employees that vest over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 180.84 125.45 Td (two years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.44 125.45 Td ( following the date of grant. During 201) Tj ET Q q 0 0 0 rg BT 379.03 125.45 Td (1, the Company granted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.62 125.45 Td (21) Tj ET Q q 0 0 0 rg BT 487.25 125.45 Td (1,450) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.75 125.45 Td ( RSUs to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 113.45 Td (certain of) Tj ET Q q 0 0 0 rg BT 87.35 113.45 Td (ficers and employees that vest over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.63 113.45 Td (four years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.89 113.45 Td ( following the date of grant.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 183 0 obj <> endobj 184 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (87) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Performance Stock Units) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (The following table presents a summary of activity for PSUs:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 661.75 m 490 661.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 498 661.75 m 563 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 601.75 m 490 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 587.75 m 490 587.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 585.75 m 490 585.75 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.50 673.98 Td (Number) Tj ET Q q 0 0 0 rg BT 466.80 673.98 Td (of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.85 665.98 Td (PSUs) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.75 681.98 Td (Weighted) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 504.60 673.98 Td (Average Grant) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 503.15 665.98 Td (Date Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 651.42 Td (Balance, December 31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 651.42 Td (10,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.50 651.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 651.42 Td (39.86) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 636.42 Td ( Granted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.65 636.42 Td (382,500) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 636.42 Td (28.72) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 621.42 Td ( Vested) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.30 621.47 Td (\(10,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 621.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 621.42 Td (39.86) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 606.42 Td ( Forfeited) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.15 606.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 549.15 606.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 591.42 Td (Balance, December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.65 591.42 Td (382,500) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.50 591.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 591.42 Td (28.72) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (During ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 80.33 566.25 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 100.33 566.25 Td (, the Company granted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.92 566.25 Td (382,500) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.42 566.25 Td ( PSUs to certain of) Tj ET Q q 0 0 0 rg BT 301.79 566.25 Td (ficers, which vest over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.81 566.25 Td (4 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.41 566.25 Td (, subject to the satisfaction of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (performance conditions based upon the trading price of the Company's common stock. ) Tj ET Q q 0 0 0 rg BT 398.53 554.25 Td (T) Tj ET Q q 0 0 0 rg BT 403.94 554.25 Td (o date, the trading price of our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (common stock has not met any of the thresholds necessary to satisfy any of the performance conditions of these awards. During ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 530.25 Td (, the Company granted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.09 530.25 Td (55,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 190.59 530.25 Td ( PSUs to certain of) Tj ET Q q 0 0 0 rg BT 265.96 530.25 Td (ficers subject to the recipients) Tj ET Q q 0 0 0 rg BT 387.94 530.25 Td ( satisfying the performance criteria of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (awards, of which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 120.59 518.25 Td (10,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.09 518.25 Td ( PSUs met the criteria and vested on December31, 2013. ) Tj ET Q q 0 0 0 rg BT 378.87 518.25 Td (At ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.37 518.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.95 518.25 Td (, unrecognized stock-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (based compensation expense related to unvested PSUs was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 288.33 506.25 Td ($4.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.22 506.25 Td (, which is scheduled to be recognized over a weighted ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (average period of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 121.96 494.25 Td (1.34 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.06 494.25 Td ( .) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 468.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.69 468.25 Td (ax Benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 451.25 Td (Upon adoption of the F) Tj ET Q q 0 0 0 rg BT 142.08 451.25 Td (ASB) Tj ET Q q 0 0 0 rg BT 164.31 451.25 Td (s guidance on stock-based compensation, the Company elected the alternative transition method ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 439.25 Td (\(short cut method\) provided for calculating the tax ef) Tj ET Q q 0 0 0 rg BT 261.47 439.25 Td (fects of stock-based compensation. ) Tj ET Q q 0 0 0 rg BT 403.74 439.25 Td (The alternative transition method ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 427.25 Td (includes simplified methods to establish the beginning balance of the additional paid-in capital pool \(APIC pool\) related to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 415.25 Td (the tax ef) Tj ET Q q 0 0 0 rg BT 86.52 415.25 Td (fects of employee stock-based compensation, and to determine the subsequent impact on the ) Tj ET Q q 0 0 0 rg BT 458.08 415.25 Td (APIC pool and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 403.25 Td (consolidated statements of cash flows related to the tax ef) Tj ET Q q 0 0 0 rg BT 280.08 403.25 Td (fect of employee stock-based compensation awards that are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 391.25 Td (outstanding upon adoption. ) Tj ET Q q 0 0 0 rg BT 160.61 391.25 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 185.05 391.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.64 391.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 325.02 391.25 Td (s ) Tj ET Q q 0 0 0 rg BT 330.86 391.25 Td (APIC pool balance was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.50 391.25 Td ($7.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.39 391.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (The Company applies a with-and-without approach in determining its intra-period allocation of tax expense or benefit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (attributable to stock-based compensation deductions. For 201) Tj ET Q q 0 0 0 rg BT 294.91 358.25 Td (1, there was a reduction to the deferred tax asset related to tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (benefits of employee stock option grants of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 225.29 346.25 Td ($0.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.18 346.25 Td ( related to forfeitures and exercises that resulted in a tax deduction less ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (than previously recorded benefits based on the option value at the time of grant \(shortfalls\). ) Tj ET Q q 0 0 0 rg BT 417.54 334.25 Td (T) Tj ET Q q 0 0 0 rg BT 422.95 334.25 Td (ax deductions in excess of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (previously recorded benefits \(windfalls\) included in net operating loss carryforwards but not reflected in deferred tax assets for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 114.19 310.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 192.78 310.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 212.21 310.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.21 310.25 Td ( are ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 249.42 310.25 Td ($63.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.31 310.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.75 310.25 Td ($77.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.64 310.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 429.30 310.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (12.Commitments and Contingencies) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (The Company leases of) Tj ET Q q 0 0 0 rg BT 143.46 250.25 Td (fice space under non-cancelable operating leases with various expiration dates through 2022. Rent ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (expense was approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 162.52 238.25 Td ($3.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.41 238.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.41 238.25 Td ($2.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.30 238.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.74 238.25 Td ($2.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 333.63 238.25 Td ( for the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.98 238.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 493.57 238.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.57 238.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 518.57 238.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.01 238.25 Td (201) Tj ET Q q 0 0 0 rg BT 552.63 238.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.63 238.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 226.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (The following table presents future minimum lease payments under the non-cancelable operating leases \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 194.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 162.95000000000005 m 563 162.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 72.95000000000005 m 563 72.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 58.950000000000045 m 563 58.950000000000045 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 56.950000000000045 m 563 56.950000000000045 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 167.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 517.40 175.18 Td (Operating) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 523.65 167.18 Td (Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 153.52 Td (Years Ending December 31:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 138.52 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 137.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 137.62 Td (2,816) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 123.52 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 122.62 Td (2,533) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 108.52 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 107.62 Td (2,533) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 93.52 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 92.62 Td (2,400) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 77.62 Td (2018 and thereafter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 77.62 Td (3,433) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 63.52 Td (Total future minimum lease payments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 62.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 62.62 Td (13,715) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 185 0 obj <> endobj 186 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (88) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Indemnifications and Contingencies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 714.25 Td (In the normal course of business, the Company enters into contracts and agreements that may contain representations and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (warranties and provide for general indemnifications. ) Tj ET Q q 0 0 0 rg BT 261.74 702.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 321.45 702.25 Td (s exposure under these agreements is unknown because it ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (involves claims that may be made in the future, but have not yet been made. ) Tj ET Q q 0 0 0 rg BT 356.17 690.25 Td (The Company has not paid any claims related to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (indemnification obligations to date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (In accordance with its bylaws and certain agreements, the Company has indemnification obligations to its of) Tj ET Q q 0 0 0 rg BT 483.09 657.25 Td (ficers and directors ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (for certain events or occurrences, subject to certain limits, while they are serving at the Company) Tj ET Q q 0 0 0 rg BT 440.75 645.25 Td (s request in such capacity) Tj ET Q q 0 0 0 rg BT 542.29 645.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (There have been no claims to date under these indemnification obligations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 612.25 Td (In addition, the Company is involved in litigation incidental to the conduct of its business. ) Tj ET Q q 0 0 0 rg BT 412.33 612.25 Td (The Company is not a party to any ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 600.25 Td (lawsuit or proceeding that, in the opinion of management, is reasonably possible to have a material adverse ef) Tj ET Q q 0 0 0 rg BT 488.35 600.25 Td (fect on its ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 588.25 Td (financial position, results of operations or cash flows.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (13.Segment and Geographic Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 545.25 Td (Operating segments are defined as components of an enterprise about which separate financial information is available that is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 533.25 Td (evaluated regularly by the chief operating decision maker) Tj ET Q q 0 0 0 rg BT 279.78 533.25 Td (, in deciding how to allocate resources and in assessing performance. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 521.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 521.25 Td (s chief operating decision maker is its Chief Executive Of) Tj ET Q q 0 0 0 rg BT 340.85 521.25 Td (ficer \(CEO\). ) Tj ET Q q 0 0 0 rg BT 402.02 521.25 Td (The CEO reviews financial information ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 509.25 Td (presented on a consolidated basis, along with information about revenue by geographic region for purposes of allocating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 497.25 Td (resources and evaluating financial performance. Discrete information on a geographic basis, except for revenue, is not provided ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 485.25 Td (below the consolidated level to the CEO. ) Tj ET Q q 0 0 0 rg BT 216.45 485.25 Td (The Company has concluded that it operates in one segment and has provided the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 473.25 Td (required enterprise-wide disclosures.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.25 Td (Revenue by geographic area is based on the location of the end-user carrier) Tj ET Q q 0 0 0 rg BT 350.43 452.25 Td (. ) Tj ET Q q 0 0 0 rg BT 355.25 452.25 Td (The following table presents revenue and long-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 440.25 Td (lived assets, net, by geographic area \(in thousands\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 429.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 405.95 m 436.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 405.95 m 444.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 405.95 m 499.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 405.95 m 507.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 405.95 m 562.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 405.95 m 436.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 392.95 m 436.5 392.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 405.95 m 444.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 405.95 m 499.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 392.95 m 499.5 392.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 405.95 m 507.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 405.95 m 562.5 405.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 392.95 m 562.5 392.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 318.95 m 436.5 318.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 318.95 m 499.5 318.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 318.95 m 562.5 318.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 304.95 m 436.5 304.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 302.95 m 436.5 302.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 304.95 m 499.5 304.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 302.95 m 499.5 302.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 304.95 m 562.5 304.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 302.95 m 562.5 302.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 410.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 410.18 Td (Year EndedDecember 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 397.20 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 400.50 397.18 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.50 397.18 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 397.18 Td (2011) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 383.68 Td (Revenues:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 369.52 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 368.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.15 368.62 Td (100,857) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 368.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 368.62 Td (94,781) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 368.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 368.62 Td (75,748) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 354.52 Td (EMEA) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 353.62 Td (44,235) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 353.62 Td (39,334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 353.62 Td (24,866) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 339.52 Td (APAC) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 338.62 Td (20,990) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 338.62 Td (17,994) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 338.62 Td (25,332) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 324.52 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 323.62 Td (12,411) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 323.62 Td (12,733) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 323.62 Td (12,118) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 309.52 Td (Total Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 308.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.15 308.62 Td (178,493) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 308.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 308.62 Td (164,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 308.62 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 308.62 Td (138,064) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 293.65 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 262.15 m 499.5 262.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 262.15 m 507.5 262.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 262.15 m 562.5 262.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 188.14999999999998 m 499.5 188.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 188.14999999999998 m 507.5 188.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 188.14999999999998 m 562.5 188.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 174.14999999999998 m 499.5 174.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 172.14999999999998 m 499.5 172.