Annual Report 2007 - LivePerson

LIVEPERSON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)
(2) Asset Acquisitions − (continued)
community that will connect consumers with experts in a range of categories. All 4,130,776 shares are
included in the weighted average shares outstanding used in basic and diluted net income per common share
as of October 3, 2007. Of the total purchase price, a net liability of $812 was allocated to the net book values
of the acquired assets and assumed liabilities. The historical carrying amounts of such assets and liabilities
approximated their fair values. The purchase price in excess of the fair value of the net book values of the
acquired assets and assumed liabilities was allocated to goodwill and intangible assets which are being
amortized over their expected period of benefit.
Management’s preliminary allocation of the purchase price in connection with the Kasamba acquisition is
as follows:
Cash ....................................................... $ 1,584
Other currents assets ............................................ 494
Property and equipment .......................................... 426
Intangible assets ............................................... 6,085
Goodwill .................................................... 32,940
41,529
Liabilities assumed ............................................. (3,316)
Deferred tax liability, net ......................................... (2,333)
Total purchase price consideration ................................. $35,880
The components of the intangible assets listed in the above table are as follows:
Weighted
Average
Useful Life
(Months) Amount
Technology. ........................................ 48 $4,910
Trade name ........................................ 36 630
Expert network ...................................... 36 235
Non-compete agreements ............................... 12 310
$6,085
The net intangible asset of $5,629 and $0 are included in ‘‘Assets — Intangibles, net’’ on the Company’s
December 31, 2007 and 2006 balance sheets, respectively.
The following unaudited pro forma consolidated financial information gives effect to the acquisitions of
Kasamba and Proficient as if the acquisitions occurred on January 1, 2006, by consolidating the results of
operations of Kasamba and Proficient with the results of the Company for the years ended December 31, 2007
and 2006. The unaudited pro forma consolidated financial information is not necessarily indicative of the
consolidated results that would have occurred, nor is it necessarily indicative of results that may occur in the
future.
Year Ended December 31,
2007 2006
Revenue ......................................... $ 59,613 $ 42,511
Net income/(loss) ................................... $ 1,924 $ (4,098)
Basic and diluted net loss per common share ................ $ 0.04 $ (0.09)
Weighted average shares outstanding − basic ................ 46,953,661 45,803,564
Weighted average shares outstanding − diluted ............... 51,050,290 46,199,797
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