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 174.14999999999998 m 507.5 174.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 172.14999999999998 m 507.5 172.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 174.14999999999998 m 562.5 174.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 172.14999999999998 m 562.5 172.14999999999998 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 448.25 274.38 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.50 266.38 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.25 274.38 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.50 266.38 Td (2012) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 252.88 Td (Long-Lived Assets, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 238.72 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 237.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 237.82 Td (33,234) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 237.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 237.82 Td (19,676) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 223.72 Td (EMEA) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 222.82 Td (1,412) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 222.82 Td (615) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 208.72 Td (APAC) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 207.82 Td (497) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 207.82 Td (158) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.00 193.72 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 192.82 Td (488) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 192.82 Td (451) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 178.72 Td (Total Long-Lived Assets, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.00 177.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 177.82 Td (35,631) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 177.82 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 177.82 Td (20,900) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.65 Td (14.401\(k\) Defined Contribution Plan) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.65 Td (The Company maintains a tax-qualified 401\(k\) retirement plan that provides eligible U.S. employees with an opportunity to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 118.65 Td (save for retirement on a tax advantaged basis. ) Tj ET Q q 0 0 0 rg BT 235.02 118.65 Td (The Company has a 401\(k\) plan covering all eligible employees. Beginning ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.65 Td (January1, 2012, the Company matches a portion of the employees) Tj ET Q q 0 0 0 rg BT 319.19 106.65 Td ( eligible contributions according to the 401\(k\) plan ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.65 Td (document. Matching contributions to the plan during the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.54 94.65 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.13 94.65 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.57 94.65 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.57 94.65 Td ( were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.00 94.65 Td ($1.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.89 94.65 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 539.33 94.65 Td ($1.2 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.65 Td (million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.89 82.65 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.55 82.65 Td (.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 187 0 obj <> endobj 188 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (89) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (15.Quarterly Financial Data \(Unaudited\) \(in thousands, except per) Tj ET Q q 0 0 0 rg BT 338.49 731.25 Td ( shar) Tj ET Q q 0 0 0 rg BT 359.70 731.25 Td (e data\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 720.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 689.95 m 374 689.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 689.95 m 437 689.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 689.95 m 500 689.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 689.95 m 563 689.95 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 328.50 702.03 Td (March 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 338.00 694.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.75 702.03 Td (June 30,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.00 694.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.60 702.03 Td (September 30,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.00 694.03 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.75 702.03 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.00 694.03 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 680.52 Td (Total revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.50 680.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.65 680.52 Td (39,625) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 680.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 680.52 Td (44,009) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 680.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 680.52 Td (42,900) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 680.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 680.52 Td (51,959) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 666.52 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.65 666.52 Td (29,859) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 666.52 Td (34,238) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 666.52 Td (32,365) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 666.52 Td (40,651) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 652.52 Td (\(Loss\) income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.30 652.57 Td (\(3,757) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.15 652.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.30 652.57 Td (\(2,311) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.15 652.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.30 652.57 Td (\(2,989) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 652.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 652.52 Td (1,720) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 638.52 Td (Net \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.30 638.57 Td (\(2,317) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.15 638.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.30 638.57 Td (\(3,015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.15 638.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.30 638.57 Td (\(4,054) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 638.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 544.15 638.52 Td (512) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 624.52 Td (Net \(loss\) income per share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 610.52 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.30 610.57 Td (\(0.08) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.15 610.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 610.57 Td (\(0.11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.15 610.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.30 610.57 Td (\(0.14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 610.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 610.52 Td (0.02) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 596.52 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.30 596.57 Td (\(0.08) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.15 596.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.30 596.57 Td (\(0.11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.15 596.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.30 596.57 Td (\(0.14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 596.52 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 596.52 Td (0.02) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 561.95 m 374 561.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 561.95 m 437 561.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 561.95 m 500 561.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 561.95 m 563 561.95 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 328.50 574.03 Td (March 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 338.00 566.03 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.75 574.03 Td (June 30,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.00 566.03 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.60 574.03 Td (September 30,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.00 566.03 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.75 574.03 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.00 566.03 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 552.52 Td (Total revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.50 552.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.65 552.52 Td (38,343) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 552.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 552.52 Td (40,516) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.50 552.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 552.52 Td (40,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.50 552.52 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 552.52 Td (45,809) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 538.52 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.65 538.52 Td (30,271) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.65 538.52 Td (32,195) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 538.52 Td (32,449) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.65 538.52 Td (37,441) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 524.52 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.65 524.52 Td (4,909) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.65 524.52 Td (5,576) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 524.52 Td (6,476) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 524.52 Td (8,443) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 510.52 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.65 510.52 Td (1,701) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.65 510.52 Td (2,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.65 510.52 Td (3,140) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.65 510.52 Td (4,879) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 496.52 Td (Net income per share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 482.52 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.65 482.52 Td (0.06) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 482.52 Td (0.09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 482.52 Td (0.11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 482.52 Td (0.18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 468.52 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.65 468.52 Td (0.06) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 468.52 Td (0.08) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 468.52 Td (0.11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.65 468.52 Td (0.17) Tj ET Q BT /F2 10.00 Tf ET BT /F2 14.00 Tf ET q 0 0 0 rg BT 49.50 447.65 Td () Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.40 760.60 Td (Br) Tj ET Q q 0 0 0 rg BT 284.33 760.60 Td (oadSoft, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.20 748.60 Td (Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 189 0 obj <> endobj 190 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (90) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 739.23 Td (Item9.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 739.23 Td (Changes in and Disagreements with Accountants on Accounting and Financial Disclosure) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.00 Td (None.) Tj ET Q BT /F2 14.00 Tf ET q 0 0 0 rg BT 50.00 701.20 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 681.43 Td (Item9A.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 681.43 Td (Controls and Procedures) Tj ET Q BT /F2 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 660.20 Td (Evaluation of Disclosur) Tj ET Q q 0 0 0 rg BT 145.18 660.20 Td (e Contr) Tj ET Q q 0 0 0 rg BT 175.09 660.20 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 216.39 660.20 Td (ocedur) Tj ET Q q 0 0 0 rg BT 243.78 660.20 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (Management, with the participation of our chief executive of) Tj ET Q q 0 0 0 rg BT 293.34 643.20 Td (ficer and our chief financial of) Tj ET Q q 0 0 0 rg BT 415.04 643.20 Td (ficer) Tj ET Q q 0 0 0 rg BT 432.95 643.20 Td (, evaluated the ef) Tj ET Q q 0 0 0 rg BT 501.07 643.20 Td (fectiveness of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (our disclosure controls and procedures as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 228.56 631.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 307.14 631.20 Td (. ) Tj ET Q q 0 0 0 rg BT 311.96 631.20 Td (The term disclosure controls and procedures, as set forth in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 619.20 Td (Rules 13a-15\(e\) and 15d-15\(e\) under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 298.80 619.20 Td (Act of 1934, as amended, or the Exchange ) Tj ET Q q 0 0 0 rg BT 470.42 619.20 Td (Act, means controls ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 607.20 Td (and other procedures of a company that are designed to provide reasonable assurance that information required to be disclosed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 595.20 Td (by a company in the reports that it files or submits under the Exchange ) Tj ET Q q 0 0 0 rg BT 334.93 595.20 Td (Act is recorded, processed, summarized and reported, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 583.20 Td (within the time periods specified in the SEC) Tj ET Q q 0 0 0 rg BT 229.69 583.20 Td (s rules and forms. Disclosure controls and procedures include, without limitation, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 571.20 Td (controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 559.20 Td (submits under the Exchange ) Tj ET Q q 0 0 0 rg BT 164.98 559.20 Td (Act is accumulated and communicated to the company) Tj ET Q q 0 0 0 rg BT 386.85 559.20 Td (s management, including its principal ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 547.20 Td (executive and principal financial of) Tj ET Q q 0 0 0 rg BT 191.42 547.20 Td (ficers, as appropriate to allow timely decisions regarding required disclosure. Management ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 535.20 Td (recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 523.20 Td (of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.50 511.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.08 511.20 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (our chief executive of) Tj ET Q q 0 0 0 rg BT 137.28 499.20 Td (ficer and chief financial of) Tj ET Q q 0 0 0 rg BT 243.14 499.20 Td (ficer concluded that, as of such date, our disclosure controls and procedures ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (were ef) Tj ET Q q 0 0 0 rg BT 79.52 487.20 Td (fective at the reasonable assurance level.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 461.20 Td (Management) Tj ET Q q 0 0 0 rg BT 104.25 461.20 Td (s ) Tj ET Q q 0 0 0 rg BT 110.46 461.20 Td (Annual Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 241.75 461.20 Td (ol over Financial Reporting) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 444.20 Td (Our management is responsible for establishing and maintaining adequate internal control over our financial reporting \(as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 432.20 Td (defined in Rules 13a-15\(f\) and 15d-15\(f\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 282.98 432.20 Td (Act\). ) Tj ET Q q 0 0 0 rg BT 305.57 432.20 Td (W) Tj ET Q q 0 0 0 rg BT 314.20 432.20 Td (e assessed the ef) Tj ET Q q 0 0 0 rg BT 379.83 432.20 Td (fectiveness of our internal control over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 420.20 Td (financial reporting as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.30 420.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.88 420.20 Td (, using the criteria established in Internal ControlIntegrated Framework issued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 408.20 Td (by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 193.42 408.20 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 266.83 408.20 Td (T) Tj ET Q q 0 0 0 rg BT 272.58 408.20 Td (readway Commission \(1992 framework\). Based upon this assessment, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 396.20 Td (our management concluded that, as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.67 396.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.25 396.20 Td (, our internal control over financial reporting was ef) Tj ET Q q 0 0 0 rg BT 490.49 396.20 Td (fective. ) Tj ET Q q 0 0 0 rg BT 522.51 396.20 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 384.20 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 384.20 Td (fectiveness of our internal control over financial reporting as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 313.60 384.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.19 384.20 Td ( has been audited by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 372.20 Td (PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 168.58 372.20 Td (, an independent registered public accounting firm, which appears on page 59 of this ) Tj ET Q q 0 0 0 rg BT 508.48 372.20 Td (Annual ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 360.20 Td (Report on Form 10-K.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 334.20 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 155.46 334.20 Td (ol over Financial Reporting) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 317.20 Td (There was no change in our internal control over financial reporting identified in connection with the evaluation required by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 305.20 Td (Rule 13a-15\(d\) and 15d-15\(d\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 239.66 305.20 Td (Act that occurred during the quarter ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.09 305.20 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.67 305.20 Td ( that has ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 293.20 Td (materially af) Tj ET Q q 0 0 0 rg BT 100.63 293.20 Td (fected, or is reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 282.04 293.20 Td (fect, our internal control over financial reporting.) Tj ET Q BT /F2 14.00 Tf ET q 0 0 0 rg BT 50.00 276.40 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 256.63 Td (Item9B.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 256.63 Td (Other Information) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 235.40 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 191 0 obj <> endobj 192 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (91) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 728.25 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 728.25 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 728.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 728.25 Td ( III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 711.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 711.25 Td (e will file a definitive Proxy Statement for our 2014 ) Tj ET Q q 0 0 0 rg BT 268.04 711.25 Td (Annual Meeting of Stockholders \(the 2014 Proxy Statement\) with the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 699.25 Td (SEC, pursuant to Regulation 14A, not later than 120 days after the end of our fiscal year) Tj ET Q q 0 0 0 rg BT 402.69 699.25 Td (. ) Tj ET Q q 0 0 0 rg BT 407.14 699.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 456.47 699.25 Td (, certain information ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 687.25 Td (required by Part III has been omitted under General Instruction G\(3\) to Form 10-K. Only those sections of the 2014 Proxy ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 675.25 Td (Statement that specifically address the items set forth herein are incorporated by reference.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 641.48 Td (Item10.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 641.48 Td (Directors, Executive Officers and Corporate Governance) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 620.25 Td (The information required by Item10 is hereby incorporated by reference from our 2014 Proxy Statement under the captions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 608.25 Td (Election of Directors and Section 16\(a\) Beneficial Ownership Reporting Compliance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 574.48 Td (Item11.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 574.48 Td (Executive Compensation) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 553.25 Td (The information required by Item1) Tj ET Q q 0 0 0 rg BT 191.53 553.25 Td (1 is hereby incorporated by reference from our 2014 Proxy Statement under the captions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 541.25 Td (Executive Compensation and Director Compensation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 520.25 Td (The information required to be disclosed by Item201\(d\) of Regulation S-K regarding equity securities authorized for issuance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 508.25 Td (under our equity incentive plans is hereby incorporated by reference from our 2014 Proxy Statement under the caption ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 496.25 Td (Securities ) Tj ET Q q 0 0 0 rg BT 95.82 496.25 Td (Authorized for Issuance under Equity Compensation Plans.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 462.48 Td (Item12.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 462.48 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 441.25 Td (The information required by Item12 is hereby incorporated by reference from our 2014 Proxy Statement under the caption ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 429.25 Td (Security Ownership of Certain Beneficial Owners and Management.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 395.48 Td (Item13.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 395.48 Td (Certain Relationships and Related Transactions, and Director Independence) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (The information required by Item13 is hereby incorporated by reference from our 2014 Proxy Statement under the captions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (T) Tj ET Q q 0 0 0 rg BT 60.20 362.25 Td (ransactions with Related Persons and Independence of the Board of Directors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 328.48 Td (Item14.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 328.48 Td (Principal Accountant Fees and Services) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 307.25 Td (The information required by Item14 is hereby incorporated by reference from our 2014 Proxy Statement under the caption ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 295.25 Td (Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 179.13 295.25 Td (Accounting Firm Fees.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 193 0 obj <> endobj 194 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (92) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 742.25 Td ( IV) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 713.48 Td (Item15.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 109.00 713.48 Td (Exhibits and Financial Statement Schedules) Tj ET Q BT /F2 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.00 692.25 Td (\(a\) Financial Statements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 675.25 Td (The financial statements filed as part of this report are listed on the index to financial statements on page 66.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.00 649.25 Td (\(b\) Financial Statement Schedules) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 632.25 Td (The following financial statement schedule is filed as a part of this ) Tj ET Q q 0 0 0 rg BT 318.26 632.25 Td (Annual Report on Form 10-K) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 122.85 602.25 Td (SCHEDULE IICONSOLIDA) Tj ET Q q 0 0 0 rg BT 257.97 602.25 Td (TED ) Tj ET Q q 0 0 0 rg BT 280.85 602.25 Td (V) Tj ET Q q 0 0 0 rg BT 286.79 602.25 Td (ALUA) Tj ET Q q 0 0 0 rg BT 314.38 602.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 341.89 602.25 Td (AND QUALIFYING ) Tj ET Q q 0 0 0 rg BT 433.01 602.25 Td (ACCOUNTS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.00 590.25 Td (\(In thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 579.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 531.95 m 286.5 531.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290.5 531.95 m 355.5 531.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 531.95 m 424.5 531.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 531.95 m 493.5 531.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 531.95 m 562.5 531.95 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 235.60 552.18 Td (Balanceat) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 236.15 544.18 Td (Beginning) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 241.35 536.18 Td (of ) Tj ET Q q 0 0 0 rg BT 249.72 536.18 Td (Y) Tj ET Q q 0 0 0 rg BT 254.61 536.18 Td (ear) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 306.90 560.18 Td (Amounts) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 303.25 552.18 Td (Chargedto) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 303.35 544.18 Td (Operations) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 317.80 536.18 Td (\(1\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 372.35 544.18 Td (Deductions) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.80 536.18 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.80 560.18 Td (Additions) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.20 552.18 Td (Acquir) Tj ET Q q 0 0 0 rg BT 459.06 552.18 Td (edfr) Tj ET Q q 0 0 0 rg BT 475.13 552.18 Td (om) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 445.80 544.18 Td (Business) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 436.45 536.18 Td (Combinations) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.60 544.18 Td (Balanceat) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 509.25 536.18 Td (Endof) Tj ET Q q 0 0 0 rg BT 533.85 536.18 Td (Y) Tj ET Q q 0 0 0 rg BT 538.74 536.18 Td (ear) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 522.68 Td (Allowance for doubtful accounts:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 507.62 Td (Year Ended December 31, 2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.65 507.62 Td (38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 507.62 Td (56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.30 507.67 Td (\(40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.65 507.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 507.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 507.62 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 492.62 Td (Year Ended December 31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.65 492.62 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 492.62 Td (718) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 492.67 Td (\(633) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.65 492.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 492.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 492.62 Td (139) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 477.62 Td (Year Ended December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.65 477.62 Td (139) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 477.62 Td (149) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.30 477.67 Td (\(160) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.65 477.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 477.62 Td (128) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 463.68 Td (Allowance for deferred tax assets:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 448.62 Td (Year Ended December 31, 2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 255.15 448.62 Td (33,499) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.80 448.67 Td (\(8,946) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.65 448.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.80 448.67 Td (\(22,979) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.65 448.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 448.62 Td (2,131) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 448.62 Td (3,705) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 433.62 Td (Year Ended December 31, 2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.15 433.62 Td (3,705) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 433.62 Td (1,853) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.65 433.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 433.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 433.62 Td (5,558) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 418.62 Td (Year Ended December 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.15 418.62 Td (5,558) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 418.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 418.67 Td (\(2,261) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.65 418.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 418.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 418.62 Td (3,297) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.45 Td (_______________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 390.45 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 390.45 Td (Amount represents char) Tj ET Q q 0 0 0 rg BT 181.34 390.45 Td (ges to bad debt and increase to or \(release of\) our valuation allowance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 378.45 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 378.45 Td (Amount represents recoveries of accounts receivable previously char) Tj ET Q q 0 0 0 rg BT 361.54 378.45 Td (ged to the allowance and utilization of NOL) Tj ET Q q 0 0 0 rg BT 536.95 378.45 Td () Tj ET Q q 0 0 0 rg BT 539.73 378.45 Td (s ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 366.45 Td (against the valuation allowance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.00 340.45 Td (\(c\) Exhibits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 323.45 Td (The following exhibits are incorporated by reference or filed herewith.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.45 Td (See Exhibit Index) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 195 0 obj <> endobj 196 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (93) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.85 742.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 742.25 Td (TURES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Pursuant to the requirements of Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 366.87 725.25 Td (Act of 1934, as amended, the registrant has duly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 567.00 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 567.00 Td (Filed as exhibit3.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 567.00 Td (s Current Report on Form8-K \(File No.001-34777\) filed with the Securities and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 555.00 Td (Exchange Commission on June25, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 543.00 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 543.00 Td (Filed as exhibit3.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 543.00 Td (s Current Report on Form 8-K \(File No. 001-34777\) filed with the Securities and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 531.00 Td (Exchange Commission on November 20, 2013 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 519.00 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 519.00 Td (Filed as exhibit4.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 519.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 507.00 Td (the Securities and Exchange Commission on June1, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 495.00 Td (\(5\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 495.00 Td (Filed as exhibit4.5 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 495.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 483.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 471.00 Td (\(6\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 471.00 Td (Filed as exhibit4.6 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 471.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 459.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 447.00 Td (\(7\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 447.00 Td (Filed as exhibit4.7 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 447.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 435.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 423.00 Td (\(8\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 423.00 Td (Filed as exhibit4.8 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 423.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 411.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 399.00 Td (\(9\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 399.00 Td (Filed as exhibit4.9 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 399.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 387.00 Td (the Securities and Exchange Commission on ) Tj ET Q q 0 0 0 rg BT 266.53 387.00 Td (April16, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 375.00 Td (\(10\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 375.00 Td (Filed as exhibit4.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 375.00 Td (s Current Report on Form 8-K \(File No.001-34777\) filed with the Securities and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 363.00 Td (Exchange Commission on June21, 201) Tj ET Q q 0 0 0 rg BT 243.95 363.00 Td (1 and incorporated by reference herein.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 351.00 Td (\(1) Tj ET Q q 0 0 0 rg BT 57.96 351.00 Td (1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 351.00 Td (Filed as exhibit4.2 to the Registrant) Tj ET Q q 0 0 0 rg BT 234.04 351.00 Td (s Current Report on Form 8-K \(File No.001-34777\) filed with the Securities and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 339.00 Td (Exchange Commission on June21, 201) Tj ET Q q 0 0 0 rg BT 243.95 339.00 Td (1 and incorporated by reference herein.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 327.00 Td (\(12\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 327.00 Td (Filed as exhibit10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 327.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 315.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 303.00 Td (\(13\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 303.00 Td (Filed as exhibit10.2 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 303.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 291.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 279.00 Td (\(14\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 279.00 Td (Filed as exhibit10.3 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 279.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 267.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 255.00 Td (\(15\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 255.00 Td (Filed as exhibit10.5 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 255.00 Td (s ) Tj ET Q q 0 0 0 rg BT 244.88 255.00 Td (Annual Report on Form 10-K filed with the Securities and Exchange ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 243.00 Td (Commission on March7, 201) Tj ET Q q 0 0 0 rg BT 204.79 243.00 Td (1 and incorporated by reference herein.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 231.00 Td (\(16\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 231.00 Td (Filed as exhibit10.6 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 231.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 219.00 Td (the Securities and Exchange Commission on June1, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 207.00 Td (\(17\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 207.00 Td (Filed as exhibit10.7 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 207.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 195.00 Td (the Securities and Exchange Commission on June1, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 183.00 Td (\(18\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 183.00 Td (Filed as exhibit10.8 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 183.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 171.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 159.00 Td (\(19\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 159.00 Td (Filed as exhibit10.9 to the Registrant) Tj ET Q q 0 0 0 rg BT 239.04 159.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 147.00 Td (the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 135.00 Td (\(20\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 135.00 Td (Filed as exhibit10.10 to the Registrant) Tj ET Q q 0 0 0 rg BT 244.04 135.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 123.00 Td (with the Securities and Exchange Commission on March15, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 111.00 Td (\(21\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 111.00 Td (Filed as exhibit10.19 to the Registrant) Tj ET Q q 0 0 0 rg BT 244.04 111.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 99.00 Td (with the Securities and Exchange Commission on ) Tj ET Q q 0 0 0 rg BT 286.81 99.00 Td (April16, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 87.00 Td (\(22\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 87.00 Td (Filed as exhibit10.20 to the Registrant) Tj ET Q q 0 0 0 rg BT 244.04 87.00 Td (s Registration Statement on FormS-1 \(Registration No.333-165484\) filed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 75.00 Td (with the Securities and Exchange Commission on June1, 2010 and incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q endstream endobj 201 0 obj <> endobj 202 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (96) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (\(23\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (Filed herewith. Previously filed, with certain portions redacted pursuant to a confidential treatment request, as exhibit ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (10.1 to the Registrant's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 6, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 686.17 Td (*) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 686.17 Td (Denotes management compensation plan or arrangement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 671.17 Td (^) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 671.17 Td (Confidential treatment has been granted with respect to certain portions of this exhibit. A complete copy of the) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 661.17 Td (document, including the redacted portions, has been filed separately with the SEC.) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 9.00 Tf ET endstream endobj 203 0 obj <> endobj 204 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 494.35 742.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 536.96 742.25 Td ( 10.13) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 177.30 730.25 Td (BROADSOFT) Tj ET Q q 0 0 0 rg BT 239.35 730.25 Td ( 2013 EXECUTIVE ) Tj ET Q q 0 0 0 rg BT 325.76 730.25 Td (ANNUAL) Tj ET Q q 0 0 0 rg BT 367.98 730.25 Td ( BONUS PLAN) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 261.50 718.25 Td (PLAN DOCUMENT) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Purpose:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Short-term ) Tj ET Q q 0 0 0 rg BT 97.58 682.25 Td (incentives ) Tj ET Q q 0 0 0 rg BT 142.38 682.25 Td (\(annual ) Tj ET Q q 0 0 0 rg BT 176.61 682.25 Td (variable ) Tj ET Q q 0 0 0 rg BT 213.07 682.25 Td (pay\) ) Tj ET Q q 0 0 0 rg BT 235.09 682.25 Td (serve ) Tj ET Q q 0 0 0 rg BT 260.45 682.25 Td (to ) Tj ET Q q 0 0 0 rg BT 272.48 682.25 Td (align ) Tj ET Q q 0 0 0 rg BT 296.73 682.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 339.87 682.25 Td (and ) Tj ET Q q 0 0 0 rg BT 358.56 682.25 Td (individual ) Tj ET Q q 0 0 0 rg BT 403.37 682.25 Td (or) Tj ET Q q 0 0 0 rg BT 411.51 682.25 Td (ganizational ) Tj ET Q q 0 0 0 rg BT 464.64 682.25 Td (objectives ) Tj ET Q q 0 0 0 rg BT 509.43 682.25 Td (and ) Tj ET Q q 0 0 0 rg BT 528.12 682.25 Td (personal ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (performance. ) Tj ET Q q 0 0 0 rg BT 105.52 670.25 Td ( ) Tj ET Q q 0 0 0 rg BT 107.84 670.25 Td (The ) Tj ET Q q 0 0 0 rg BT 125.89 670.25 Td (objectives ) Tj ET Q q 0 0 0 rg BT 168.93 670.25 Td (of ) Tj ET Q q 0 0 0 rg BT 179.76 670.25 Td (the ) Tj ET Q q 0 0 0 rg BT 194.48 670.25 Td (BroadSoft ) Tj ET Q q 0 0 0 rg BT 238.09 670.25 Td (2013 ) Tj ET Q q 0 0 0 rg BT 260.59 670.25 Td (Executive ) Tj ET Q q 0 0 0 rg BT 302.51 670.25 Td (Annual ) Tj ET Q q 0 0 0 rg BT 334.45 670.25 Td (Bonus ) Tj ET Q q 0 0 0 rg BT 362.51 670.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 382.79 670.25 Td (are ) Tj ET Q q 0 0 0 rg BT 397.50 670.25 Td (as ) Tj ET Q q 0 0 0 rg BT 408.33 670.25 Td (follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 658.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 658.25 Td (Align ) Tj ET Q q 0 0 0 rg BT 111.28 658.25 Td (individual ) Tj ET Q q 0 0 0 rg BT 154.33 658.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 207.35 658.25 Td (with ) Tj ET Q q 0 0 0 rg BT 227.63 658.25 Td (BroadSoft) Tj ET Q q 0 0 0 rg BT 271.52 658.25 Td (s ) Tj ET Q q 0 0 0 rg BT 277.91 658.25 Td (initiatives, ) Tj ET Q q 0 0 0 rg BT 322.35 658.25 Td (objectives ) Tj ET Q q 0 0 0 rg BT 365.39 658.25 Td (and ) Tj ET Q q 0 0 0 rg BT 382.33 658.25 Td (goals ) Tj ET Q q 0 0 0 rg BT 405.94 658.25 Td (for ) Tj ET Q q 0 0 0 rg BT 420.10 658.25 Td (the ) Tj ET Q q 0 0 0 rg BT 434.81 658.25 Td (coming ) Tj ET Q q 0 0 0 rg BT 467.31 658.25 Td (year;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 646.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 646.25 Td (Reward ) Tj ET Q q 0 0 0 rg BT 119.60 646.25 Td (employees ) Tj ET Q q 0 0 0 rg BT 164.86 646.25 Td (when ) Tj ET Q q 0 0 0 rg BT 189.02 646.25 Td (criteria ) Tj ET Q q 0 0 0 rg BT 219.83 646.25 Td (for ) Tj ET Q q 0 0 0 rg BT 233.99 646.25 Td (earning ) Tj ET Q q 0 0 0 rg BT 266.48 646.25 Td (a ) Tj ET Q q 0 0 0 rg BT 273.42 646.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 299.81 646.25 Td (are ) Tj ET Q q 0 0 0 rg BT 314.52 646.25 Td (met ) Tj ET Q q 0 0 0 rg BT 332.01 646.25 Td (and ) Tj ET Q q 0 0 0 rg BT 348.95 646.25 Td (goals ) Tj ET Q q 0 0 0 rg BT 372.56 646.25 Td (are ) Tj ET Q q 0 0 0 rg BT 387.26 646.25 Td (obtained; ) Tj ET Q q 0 0 0 rg BT 426.98 646.25 Td (and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 634.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 634.25 Td (Provide ) Tj ET Q q 0 0 0 rg BT 118.58 634.25 Td (employees ) Tj ET Q q 0 0 0 rg BT 162.82 634.25 Td (with ) Tj ET Q q 0 0 0 rg BT 182.07 634.25 Td (the ) Tj ET Q q 0 0 0 rg BT 195.76 634.25 Td (opportunity ) Tj ET Q q 0 0 0 rg BT 243.90 634.25 Td (to ) Tj ET Q q 0 0 0 rg BT 253.15 634.25 Td (earn ) Tj ET Q q 0 0 0 rg BT 271.83 634.25 Td (incentive ) Tj ET Q q 0 0 0 rg BT 309.96 634.25 Td (pay ) Tj ET Q q 0 0 0 rg BT 325.87 634.25 Td (based ) Tj ET Q q 0 0 0 rg BT 350.11 634.25 Td (on ) Tj ET Q q 0 0 0 rg BT 361.58 634.25 Td (the ) Tj ET Q q 0 0 0 rg BT 375.28 634.25 Td (employee) Tj ET Q q 0 0 0 rg BT 416.93 634.25 Td (s ) Tj ET Q q 0 0 0 rg BT 422.29 634.25 Td (level ) Tj ET Q q 0 0 0 rg BT 443.20 634.25 Td (of ) Tj ET Q q 0 0 0 rg BT 453.00 634.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 505.00 634.25 Td (and ) Tj ET Q q 0 0 0 rg BT 520.91 634.25 Td (associated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 622.25 Td (contribution ) Tj ET Q q 0 0 0 rg BT 137.38 622.25 Td (to ) Tj ET Q q 0 0 0 rg BT 147.66 622.25 Td (BroadSoft ) Tj ET Q q 0 0 0 rg BT 191.27 622.25 Td (and ) Tj ET Q q 0 0 0 rg BT 208.21 622.25 Td (on ) Tj ET Q q 0 0 0 rg BT 220.71 622.25 Td (achievement ) Tj ET Q q 0 0 0 rg BT 273.73 622.25 Td (of ) Tj ET Q q 0 0 0 rg BT 284.56 622.25 Td (corporate ) Tj ET Q q 0 0 0 rg BT 324.82 622.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 377.84 622.25 Td (goals.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 71.95 598.25 Td (Name:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (BroadSoft ) Tj ET Q q 0 0 0 rg BT 93.61 586.25 Td (2013 ) Tj ET Q q 0 0 0 rg BT 116.11 586.25 Td (Executive ) Tj ET Q q 0 0 0 rg BT 158.04 586.25 Td (Annual ) Tj ET Q q 0 0 0 rg BT 189.98 586.25 Td (Bonus ) Tj ET Q q 0 0 0 rg BT 218.04 586.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 238.32 586.25 Td (\(the ) Tj ET Q q 0 0 0 rg BT 260.80 586.25 Td (Plan\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (Effective ) Tj ET Q q 0 0 0 rg BT 90.25 562.25 Td (Date:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (The ) Tj ET Q q 0 0 0 rg BT 68.05 550.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 88.33 550.25 Td (is ) Tj ET Q q 0 0 0 rg BT 97.50 550.25 Td (ef) Tj ET Q q 0 0 0 rg BT 105.08 550.25 Td (fective ) Tj ET Q q 0 0 0 rg BT 134.79 550.25 Td (as ) Tj ET Q q 0 0 0 rg BT 145.62 550.25 Td (of ) Tj ET Q q 0 0 0 rg BT 156.45 550.25 Td (January ) Tj ET Q q 0 0 0 rg BT 190.04 550.25 Td (1, ) Tj ET Q q 0 0 0 rg BT 200.04 550.25 Td (2013 ) Tj ET Q q 0 0 0 rg BT 222.54 550.25 Td (for ) Tj ET Q q 0 0 0 rg BT 236.70 550.25 Td (calendar ) Tj ET Q q 0 0 0 rg BT 273.07 550.25 Td (year ) Tj ET Q q 0 0 0 rg BT 292.77 550.25 Td (2013. ) Tj ET Q q 0 0 0 rg BT 317.77 550.25 Td ( ) Tj ET Q q 0 0 0 rg BT 320.27 550.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (Criteria ) Tj ET Q q 0 0 0 rg BT 86.92 526.25 Td (for) Tj ET Q q 0 0 0 rg BT 99.51 526.25 Td ( ) Tj ET Q q 0 0 0 rg BT 102.01 526.25 Td (Earning ) Tj ET Q q 0 0 0 rg BT 139.52 526.25 Td (a ) Tj ET Q q 0 0 0 rg BT 147.02 526.25 Td (Bonus:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 502.25 Td (Eligibility:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (The ) Tj ET Q q 0 0 0 rg BT 68.08 490.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 88.40 490.25 Td (only ) Tj ET Q q 0 0 0 rg BT 108.71 490.25 Td (applies ) Tj ET Q q 0 0 0 rg BT 139.58 490.25 Td (to ) Tj ET Q q 0 0 0 rg BT 149.89 490.25 Td (those ) Tj ET Q q 0 0 0 rg BT 173.54 490.25 Td (executive ) Tj ET Q q 0 0 0 rg BT 214.38 490.25 Td (employees ) Tj ET Q q 0 0 0 rg BT 259.68 490.25 Td (who ) Tj ET Q q 0 0 0 rg BT 279.44 490.25 Td (are ) Tj ET Q q 0 0 0 rg BT 294.18 490.25 Td (notified ) Tj ET Q q 0 0 0 rg BT 327.82 490.25 Td (in ) Tj ET Q q 0 0 0 rg BT 338.14 490.25 Td (writing ) Tj ET Q q 0 0 0 rg BT 369.56 490.25 Td (by ) Tj ET Q q 0 0 0 rg BT 382.10 490.25 Td (the ) Tj ET Q q 0 0 0 rg BT 396.85 490.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 438.28 490.25 Td (that ) Tj ET Q q 0 0 0 rg BT 455.81 490.25 Td (they ) Tj ET Q q 0 0 0 rg BT 475.56 490.25 Td (are ) Tj ET Q q 0 0 0 rg BT 490.31 490.25 Td (eligible ) Tj ET Q q 0 0 0 rg BT 522.83 490.25 Td (to ) Tj ET Q q 0 0 0 rg BT 533.15 490.25 Td (receive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (an ) Tj ET Q q 0 0 0 rg BT 61.94 478.25 Td (annual ) Tj ET Q q 0 0 0 rg BT 91.09 478.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 117.49 478.25 Td (under ) Tj ET Q q 0 0 0 rg BT 142.75 478.25 Td (the ) Tj ET Q q 0 0 0 rg BT 157.47 478.25 Td (Plan.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 454.25 Td (Participation:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (Newly ) Tj ET Q q 0 0 0 rg BT 78.84 442.25 Td (eligible ) Tj ET Q q 0 0 0 rg BT 111.00 442.25 Td (employees ) Tj ET Q q 0 0 0 rg BT 155.94 442.25 Td (begin ) Tj ET Q q 0 0 0 rg BT 180.34 442.25 Td (participating ) Tj ET Q q 0 0 0 rg BT 233.05 442.25 Td (in ) Tj ET Q q 0 0 0 rg BT 243.01 442.25 Td (the ) Tj ET Q q 0 0 0 rg BT 257.40 442.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 277.36 442.25 Td (during ) Tj ET Q q 0 0 0 rg BT 305.64 442.25 Td (the ) Tj ET Q q 0 0 0 rg BT 320.03 442.25 Td (calendar ) Tj ET Q q 0 0 0 rg BT 356.07 442.25 Td (year ) Tj ET Q q 0 0 0 rg BT 375.46 442.25 Td (in ) Tj ET Q q 0 0 0 rg BT 385.41 442.25 Td (which ) Tj ET Q q 0 0 0 rg BT 412.03 442.25 Td (they ) Tj ET Q q 0 0 0 rg BT 431.42 442.25 Td (become ) Tj ET Q q 0 0 0 rg BT 464.69 442.25 Td (eligible. ) Tj ET Q q 0 0 0 rg BT 499.36 442.25 Td ( ) Tj ET Q q 0 0 0 rg BT 501.54 442.25 Td (Overall ) Tj ET Q q 0 0 0 rg BT 533.70 442.25 Td (awards ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (will ) Tj ET Q q 0 0 0 rg BT 67.09 430.25 Td (be ) Tj ET Q q 0 0 0 rg BT 78.05 430.25 Td (prorated ) Tj ET Q q 0 0 0 rg BT 112.90 430.25 Td (based ) Tj ET Q q 0 0 0 rg BT 137.20 430.25 Td (upon ) Tj ET Q q 0 0 0 rg BT 158.73 430.25 Td (active ) Tj ET Q q 0 0 0 rg BT 184.13 430.25 Td (employment ) Tj ET Q q 0 0 0 rg BT 235.65 430.25 Td (with ) Tj ET Q q 0 0 0 rg BT 254.96 430.25 Td (BroadSoft ) Tj ET Q q 0 0 0 rg BT 297.60 430.25 Td (and ) Tj ET Q q 0 0 0 rg BT 313.56 430.25 Td (the ) Tj ET Q q 0 0 0 rg BT 327.31 430.25 Td (date ) Tj ET Q q 0 0 0 rg BT 345.50 430.25 Td (on ) Tj ET Q q 0 0 0 rg BT 357.03 430.25 Td (which ) Tj ET Q q 0 0 0 rg BT 382.99 430.25 Td (eligibility ) Tj ET Q q 0 0 0 rg BT 423.41 430.25 Td (begins. ) Tj ET Q q 0 0 0 rg BT 453.55 430.25 Td ( ) Tj ET Q q 0 0 0 rg BT 455.08 430.25 Td (Unless ) Tj ET Q q 0 0 0 rg BT 483.83 430.25 Td (otherwise ) Tj ET Q q 0 0 0 rg BT 524.24 430.25 Td (expressly ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (specified ) Tj ET Q q 0 0 0 rg BT 88.53 418.25 Td (in ) Tj ET Q q 0 0 0 rg BT 98.74 418.25 Td (writing, ) Tj ET Q q 0 0 0 rg BT 132.56 418.25 Td (Employees ) Tj ET Q q 0 0 0 rg BT 179.43 418.25 Td (hired ) Tj ET Q q 0 0 0 rg BT 202.41 418.25 Td (after ) Tj ET Q q 0 0 0 rg BT 223.16 418.25 Td (September ) Tj ET Q q 0 0 0 rg BT 268.36 418.25 Td (30, ) Tj ET Q q 0 0 0 rg BT 283.29 418.25 Td (2013, ) Tj ET Q q 0 0 0 rg BT 308.23 418.25 Td (are ) Tj ET Q q 0 0 0 rg BT 322.87 418.25 Td (not ) Tj ET Q q 0 0 0 rg BT 338.08 418.25 Td (eligible ) Tj ET Q q 0 0 0 rg BT 370.50 418.25 Td (to ) Tj ET Q q 0 0 0 rg BT 380.72 418.25 Td (earn ) Tj ET Q q 0 0 0 rg BT 400.36 418.25 Td (a ) Tj ET Q q 0 0 0 rg BT 407.23 418.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 433.55 418.25 Td (under ) Tj ET Q q 0 0 0 rg BT 458.76 418.25 Td (the ) Tj ET Q q 0 0 0 rg BT 473.41 418.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 493.62 418.25 Td (for ) Tj ET Q q 0 0 0 rg BT 507.71 418.25 Td (the ) Tj ET Q q 0 0 0 rg BT 522.37 418.25 Td (2013 ) Tj ET Q q 0 0 0 rg BT 544.80 418.25 Td (plan ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (year) Tj ET Q q 0 0 0 rg BT 66.66 406.25 Td (. ) Tj ET Q q 0 0 0 rg BT 71.66 406.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 382.25 Td (Services:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (Employees ) Tj ET Q q 0 0 0 rg BT 97.14 370.25 Td (must ) Tj ET Q q 0 0 0 rg BT 119.29 370.25 Td (actively ) Tj ET Q q 0 0 0 rg BT 153.64 370.25 Td (perform ) Tj ET Q q 0 0 0 rg BT 188.55 370.25 Td (services ) Tj ET Q q 0 0 0 rg BT 223.45 370.25 Td (for ) Tj ET Q q 0 0 0 rg BT 237.82 370.25 Td (BroadSoft ) Tj ET Q q 0 0 0 rg BT 281.63 370.25 Td (from ) Tj ET Q q 0 0 0 rg BT 303.77 370.25 Td (January ) Tj ET Q q 0 0 0 rg BT 337.57 370.25 Td (1, ) Tj ET Q q 0 0 0 rg BT 347.77 370.25 Td (2013 ) Tj ET Q q 0 0 0 rg BT 370.47 370.25 Td (\(or ) Tj ET Q q 0 0 0 rg BT 384.83 370.25 Td (the ) Tj ET Q q 0 0 0 rg BT 399.75 370.25 Td (date ) Tj ET Q q 0 0 0 rg BT 419.11 370.25 Td (of ) Tj ET Q q 0 0 0 rg BT 430.14 370.25 Td (hire ) Tj ET Q q 0 0 0 rg BT 448.39 370.25 Td (for ) Tj ET Q q 0 0 0 rg BT 462.75 370.25 Td (new ) Tj ET Q q 0 0 0 rg BT 482.11 370.25 Td (employees\) ) Tj ET Q q 0 0 0 rg BT 530.91 370.25 Td (through ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (the ) Tj ET Q q 0 0 0 rg BT 65.15 358.25 Td (date ) Tj ET Q q 0 0 0 rg BT 84.75 358.25 Td (bonuses ) Tj ET Q q 0 0 0 rg BT 119.90 358.25 Td (are ) Tj ET Q q 0 0 0 rg BT 135.05 358.25 Td (paid ) Tj ET Q q 0 0 0 rg BT 155.20 358.25 Td (to ) Tj ET Q q 0 0 0 rg BT 165.92 358.25 Td (earn ) Tj ET Q q 0 0 0 rg BT 186.06 358.25 Td (a ) Tj ET Q q 0 0 0 rg BT 193.44 358.25 Td (bonus. ) Tj ET Q q 0 0 0 rg BT 222.77 358.25 Td ( ) Tj ET Q q 0 0 0 rg BT 225.70 358.25 Td (Performance ) Tj ET Q q 0 0 0 rg BT 279.72 358.25 Td (of ) Tj ET Q q 0 0 0 rg BT 290.99 358.25 Td (services ) Tj ET Q q 0 0 0 rg BT 326.14 358.25 Td (is ) Tj ET Q q 0 0 0 rg BT 335.74 358.25 Td (a ) Tj ET Q q 0 0 0 rg BT 343.12 358.25 Td (criteria ) Tj ET Q q 0 0 0 rg BT 374.37 358.25 Td (for ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 388.96 358.25 Td (earning) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.07 358.25 Td ( ) Tj ET Q q 0 0 0 rg BT 423.01 358.25 Td (a ) Tj ET Q q 0 0 0 rg BT 430.38 358.25 Td (bonus, ) Tj ET Q q 0 0 0 rg BT 459.71 358.25 Td (not ) Tj ET Q q 0 0 0 rg BT 475.43 358.25 Td (simply ) Tj ET Q q 0 0 0 rg BT 505.59 358.25 Td (a ) Tj ET Q q 0 0 0 rg BT 512.97 358.25 Td (condition ) Tj ET Q q 0 0 0 rg BT 553.68 358.25 Td (of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (payment. ) Tj ET Q q 0 0 0 rg BT 89.46 346.25 Td ( ) Tj ET Q q 0 0 0 rg BT 91.98 346.25 Td (No ) Tj ET Q q 0 0 0 rg BT 106.73 346.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 133.14 346.25 Td (payments, ) Tj ET Q q 0 0 0 rg BT 176.49 346.25 Td (prorated ) Tj ET Q q 0 0 0 rg BT 212.33 346.25 Td (or ) Tj ET Q q 0 0 0 rg BT 223.19 346.25 Td (otherwise, ) Tj ET Q q 0 0 0 rg BT 267.09 346.25 Td (can ) Tj ET Q q 0 0 0 rg BT 283.49 346.25 Td (be ) Tj ET Q q 0 0 0 rg BT 295.45 346.25 Td (earned ) Tj ET Q q 0 0 0 rg BT 324.62 346.25 Td (if ) Tj ET Q q 0 0 0 rg BT 333.26 346.25 Td (an ) Tj ET Q q 0 0 0 rg BT 345.22 346.25 Td (employee ) Tj ET Q q 0 0 0 rg BT 386.62 346.25 Td (is ) Tj ET Q q 0 0 0 rg BT 395.81 346.25 Td (terminated ) Tj ET Q q 0 0 0 rg BT 441.09 346.25 Td (or ) Tj ET Q q 0 0 0 rg BT 451.95 346.25 Td (resigns ) Tj ET Q q 0 0 0 rg BT 482.80 346.25 Td (for ) Tj ET Q q 0 0 0 rg BT 496.99 346.25 Td (any ) Tj ET Q q 0 0 0 rg BT 513.95 346.25 Td (reason ) Tj ET Q q 0 0 0 rg BT 542.57 346.25 Td (prior ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (to ) Tj ET Q q 0 0 0 rg BT 60.28 334.25 Td (the ) Tj ET Q q 0 0 0 rg BT 75.00 334.25 Td (date ) Tj ET Q q 0 0 0 rg BT 94.15 334.25 Td (on ) Tj ET Q q 0 0 0 rg BT 106.65 334.25 Td (which ) Tj ET Q q 0 0 0 rg BT 133.59 334.25 Td (annual ) Tj ET Q q 0 0 0 rg BT 162.74 334.25 Td (bonuses ) Tj ET Q q 0 0 0 rg BT 197.47 334.25 Td (are ) Tj ET Q q 0 0 0 rg BT 212.17 334.25 Td (paid.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.48 310.25 Td (ward ) Tj ET Q q 0 0 0 rg BT 81.20 310.25 Td (Opportunities:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (Each ) Tj ET Q q 0 0 0 rg BT 72.85 298.25 Td (eligible ) Tj ET Q q 0 0 0 rg BT 105.70 298.25 Td (plan ) Tj ET Q q 0 0 0 rg BT 125.78 298.25 Td (participant ) Tj ET Q q 0 0 0 rg BT 171.40 298.25 Td (will ) Tj ET Q q 0 0 0 rg BT 189.82 298.25 Td (be ) Tj ET Q q 0 0 0 rg BT 202.12 298.25 Td (assigned ) Tj ET Q q 0 0 0 rg BT 239.42 298.25 Td (a ) Tj ET Q q 0 0 0 rg BT 246.73 298.25 Td (tar) Tj ET Q q 0 0 0 rg BT 257.09 298.25 Td (get ) Tj ET Q q 0 0 0 rg BT 272.17 298.25 Td (award ) Tj ET Q q 0 0 0 rg BT 299.46 298.25 Td (opportunity) Tj ET Q q 0 0 0 rg BT 345.48 298.25 Td (, ) Tj ET Q q 0 0 0 rg BT 350.84 298.25 Td (which ) Tj ET Q q 0 0 0 rg BT 378.14 298.25 Td (will ) Tj ET Q q 0 0 0 rg BT 396.56 298.25 Td (be ) Tj ET Q q 0 0 0 rg BT 408.86 298.25 Td (communicated ) Tj ET Q q 0 0 0 rg BT 470.59 298.25 Td (at ) Tj ET Q q 0 0 0 rg BT 480.67 298.25 Td (the ) Tj ET Q q 0 0 0 rg BT 495.75 298.25 Td (beginning ) Tj ET Q q 0 0 0 rg BT 538.61 298.25 Td (of ) Tj ET Q q 0 0 0 rg BT 549.80 298.25 Td (the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (plan ) Tj ET Q q 0 0 0 rg BT 70.25 286.25 Td (year ) Tj ET Q q 0 0 0 rg BT 90.50 286.25 Td (or ) Tj ET Q q 0 0 0 rg BT 101.86 286.25 Td (when ) Tj ET Q q 0 0 0 rg BT 126.56 286.25 Td (they ) Tj ET Q q 0 0 0 rg BT 146.81 286.25 Td (become ) Tj ET Q q 0 0 0 rg BT 180.94 286.25 Td (eligible ) Tj ET Q q 0 0 0 rg BT 213.97 286.25 Td (to ) Tj ET Q q 0 0 0 rg BT 224.78 286.25 Td (participate ) Tj ET Q q 0 0 0 rg BT 270.02 286.25 Td (in ) Tj ET Q q 0 0 0 rg BT 280.83 286.25 Td (the ) Tj ET Q q 0 0 0 rg BT 296.08 286.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 316.90 286.25 Td (as ) Tj ET Q q 0 0 0 rg BT 328.26 286.25 Td (specified ) Tj ET Q q 0 0 0 rg BT 367.39 286.25 Td (herein. ) Tj ET Q q 0 0 0 rg BT 397.92 286.25 Td ( ) Tj ET Q q 0 0 0 rg BT 400.73 286.25 Td (The ) Tj ET Q q 0 0 0 rg BT 419.31 286.25 Td (tar) Tj ET Q q 0 0 0 rg BT 429.68 286.25 Td (get ) Tj ET Q q 0 0 0 rg BT 444.93 286.25 Td (award ) Tj ET Q q 0 0 0 rg BT 472.40 286.25 Td (represents ) Tj ET Q q 0 0 0 rg BT 515.97 286.25 Td (the ) Tj ET Q q 0 0 0 rg BT 531.22 286.25 Td (level ) Tj ET Q q 0 0 0 rg BT 553.69 286.25 Td (of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 76.76 274.25 Td (payment ) Tj ET Q q 0 0 0 rg BT 114.05 274.25 Td (the ) Tj ET Q q 0 0 0 rg BT 129.13 274.25 Td (participant ) Tj ET Q q 0 0 0 rg BT 174.76 274.25 Td (may ) Tj ET Q q 0 0 0 rg BT 194.84 274.25 Td (earn ) Tj ET Q q 0 0 0 rg BT 214.91 274.25 Td (in ) Tj ET Q q 0 0 0 rg BT 225.55 274.25 Td (the ) Tj ET Q q 0 0 0 rg BT 240.63 274.25 Td (event ) Tj ET Q q 0 0 0 rg BT 265.15 274.25 Td (the ) Tj ET Q q 0 0 0 rg BT 280.23 274.25 Td (criteria ) Tj ET Q q 0 0 0 rg BT 311.40 274.25 Td (for ) Tj ET Q q 0 0 0 rg BT 325.93 274.25 Td (earning ) Tj ET Q q 0 0 0 rg BT 358.78 274.25 Td (a ) Tj ET Q q 0 0 0 rg BT 366.08 274.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 392.83 274.25 Td (and ) Tj ET Q q 0 0 0 rg BT 410.14 274.25 Td (individual ) Tj ET Q q 0 0 0 rg BT 453.55 274.25 Td (and ) Tj ET Q q 0 0 0 rg BT 470.85 274.25 Td (corporate ) Tj ET Q q 0 0 0 rg BT 511.47 274.25 Td (performance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (are ) Tj ET Q q 0 0 0 rg BT 64.71 262.25 Td (achieved. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (Performance ) Tj ET Q q 0 0 0 rg BT 108.02 238.25 Td (Measur) Tj ET Q q 0 0 0 rg BT 140.61 238.25 Td (ement:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (Near ) Tj ET Q q 0 0 0 rg BT 71.10 226.25 Td (the ) Tj ET Q q 0 0 0 rg BT 84.99 226.25 Td (beginning ) Tj ET Q q 0 0 0 rg BT 126.66 226.25 Td (of ) Tj ET Q q 0 0 0 rg BT 136.67 226.25 Td (each ) Tj ET Q q 0 0 0 rg BT 156.66 226.25 Td (calendar ) Tj ET Q q 0 0 0 rg BT 192.19 226.25 Td (year) Tj ET Q q 0 0 0 rg BT 209.00 226.25 Td (, ) Tj ET Q q 0 0 0 rg BT 213.17 226.25 Td (senior ) Tj ET Q q 0 0 0 rg BT 239.28 226.25 Td (management ) Tj ET Q q 0 0 0 rg BT 292.05 226.25 Td (will ) Tj ET Q q 0 0 0 rg BT 309.28 226.25 Td (establish ) Tj ET Q q 0 0 0 rg BT 345.95 226.25 Td (and ) Tj ET Q q 0 0 0 rg BT 362.06 226.25 Td (communicate ) Tj ET Q q 0 0 0 rg BT 417.60 226.25 Td (to ) Tj ET Q q 0 0 0 rg BT 427.05 226.25 Td (each ) Tj ET Q q 0 0 0 rg BT 447.04 226.25 Td (plan ) Tj ET Q q 0 0 0 rg BT 465.93 226.25 Td (participant ) Tj ET Q q 0 0 0 rg BT 510.36 226.25 Td (the ) Tj ET Q q 0 0 0 rg BT 524.25 226.25 Td (corporate ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 103.03 214.25 Td (objectives ) Tj ET Q q 0 0 0 rg BT 146.08 214.25 Td (for ) Tj ET Q q 0 0 0 rg BT 160.25 214.25 Td (BroadSoft. ) Tj ET Q q 0 0 0 rg BT 208.69 214.25 Td (The ) Tj ET Q q 0 0 0 rg BT 226.74 214.25 Td (goals ) Tj ET Q q 0 0 0 rg BT 250.36 214.25 Td (and ) Tj ET Q q 0 0 0 rg BT 267.31 214.25 Td (key ) Tj ET Q q 0 0 0 rg BT 284.25 214.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 337.29 214.25 Td (factors ) Tj ET Q q 0 0 0 rg BT 367.00 214.25 Td (for ) Tj ET Q q 0 0 0 rg BT 381.17 214.25 Td (BroadSoft ) Tj ET Q q 0 0 0 rg BT 424.79 214.25 Td (will ) Tj ET Q q 0 0 0 rg BT 442.85 214.25 Td (be ) Tj ET Q q 0 0 0 rg BT 454.80 214.25 Td (developed ) Tj ET Q q 0 0 0 rg BT 498.40 214.25 Td (by ) Tj ET Q q 0 0 0 rg BT 510.91 214.25 Td (management ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (and ) Tj ET Q q 0 0 0 rg BT 66.94 202.25 Td (approved ) Tj ET Q q 0 0 0 rg BT 106.65 202.25 Td (by ) Tj ET Q q 0 0 0 rg BT 119.15 202.25 Td (the ) Tj ET Q q 0 0 0 rg BT 133.86 202.25 Td (Compensation ) Tj ET Q q 0 0 0 rg BT 194.14 202.25 Td (Committee ) Tj ET Q q 0 0 0 rg BT 241.07 202.25 Td (of ) Tj ET Q q 0 0 0 rg BT 251.90 202.25 Td (the ) Tj ET Q q 0 0 0 rg BT 266.62 202.25 Td (BroadSoft ) Tj ET Q q 0 0 0 rg BT 310.23 202.25 Td (Board ) Tj ET Q q 0 0 0 rg BT 337.17 202.25 Td (of ) Tj ET Q q 0 0 0 rg BT 348.00 202.25 Td (Directors. ) Tj ET Q q 0 0 0 rg BT 390.21 202.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (In ) Tj ET Q q 0 0 0 rg BT 61.27 178.25 Td (addition, ) Tj ET Q q 0 0 0 rg BT 99.49 178.25 Td (the ) Tj ET Q q 0 0 0 rg BT 114.65 178.25 Td (participant ) Tj ET Q q 0 0 0 rg BT 160.36 178.25 Td (and ) Tj ET Q q 0 0 0 rg BT 177.74 178.25 Td (his ) Tj ET Q q 0 0 0 rg BT 192.35 178.25 Td (or ) Tj ET Q q 0 0 0 rg BT 203.63 178.25 Td (her ) Tj ET Q q 0 0 0 rg BT 219.34 178.25 Td (supervisor ) Tj ET Q q 0 0 0 rg BT 263.95 178.25 Td (shall ) Tj ET Q q 0 0 0 rg BT 285.78 178.25 Td (work ) Tj ET Q q 0 0 0 rg BT 309.27 178.25 Td (cooperatively ) Tj ET Q q 0 0 0 rg BT 366.64 178.25 Td (to ) Tj ET Q q 0 0 0 rg BT 377.36 178.25 Td (establish ) Tj ET Q q 0 0 0 rg BT 415.30 178.25 Td (personal ) Tj ET Q q 0 0 0 rg BT 452.12 178.25 Td (objectives ) Tj ET Q q 0 0 0 rg BT 495.61 178.25 Td (for ) Tj ET Q q 0 0 0 rg BT 510.21 178.25 Td (2013. ) Tj ET Q q 0 0 0 rg BT 535.65 178.25 Td ( ) Tj ET Q q 0 0 0 rg BT 537.95 178.25 Td (A) Tj ET Q q 0 0 0 rg BT 544.62 178.25 Td ( ) Tj ET Q q 0 0 0 rg BT 547.56 178.25 Td (key ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 102.72 166.25 Td (objective ) Tj ET Q q 0 0 0 rg BT 141.58 166.25 Td (for ) Tj ET Q q 0 0 0 rg BT 155.44 166.25 Td (all ) Tj ET Q q 0 0 0 rg BT 167.64 166.25 Td (plan ) Tj ET Q q 0 0 0 rg BT 187.06 166.25 Td (participants ) Tj ET Q q 0 0 0 rg BT 235.91 166.25 Td (shall ) Tj ET Q q 0 0 0 rg BT 257.00 166.25 Td (be ) Tj ET Q q 0 0 0 rg BT 268.64 166.25 Td (compliance ) Tj ET Q q 0 0 0 rg BT 316.93 166.25 Td (with ) Tj ET Q q 0 0 0 rg BT 336.91 166.25 Td (BroadSoft) Tj ET Q q 0 0 0 rg BT 380.80 166.25 Td (s ) Tj ET Q q 0 0 0 rg BT 386.89 166.25 Td (general ) Tj ET Q q 0 0 0 rg BT 418.52 166.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 471.24 166.25 Td (and ) Tj ET Q q 0 0 0 rg BT 487.88 166.25 Td (conduct ) Tj ET Q q 0 0 0 rg BT 521.74 166.25 Td (standards, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (taking ) Tj ET Q q 0 0 0 rg BT 77.24 154.25 Td (into ) Tj ET Q q 0 0 0 rg BT 95.04 154.25 Td (account ) Tj ET Q q 0 0 0 rg BT 128.38 154.25 Td (the ) Tj ET Q q 0 0 0 rg BT 142.85 154.25 Td (nature ) Tj ET Q q 0 0 0 rg BT 170.08 154.25 Td (and ) Tj ET Q q 0 0 0 rg BT 186.76 154.25 Td (extent ) Tj ET Q q 0 0 0 rg BT 213.44 154.25 Td (of ) Tj ET Q q 0 0 0 rg BT 224.02 154.25 Td (any ) Tj ET Q q 0 0 0 rg BT 240.70 154.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 293.47 154.25 Td (or ) Tj ET Q q 0 0 0 rg BT 304.05 154.25 Td (conduct ) Tj ET Q q 0 0 0 rg BT 337.95 154.25 Td (problems ) Tj ET Q q 0 0 0 rg BT 377.41 154.25 Td (during ) Tj ET Q q 0 0 0 rg BT 405.77 154.25 Td (the ) Tj ET Q q 0 0 0 rg BT 420.23 154.25 Td (Bonus ) Tj ET Q q 0 0 0 rg BT 448.04 154.25 Td (Plan ) Tj ET Q q 0 0 0 rg BT 468.06 154.25 Td (year ) Tj ET Q q 0 0 0 rg BT 487.51 154.25 Td (and ) Tj ET Q q 0 0 0 rg BT 504.20 154.25 Td (whether ) Tj ET Q q 0 0 0 rg BT 538.65 154.25 Td (or ) Tj ET Q q 0 0 0 rg BT 549.23 154.25 Td (not ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (they ) Tj ET Q q 0 0 0 rg BT 69.72 142.25 Td (have ) Tj ET Q q 0 0 0 rg BT 91.09 142.25 Td (been ) Tj ET Q q 0 0 0 rg BT 112.47 142.25 Td (successfully ) Tj ET Q q 0 0 0 rg BT 163.85 142.25 Td (addressed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (After ) Tj ET Q q 0 0 0 rg BT 72.90 118.25 Td (the ) Tj ET Q q 0 0 0 rg BT 86.91 118.25 Td (end ) Tj ET Q q 0 0 0 rg BT 103.15 118.25 Td (of ) Tj ET Q q 0 0 0 rg BT 113.28 118.25 Td (the ) Tj ET Q q 0 0 0 rg BT 127.29 118.25 Td (calendar ) Tj ET Q q 0 0 0 rg BT 162.95 118.25 Td (year) Tj ET Q q 0 0 0 rg BT 179.76 118.25 Td (, ) Tj ET Q q 0 0 0 rg BT 184.06 118.25 Td (overall ) Tj ET Q q 0 0 0 rg BT 213.62 118.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 265.94 118.25 Td (against ) Tj ET Q q 0 0 0 rg BT 296.06 118.25 Td (the ) Tj ET Q q 0 0 0 rg BT 310.08 118.25 Td (corporate ) Tj ET Q q 0 0 0 rg BT 349.63 118.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 401.95 118.25 Td (goals ) Tj ET Q q 0 0 0 rg BT 424.86 118.25 Td (and ) Tj ET Q q 0 0 0 rg BT 441.10 118.25 Td (a ) Tj ET Q q 0 0 0 rg BT 447.33 118.25 Td (participant) Tj ET Q q 0 0 0 rg BT 492.87 118.25 Td (s ) Tj ET Q q 0 0 0 rg BT 498.56 118.25 Td (overall ) Tj ET Q q 0 0 0 rg BT 528.12 118.25 Td (personal ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 103.02 106.25 Td (including ) Tj ET Q q 0 0 0 rg BT 143.29 106.25 Td (his ) Tj ET Q q 0 0 0 rg BT 157.46 106.25 Td (or ) Tj ET Q q 0 0 0 rg BT 168.29 106.25 Td (her ) Tj ET Q q 0 0 0 rg BT 183.55 106.25 Td (achievement ) Tj ET Q q 0 0 0 rg BT 236.58 106.25 Td (of ) Tj ET Q q 0 0 0 rg BT 247.40 106.25 Td (personal ) Tj ET Q q 0 0 0 rg BT 283.78 106.25 Td (objectives ) Tj ET Q q 0 0 0 rg BT 326.82 106.25 Td (and ) Tj ET Q q 0 0 0 rg BT 343.75 106.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 396.77 106.25 Td (ratings, ) Tj ET Q q 0 0 0 rg BT 428.99 106.25 Td (will ) Tj ET Q q 0 0 0 rg BT 447.04 106.25 Td (be ) Tj ET Q q 0 0 0 rg BT 458.98 106.25 Td (assessed ) Tj ET Q q 0 0 0 rg BT 495.36 106.25 Td (and ) Tj ET Q q 0 0 0 rg BT 512.29 106.25 Td (the ) Tj ET Q q 0 0 0 rg BT 527.01 106.25 Td (resulting ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (incentive ) Tj ET Q q 0 0 0 rg BT 89.98 94.25 Td (amounts ) Tj ET Q q 0 0 0 rg BT 127.20 94.25 Td (that ) Tj ET Q q 0 0 0 rg BT 145.53 94.25 Td (may ) Tj ET Q q 0 0 0 rg BT 166.08 94.25 Td (be ) Tj ET Q q 0 0 0 rg BT 178.85 94.25 Td (earned ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 208.82 94.25 Td (if ) Tj ET Q q 0 0 0 rg BT 218.26 94.25 Td (the ) Tj ET Q q 0 0 0 rg BT 234.37 94.25 Td (criteria ) Tj ET Q q 0 0 0 rg BT 267.70 94.25 Td (for ) Tj ET Q q 0 0 0 rg BT 283.25 94.25 Td (earning ) Tj ET Q q 0 0 0 rg BT 318.81 94.25 Td (a ) Tj ET Q q 0 0 0 rg BT 327.15 94.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 355.49 94.25 Td (are ) Tj ET Q q 0 0 0 rg BT 372.15 94.25 Td (met) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 94.25 Td ( ) Tj ET Q q 0 0 0 rg BT 390.48 94.25 Td (will ) Tj ET Q q 0 0 0 rg BT 409.37 94.25 Td (be ) Tj ET Q q 0 0 0 rg BT 422.14 94.25 Td (calculated ) Tj ET Q q 0 0 0 rg BT 466.00 94.25 Td (as ) Tj ET Q q 0 0 0 rg BT 477.66 94.25 Td (outlined ) Tj ET Q q 0 0 0 rg BT 513.76 94.25 Td (below) Tj ET Q q 0 0 0 rg BT 537.55 94.25 Td (. ) Tj ET Q q 0 0 0 rg BT 543.39 94.25 Td ( ) Tj ET Q q 0 0 0 rg BT 546.48 94.25 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (Company) Tj ET Q q 0 0 0 rg BT 88.24 82.25 Td (, ) Tj ET Q q 0 0 0 rg BT 92.59 82.25 Td (in ) Tj ET Q q 0 0 0 rg BT 102.22 82.25 Td (its ) Tj ET Q q 0 0 0 rg BT 113.52 82.25 Td (sole ) Tj ET Q q 0 0 0 rg BT 131.48 82.25 Td (discretion, ) Tj ET Q q 0 0 0 rg BT 175.27 82.25 Td (will ) Tj ET Q q 0 0 0 rg BT 192.68 82.25 Td (determine ) Tj ET Q q 0 0 0 rg BT 234.51 82.25 Td (the ) Tj ET Q q 0 0 0 rg BT 248.58 82.25 Td (extent ) Tj ET Q q 0 0 0 rg BT 274.87 82.25 Td (to ) Tj ET Q q 0 0 0 rg BT 284.50 82.25 Td (which ) Tj ET Q q 0 0 0 rg BT 310.79 82.25 Td (the ) Tj ET Q q 0 0 0 rg BT 324.86 82.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 365.60 82.25 Td (has ) Tj ET Q q 0 0 0 rg BT 380.79 82.25 Td (achieved ) Tj ET Q q 0 0 0 rg BT 418.17 82.25 Td (its ) Tj ET Q q 0 0 0 rg BT 429.47 82.25 Td (corporate ) Tj ET Q q 0 0 0 rg BT 469.08 82.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 521.46 82.25 Td (objectives ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (and ) Tj ET Q q 0 0 0 rg BT 66.94 70.25 Td (the ) Tj ET Q q 0 0 0 rg BT 81.66 70.25 Td (participant) Tj ET Q q 0 0 0 rg BT 127.19 70.25 Td (s ) Tj ET Q q 0 0 0 rg BT 133.58 70.25 Td (overall ) Tj ET Q q 0 0 0 rg BT 163.85 70.25 Td (personal ) Tj ET Q q 0 0 0 rg BT 200.22 70.25 Td (performance ) Tj ET Q q 0 0 0 rg BT 253.25 70.25 Td (upon ) Tj ET Q q 0 0 0 rg BT 275.75 70.25 Td (which ) Tj ET Q q 0 0 0 rg BT 302.69 70.25 Td (the ) Tj ET Q q 0 0 0 rg BT 317.40 70.25 Td (annual ) Tj ET Q q 0 0 0 rg BT 346.56 70.25 Td (bonus ) Tj ET Q q 0 0 0 rg BT 372.95 70.25 Td (will ) Tj ET Q q 0 0 0 rg BT 391.01 70.25 Td (be ) Tj ET Q q 0 0 0 rg BT 402.94 70.25 Td (based. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 46.25 Td (Funding ) Tj ET Q q 0 0 0 rg BT 88.63 46.25 Td (of ) Tj ET Q q 0 0 0 rg BT 99.46 46.25 Td (the ) Tj ET Q q 0 0 0 rg BT 115.29 46.25 Td (Bonus ) Tj ET Q q 0 0 0 rg BT 144.48 46.25 Td (Pool) Tj ET Q endstream endobj 205 0 obj <> endobj 206 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 742.10 Td ( ) Tj ET Q q 0 0 0 rg BT 59.17 742.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 85.56 742.10 Td (pool ) Tj ET Q q 0 0 0 rg BT 105.84 742.10 Td (will ) Tj ET Q q 0 0 0 rg BT 123.90 742.10 Td (be ) Tj ET Q q 0 0 0 rg BT 135.83 742.10 Td (established ) Tj ET Q q 0 0 0 rg BT 182.77 742.10 Td (as ) Tj ET Q q 0 0 0 rg BT 193.60 742.10 Td (follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (The ) Tj ET Q q 0 0 0 rg BT 68.05 730.10 Td (funding ) Tj ET Q q 0 0 0 rg BT 101.66 730.10 Td (for ) Tj ET Q q 0 0 0 rg BT 115.82 730.10 Td (the ) Tj ET Q q 0 0 0 rg BT 130.53 730.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 156.92 730.10 Td (pool ) Tj ET Q q 0 0 0 rg BT 177.20 730.10 Td (will ) Tj ET Q q 0 0 0 rg BT 195.26 730.10 Td (be ) Tj ET Q q 0 0 0 rg BT 207.20 730.10 Td (based ) Tj ET Q q 0 0 0 rg BT 232.47 730.10 Td (on ) Tj ET Q q 0 0 0 rg BT 244.97 730.10 Td (the ) Tj ET Q q 0 0 0 rg BT 259.68 730.10 Td (following ) Tj ET Q q 0 0 0 rg BT 301.07 730.10 Td (percentages:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Executive ) Tj ET Q q 0 0 0 rg BT 92.48 706.10 Td (Plan ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.66 694.10 Td (: ) Tj ET Q q 0 0 0 rg BT 92.72 694.10 Td (70% ) Tj ET Q q 0 0 0 rg BT 114.34 694.10 Td (of ) Tj ET Q q 0 0 0 rg BT 125.95 694.10 Td (the ) Tj ET Q q 0 0 0 rg BT 141.45 694.10 Td (tar) Tj ET Q q 0 0 0 rg BT 151.82 694.10 Td (get ) Tj ET Q q 0 0 0 rg BT 167.32 694.10 Td (award ) Tj ET Q q 0 0 0 rg BT 195.03 694.10 Td (opportunity ) Tj ET Q q 0 0 0 rg BT 244.98 694.10 Td (for ) Tj ET Q q 0 0 0 rg BT 259.92 694.10 Td (all ) Tj ET Q q 0 0 0 rg BT 273.20 694.10 Td (executive ) Tj ET Q q 0 0 0 rg BT 314.79 694.10 Td (employees ) Tj ET Q q 0 0 0 rg BT 360.84 694.10 Td (entitled ) Tj ET Q q 0 0 0 rg BT 394.12 694.10 Td (to ) Tj ET Q q 0 0 0 rg BT 405.18 694.10 Td (participate ) Tj ET Q q 0 0 0 rg BT 450.66 694.10 Td (in ) Tj ET Q q 0 0 0 rg BT 461.72 694.10 Td (the ) Tj ET Q q 0 0 0 rg BT 477.22 694.10 Td (Plan ) Tj ET Q q 0 0 0 rg BT 498.28 694.10 Td (in ) Tj ET Q q 0 0 0 rg BT 509.35 694.10 Td (the ) Tj ET Q q 0 0 0 rg BT 524.85 694.10 Td (event ) Tj ET Q q 0 0 0 rg BT 549.79 694.10 Td (the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 91.39 682.10 Td (achieves ) Tj ET Q q 0 0 0 rg BT 128.31 682.10 Td (its ) Tj ET Q q 0 0 0 rg BT 140.26 682.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 162.76 682.10 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 215.80 682.10 Td (revenue ) Tj ET Q q 0 0 0 rg BT 249.95 682.10 Td (goal ) Tj ET Q q 0 0 0 rg BT 269.66 682.10 Td (specified ) Tj ET Q q 0 0 0 rg BT 308.26 682.10 Td (below) Tj ET Q q 0 0 0 rg BT 332.05 682.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (N) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 57.22 670.10 Td (on-GAAP) Tj ET Q q 0 0 0 rg BT 98.89 670.10 Td ( ) Tj ET Q q 0 0 0 rg BT 101.97 670.10 Td (Operating ) Tj ET Q q 0 0 0 rg BT 148.93 670.10 Td (Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 180.59 670.10 Td ( ) Tj ET Q q 0 0 0 rg BT 183.67 670.10 Td (30% ) Tj ET Q q 0 0 0 rg BT 205.08 670.10 Td (of ) Tj ET Q q 0 0 0 rg BT 216.49 670.10 Td (the ) Tj ET Q q 0 0 0 rg BT 231.78 670.10 Td (tar) Tj ET Q q 0 0 0 rg BT 242.15 670.10 Td (get ) Tj ET Q q 0 0 0 rg BT 257.44 670.10 Td (award ) Tj ET Q q 0 0 0 rg BT 284.95 670.10 Td (opportunity ) Tj ET Q q 0 0 0 rg BT 334.69 670.10 Td (for ) Tj ET Q q 0 0 0 rg BT 349.43 670.10 Td (all ) Tj ET Q q 0 0 0 rg BT 362.50 670.10 Td (executive ) Tj ET Q q 0 0 0 rg BT 403.89 670.10 Td (employees ) Tj ET Q q 0 0 0 rg BT 449.73 670.10 Td (entitled ) Tj ET Q q 0 0 0 rg BT 482.80 670.10 Td (to ) Tj ET Q q 0 0 0 rg BT 493.65 670.10 Td (participate ) Tj ET Q q 0 0 0 rg BT 538.93 670.10 Td (in ) Tj ET Q q 0 0 0 rg BT 549.79 670.10 Td (the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (Plan ) Tj ET Q q 0 0 0 rg BT 70.28 658.10 Td (in ) Tj ET Q q 0 0 0 rg BT 80.56 658.10 Td (the ) Tj ET Q q 0 0 0 rg BT 95.27 658.10 Td (event ) Tj ET Q q 0 0 0 rg BT 119.43 658.10 Td (the ) Tj ET Q q 0 0 0 rg BT 134.15 658.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 175.53 658.10 Td (achieves ) Tj ET Q q 0 0 0 rg BT 212.46 658.10 Td (its ) Tj ET Q q 0 0 0 rg BT 224.40 658.10 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 269.59 658.10 Td ( ) Tj ET Q q 0 0 0 rg BT 272.09 658.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 312.35 658.10 Td (income ) Tj ET Q q 0 0 0 rg BT 344.29 658.10 Td (goal ) Tj ET Q q 0 0 0 rg BT 364.00 658.10 Td (specified ) Tj ET Q q 0 0 0 rg BT 402.60 658.10 Td (below) Tj ET Q q 0 0 0 rg BT 426.39 658.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (The ) Tj ET Q q 0 0 0 rg BT 69.17 634.10 Td (Company) Tj ET Q q 0 0 0 rg BT 113.80 634.10 Td (s ) Tj ET Q q 0 0 0 rg BT 120.20 634.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 142.70 634.10 Td (r) Tj ET Q q 0 0 0 rg BT 146.95 634.10 Td (evenue ) Tj ET Q q 0 0 0 rg BT 178.89 634.10 Td (and ) Tj ET Q q 0 0 0 rg BT 197.51 634.10 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 244.75 634.10 Td ( ) Tj ET Q q 0 0 0 rg BT 247.25 634.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 290.85 634.10 Td (income ) Tj ET Q q 0 0 0 rg BT 323.90 634.10 Td (objectives ) Tj ET Q q 0 0 0 rg BT 368.61 634.10 Td (for) Tj ET Q q 0 0 0 rg BT 381.20 634.10 Td ( ) Tj ET Q q 0 0 0 rg BT 383.70 634.10 Td (the ) Tj ET Q q 0 0 0 rg BT 399.53 634.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 427.60 634.10 Td (pool ) Tj ET Q q 0 0 0 rg BT 448.44 634.10 Td (funding ) Tj ET Q q 0 0 0 rg BT 484.30 634.10 Td (ar) Tj ET Q q 0 0 0 rg BT 493.55 634.10 Td (e ) Tj ET Q q 0 0 0 rg BT 500.49 634.10 Td (as ) Tj ET Q q 0 0 0 rg BT 511.88 634.10 Td (follows:) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 608.53505859375 m 86.66015625 608.53505859375 l s q 0 0 0 rg BT 50.00 610.10 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 598.10 Td (If ) Tj ET Q q 0 0 0 rg BT 96.22 598.10 Td (the ) Tj ET Q q 0 0 0 rg BT 112.01 598.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 154.46 598.10 Td (has ) Tj ET Q q 0 0 0 rg BT 171.35 598.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 194.92 598.10 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 249.02 598.10 Td (revenue ) Tj ET Q q 0 0 0 rg BT 284.23 598.10 Td (of ) Tj ET Q q 0 0 0 rg BT 296.13 598.10 Td ($190 ) Tj ET Q q 0 0 0 rg BT 319.69 598.10 Td (million ) Tj ET Q q 0 0 0 rg BT 352.15 598.10 Td (or ) Tj ET Q q 0 0 0 rg BT 364.04 598.10 Td (more, ) Tj ET Q q 0 0 0 rg BT 390.65 598.10 Td (100% ) Tj ET Q q 0 0 0 rg BT 417.55 598.10 Td (of ) Tj ET Q q 0 0 0 rg BT 429.44 598.10 Td (this ) Tj ET Q q 0 0 0 rg BT 447.46 598.10 Td (component ) Tj ET Q q 0 0 0 rg BT 495.45 598.10 Td (shall ) Tj ET Q q 0 0 0 rg BT 517.90 598.10 Td (be ) Tj ET Q q 0 0 0 rg BT 530.91 598.10 Td (deemed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 586.10 Td (achieved.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 574.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 574.10 Td (If ) Tj ET Q q 0 0 0 rg BT 95.16 574.10 Td (the ) Tj ET Q q 0 0 0 rg BT 109.88 574.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 151.26 574.10 Td (has ) Tj ET Q q 0 0 0 rg BT 167.09 574.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 189.59 574.10 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 242.64 574.10 Td (revenue ) Tj ET Q q 0 0 0 rg BT 276.78 574.10 Td (of ) Tj ET Q q 0 0 0 rg BT 287.61 574.10 Td ($185 ) Tj ET Q q 0 0 0 rg BT 310.11 574.10 Td (million, ) Tj ET Q q 0 0 0 rg BT 344.00 574.10 Td (80% ) Tj ET Q q 0 0 0 rg BT 364.83 574.10 Td (of ) Tj ET Q q 0 0 0 rg BT 375.66 574.10 Td (this ) Tj ET Q q 0 0 0 rg BT 392.61 574.10 Td (component ) Tj ET Q q 0 0 0 rg BT 439.54 574.10 Td (shall ) Tj ET Q q 0 0 0 rg BT 460.93 574.10 Td (be ) Tj ET Q q 0 0 0 rg BT 472.87 574.10 Td (deemed ) Tj ET Q q 0 0 0 rg BT 506.46 574.10 Td (achieved.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 562.10 Td (Bonus ) Tj ET Q q 0 0 0 rg BT 113.60 562.10 Td (funding ) Tj ET Q q 0 0 0 rg BT 146.74 562.10 Td (will ) Tj ET Q q 0 0 0 rg BT 164.33 562.10 Td (be ) Tj ET Q q 0 0 0 rg BT 175.81 562.10 Td (pro-rated ) Tj ET Q q 0 0 0 rg BT 214.49 562.10 Td (for ) Tj ET Q q 0 0 0 rg BT 228.19 562.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 250.22 562.10 Td (if ) Tj ET Q q 0 0 0 rg BT 258.37 562.10 Td (the ) Tj ET Q q 0 0 0 rg BT 272.62 562.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 313.54 562.10 Td (has ) Tj ET Q q 0 0 0 rg BT 328.91 562.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 350.95 562.10 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 403.52 562.10 Td (revenue ) Tj ET Q q 0 0 0 rg BT 437.21 562.10 Td (between ) Tj ET Q q 0 0 0 rg BT 472.56 562.10 Td ($185 ) Tj ET Q q 0 0 0 rg BT 494.59 562.10 Td (million ) Tj ET Q q 0 0 0 rg BT 525.52 562.10 Td (and ) Tj ET Q q 0 0 0 rg BT 542.00 562.10 Td ($190 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 550.10 Td (million. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 538.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 538.10 Td (No ) Tj ET Q q 0 0 0 rg BT 100.72 538.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 127.11 538.10 Td (shall ) Tj ET Q q 0 0 0 rg BT 148.50 538.10 Td (be ) Tj ET Q q 0 0 0 rg BT 160.44 538.10 Td (funded ) Tj ET Q q 0 0 0 rg BT 190.71 538.10 Td (under ) Tj ET Q q 0 0 0 rg BT 215.98 538.10 Td (this ) Tj ET Q q 0 0 0 rg BT 232.92 538.10 Td (component ) Tj ET Q q 0 0 0 rg BT 279.86 538.10 Td (if ) Tj ET Q q 0 0 0 rg BT 288.47 538.10 Td (the ) Tj ET Q q 0 0 0 rg BT 303.18 538.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 344.57 538.10 Td (has ) Tj ET Q q 0 0 0 rg BT 360.40 538.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 382.90 538.10 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 435.94 538.10 Td (revenues ) Tj ET Q q 0 0 0 rg BT 473.98 538.10 Td (below ) Tj ET Q q 0 0 0 rg BT 500.92 538.10 Td ($185 ) Tj ET Q q 0 0 0 rg BT 523.42 538.10 Td (million.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 526.10 Td (In ) Tj ET Q q 0 0 0 rg BT 96.32 526.10 Td (the ) Tj ET Q q 0 0 0 rg BT 110.52 526.10 Td (event ) Tj ET Q q 0 0 0 rg BT 134.17 526.10 Td (that ) Tj ET Q q 0 0 0 rg BT 151.15 526.10 Td (the ) Tj ET Q q 0 0 0 rg BT 165.36 526.10 Td (Company) Tj ET Q q 0 0 0 rg BT 207.02 526.10 Td (s ) Tj ET Q q 0 0 0 rg BT 212.90 526.10 Td (revenue ) Tj ET Q q 0 0 0 rg BT 246.54 526.10 Td (for ) Tj ET Q q 0 0 0 rg BT 260.19 526.10 Td (the ) Tj ET Q q 0 0 0 rg BT 274.39 526.10 Td (year ) Tj ET Q q 0 0 0 rg BT 293.59 526.10 Td (exceeds ) Tj ET Q q 0 0 0 rg BT 327.22 526.10 Td ($190 ) Tj ET Q q 0 0 0 rg BT 349.21 526.10 Td (million, ) Tj ET Q q 0 0 0 rg BT 382.59 526.10 Td (5% ) Tj ET Q q 0 0 0 rg BT 397.91 526.10 Td (of ) Tj ET Q q 0 0 0 rg BT 408.23 526.10 Td (such ) Tj ET Q q 0 0 0 rg BT 428.55 526.10 Td (revenue ) Tj ET Q q 0 0 0 rg BT 462.18 526.10 Td (greater ) Tj ET Q q 0 0 0 rg BT 491.92 526.10 Td (than ) Tj ET Q q 0 0 0 rg BT 511.13 526.10 Td ($190 ) Tj ET Q q 0 0 0 rg BT 533.12 526.10 Td (million ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 514.10 Td (will ) Tj ET Q q 0 0 0 rg BT 104.42 514.10 Td (be ) Tj ET Q q 0 0 0 rg BT 116.73 514.10 Td (paid ) Tj ET Q q 0 0 0 rg BT 136.81 514.10 Td (in ) Tj ET Q q 0 0 0 rg BT 147.46 514.10 Td (bonuses ) Tj ET Q q 0 0 0 rg BT 182.54 514.10 Td (to ) Tj ET Q q 0 0 0 rg BT 193.19 514.10 Td (the ) Tj ET Q q 0 0 0 rg BT 208.27 514.10 Td (executive ) Tj ET Q q 0 0 0 rg BT 249.45 514.10 Td (team ) Tj ET Q q 0 0 0 rg BT 271.75 514.10 Td (including ) Tj ET Q q 0 0 0 rg BT 312.39 514.10 Td (the ) Tj ET Q q 0 0 0 rg BT 327.47 514.10 Td (Company) Tj ET Q q 0 0 0 rg BT 369.13 514.10 Td (s ) Tj ET Q q 0 0 0 rg BT 375.89 514.10 Td (three ) Tj ET Q q 0 0 0 rg BT 398.74 514.10 Td (executive ) Tj ET Q q 0 0 0 rg BT 439.92 514.10 Td (of) Tj ET Q q 0 0 0 rg BT 448.07 514.10 Td (ficers, ) Tj ET Q q 0 0 0 rg BT 475.64 514.10 Td (with ) Tj ET Q q 0 0 0 rg BT 496.29 514.10 Td (the ) Tj ET Q q 0 0 0 rg BT 511.37 514.10 Td (actual ) Tj ET Q q 0 0 0 rg BT 538.11 514.10 Td (bonus ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 502.10 Td (per ) Tj ET Q q 0 0 0 rg BT 101.27 502.10 Td (executive ) Tj ET Q q 0 0 0 rg BT 142.08 502.10 Td (team ) Tj ET Q q 0 0 0 rg BT 164.01 502.10 Td (member ) Tj ET Q q 0 0 0 rg BT 199.28 502.10 Td (determined ) Tj ET Q q 0 0 0 rg BT 246.76 502.10 Td (by ) Tj ET Q q 0 0 0 rg BT 259.26 502.10 Td (the ) Tj ET Q q 0 0 0 rg BT 273.97 502.10 Td (Compensation ) Tj ET Q q 0 0 0 rg BT 334.25 502.10 Td (Committee.) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 476.53505859375 m 179.4384765625 476.53505859375 l s q 0 0 0 rg BT 50.00 478.10 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 98.89 478.10 Td ( ) Tj ET Q q 0 0 0 rg BT 101.39 478.10 Td (Operating ) Tj ET Q q 0 0 0 rg BT 147.78 478.10 Td (Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 466.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 466.10 Td (If ) Tj ET Q q 0 0 0 rg BT 94.13 466.10 Td (the ) Tj ET Q q 0 0 0 rg BT 107.82 466.10 Td (Company) Tj ET Q q 0 0 0 rg BT 149.48 466.10 Td (s ) Tj ET Q q 0 0 0 rg BT 154.85 466.10 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 200.03 466.10 Td ( ) Tj ET Q q 0 0 0 rg BT 201.50 466.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 240.74 466.10 Td (income ) Tj ET Q q 0 0 0 rg BT 271.64 466.10 Td (for ) Tj ET Q q 0 0 0 rg BT 284.77 466.10 Td (calendar ) Tj ET Q q 0 0 0 rg BT 320.11 466.10 Td (year ) Tj ET Q q 0 0 0 rg BT 338.79 466.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 360.26 466.10 Td (is ) Tj ET Q q 0 0 0 rg BT 368.40 466.10 Td ($43.064 ) Tj ET Q q 0 0 0 rg BT 402.37 466.10 Td (million ) Tj ET Q q 0 0 0 rg BT 432.73 466.10 Td (or ) Tj ET Q q 0 0 0 rg BT 442.53 466.10 Td (more, ) Tj ET Q q 0 0 0 rg BT 467.05 466.10 Td (100% ) Tj ET Q q 0 0 0 rg BT 491.85 466.10 Td (of ) Tj ET Q q 0 0 0 rg BT 501.65 466.10 Td (this ) Tj ET Q q 0 0 0 rg BT 517.57 466.10 Td (component ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 454.10 Td (shall ) Tj ET Q q 0 0 0 rg BT 107.39 454.10 Td (be ) Tj ET Q q 0 0 0 rg BT 119.33 454.10 Td (deemed ) Tj ET Q q 0 0 0 rg BT 152.92 454.10 Td (achieved.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 442.10 Td (If ) Tj ET Q q 0 0 0 rg BT 95.10 442.10 Td (the ) Tj ET Q q 0 0 0 rg BT 109.75 442.10 Td (Company) Tj ET Q q 0 0 0 rg BT 151.42 442.10 Td (s ) Tj ET Q q 0 0 0 rg BT 157.75 442.10 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 202.94 442.10 Td ( ) Tj ET Q q 0 0 0 rg BT 205.38 442.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 245.58 442.10 Td (income ) Tj ET Q q 0 0 0 rg BT 277.45 442.10 Td (for ) Tj ET Q q 0 0 0 rg BT 291.55 442.10 Td (calendar ) Tj ET Q q 0 0 0 rg BT 327.85 442.10 Td (year ) Tj ET Q q 0 0 0 rg BT 347.50 442.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 369.94 442.10 Td (is ) Tj ET Q q 0 0 0 rg BT 379.04 442.10 Td ($38.064 ) Tj ET Q q 0 0 0 rg BT 413.98 442.10 Td (million, ) Tj ET Q q 0 0 0 rg BT 447.81 442.10 Td (80% ) Tj ET Q q 0 0 0 rg BT 468.58 442.10 Td (of ) Tj ET Q q 0 0 0 rg BT 479.35 442.10 Td (this ) Tj ET Q q 0 0 0 rg BT 496.24 442.10 Td (component ) Tj ET Q q 0 0 0 rg BT 543.11 442.10 Td (shall ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 430.10 Td (be ) Tj ET Q q 0 0 0 rg BT 97.94 430.10 Td (deemed ) Tj ET Q q 0 0 0 rg BT 131.53 430.10 Td (achieved.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 418.10 Td (Bonus ) Tj ET Q q 0 0 0 rg BT 113.06 418.10 Td (funding ) Tj ET Q q 0 0 0 rg BT 145.68 418.10 Td (will ) Tj ET Q q 0 0 0 rg BT 162.74 418.10 Td (be ) Tj ET Q q 0 0 0 rg BT 173.68 418.10 Td (pro-rated ) Tj ET Q q 0 0 0 rg BT 211.83 418.10 Td (for ) Tj ET Q q 0 0 0 rg BT 224.99 418.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 246.49 418.10 Td (if ) Tj ET Q q 0 0 0 rg BT 254.10 418.10 Td (the ) Tj ET Q q 0 0 0 rg BT 267.82 418.10 Td (Company) Tj ET Q q 0 0 0 rg BT 309.49 418.10 Td (s ) Tj ET Q q 0 0 0 rg BT 314.88 418.10 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 360.07 418.10 Td ( ) Tj ET Q q 0 0 0 rg BT 361.57 418.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 400.84 418.10 Td (income ) Tj ET Q q 0 0 0 rg BT 431.77 418.10 Td (for ) Tj ET Q q 0 0 0 rg BT 444.94 418.10 Td (calendar ) Tj ET Q q 0 0 0 rg BT 480.30 418.10 Td (year ) Tj ET Q q 0 0 0 rg BT 499.01 418.10 Td (2013 ) Tj ET Q q 0 0 0 rg BT 520.51 418.10 Td (is ) Tj ET Q q 0 0 0 rg BT 528.69 418.10 Td (between ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 406.10 Td ($38.064 ) Tj ET Q q 0 0 0 rg BT 121.00 406.10 Td (million ) Tj ET Q q 0 0 0 rg BT 152.39 406.10 Td (and ) Tj ET Q q 0 0 0 rg BT 169.33 406.10 Td ($43.064 ) Tj ET Q q 0 0 0 rg BT 204.33 406.10 Td (million.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 394.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 394.10 Td (No ) Tj ET Q q 0 0 0 rg BT 100.76 394.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 127.19 394.10 Td (shall ) Tj ET Q q 0 0 0 rg BT 148.61 394.10 Td (be ) Tj ET Q q 0 0 0 rg BT 160.59 394.10 Td (funded ) Tj ET Q q 0 0 0 rg BT 190.90 394.10 Td (under ) Tj ET Q q 0 0 0 rg BT 216.20 394.10 Td (this ) Tj ET Q q 0 0 0 rg BT 233.19 394.10 Td (component ) Tj ET Q q 0 0 0 rg BT 280.16 394.10 Td (if ) Tj ET Q q 0 0 0 rg BT 288.81 394.10 Td (the ) Tj ET Q q 0 0 0 rg BT 303.56 394.10 Td (Company) Tj ET Q q 0 0 0 rg BT 345.23 394.10 Td (s ) Tj ET Q q 0 0 0 rg BT 351.66 394.10 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 396.84 394.10 Td ( ) Tj ET Q q 0 0 0 rg BT 399.38 394.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 439.68 394.10 Td (income ) Tj ET Q q 0 0 0 rg BT 471.66 394.10 Td (for ) Tj ET Q q 0 0 0 rg BT 485.85 394.10 Td (calendar ) Tj ET Q q 0 0 0 rg BT 522.25 394.10 Td (year ) Tj ET Q q 0 0 0 rg BT 542.00 394.10 Td (2013 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 382.10 Td (is ) Tj ET Q q 0 0 0 rg BT 95.17 382.10 Td (less ) Tj ET Q q 0 0 0 rg BT 112.67 382.10 Td (than ) Tj ET Q q 0 0 0 rg BT 132.39 382.10 Td ($38.064 ) Tj ET Q q 0 0 0 rg BT 167.39 382.10 Td (million.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (For ) Tj ET Q q 0 0 0 rg BT 67.57 358.10 Td (purposes ) Tj ET Q q 0 0 0 rg BT 106.81 358.10 Td (of ) Tj ET Q q 0 0 0 rg BT 118.82 358.10 Td (the ) Tj ET Q q 0 0 0 rg BT 134.72 358.10 Td (Plan, ) Tj ET Q q 0 0 0 rg BT 158.68 358.10 Td (non-GAAP) Tj ET Q q 0 0 0 rg BT 203.87 358.10 Td ( ) Tj ET Q q 0 0 0 rg BT 207.55 358.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 249.00 358.10 Td (income ) Tj ET Q q 0 0 0 rg BT 282.12 358.10 Td (shall ) Tj ET Q q 0 0 0 rg BT 304.69 358.10 Td (mean ) Tj ET Q q 0 0 0 rg BT 330.02 358.10 Td (operating ) Tj ET Q q 0 0 0 rg BT 371.47 358.10 Td (income ) Tj ET Q q 0 0 0 rg BT 404.59 358.10 Td (calculated ) Tj ET Q q 0 0 0 rg BT 448.80 358.10 Td (in ) Tj ET Q q 0 0 0 rg BT 460.26 358.10 Td (accordance ) Tj ET Q q 0 0 0 rg BT 508.90 358.10 Td (with ) Tj ET Q q 0 0 0 rg BT 530.37 358.10 Td (General ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 89.70 346.10 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 138.86 346.10 Td (Principles ) Tj ET Q q 0 0 0 rg BT 181.35 346.10 Td (plus ) Tj ET Q q 0 0 0 rg BT 200.52 346.10 Td (stock-based ) Tj ET Q q 0 0 0 rg BT 250.23 346.10 Td (compensation ) Tj ET Q q 0 0 0 rg BT 308.27 346.10 Td (expense ) Tj ET Q q 0 0 0 rg BT 342.98 346.10 Td (and ) Tj ET Q q 0 0 0 rg BT 359.92 346.10 Td (amortization ) Tj ET Q q 0 0 0 rg BT 412.95 346.10 Td (of ) Tj ET Q q 0 0 0 rg BT 423.78 346.10 Td (acquired ) Tj ET Q q 0 0 0 rg BT 460.71 346.10 Td (intangibles ) Tj ET Q q 0 0 0 rg BT 507.09 346.10 Td (assets. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (Bonus ) Tj ET Q q 0 0 0 rg BT 79.18 322.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 89.55 322.10 Td (ocess) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Once ) Tj ET Q q 0 0 0 rg BT 73.00 310.10 Td (all ) Tj ET Q q 0 0 0 rg BT 84.90 310.10 Td (performance ) Tj ET Q q 0 0 0 rg BT 137.32 310.10 Td (measures ) Tj ET Q q 0 0 0 rg BT 176.43 310.10 Td (have ) Tj ET Q q 0 0 0 rg BT 197.20 310.10 Td (been ) Tj ET Q q 0 0 0 rg BT 217.98 310.10 Td (calculated, ) Tj ET Q q 0 0 0 rg BT 262.91 310.10 Td (the ) Tj ET Q q 0 0 0 rg BT 277.03 310.10 Td (final ) Tj ET Q q 0 0 0 rg BT 297.25 310.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 323.05 310.10 Td (pools ) Tj ET Q q 0 0 0 rg BT 346.62 310.10 Td (will ) Tj ET Q q 0 0 0 rg BT 364.08 310.10 Td (be ) Tj ET Q q 0 0 0 rg BT 375.41 310.10 Td (established. ) Tj ET Q q 0 0 0 rg BT 424.25 310.10 Td ( ) Tj ET Q q 0 0 0 rg BT 426.15 310.10 Td (Each ) Tj ET Q q 0 0 0 rg BT 448.04 310.10 Td (department ) Tj ET Q q 0 0 0 rg BT 494.92 310.10 Td (head ) Tj ET Q q 0 0 0 rg BT 515.70 310.10 Td (will ) Tj ET Q q 0 0 0 rg BT 533.15 310.10 Td (receive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (a ) Tj ET Q q 0 0 0 rg BT 57.89 298.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 85.23 298.10 Td (pool ) Tj ET Q q 0 0 0 rg BT 106.46 298.10 Td (equal ) Tj ET Q q 0 0 0 rg BT 131.57 298.10 Td (to ) Tj ET Q q 0 0 0 rg BT 142.80 298.10 Td (the ) Tj ET Q q 0 0 0 rg BT 158.47 298.10 Td (funded ) Tj ET Q q 0 0 0 rg BT 189.69 298.10 Td (portion ) Tj ET Q q 0 0 0 rg BT 222.02 298.10 Td (of ) Tj ET Q q 0 0 0 rg BT 233.80 298.10 Td (the ) Tj ET Q q 0 0 0 rg BT 249.47 298.10 Td (tar) Tj ET Q q 0 0 0 rg BT 259.84 298.10 Td (get ) Tj ET Q q 0 0 0 rg BT 275.51 298.10 Td (award ) Tj ET Q q 0 0 0 rg BT 303.39 298.10 Td (opportunity ) Tj ET Q q 0 0 0 rg BT 353.50 298.10 Td (\(calculated ) Tj ET Q q 0 0 0 rg BT 400.81 298.10 Td (as ) Tj ET Q q 0 0 0 rg BT 412.59 298.10 Td (specified ) Tj ET Q q 0 0 0 rg BT 452.14 298.10 Td (above\) ) Tj ET Q q 0 0 0 rg BT 482.80 298.10 Td (for ) Tj ET Q q 0 0 0 rg BT 497.91 298.10 Td (all ) Tj ET Q q 0 0 0 rg BT 511.35 298.10 Td (eligible ) Tj ET Q q 0 0 0 rg BT 544.79 298.10 Td (plan ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (participants ) Tj ET Q q 0 0 0 rg BT 98.16 286.10 Td (within ) Tj ET Q q 0 0 0 rg BT 125.23 286.10 Td (their ) Tj ET Q q 0 0 0 rg BT 145.06 286.10 Td (department. ) Tj ET Q q 0 0 0 rg BT 194.05 286.10 Td ( ) Tj ET Q q 0 0 0 rg BT 195.56 286.10 Td (Each ) Tj ET Q q 0 0 0 rg BT 217.06 286.10 Td (department ) Tj ET Q q 0 0 0 rg BT 263.55 286.10 Td (head ) Tj ET Q q 0 0 0 rg BT 283.94 286.10 Td (shall ) Tj ET Q q 0 0 0 rg BT 304.33 286.10 Td (allocate ) Tj ET Q q 0 0 0 rg BT 336.93 286.10 Td (the ) Tj ET Q q 0 0 0 rg BT 350.66 286.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 376.06 286.10 Td (pool ) Tj ET Q q 0 0 0 rg BT 395.35 286.10 Td (to ) Tj ET Q q 0 0 0 rg BT 404.64 286.10 Td (eligible ) Tj ET Q q 0 0 0 rg BT 436.14 286.10 Td (plan ) Tj ET Q q 0 0 0 rg BT 454.87 286.10 Td (participants, ) Tj ET Q q 0 0 0 rg BT 505.53 286.10 Td (with ) Tj ET Q q 0 0 0 rg BT 524.82 286.10 Td (reference ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (to ) Tj ET Q q 0 0 0 rg BT 60.32 274.10 Td (such ) Tj ET Q q 0 0 0 rg BT 81.20 274.10 Td (participant) Tj ET Q q 0 0 0 rg BT 126.74 274.10 Td (s ) Tj ET Q q 0 0 0 rg BT 133.17 274.10 Td (tar) Tj ET Q q 0 0 0 rg BT 143.54 274.10 Td (get ) Tj ET Q q 0 0 0 rg BT 158.30 274.10 Td (award ) Tj ET Q q 0 0 0 rg BT 185.28 274.10 Td (opportunity ) Tj ET Q q 0 0 0 rg BT 234.49 274.10 Td (and ) Tj ET Q q 0 0 0 rg BT 251.47 274.10 Td (the ) Tj ET Q q 0 0 0 rg BT 266.23 274.10 Td (department ) Tj ET Q q 0 0 0 rg BT 313.76 274.10 Td (head) Tj ET Q q 0 0 0 rg BT 335.41 274.10 Td (s ) Tj ET Q q 0 0 0 rg BT 341.85 274.10 Td (assessment ) Tj ET Q q 0 0 0 rg BT 388.83 274.10 Td (of ) Tj ET Q q 0 0 0 rg BT 399.71 274.10 Td (such ) Tj ET Q q 0 0 0 rg BT 420.59 274.10 Td (participant) Tj ET Q q 0 0 0 rg BT 466.12 274.10 Td (s ) Tj ET Q q 0 0 0 rg BT 472.56 274.10 Td (personal ) Tj ET Q q 0 0 0 rg BT 508.98 274.10 Td (performance, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (including ) Tj ET Q q 0 0 0 rg BT 89.70 262.10 Td (his ) Tj ET Q q 0 0 0 rg BT 103.30 262.10 Td (or ) Tj ET Q q 0 0 0 rg BT 113.56 262.10 Td (her ) Tj ET Q q 0 0 0 rg BT 128.25 262.10 Td (achievement ) Tj ET Q q 0 0 0 rg BT 180.71 262.10 Td (of ) Tj ET Q q 0 0 0 rg BT 190.97 262.10 Td (personal ) Tj ET Q q 0 0 0 rg BT 226.77 262.10 Td (performance ) Tj ET Q q 0 0 0 rg BT 279.22 262.10 Td (objectives, ) Tj ET Q q 0 0 0 rg BT 324.19 262.10 Td (performance ) Tj ET Q q 0 0 0 rg BT 376.64 262.10 Td (rating ) Tj ET Q q 0 0 0 rg BT 401.89 262.10 Td (and ) Tj ET Q q 0 0 0 rg BT 418.26 262.10 Td (peer ) Tj ET Q q 0 0 0 rg BT 437.39 262.10 Td (review ) Tj ET Q q 0 0 0 rg BT 466.53 262.10 Td (feedback ) Tj ET Q q 0 0 0 rg BT 504.54 262.10 Td (and ) Tj ET Q q 0 0 0 rg BT 520.91 262.10 Td (associated ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (contribution ) Tj ET Q q 0 0 0 rg BT 100.69 250.10 Td (to ) Tj ET Q q 0 0 0 rg BT 110.28 250.10 Td (BroadSoft. ) Tj ET Q q 0 0 0 rg BT 155.70 250.10 Td ( ) Tj ET Q q 0 0 0 rg BT 157.50 250.10 Td (If ) Tj ET Q q 0 0 0 rg BT 165.97 250.10 Td (the ) Tj ET Q q 0 0 0 rg BT 180.00 250.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 220.70 250.10 Td (meets ) Tj ET Q q 0 0 0 rg BT 245.83 250.10 Td (its ) Tj ET Q q 0 0 0 rg BT 257.09 250.10 Td (performance ) Tj ET Q q 0 0 0 rg BT 309.42 250.10 Td (objectives ) Tj ET Q q 0 0 0 rg BT 351.77 250.10 Td (as ) Tj ET Q q 0 0 0 rg BT 361.91 250.10 Td (outlined ) Tj ET Q q 0 0 0 rg BT 396.49 250.10 Td (above, ) Tj ET Q q 0 0 0 rg BT 424.68 250.10 Td (actual ) Tj ET Q q 0 0 0 rg BT 450.36 250.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 476.06 250.10 Td (awards ) Tj ET Q q 0 0 0 rg BT 506.19 250.10 Td (may ) Tj ET Q q 0 0 0 rg BT 525.21 250.10 Td (be ) Tj ET Q q 0 0 0 rg BT 536.46 250.10 Td (higher ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (than ) Tj ET Q q 0 0 0 rg BT 69.95 238.10 Td (tar) Tj ET Q q 0 0 0 rg BT 80.32 238.10 Td (get ) Tj ET Q q 0 0 0 rg BT 95.27 238.10 Td (for ) Tj ET Q q 0 0 0 rg BT 109.66 238.10 Td (plan ) Tj ET Q q 0 0 0 rg BT 129.61 238.10 Td (participants ) Tj ET Q q 0 0 0 rg BT 178.99 238.10 Td (where ) Tj ET Q q 0 0 0 rg BT 206.16 238.10 Td (the ) Tj ET Q q 0 0 0 rg BT 221.11 238.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 262.73 238.10 Td (believes ) Tj ET Q q 0 0 0 rg BT 298.22 238.10 Td (their ) Tj ET Q q 0 0 0 rg BT 319.28 238.10 Td (accomplishments ) Tj ET Q q 0 0 0 rg BT 391.44 238.10 Td (during ) Tj ET Q q 0 0 0 rg BT 420.29 238.10 Td (the ) Tj ET Q q 0 0 0 rg BT 435.24 238.10 Td (year ) Tj ET Q q 0 0 0 rg BT 455.18 238.10 Td (justify ) Tj ET Q q 0 0 0 rg BT 483.47 238.10 Td (special ) Tj ET Q q 0 0 0 rg BT 513.96 238.10 Td (recognition. ) Tj ET Q q 0 0 0 rg BT 564.51 238.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (On ) Tj ET Q q 0 0 0 rg BT 65.66 226.10 Td (the ) Tj ET Q q 0 0 0 rg BT 81.32 226.10 Td (other ) Tj ET Q q 0 0 0 rg BT 105.30 226.10 Td (hand, ) Tj ET Q q 0 0 0 rg BT 130.68 226.10 Td (actual ) Tj ET Q q 0 0 0 rg BT 157.99 226.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 185.32 226.10 Td (awards ) Tj ET Q q 0 0 0 rg BT 217.08 226.10 Td (can ) Tj ET Q q 0 0 0 rg BT 234.40 226.10 Td (also ) Tj ET Q q 0 0 0 rg BT 253.94 226.10 Td (be ) Tj ET Q q 0 0 0 rg BT 266.82 226.10 Td (lower ) Tj ET Q q 0 0 0 rg BT 293.03 226.10 Td (than ) Tj ET Q q 0 0 0 rg BT 313.68 226.10 Td (tar) Tj ET Q q 0 0 0 rg BT 324.05 226.10 Td (get ) Tj ET Q q 0 0 0 rg BT 339.71 226.10 Td (even ) Tj ET Q q 0 0 0 rg BT 362.02 226.10 Td (if ) Tj ET Q q 0 0 0 rg BT 371.57 226.10 Td (an ) Tj ET Q q 0 0 0 rg BT 384.45 226.10 Td (eligible ) Tj ET Q q 0 0 0 rg BT 417.88 226.10 Td (plan ) Tj ET Q q 0 0 0 rg BT 438.53 226.10 Td (participant ) Tj ET Q q 0 0 0 rg BT 484.73 226.10 Td (meets ) Tj ET Q q 0 0 0 rg BT 511.49 226.10 Td (performance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (expectations ) Tj ET Q q 0 0 0 rg BT 102.48 214.10 Td (and ) Tj ET Q q 0 0 0 rg BT 119.42 214.10 Td (the ) Tj ET Q q 0 0 0 rg BT 134.14 214.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 175.52 214.10 Td (meets ) Tj ET Q q 0 0 0 rg BT 201.35 214.10 Td (its ) Tj ET Q q 0 0 0 rg BT 213.30 214.10 Td (performance ) Tj ET Q q 0 0 0 rg BT 266.32 214.10 Td (objectives ) Tj ET Q q 0 0 0 rg BT 309.36 214.10 Td (as ) Tj ET Q q 0 0 0 rg BT 320.19 214.10 Td (outlined ) Tj ET Q q 0 0 0 rg BT 355.46 214.10 Td (in ) Tj ET Q q 0 0 0 rg BT 365.74 214.10 Td (the ) Tj ET Q q 0 0 0 rg BT 380.46 214.10 Td (Plan. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (All ) Tj ET Q q 0 0 0 rg BT 65.28 190.10 Td (department ) Tj ET Q q 0 0 0 rg BT 112.76 190.10 Td (heads ) Tj ET Q q 0 0 0 rg BT 138.03 190.10 Td (must ) Tj ET Q q 0 0 0 rg BT 159.98 190.10 Td (stay ) Tj ET Q q 0 0 0 rg BT 178.58 190.10 Td (within ) Tj ET Q q 0 0 0 rg BT 206.64 190.10 Td (the ) Tj ET Q q 0 0 0 rg BT 221.36 190.10 Td (funded ) Tj ET Q q 0 0 0 rg BT 251.63 190.10 Td (bonus ) Tj ET Q q 0 0 0 rg BT 278.02 190.10 Td (pool ) Tj ET Q q 0 0 0 rg BT 298.30 190.10 Td (allocated ) Tj ET Q q 0 0 0 rg BT 336.88 190.10 Td (for ) Tj ET Q q 0 0 0 rg BT 351.04 190.10 Td (their ) Tj ET Q q 0 0 0 rg BT 371.87 190.10 Td (departments. ) Tj ET Q q 0 0 0 rg BT 425.74 190.10 Td ( ) Tj ET Q q 0 0 0 rg BT 428.24 190.10 Td (No ) Tj ET Q q 0 0 0 rg BT 442.96 190.10 Td (exceptions ) Tj ET Q q 0 0 0 rg BT 488.23 190.10 Td (will ) Tj ET Q q 0 0 0 rg BT 506.28 190.10 Td (be ) Tj ET Q q 0 0 0 rg BT 518.22 190.10 Td (made. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.48 166.10 Td (ward ) Tj ET Q q 0 0 0 rg BT 81.20 166.10 Td (Payouts:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Payouts ) Tj ET Q q 0 0 0 rg BT 84.01 154.10 Td (of ) Tj ET Q q 0 0 0 rg BT 94.67 154.10 Td (awards ) Tj ET Q q 0 0 0 rg BT 125.33 154.10 Td (under ) Tj ET Q q 0 0 0 rg BT 150.43 154.10 Td (the ) Tj ET Q q 0 0 0 rg BT 164.99 154.10 Td (Plan ) Tj ET Q q 0 0 0 rg BT 185.10 154.10 Td (will ) Tj ET Q q 0 0 0 rg BT 203.00 154.10 Td (be ) Tj ET Q q 0 0 0 rg BT 214.77 154.10 Td (made ) Tj ET Q q 0 0 0 rg BT 238.76 154.10 Td (in ) Tj ET Q q 0 0 0 rg BT 248.88 154.10 Td (cash ) Tj ET Q q 0 0 0 rg BT 268.98 154.10 Td (as ) Tj ET Q q 0 0 0 rg BT 279.65 154.10 Td (soon ) Tj ET Q q 0 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(statements ) Tj ET Q q 0 0 0 rg BT 187.68 623.25 Td (made, ) Tj ET Q q 0 0 0 rg BT 214.83 623.25 Td (in ) Tj ET Q q 0 0 0 rg BT 225.60 623.25 Td (light ) Tj ET Q q 0 0 0 rg BT 246.92 623.25 Td (of ) Tj ET Q q 0 0 0 rg BT 258.24 623.25 Td (the ) Tj ET Q q 0 0 0 rg BT 273.45 623.25 Td (circumstances ) Tj ET Q q 0 0 0 rg BT 333.08 623.25 Td (under ) Tj ET Q q 0 0 0 rg BT 358.84 623.25 Td (which ) Tj ET Q q 0 0 0 rg BT 386.27 623.25 Td (such ) Tj ET Q q 0 0 0 rg BT 407.59 623.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 452.80 623.25 Td (were ) Tj ET Q q 0 0 0 rg BT 475.21 623.25 Td (made, ) Tj ET Q q 0 0 0 rg BT 502.36 623.25 Td (not ) Tj ET Q q 0 0 0 rg BT 518.13 623.25 Td (misleading ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 611.25 Td (with ) Tj ET Q q 0 0 0 rg BT 70.28 611.25 Td (respect ) Tj ET Q q 0 0 0 rg BT 101.09 611.25 Td (to ) Tj ET Q q 0 0 0 rg BT 111.37 611.25 Td (the ) Tj ET Q q 0 0 0 rg BT 126.09 611.25 Td (period ) Tj ET Q q 0 0 0 rg BT 154.14 611.25 Td (covered ) Tj ET Q q 0 0 0 rg BT 188.28 611.25 Td (by ) Tj ET Q q 0 0 0 rg BT 200.78 611.25 Td (this ) Tj ET Q q 0 0 0 rg BT 217.73 611.25 Td (report; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (3. ) Tj ET Q q 0 0 0 rg BT 60.16 594.25 Td (Based ) Tj ET Q q 0 0 0 rg BT 87.25 594.25 Td (on ) Tj ET Q q 0 0 0 rg BT 99.91 594.25 Td (my ) Tj ET Q q 0 0 0 rg BT 115.35 594.25 Td (knowledge, ) Tj ET Q q 0 0 0 rg BT 164.38 594.25 Td (the ) Tj ET Q q 0 0 0 rg BT 179.26 594.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 216.90 594.25 Td (statements, ) Tj ET Q q 0 0 0 rg BT 264.26 594.25 Td (and ) Tj ET Q q 0 0 0 rg BT 281.36 594.25 Td (other ) Tj ET Q q 0 0 0 rg BT 304.57 594.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 342.20 594.25 Td (information ) Tj ET Q q 0 0 0 rg BT 392.07 594.25 Td (included ) Tj ET Q q 0 0 0 rg BT 429.16 594.25 Td (in ) Tj ET Q q 0 0 0 rg BT 439.60 594.25 Td (this ) Tj ET Q q 0 0 0 rg BT 456.71 594.25 Td (report, ) Tj ET Q q 0 0 0 rg BT 485.74 594.25 Td (fairly ) Tj ET Q q 0 0 0 rg BT 510.05 594.25 Td (present ) Tj ET Q q 0 0 0 rg BT 541.59 594.25 Td (in ) Tj ET Q q 0 0 0 rg BT 552.02 594.25 Td (all ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 582.25 Td (material ) Tj ET Q q 0 0 0 rg BT 84.93 582.25 Td (respects ) Tj ET Q q 0 0 0 rg BT 119.31 582.25 Td (the ) Tj ET Q q 0 0 0 rg BT 133.69 582.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 170.84 582.25 Td (condition, ) Tj ET Q q 0 0 0 rg BT 213.29 582.25 Td (results ) Tj ET Q q 0 0 0 rg BT 241.57 582.25 Td (of ) Tj ET Q q 0 0 0 rg BT 252.07 582.25 Td (operations ) Tj ET Q q 0 0 0 rg BT 295.89 582.25 Td (and ) Tj ET Q q 0 0 0 rg BT 312.50 582.25 Td (cash ) Tj ET Q q 0 0 0 rg BT 332.44 582.25 Td (flows ) Tj ET Q q 0 0 0 rg BT 356.83 582.25 Td (of ) Tj ET Q q 0 0 0 rg BT 367.33 582.25 Td (the ) Tj ET Q q 0 0 0 rg BT 381.72 582.25 Td (registrant ) Tj ET Q q 0 0 0 rg BT 421.66 582.25 Td (as ) Tj ET Q q 0 0 0 rg BT 432.16 582.25 Td (of, ) Tj ET Q q 0 0 0 rg BT 445.16 582.25 Td (and ) Tj ET Q q 0 0 0 rg BT 461.77 582.25 Td (for) Tj ET Q q 0 0 0 rg BT 473.02 582.25 Td (, ) Tj ET Q q 0 0 0 rg BT 477.70 582.25 Td (the ) Tj ET Q q 0 0 0 rg BT 492.08 582.25 Td (periods ) Tj ET Q q 0 0 0 rg BT 523.69 582.25 Td (presented ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 570.25 Td (in ) Tj ET Q q 0 0 0 rg BT 60.28 570.25 Td (this ) Tj ET Q q 0 0 0 rg BT 77.23 570.25 Td (report; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 553.25 Td (4. ) Tj ET Q q 0 0 0 rg BT 59.17 553.25 Td (The ) Tj ET Q q 0 0 0 rg BT 76.51 553.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 117.05 553.25 Td (s ) Tj ET Q q 0 0 0 rg BT 122.74 553.25 Td (other ) Tj ET Q q 0 0 0 rg BT 145.08 553.25 Td (certifying ) Tj ET Q q 0 0 0 rg BT 185.75 553.25 Td (of) Tj ET Q q 0 0 0 rg BT 193.90 553.25 Td (ficer ) Tj ET Q q 0 0 0 rg BT 214.02 553.25 Td (and ) Tj ET Q q 0 0 0 rg BT 230.25 553.25 Td (I ) Tj ET Q q 0 0 0 rg BT 235.38 553.25 Td (are ) Tj ET Q q 0 0 0 rg BT 249.38 553.25 Td (responsible ) Tj ET Q q 0 0 0 rg BT 296.73 553.25 Td (for ) Tj ET Q q 0 0 0 rg BT 310.18 553.25 Td (establishing ) Tj ET Q q 0 0 0 rg BT 359.75 553.25 Td (and ) Tj ET Q q 0 0 0 rg BT 375.99 553.25 Td (maintaining ) Tj ET Q q 0 0 0 rg BT 425.55 553.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 467.90 553.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 501.91 553.25 Td (and ) Tj ET Q q 0 0 0 rg BT 518.15 553.25 Td (procedures ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 541.25 Td (\(as ) Tj ET Q q 0 0 0 rg BT 63.82 541.25 Td (defined ) Tj ET Q q 0 0 0 rg BT 95.96 541.25 Td (in ) Tj ET Q q 0 0 0 rg BT 105.89 541.25 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 147.00 541.25 Td (Act ) Tj ET Q q 0 0 0 rg BT 163.59 541.25 Td (Rules ) Tj ET Q q 0 0 0 rg BT 188.52 541.25 Td (13a-15\(e\) ) Tj ET Q q 0 0 0 rg BT 229.55 541.25 Td (and ) Tj ET Q q 0 0 0 rg BT 246.14 541.25 Td (15d-15\(e\)\) ) Tj ET Q q 0 0 0 rg BT 291.06 541.25 Td (and ) Tj ET Q q 0 0 0 rg BT 307.65 541.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 340.35 541.25 Td (control ) Tj ET Q q 0 0 0 rg BT 370.83 541.25 Td (over ) Tj ET Q q 0 0 0 rg BT 390.75 541.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 427.89 541.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 466.70 541.25 Td (\(as ) Tj ET Q q 0 0 0 rg BT 480.52 541.25 Td (defined ) Tj ET Q q 0 0 0 rg BT 512.66 541.25 Td (in ) Tj ET Q q 0 0 0 rg BT 522.59 541.25 Td (Exchange ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 529.25 Td (Act ) Tj ET Q q 0 0 0 rg BT 66.94 529.25 Td (Rules ) Tj ET Q q 0 0 0 rg BT 92.22 529.25 Td (13a-15\(f\) ) Tj ET Q q 0 0 0 rg BT 132.48 529.25 Td (and ) Tj ET Q q 0 0 0 rg BT 149.41 529.25 Td (15d-15\(f\)\) ) Tj ET Q q 0 0 0 rg BT 193.56 529.25 Td (for ) Tj ET Q q 0 0 0 rg BT 207.72 529.25 Td (the ) Tj ET Q q 0 0 0 rg BT 222.44 529.25 Td (registrant ) Tj ET Q q 0 0 0 rg BT 262.71 529.25 Td (and ) Tj ET Q q 0 0 0 rg BT 279.64 529.25 Td (have: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 512.25 Td (a. ) Tj ET Q q 0 0 0 rg BT 95.54 512.25 Td (Designed ) Tj ET Q q 0 0 0 rg BT 135.92 512.25 Td (such ) Tj ET Q q 0 0 0 rg BT 156.86 512.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 200.01 512.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 234.83 512.25 Td (and ) Tj ET Q q 0 0 0 rg BT 251.88 512.25 Td (procedures, ) Tj ET Q q 0 0 0 rg BT 300.85 512.25 Td (or ) Tj ET Q q 0 0 0 rg BT 311.79 512.25 Td (caused ) Tj ET Q q 0 0 0 rg BT 341.60 512.25 Td (such ) Tj ET Q q 0 0 0 rg BT 362.54 512.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 405.69 512.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 440.51 512.25 Td (and ) Tj ET Q q 0 0 0 rg BT 457.56 512.25 Td (procedures ) Tj ET Q q 0 0 0 rg BT 504.03 512.25 Td (to ) Tj ET Q q 0 0 0 rg BT 514.42 512.25 Td (be ) Tj ET Q q 0 0 0 rg BT 526.46 512.25 Td (designed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 500.25 Td (under ) Tj ET Q q 0 0 0 rg BT 74.64 500.25 Td (our ) Tj ET Q q 0 0 0 rg BT 89.85 500.25 Td (supervision, ) Tj ET Q q 0 0 0 rg BT 140.33 500.25 Td (to ) Tj ET Q q 0 0 0 rg BT 149.98 500.25 Td (ensure ) Tj ET Q q 0 0 0 rg BT 177.95 500.25 Td (that ) Tj ET Q q 0 0 0 rg BT 194.82 500.25 Td (material ) Tj ET Q q 0 0 0 rg BT 229.46 500.25 Td (information ) Tj ET Q q 0 0 0 rg BT 278.54 500.25 Td (relating ) Tj ET Q q 0 0 0 rg BT 310.96 500.25 Td (to ) Tj ET Q q 0 0 0 rg BT 320.61 500.25 Td (the ) Tj ET Q q 0 0 0 rg BT 334.70 500.25 Td (registrant, ) Tj ET Q q 0 0 0 rg BT 376.84 500.25 Td (including ) Tj ET Q q 0 0 0 rg BT 416.49 500.25 Td (its ) Tj ET Q q 0 0 0 rg BT 427.81 500.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 480.22 500.25 Td (subsidiaries, ) Tj ET Q q 0 0 0 rg BT 531.82 500.25 Td (is ) Tj ET Q q 0 0 0 rg BT 540.36 500.25 Td (made ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.25 Td (known ) Tj ET Q q 0 0 0 rg BT 79.72 488.25 Td (to ) Tj ET Q q 0 0 0 rg BT 90.00 488.25 Td (us ) Tj ET Q q 0 0 0 rg BT 101.39 488.25 Td (by ) Tj ET Q q 0 0 0 rg BT 113.89 488.25 Td (others ) Tj ET Q q 0 0 0 rg BT 140.83 488.25 Td (within ) Tj ET Q q 0 0 0 rg BT 168.89 488.25 Td (those ) Tj ET Q q 0 0 0 rg BT 192.50 488.25 Td (entities, ) Tj ET Q q 0 0 0 rg BT 226.38 488.25 Td (particularly ) Tj ET Q q 0 0 0 rg BT 274.97 488.25 Td (during ) Tj ET Q q 0 0 0 rg BT 303.57 488.25 Td (the ) Tj ET Q q 0 0 0 rg BT 318.29 488.25 Td (period ) Tj ET Q q 0 0 0 rg BT 346.34 488.25 Td (in ) Tj ET Q q 0 0 0 rg BT 356.62 488.25 Td (which ) Tj ET Q q 0 0 0 rg BT 383.55 488.25 Td (this ) Tj ET Q q 0 0 0 rg BT 400.50 488.25 Td (report ) Tj ET Q q 0 0 0 rg BT 426.88 488.25 Td (is ) Tj ET Q q 0 0 0 rg BT 436.05 488.25 Td (being ) Tj ET Q q 0 0 0 rg BT 460.77 488.25 Td (prepared; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 471.25 Td (b. ) Tj ET Q q 0 0 0 rg BT 95.99 471.25 Td (Designed ) Tj ET Q q 0 0 0 rg BT 136.24 471.25 Td (such ) Tj ET Q q 0 0 0 rg BT 157.06 471.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 190.09 471.25 Td (control ) Tj ET Q q 0 0 0 rg BT 220.90 471.25 Td (over ) Tj ET Q q 0 0 0 rg BT 241.16 471.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 278.62 471.25 Td (reporting, ) Tj ET Q q 0 0 0 rg BT 320.26 471.25 Td (or ) Tj ET Q q 0 0 0 rg BT 331.08 471.25 Td (caused ) Tj ET Q q 0 0 0 rg BT 360.78 471.25 Td (such ) Tj ET Q q 0 0 0 rg BT 381.59 471.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 414.62 471.25 Td (control ) Tj ET Q q 0 0 0 rg BT 445.43 471.25 Td (over ) Tj ET Q q 0 0 0 rg BT 465.69 471.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 503.16 471.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 542.30 471.25 Td (to ) Tj ET Q q 0 0 0 rg BT 552.56 471.25 Td (be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 459.25 Td (designed ) Tj ET Q q 0 0 0 rg BT 87.44 459.25 Td (under ) Tj ET Q q 0 0 0 rg BT 112.09 459.25 Td (our ) Tj ET Q q 0 0 0 rg BT 127.31 459.25 Td (supervision, ) Tj ET Q q 0 0 0 rg BT 177.81 459.25 Td (to ) Tj ET Q q 0 0 0 rg BT 187.48 459.25 Td (provide ) Tj ET Q q 0 0 0 rg BT 219.92 459.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 264.56 459.25 Td (assurance ) Tj ET Q q 0 0 0 rg BT 305.32 459.25 Td (regarding ) Tj ET Q q 0 0 0 rg BT 345.52 459.25 Td (the ) Tj ET Q q 0 0 0 rg BT 359.63 459.25 Td (reliability ) Tj ET Q q 0 0 0 rg BT 400.40 459.25 Td (of ) Tj ET Q q 0 0 0 rg BT 410.62 459.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 447.49 459.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 486.03 459.25 Td (and ) Tj ET Q q 0 0 0 rg BT 502.36 459.25 Td (the ) Tj ET Q q 0 0 0 rg BT 516.46 459.25 Td (preparation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 447.25 Td (of ) Tj ET Q q 0 0 0 rg BT 60.83 447.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 98.31 447.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 143.02 447.25 Td (for ) Tj ET Q q 0 0 0 rg BT 157.18 447.25 Td (external ) Tj ET Q q 0 0 0 rg BT 191.88 447.25 Td (purposes ) Tj ET Q q 0 0 0 rg BT 229.94 447.25 Td (in ) Tj ET Q q 0 0 0 rg BT 240.21 447.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 287.68 447.25 Td (with ) Tj ET Q q 0 0 0 rg BT 307.95 447.25 Td (generally ) Tj ET Q q 0 0 0 rg BT 347.66 447.25 Td (accepted ) Tj ET Q q 0 0 0 rg BT 385.13 447.25 Td (accounting ) Tj ET Q q 0 0 0 rg BT 431.50 447.25 Td (principles; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 430.25 Td (c. ) Tj ET Q q 0 0 0 rg BT 96.48 430.25 Td (Evaluated ) Tj ET Q q 0 0 0 rg BT 140.00 430.25 Td (the ) Tj ET Q q 0 0 0 rg BT 155.75 430.25 Td (ef) Tj ET Q q 0 0 0 rg BT 163.34 430.25 Td (fectiveness ) Tj ET Q q 0 0 0 rg BT 211.30 430.25 Td (of ) Tj ET Q q 0 0 0 rg BT 223.17 430.25 Td (the ) Tj ET Q q 0 0 0 rg BT 238.93 430.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 279.47 430.25 Td (s ) Tj ET Q q 0 0 0 rg BT 286.90 430.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 330.99 430.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 366.74 430.25 Td (and ) Tj ET Q q 0 0 0 rg BT 384.72 430.25 Td (procedures ) Tj ET Q q 0 0 0 rg BT 432.13 430.25 Td (and ) Tj ET Q q 0 0 0 rg BT 450.10 430.25 Td (presented ) Tj ET Q q 0 0 0 rg BT 491.96 430.25 Td (in ) Tj ET Q q 0 0 0 rg BT 503.28 430.25 Td (this ) Tj ET Q q 0 0 0 rg BT 521.26 430.25 Td (report ) Tj ET Q q 0 0 0 rg BT 548.68 430.25 Td (our ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (conclusions ) Tj ET Q q 0 0 0 rg BT 99.96 418.25 Td (about ) Tj ET Q q 0 0 0 rg BT 124.92 418.25 Td (the ) Tj ET Q q 0 0 0 rg BT 139.88 418.25 Td (ef) Tj ET Q q 0 0 0 rg BT 147.47 418.25 Td (fectiveness ) Tj ET Q q 0 0 0 rg BT 194.63 418.25 Td (of ) Tj ET Q q 0 0 0 rg BT 205.71 418.25 Td (the ) Tj ET Q q 0 0 0 rg BT 220.67 418.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 263.96 418.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 298.92 418.25 Td (and ) Tj ET Q q 0 0 0 rg BT 316.10 418.25 Td (procedures, ) Tj ET Q q 0 0 0 rg BT 365.21 418.25 Td (as ) Tj ET Q q 0 0 0 rg BT 376.28 418.25 Td (of ) Tj ET Q q 0 0 0 rg BT 387.36 418.25 Td (the ) Tj ET Q q 0 0 0 rg BT 402.32 418.25 Td (end ) Tj ET Q q 0 0 0 rg BT 419.50 418.25 Td (of ) Tj ET Q q 0 0 0 rg BT 430.57 418.25 Td (the ) Tj ET Q q 0 0 0 rg BT 445.53 418.25 Td (period ) Tj ET Q q 0 0 0 rg BT 473.82 418.25 Td (covered ) Tj ET Q q 0 0 0 rg BT 508.21 418.25 Td (by ) Tj ET Q q 0 0 0 rg BT 520.95 418.25 Td (this ) Tj ET Q q 0 0 0 rg BT 538.14 418.25 Td (report ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (based ) Tj ET Q q 0 0 0 rg BT 75.27 406.25 Td (on ) Tj ET Q q 0 0 0 rg BT 87.77 406.25 Td (such ) Tj ET Q q 0 0 0 rg BT 108.60 406.25 Td (evaluation; ) Tj ET Q q 0 0 0 rg BT 155.53 406.25 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 389.25 Td (d. ) Tj ET Q q 0 0 0 rg BT 95.68 389.25 Td (Disclosed ) Tj ET Q q 0 0 0 rg BT 137.30 389.25 Td (in ) Tj ET Q q 0 0 0 rg BT 147.25 389.25 Td (this ) Tj ET Q q 0 0 0 rg BT 163.88 389.25 Td (report ) Tj ET Q q 0 0 0 rg BT 189.94 389.25 Td (any ) Tj ET Q q 0 0 0 rg BT 206.56 389.25 Td (change ) Tj ET Q q 0 0 0 rg BT 237.05 389.25 Td (in ) Tj ET Q q 0 0 0 rg BT 247.01 389.25 Td (the ) Tj ET Q q 0 0 0 rg BT 261.40 389.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 301.95 389.25 Td (s ) Tj ET Q q 0 0 0 rg BT 308.02 389.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 340.74 389.25 Td (control ) Tj ET Q q 0 0 0 rg BT 371.24 389.25 Td (over ) Tj ET Q q 0 0 0 rg BT 391.19 389.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 428.35 389.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 467.18 389.25 Td (that ) Tj ET Q q 0 0 0 rg BT 484.36 389.25 Td (occurred ) Tj ET Q q 0 0 0 rg BT 521.51 389.25 Td (during ) Tj ET Q q 0 0 0 rg BT 549.80 389.25 Td (the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 377.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 90.54 377.25 Td (s ) Tj ET Q q 0 0 0 rg BT 97.68 377.25 Td (most ) Tj ET Q q 0 0 0 rg BT 120.37 377.25 Td (recent ) Tj ET Q q 0 0 0 rg BT 148.04 377.25 Td (fiscal ) Tj ET Q q 0 0 0 rg BT 172.94 377.25 Td (quarter ) Tj ET Q q 0 0 0 rg BT 204.50 377.25 Td (\(the ) Tj ET Q q 0 0 0 rg BT 223.29 377.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 263.83 377.25 Td (s ) Tj ET Q q 0 0 0 rg BT 270.97 377.25 Td (fourth ) Tj ET Q q 0 0 0 rg BT 298.65 377.25 Td (fiscal ) Tj ET Q q 0 0 0 rg BT 323.55 377.25 Td (quarter ) Tj ET Q q 0 0 0 rg BT 355.11 377.25 Td (in ) Tj ET Q q 0 0 0 rg BT 366.14 377.25 Td (the ) Tj ET Q q 0 0 0 rg BT 381.60 377.25 Td (case ) Tj ET Q q 0 0 0 rg BT 402.05 377.25 Td (of ) Tj ET Q q 0 0 0 rg BT 413.62 377.25 Td (an ) Tj ET Q q 0 0 0 rg BT 426.31 377.25 Td (annual ) Tj ET Q q 0 0 0 rg BT 456.21 377.25 Td (report\) ) Tj ET Q q 0 0 0 rg BT 486.66 377.25 Td (that ) Tj ET Q q 0 0 0 rg BT 504.90 377.25 Td (has ) Tj ET Q q 0 0 0 rg BT 521.47 377.25 Td (materially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 365.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 365.25 Td (fected, ) Tj ET Q q 0 0 0 rg BT 87.01 365.25 Td (or ) Tj ET Q q 0 0 0 rg BT 97.84 365.25 Td (is ) Tj ET Q q 0 0 0 rg BT 107.01 365.25 Td (reasonably ) Tj ET Q q 0 0 0 rg BT 152.83 365.25 Td (likely ) Tj ET Q q 0 0 0 rg BT 178.10 365.25 Td (to ) Tj ET Q q 0 0 0 rg BT 188.38 365.25 Td (materially ) Tj ET Q q 0 0 0 rg BT 231.42 365.25 Td (af) Tj ET Q q 0 0 0 rg BT 239.00 365.25 Td (fect, ) Tj ET Q q 0 0 0 rg BT 258.99 365.25 Td (the ) Tj ET Q q 0 0 0 rg BT 273.71 365.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 314.25 365.25 Td (s ) Tj ET Q q 0 0 0 rg BT 320.64 365.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 353.68 365.25 Td (control ) Tj ET Q q 0 0 0 rg BT 384.51 365.25 Td (over ) Tj ET Q q 0 0 0 rg BT 404.78 365.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 442.26 365.25 Td (reporting; ) Tj ET Q q 0 0 0 rg BT 484.19 365.25 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 348.25 Td (5. ) Tj ET Q q 0 0 0 rg BT 59.82 348.25 Td (The registrant) Tj ET Q q 0 0 0 rg BT 118.41 348.25 Td (s other certifying of) Tj ET Q q 0 0 0 rg BT 197.37 348.25 Td (ficer and I have disclosed, based on our most recent evaluation of internal control over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 336.25 Td (financial reporting, to the registrant) Tj ET Q q 0 0 0 rg BT 194.67 336.25 Td (s auditors and the audit committee of the registrant) Tj ET Q q 0 0 0 rg BT 400.73 336.25 Td (s board of directors \(or persons ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 324.25 Td (performing the equivalent functions\): ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 307.25 Td (a. ) Tj ET Q q 0 0 0 rg BT 94.04 307.25 Td (All ) Tj ET Q q 0 0 0 rg BT 108.23 307.25 Td (significant ) Tj ET Q q 0 0 0 rg BT 151.85 307.25 Td (deficiencies ) Tj ET Q q 0 0 0 rg BT 201.01 307.25 Td (and ) Tj ET Q q 0 0 0 rg BT 216.86 307.25 Td (material ) Tj ET Q q 0 0 0 rg BT 251.03 307.25 Td (weaknesses ) Tj ET Q q 0 0 0 rg BT 299.09 307.25 Td (in ) Tj ET Q q 0 0 0 rg BT 308.28 307.25 Td (the ) Tj ET Q q 0 0 0 rg BT 321.91 307.25 Td (design ) Tj ET Q q 0 0 0 rg BT 349.43 307.25 Td (or ) Tj ET Q q 0 0 0 rg BT 359.17 307.25 Td (operation ) Tj ET Q q 0 0 0 rg BT 398.34 307.25 Td (of ) Tj ET Q q 0 0 0 rg BT 408.09 307.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 440.04 307.25 Td (control ) Tj ET Q q 0 0 0 rg BT 469.78 307.25 Td (over ) Tj ET Q q 0 0 0 rg BT 488.96 307.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 525.35 307.25 Td (reporting ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 295.25 Td (which ) Tj ET Q q 0 0 0 rg BT 75.79 295.25 Td (are ) Tj ET Q q 0 0 0 rg BT 89.34 295.25 Td (reasonably ) Tj ET Q q 0 0 0 rg BT 134.01 295.25 Td (likely ) Tj ET Q q 0 0 0 rg BT 158.13 295.25 Td (to ) Tj ET Q q 0 0 0 rg BT 167.26 295.25 Td (adversely ) Tj ET Q q 0 0 0 rg BT 206.92 295.25 Td (af) Tj ET Q q 0 0 0 rg BT 214.51 295.25 Td (fect ) Tj ET Q q 0 0 0 rg BT 230.85 295.25 Td (the ) Tj ET Q q 0 0 0 rg BT 244.41 295.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 284.95 295.25 Td (s ) Tj ET Q q 0 0 0 rg BT 290.19 295.25 Td (ability ) Tj ET Q q 0 0 0 rg BT 317.09 295.25 Td (to ) Tj ET Q q 0 0 0 rg BT 326.22 295.25 Td (record, ) Tj ET Q q 0 0 0 rg BT 355.61 295.25 Td (process, ) Tj ET Q q 0 0 0 rg BT 389.45 295.25 Td (summarize ) Tj ET Q q 0 0 0 rg BT 434.67 295.25 Td (and ) Tj ET Q q 0 0 0 rg BT 450.46 295.25 Td (report ) Tj ET Q q 0 0 0 rg BT 475.68 295.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 512.01 295.25 Td (information; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 283.25 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 266.25 Td (b. ) Tj ET Q q 0 0 0 rg BT 95.54 266.25 Td (Any ) Tj ET Q q 0 0 0 rg BT 115.39 266.25 Td (fraud, ) Tj ET Q q 0 0 0 rg BT 141.60 266.25 Td (whether ) Tj ET Q q 0 0 0 rg BT 176.43 266.25 Td (or ) Tj ET Q q 0 0 0 rg BT 187.38 266.25 Td (not ) Tj ET Q q 0 0 0 rg BT 202.78 266.25 Td (material, ) Tj ET Q q 0 0 0 rg BT 240.66 266.25 Td (that ) Tj ET Q q 0 0 0 rg BT 258.28 266.25 Td (involves ) Tj ET Q q 0 0 0 rg BT 294.79 266.25 Td (management ) Tj ET Q q 0 0 0 rg BT 348.50 266.25 Td (or ) Tj ET Q q 0 0 0 rg BT 359.45 266.25 Td (other ) Tj ET Q q 0 0 0 rg BT 382.62 266.25 Td (employees ) Tj ET Q q 0 0 0 rg BT 428.00 266.25 Td (who ) Tj ET Q q 0 0 0 rg BT 447.84 266.25 Td (have ) Tj ET Q q 0 0 0 rg BT 469.34 266.25 Td (a ) Tj ET Q q 0 0 0 rg BT 476.40 266.25 Td (significant ) Tj ET Q q 0 0 0 rg BT 521.23 266.25 Td (role ) Tj ET Q q 0 0 0 rg BT 539.40 266.25 Td (in ) Tj ET Q q 0 0 0 rg BT 549.80 266.25 Td (the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 90.54 254.25 Td (s ) Tj ET Q q 0 0 0 rg BT 96.93 254.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 129.98 254.25 Td (control ) Tj ET Q q 0 0 0 rg BT 160.80 254.25 Td (over ) Tj ET Q q 0 0 0 rg BT 181.07 254.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 218.55 254.25 Td (reporting. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 223.75 m 306.5 223.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 228.42 Td (/s/ ) Tj ET Q q 0 0 0 rg BT 64.95 228.42 Td (Michael ) Tj ET Q q 0 0 0 rg BT 100.12 228.42 Td (T) Tj ET Q q 0 0 0 rg BT 105.79 228.42 Td (essler) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 213.42 Td (Michael ) Tj ET Q q 0 0 0 rg BT 88.17 213.42 Td (T) Tj ET Q q 0 0 0 rg BT 93.84 213.42 Td (essler) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 198.42 Td (Chief ) Tj ET Q q 0 0 0 rg BT 77.72 198.42 Td (Executive ) Tj ET Q q 0 0 0 rg BT 120.20 198.42 Td (Of) Tj ET Q q 0 0 0 rg BT 130.57 198.42 Td (ficer) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 183.42 Td (Date: February 28, 2014) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 215 0 obj <> endobj 216 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 499.35 737.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 541.96 737.25 Td ( 31.2 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.70 720.25 Td (CER) Tj ET Q q 0 0 0 rg BT 208.46 720.25 Td (TIFICA) Tj ET Q q 0 0 0 rg BT 242.72 720.25 Td (TION OF) Tj ET Q q 0 0 0 rg BT 284.30 720.25 Td ( CHIEF) Tj ET Q q 0 0 0 rg BT 318.10 720.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 376.72 720.25 Td ( OFFICER ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 230.05 708.25 Td (PURSUANT) Tj ET Q q 0 0 0 rg BT 284.32 708.25 Td ( ) Tj ET Q q 0 0 0 rg BT 286.64 708.25 Td (T) Tj ET Q q 0 0 0 rg BT 293.13 708.25 Td (O SECTION 302 OF) Tj ET Q q 0 0 0 rg BT 381.93 708.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 217.55 696.25 Td (THE SARBANES-OXLEY) Tj ET Q q 0 0 0 rg BT 333.04 696.25 Td ( ) Tj ET Q q 0 0 0 rg BT 334.99 696.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 355.92 696.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 371.93 696.25 Td ( 2002 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 669.25 Td (I, James ) Tj ET Q q 0 0 0 rg BT 84.72 669.25 Td (A. ) Tj ET Q q 0 0 0 rg BT 96.76 669.25 Td (Tholen, certify that: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (1. ) Tj ET Q q 0 0 0 rg BT 60.00 652.25 Td (I ) Tj ET Q q 0 0 0 rg BT 65.83 652.25 Td (have ) Tj ET Q q 0 0 0 rg BT 87.21 652.25 Td (reviewed ) Tj ET Q q 0 0 0 rg BT 126.35 652.25 Td (this ) Tj ET Q q 0 0 0 rg BT 142.75 652.25 Td (Annual ) Tj ET Q q 0 0 0 rg BT 174.69 652.25 Td (Report ) Tj ET Q q 0 0 0 rg BT 204.40 652.25 Td (on ) Tj ET Q q 0 0 0 rg BT 216.90 652.25 Td (Form ) Tj ET Q q 0 0 0 rg BT 241.07 652.25 Td (10-K ) Tj ET Q q 0 0 0 rg BT 264.13 652.25 Td (of ) Tj ET Q q 0 0 0 rg BT 274.96 652.25 Td (BroadSoft, ) Tj ET Q q 0 0 0 rg BT 321.06 652.25 Td (Inc.; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 635.25 Td (2. ) Tj ET Q q 0 0 0 rg BT 60.47 635.25 Td (Based ) Tj ET Q q 0 0 0 rg BT 87.88 635.25 Td (on ) Tj ET Q q 0 0 0 rg BT 100.84 635.25 Td (my ) Tj ET Q q 0 0 0 rg BT 116.59 635.25 Td (knowledge, ) Tj ET Q q 0 0 0 rg BT 165.94 635.25 Td (this ) Tj ET Q q 0 0 0 rg BT 183.35 635.25 Td (report ) Tj ET Q q 0 0 0 rg BT 210.20 635.25 Td (does ) Tj ET Q q 0 0 0 rg BT 231.50 635.25 Td (not ) Tj ET Q q 0 0 0 rg BT 247.25 635.25 Td (contain ) Tj ET Q q 0 0 0 rg BT 279.65 635.25 Td (any ) Tj ET Q q 0 0 0 rg BT 297.06 635.25 Td (untrue ) Tj ET Q q 0 0 0 rg BT 325.57 635.25 Td (statement ) Tj ET Q q 0 0 0 rg BT 366.86 635.25 Td (of ) Tj ET Q q 0 0 0 rg BT 378.16 635.25 Td (a ) Tj ET Q q 0 0 0 rg BT 385.57 635.25 Td (material ) Tj ET Q q 0 0 0 rg BT 421.29 635.25 Td (fact ) Tj ET Q q 0 0 0 rg BT 439.25 635.25 Td (or ) Tj ET Q q 0 0 0 rg BT 450.55 635.25 Td (omit ) Tj ET Q q 0 0 0 rg BT 471.85 635.25 Td (to ) Tj ET Q q 0 0 0 rg BT 482.60 635.25 Td (state ) Tj ET Q q 0 0 0 rg BT 503.89 635.25 Td (a ) Tj ET Q q 0 0 0 rg BT 511.30 635.25 Td (material ) Tj ET Q q 0 0 0 rg BT 547.03 635.25 Td (fact ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 623.25 Td (necessary ) Tj ET Q q 0 0 0 rg BT 91.86 623.25 Td (to ) Tj ET Q q 0 0 0 rg BT 102.63 623.25 Td (make ) Tj ET Q q 0 0 0 rg BT 127.27 623.25 Td (the ) Tj ET Q q 0 0 0 rg BT 142.48 623.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 187.68 623.25 Td (made, ) Tj ET Q q 0 0 0 rg BT 214.83 623.25 Td (in ) Tj ET Q q 0 0 0 rg BT 225.60 623.25 Td (light ) Tj ET Q q 0 0 0 rg BT 246.92 623.25 Td (of ) Tj ET Q q 0 0 0 rg BT 258.24 623.25 Td (the ) Tj ET Q q 0 0 0 rg BT 273.45 623.25 Td (circumstances ) Tj ET Q q 0 0 0 rg BT 333.08 623.25 Td (under ) Tj ET Q q 0 0 0 rg BT 358.84 623.25 Td (which ) Tj ET Q q 0 0 0 rg BT 386.27 623.25 Td (such ) Tj ET Q q 0 0 0 rg BT 407.59 623.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 452.80 623.25 Td (were ) Tj ET Q q 0 0 0 rg BT 475.21 623.25 Td (made, ) Tj ET Q q 0 0 0 rg BT 502.36 623.25 Td (not ) Tj ET Q q 0 0 0 rg BT 518.13 623.25 Td (misleading ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 611.25 Td (with ) Tj ET Q q 0 0 0 rg BT 70.28 611.25 Td (respect ) Tj ET Q q 0 0 0 rg BT 101.09 611.25 Td (to ) Tj ET Q q 0 0 0 rg BT 111.37 611.25 Td (the ) Tj ET Q q 0 0 0 rg BT 126.09 611.25 Td (period ) Tj ET Q q 0 0 0 rg BT 154.14 611.25 Td (covered ) Tj ET Q q 0 0 0 rg BT 188.28 611.25 Td (by ) Tj ET Q q 0 0 0 rg BT 200.78 611.25 Td (this ) Tj ET Q q 0 0 0 rg BT 217.73 611.25 Td (report; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (3. ) Tj ET Q q 0 0 0 rg BT 60.16 594.25 Td (Based ) Tj ET Q q 0 0 0 rg BT 87.25 594.25 Td (on ) Tj ET Q q 0 0 0 rg BT 99.91 594.25 Td (my ) Tj ET Q q 0 0 0 rg BT 115.35 594.25 Td (knowledge, ) Tj ET Q q 0 0 0 rg BT 164.38 594.25 Td (the ) Tj ET Q q 0 0 0 rg BT 179.26 594.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 216.90 594.25 Td (statements, ) Tj ET Q q 0 0 0 rg BT 264.26 594.25 Td (and ) Tj ET Q q 0 0 0 rg BT 281.36 594.25 Td (other ) Tj ET Q q 0 0 0 rg BT 304.57 594.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 342.20 594.25 Td (information ) Tj ET Q q 0 0 0 rg BT 392.07 594.25 Td (included ) Tj ET Q q 0 0 0 rg BT 429.16 594.25 Td (in ) Tj ET Q q 0 0 0 rg BT 439.60 594.25 Td (this ) Tj ET Q q 0 0 0 rg BT 456.71 594.25 Td (report, ) Tj ET Q q 0 0 0 rg BT 485.74 594.25 Td (fairly ) Tj ET Q q 0 0 0 rg BT 510.05 594.25 Td (present ) Tj ET Q q 0 0 0 rg BT 541.59 594.25 Td (in ) Tj ET Q q 0 0 0 rg BT 552.02 594.25 Td (all ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 582.25 Td (material ) Tj ET Q q 0 0 0 rg BT 84.93 582.25 Td (respects ) Tj ET Q q 0 0 0 rg BT 119.31 582.25 Td (the ) Tj ET Q q 0 0 0 rg BT 133.69 582.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 170.84 582.25 Td (condition, ) Tj ET Q q 0 0 0 rg BT 213.29 582.25 Td (results ) Tj ET Q q 0 0 0 rg BT 241.57 582.25 Td (of ) Tj ET Q q 0 0 0 rg BT 252.07 582.25 Td (operations ) Tj ET Q q 0 0 0 rg BT 295.89 582.25 Td (and ) Tj ET Q q 0 0 0 rg BT 312.50 582.25 Td (cash ) Tj ET Q q 0 0 0 rg BT 332.44 582.25 Td (flows ) Tj ET Q q 0 0 0 rg BT 356.83 582.25 Td (of ) Tj ET Q q 0 0 0 rg BT 367.33 582.25 Td (the ) Tj ET Q q 0 0 0 rg BT 381.72 582.25 Td (registrant ) Tj ET Q q 0 0 0 rg BT 421.66 582.25 Td (as ) Tj ET Q q 0 0 0 rg BT 432.16 582.25 Td (of, ) Tj ET Q q 0 0 0 rg BT 445.16 582.25 Td (and ) Tj ET Q q 0 0 0 rg BT 461.77 582.25 Td (for) Tj ET Q q 0 0 0 rg BT 473.02 582.25 Td (, ) Tj ET Q q 0 0 0 rg BT 477.70 582.25 Td (the ) Tj ET Q q 0 0 0 rg BT 492.08 582.25 Td (periods ) Tj ET Q q 0 0 0 rg BT 523.69 582.25 Td (presented ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 570.25 Td (in ) Tj ET Q q 0 0 0 rg BT 60.28 570.25 Td (this ) Tj ET Q q 0 0 0 rg BT 77.23 570.25 Td (report; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 553.25 Td (4. ) Tj ET Q q 0 0 0 rg BT 59.17 553.25 Td (The ) Tj ET Q q 0 0 0 rg BT 76.51 553.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 117.05 553.25 Td (s ) Tj ET Q q 0 0 0 rg BT 122.74 553.25 Td (other ) Tj ET Q q 0 0 0 rg BT 145.08 553.25 Td (certifying ) Tj ET Q q 0 0 0 rg BT 185.75 553.25 Td (of) Tj ET Q q 0 0 0 rg BT 193.90 553.25 Td (ficer ) Tj ET Q q 0 0 0 rg BT 214.02 553.25 Td (and ) Tj ET Q q 0 0 0 rg BT 230.25 553.25 Td (I ) Tj ET Q q 0 0 0 rg BT 235.38 553.25 Td (are ) Tj ET Q q 0 0 0 rg BT 249.38 553.25 Td (responsible ) Tj ET Q q 0 0 0 rg BT 296.73 553.25 Td (for ) Tj ET Q q 0 0 0 rg BT 310.18 553.25 Td (establishing ) Tj ET Q q 0 0 0 rg BT 359.75 553.25 Td (and ) Tj ET Q q 0 0 0 rg BT 375.99 553.25 Td (maintaining ) Tj ET Q q 0 0 0 rg BT 425.55 553.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 467.90 553.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 501.91 553.25 Td (and ) Tj ET Q q 0 0 0 rg BT 518.15 553.25 Td (procedures ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 541.25 Td (\(as ) Tj ET Q q 0 0 0 rg BT 63.82 541.25 Td (defined ) Tj ET Q q 0 0 0 rg BT 95.96 541.25 Td (in ) Tj ET Q q 0 0 0 rg BT 105.89 541.25 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 147.00 541.25 Td (Act ) Tj ET Q q 0 0 0 rg BT 163.59 541.25 Td (Rules ) Tj ET Q q 0 0 0 rg BT 188.52 541.25 Td (13a-15\(e\) ) Tj ET Q q 0 0 0 rg BT 229.55 541.25 Td (and ) Tj ET Q q 0 0 0 rg BT 246.14 541.25 Td (15d-15\(e\)\) ) Tj ET Q q 0 0 0 rg BT 291.06 541.25 Td (and ) Tj ET Q q 0 0 0 rg BT 307.65 541.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 340.35 541.25 Td (control ) Tj ET Q q 0 0 0 rg BT 370.83 541.25 Td (over ) Tj ET Q q 0 0 0 rg BT 390.75 541.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 427.89 541.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 466.70 541.25 Td (\(as ) Tj ET Q q 0 0 0 rg BT 480.52 541.25 Td (defined ) Tj ET Q q 0 0 0 rg BT 512.66 541.25 Td (in ) Tj ET Q q 0 0 0 rg BT 522.59 541.25 Td (Exchange ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 529.25 Td (Act ) Tj ET Q q 0 0 0 rg BT 66.94 529.25 Td (Rules ) Tj ET Q q 0 0 0 rg BT 92.22 529.25 Td (13a-15\(f\) ) Tj ET Q q 0 0 0 rg BT 132.48 529.25 Td (and ) Tj ET Q q 0 0 0 rg BT 149.41 529.25 Td (15d-15\(f\)\) ) Tj ET Q q 0 0 0 rg BT 193.56 529.25 Td (for ) Tj ET Q q 0 0 0 rg BT 207.72 529.25 Td (the ) Tj ET Q q 0 0 0 rg BT 222.44 529.25 Td (registrant ) Tj ET Q q 0 0 0 rg BT 262.71 529.25 Td (and ) Tj ET Q q 0 0 0 rg BT 279.64 529.25 Td (have: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 512.25 Td (a. ) Tj ET Q q 0 0 0 rg BT 95.54 512.25 Td (Designed ) Tj ET Q q 0 0 0 rg BT 135.92 512.25 Td (such ) Tj ET Q q 0 0 0 rg BT 156.86 512.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 200.01 512.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 234.83 512.25 Td (and ) Tj ET Q q 0 0 0 rg BT 251.88 512.25 Td (procedures, ) Tj ET Q q 0 0 0 rg BT 300.85 512.25 Td (or ) Tj ET Q q 0 0 0 rg BT 311.79 512.25 Td (caused ) Tj ET Q q 0 0 0 rg BT 341.60 512.25 Td (such ) Tj ET Q q 0 0 0 rg BT 362.54 512.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 405.69 512.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 440.51 512.25 Td (and ) Tj ET Q q 0 0 0 rg BT 457.56 512.25 Td (procedures ) Tj ET Q q 0 0 0 rg BT 504.03 512.25 Td (to ) Tj ET Q q 0 0 0 rg BT 514.42 512.25 Td (be ) Tj ET Q q 0 0 0 rg BT 526.46 512.25 Td (designed ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 500.25 Td (under ) Tj ET Q q 0 0 0 rg BT 74.64 500.25 Td (our ) Tj ET Q q 0 0 0 rg BT 89.85 500.25 Td (supervision, ) Tj ET Q q 0 0 0 rg BT 140.33 500.25 Td (to ) Tj ET Q q 0 0 0 rg BT 149.98 500.25 Td (ensure ) Tj ET Q q 0 0 0 rg BT 177.95 500.25 Td (that ) Tj ET Q q 0 0 0 rg BT 194.82 500.25 Td (material ) Tj ET Q q 0 0 0 rg BT 229.46 500.25 Td (information ) Tj ET Q q 0 0 0 rg BT 278.54 500.25 Td (relating ) Tj ET Q q 0 0 0 rg BT 310.96 500.25 Td (to ) Tj ET Q q 0 0 0 rg BT 320.61 500.25 Td (the ) Tj ET Q q 0 0 0 rg BT 334.70 500.25 Td (registrant, ) Tj ET Q q 0 0 0 rg BT 376.84 500.25 Td (including ) Tj ET Q q 0 0 0 rg BT 416.49 500.25 Td (its ) Tj ET Q q 0 0 0 rg BT 427.81 500.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 480.22 500.25 Td (subsidiaries, ) Tj ET Q q 0 0 0 rg BT 531.82 500.25 Td (is ) Tj ET Q q 0 0 0 rg BT 540.36 500.25 Td (made ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.25 Td (known ) Tj ET Q q 0 0 0 rg BT 79.72 488.25 Td (to ) Tj ET Q q 0 0 0 rg BT 90.00 488.25 Td (us ) Tj ET Q q 0 0 0 rg BT 101.39 488.25 Td (by ) Tj ET Q q 0 0 0 rg BT 113.89 488.25 Td (others ) Tj ET Q q 0 0 0 rg BT 140.83 488.25 Td (within ) Tj ET Q q 0 0 0 rg BT 168.89 488.25 Td (those ) Tj ET Q q 0 0 0 rg BT 192.50 488.25 Td (entities, ) Tj ET Q q 0 0 0 rg BT 226.38 488.25 Td (particularly ) Tj ET Q q 0 0 0 rg BT 274.97 488.25 Td (during ) Tj ET Q q 0 0 0 rg BT 303.57 488.25 Td (the ) Tj ET Q q 0 0 0 rg BT 318.29 488.25 Td (period ) Tj ET Q q 0 0 0 rg BT 346.34 488.25 Td (in ) Tj ET Q q 0 0 0 rg BT 356.62 488.25 Td (which ) Tj ET Q q 0 0 0 rg BT 383.55 488.25 Td (this ) Tj ET Q q 0 0 0 rg BT 400.50 488.25 Td (report ) Tj ET Q q 0 0 0 rg BT 426.88 488.25 Td (is ) Tj ET Q q 0 0 0 rg BT 436.05 488.25 Td (being ) Tj ET Q q 0 0 0 rg BT 460.77 488.25 Td (prepared; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 471.25 Td (b. ) Tj ET Q q 0 0 0 rg BT 95.99 471.25 Td (Designed ) Tj ET Q q 0 0 0 rg BT 136.24 471.25 Td (such ) Tj ET Q q 0 0 0 rg BT 157.06 471.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 190.09 471.25 Td (control ) Tj ET Q q 0 0 0 rg BT 220.90 471.25 Td (over ) Tj ET Q q 0 0 0 rg BT 241.16 471.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 278.62 471.25 Td (reporting, ) Tj ET Q q 0 0 0 rg BT 320.26 471.25 Td (or ) Tj ET Q q 0 0 0 rg BT 331.08 471.25 Td (caused ) Tj ET Q q 0 0 0 rg BT 360.78 471.25 Td (such ) Tj ET Q q 0 0 0 rg BT 381.59 471.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 414.62 471.25 Td (control ) Tj ET Q q 0 0 0 rg BT 445.43 471.25 Td (over ) Tj ET Q q 0 0 0 rg BT 465.69 471.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 503.16 471.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 542.30 471.25 Td (to ) Tj ET Q q 0 0 0 rg BT 552.56 471.25 Td (be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 459.25 Td (designed ) Tj ET Q q 0 0 0 rg BT 87.44 459.25 Td (under ) Tj ET Q q 0 0 0 rg BT 112.09 459.25 Td (our ) Tj ET Q q 0 0 0 rg BT 127.31 459.25 Td (supervision, ) Tj ET Q q 0 0 0 rg BT 177.81 459.25 Td (to ) Tj ET Q q 0 0 0 rg BT 187.48 459.25 Td (provide ) Tj ET Q q 0 0 0 rg BT 219.92 459.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 264.56 459.25 Td (assurance ) Tj ET Q q 0 0 0 rg BT 305.32 459.25 Td (regarding ) Tj ET Q q 0 0 0 rg BT 345.52 459.25 Td (the ) Tj ET Q q 0 0 0 rg BT 359.63 459.25 Td (reliability ) Tj ET Q q 0 0 0 rg BT 400.40 459.25 Td (of ) Tj ET Q q 0 0 0 rg BT 410.62 459.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 447.49 459.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 486.03 459.25 Td (and ) Tj ET Q q 0 0 0 rg BT 502.36 459.25 Td (the ) Tj ET Q q 0 0 0 rg BT 516.46 459.25 Td (preparation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 447.25 Td (of ) Tj ET Q q 0 0 0 rg BT 60.83 447.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 98.31 447.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 143.02 447.25 Td (for ) Tj ET Q q 0 0 0 rg BT 157.18 447.25 Td (external ) Tj ET Q q 0 0 0 rg BT 191.88 447.25 Td (purposes ) Tj ET Q q 0 0 0 rg BT 229.94 447.25 Td (in ) Tj ET Q q 0 0 0 rg BT 240.21 447.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 287.68 447.25 Td (with ) Tj ET Q q 0 0 0 rg BT 307.95 447.25 Td (generally ) Tj ET Q q 0 0 0 rg BT 347.66 447.25 Td (accepted ) Tj ET Q q 0 0 0 rg BT 385.13 447.25 Td (accounting ) Tj ET Q q 0 0 0 rg BT 431.50 447.25 Td (principles; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 430.25 Td (c. ) Tj ET Q q 0 0 0 rg BT 96.48 430.25 Td (Evaluated ) Tj ET Q q 0 0 0 rg BT 140.00 430.25 Td (the ) Tj ET Q q 0 0 0 rg BT 155.75 430.25 Td (ef) Tj ET Q q 0 0 0 rg BT 163.34 430.25 Td (fectiveness ) Tj ET Q q 0 0 0 rg BT 211.30 430.25 Td (of ) Tj ET Q q 0 0 0 rg BT 223.17 430.25 Td (the ) Tj ET Q q 0 0 0 rg BT 238.93 430.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 279.47 430.25 Td (s ) Tj ET Q q 0 0 0 rg BT 286.90 430.25 Td (disclosure ) Tj ET Q q 0 0 0 rg BT 330.99 430.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 366.74 430.25 Td (and ) Tj ET Q q 0 0 0 rg BT 384.72 430.25 Td (procedures ) Tj ET Q q 0 0 0 rg BT 432.13 430.25 Td (and ) Tj ET Q q 0 0 0 rg BT 450.10 430.25 Td (presented ) Tj ET Q q 0 0 0 rg BT 491.96 430.25 Td (in ) Tj ET Q q 0 0 0 rg BT 503.28 430.25 Td (this ) Tj ET Q q 0 0 0 rg BT 521.26 430.25 Td (report ) Tj ET Q q 0 0 0 rg BT 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Tj ET Q q 0 0 0 rg BT 520.95 418.25 Td (this ) Tj ET Q q 0 0 0 rg BT 538.14 418.25 Td (report ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (based ) Tj ET Q q 0 0 0 rg BT 75.27 406.25 Td (on ) Tj ET Q q 0 0 0 rg BT 87.77 406.25 Td (such ) Tj ET Q q 0 0 0 rg BT 108.60 406.25 Td (evaluation; ) Tj ET Q q 0 0 0 rg BT 155.53 406.25 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 389.25 Td (d. ) Tj ET Q q 0 0 0 rg BT 95.68 389.25 Td (Disclosed ) Tj ET Q q 0 0 0 rg BT 137.30 389.25 Td (in ) Tj ET Q q 0 0 0 rg BT 147.25 389.25 Td (this ) Tj ET Q q 0 0 0 rg BT 163.88 389.25 Td (report ) Tj ET Q q 0 0 0 rg BT 189.94 389.25 Td (any ) Tj ET Q q 0 0 0 rg BT 206.56 389.25 Td (change ) Tj ET Q q 0 0 0 rg BT 237.05 389.25 Td (in ) Tj ET Q q 0 0 0 rg BT 247.01 389.25 Td (the ) Tj ET Q q 0 0 0 rg BT 261.40 389.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 301.95 389.25 Td (s ) Tj ET Q q 0 0 0 rg BT 308.02 389.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 340.74 389.25 Td (control ) Tj ET Q q 0 0 0 rg BT 371.24 389.25 Td (over ) Tj ET Q q 0 0 0 rg BT 391.19 389.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 428.35 389.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 467.18 389.25 Td (that ) Tj ET Q q 0 0 0 rg BT 484.36 389.25 Td (occurred ) Tj ET Q q 0 0 0 rg BT 521.51 389.25 Td (during ) Tj ET Q q 0 0 0 rg BT 549.80 389.25 Td (the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 377.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 90.54 377.25 Td (s ) Tj ET Q q 0 0 0 rg BT 97.68 377.25 Td (most ) Tj ET Q q 0 0 0 rg BT 120.37 377.25 Td (recent ) Tj ET Q q 0 0 0 rg BT 148.04 377.25 Td (fiscal ) Tj ET Q q 0 0 0 rg BT 172.94 377.25 Td (quarter ) Tj ET Q q 0 0 0 rg BT 204.50 377.25 Td (\(the ) Tj ET Q q 0 0 0 rg BT 223.29 377.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 263.83 377.25 Td (s ) Tj ET Q q 0 0 0 rg BT 270.97 377.25 Td (fourth ) Tj ET Q q 0 0 0 rg BT 298.65 377.25 Td (fiscal ) Tj ET Q q 0 0 0 rg BT 323.55 377.25 Td (quarter ) Tj ET Q q 0 0 0 rg BT 355.11 377.25 Td (in ) Tj ET Q q 0 0 0 rg BT 366.14 377.25 Td (the ) Tj ET Q q 0 0 0 rg BT 381.60 377.25 Td (case ) Tj ET Q q 0 0 0 rg BT 402.05 377.25 Td (of ) Tj ET Q q 0 0 0 rg BT 413.62 377.25 Td (an ) Tj ET Q q 0 0 0 rg BT 426.31 377.25 Td (annual ) Tj ET Q q 0 0 0 rg BT 456.21 377.25 Td (report\) ) Tj ET Q q 0 0 0 rg BT 486.66 377.25 Td (that ) Tj ET Q q 0 0 0 rg BT 504.90 377.25 Td (has ) Tj ET Q q 0 0 0 rg BT 521.47 377.25 Td (materially ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 365.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 365.25 Td (fected, ) Tj ET Q q 0 0 0 rg BT 87.01 365.25 Td (or ) Tj ET Q q 0 0 0 rg BT 97.84 365.25 Td (is ) Tj ET Q q 0 0 0 rg BT 107.01 365.25 Td (reasonably ) Tj ET Q q 0 0 0 rg BT 152.83 365.25 Td (likely ) Tj ET Q q 0 0 0 rg BT 178.10 365.25 Td (to ) Tj ET Q q 0 0 0 rg BT 188.38 365.25 Td (materially ) Tj ET Q q 0 0 0 rg BT 231.42 365.25 Td (af) Tj ET Q q 0 0 0 rg BT 239.00 365.25 Td (fect, ) Tj ET Q q 0 0 0 rg BT 258.99 365.25 Td (the ) Tj ET Q q 0 0 0 rg BT 273.71 365.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 314.25 365.25 Td (s ) Tj ET Q q 0 0 0 rg BT 320.64 365.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 353.68 365.25 Td (control ) Tj ET Q q 0 0 0 rg BT 384.51 365.25 Td (over ) Tj ET Q q 0 0 0 rg BT 404.78 365.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 442.26 365.25 Td (reporting; ) Tj ET Q q 0 0 0 rg BT 484.19 365.25 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 348.25 Td (5. ) Tj ET Q q 0 0 0 rg BT 59.82 348.25 Td (The registrant) Tj ET Q q 0 0 0 rg BT 118.41 348.25 Td (s other certifying of) Tj ET Q q 0 0 0 rg BT 197.37 348.25 Td (ficer and I have disclosed, based on our most recent evaluation of internal control over ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 336.25 Td (financial reporting, to the registrant) Tj ET Q q 0 0 0 rg BT 194.67 336.25 Td (s auditors and the audit committee of the registrant) Tj ET Q q 0 0 0 rg BT 400.73 336.25 Td (s board of directors \(or persons ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 324.25 Td (performing the 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q 0 0 0 rg BT 75.79 295.25 Td (are ) Tj ET Q q 0 0 0 rg BT 89.34 295.25 Td (reasonably ) Tj ET Q q 0 0 0 rg BT 134.01 295.25 Td (likely ) Tj ET Q q 0 0 0 rg BT 158.13 295.25 Td (to ) Tj ET Q q 0 0 0 rg BT 167.26 295.25 Td (adversely ) Tj ET Q q 0 0 0 rg BT 206.92 295.25 Td (af) Tj ET Q q 0 0 0 rg BT 214.51 295.25 Td (fect ) Tj ET Q q 0 0 0 rg BT 230.85 295.25 Td (the ) Tj ET Q q 0 0 0 rg BT 244.41 295.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 284.95 295.25 Td (s ) Tj ET Q q 0 0 0 rg BT 290.19 295.25 Td (ability ) Tj ET Q q 0 0 0 rg BT 317.09 295.25 Td (to ) Tj ET Q q 0 0 0 rg BT 326.22 295.25 Td (record, ) Tj ET Q q 0 0 0 rg BT 355.61 295.25 Td (process, ) Tj ET Q q 0 0 0 rg BT 389.45 295.25 Td (summarize ) Tj ET Q q 0 0 0 rg BT 434.67 295.25 Td (and ) Tj ET Q q 0 0 0 rg BT 450.46 295.25 Td (report ) Tj ET Q q 0 0 0 rg BT 475.68 295.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 512.01 295.25 Td (information; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 283.25 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 266.25 Td (b. ) Tj ET Q q 0 0 0 rg BT 95.54 266.25 Td (Any ) Tj ET Q q 0 0 0 rg BT 115.39 266.25 Td (fraud, ) Tj ET Q q 0 0 0 rg BT 141.60 266.25 Td (whether ) Tj ET Q q 0 0 0 rg BT 176.43 266.25 Td (or ) Tj ET Q q 0 0 0 rg BT 187.38 266.25 Td (not ) Tj ET Q q 0 0 0 rg BT 202.78 266.25 Td (material, ) Tj ET Q q 0 0 0 rg BT 240.66 266.25 Td (that ) Tj ET Q q 0 0 0 rg BT 258.28 266.25 Td (involves ) Tj ET Q q 0 0 0 rg BT 294.79 266.25 Td (management ) Tj ET Q q 0 0 0 rg BT 348.50 266.25 Td (or ) Tj ET Q q 0 0 0 rg BT 359.45 266.25 Td (other ) Tj ET Q q 0 0 0 rg BT 382.62 266.25 Td (employees ) Tj ET Q q 0 0 0 rg BT 428.00 266.25 Td (who ) Tj ET Q q 0 0 0 rg BT 447.84 266.25 Td (have ) Tj ET Q q 0 0 0 rg BT 469.34 266.25 Td (a ) Tj ET Q q 0 0 0 rg BT 476.40 266.25 Td (significant ) Tj ET Q q 0 0 0 rg BT 521.23 266.25 Td (role ) Tj ET Q q 0 0 0 rg BT 539.40 266.25 Td (in ) Tj ET Q q 0 0 0 rg BT 549.80 266.25 Td (the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (registrant) Tj ET Q q 0 0 0 rg BT 90.54 254.25 Td (s ) Tj ET Q q 0 0 0 rg BT 96.93 254.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 129.98 254.25 Td (control ) Tj ET Q q 0 0 0 rg BT 160.80 254.25 Td (over ) Tj ET Q q 0 0 0 rg BT 181.07 254.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 218.55 254.25 Td (reporting. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 223.75 m 306.5 223.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 228.42 Td (/s/ ) Tj ET Q q 0 0 0 rg BT 64.95 228.42 Td (James ) Tj ET Q q 0 0 0 rg BT 91.61 228.42 Td (A. ) Tj ET Q q 0 0 0 rg BT 103.47 228.42 Td (Tholen) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 213.42 Td (James ) Tj ET Q q 0 0 0 rg BT 79.66 213.42 Td (A. ) Tj ET Q q 0 0 0 rg BT 91.52 213.42 Td (Tholen) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 198.42 Td (Chief ) Tj ET Q q 0 0 0 rg BT 77.72 198.42 Td (Financial ) Tj ET Q q 0 0 0 rg BT 117.43 198.42 Td (Of) Tj ET Q q 0 0 0 rg BT 127.80 198.42 Td (ficer) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 183.42 Td (Date: February 28, 2014) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 217 0 obj <> endobj 218 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 499.35 737.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 541.96 737.25 Td ( 32.1 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 186.05 720.25 Td (CER) Tj ET Q q 0 0 0 rg BT 206.81 720.25 Td (TIFICA) Tj ET Q q 0 0 0 rg BT 241.07 720.25 Td (TION OF) Tj ET Q q 0 0 0 rg BT 282.65 720.25 Td ( CHIEF) Tj ET Q q 0 0 0 rg BT 316.45 720.25 Td ( EXECUTIVE OFFICER ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.05 708.25 Td (PURSUANT) Tj ET Q q 0 0 0 rg BT 267.32 708.25 Td ( ) Tj ET Q q 0 0 0 rg BT 269.64 708.25 Td (T) Tj ET Q q 0 0 0 rg BT 276.13 708.25 Td (O 18 U.S.C. SECTION 1350, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 205.00 696.25 Td (AS ) Tj ET Q q 0 0 0 rg BT 219.73 696.25 Td (ADOPTED PURSUANT) Tj ET Q q 0 0 0 rg BT 325.39 696.25 Td ( ) Tj ET Q q 0 0 0 rg BT 327.71 696.25 Td (T) Tj ET Q q 0 0 0 rg BT 334.20 696.25 Td (O SECTION 906 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.60 684.25 Td (OF) Tj ET Q q 0 0 0 rg BT 223.12 684.25 Td ( ) Tj ET Q q 0 0 0 rg BT 225.43 684.25 Td (THE SARBANES-OXLEY) Tj ET Q q 0 0 0 rg BT 340.92 684.25 Td ( ) Tj ET Q q 0 0 0 rg BT 342.87 684.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 363.80 684.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 379.82 684.25 Td ( 2002 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 660.25 Td (Pursuant to the requirement set forth in Rule 13a-14\(b\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 381.30 660.25 Td (Act of 1934, as amended \(the Exchange ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 648.25 Td (Act\), and Section 1350 of Chapter 63 of ) Tj ET Q q 0 0 0 rg BT 217.28 648.25 Td (T) Tj ET Q q 0 0 0 rg BT 223.03 648.25 Td (itle 18 of the United States Code \(18 U.S.C. 1350\), Michael ) Tj ET Q q 0 0 0 rg BT 469.76 648.25 Td (T) Tj ET Q q 0 0 0 rg BT 475.17 648.25 Td (essler) Tj ET Q q 0 0 0 rg BT 497.54 648.25 Td (, Chief ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 636.25 Td (Executive Of) Tj ET Q q 0 0 0 rg BT 102.85 636.25 Td (ficer of BroadSoft, Inc. \(the Company\), hereby certifies that, to the best of his knowledge: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.50 619.25 Td (1. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 619.25 Td (The ) Tj ET Q q 0 0 0 rg BT 104.54 619.25 Td (Company) Tj ET Q q 0 0 0 rg BT 146.21 619.25 Td (s ) Tj ET Q q 0 0 0 rg BT 152.43 619.25 Td (Annual ) Tj ET Q q 0 0 0 rg BT 184.87 619.25 Td (Report ) Tj ET Q q 0 0 0 rg BT 215.08 619.25 Td (on ) Tj ET Q q 0 0 0 rg BT 228.08 619.25 Td (Form ) Tj ET Q q 0 0 0 rg BT 252.74 619.25 Td (10-K ) Tj ET Q q 0 0 0 rg BT 276.29 619.25 Td (for ) Tj ET Q q 0 0 0 rg BT 290.94 619.25 Td (the ) 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