Hypercom Corporation Annual Report - CiteSeer

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders of Hypercom Corporation We have audited the accompanying consolidated balance sheets of Hypercom Corporation as of December 31, 2009 and 2008, and the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Hypercom Corporation at December 31, 2009 and 2008, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Hypercom Corporation’s internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 12, 2010 expressed an unqualified opinion thereon. Phoenix, Arizona March 12, 2010 /s/ Ernst & Young LLP - 49 -
HYPERCOM CORPORATION CONSOLIDATED BALANCE SHEETS 2009 December 31, 2008 (Dollars in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 55,041 $ 35,582 Short-term investments Accounts receivable, net of allowance for doubtful — 499 accounts of $3,240 and $4,469, respectively 86,031 96,498 Current portion of net investment in sales-type leases 5,235 8,574 Inventories 29,363 31,290 Prepaid expenses and other current assets 8,855 7,106 Deferred income taxes 1,311 1,320 Current portion of assets held for sale 5,241 2,616 Total current assets 191,077 183,485 Property, plant and equipment, net 24,304 24,911 Net investment in sales-type leases 5,046 4,802 Intangible assets, net 49,579 57,311 Goodwill 28,536 26,715 Assets held for sale — 3,262 Other long-term assets 8,346 5,814 Total assets $ 306,888 $ 306,300 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 52,355 $ 50,545 Accrued payroll and related expenses 16,152 16,596 Accrued sales and other taxes 8,116 7,706 Product warranty liabilities 5,444 6,597 Restructuring liabilities 8,265 7,724 Accrued other liabilities 20,677 22,866 Deferred revenue 11,559 12,177 Deferred tax liabilities 22 4,828 Income taxes payable 6,568 5,201 Current portion of liabilities held for sale 1,244 2,410 Total current liabilities 130,402 136,650 Deferred tax liabilities 14,902 15,999 Long term debt, net of discount 56,076 48,769 Other liabilities 14,612 11,094 Total liabilities 215,992 212,512 Commitments and contingencies Stockholders' equity: Common stock, $.001 par value; 100,000,000 shares authorized; 54,622,360 and 53,442,799 shares outstanding at December 31, 2009 and 2008, respectively 58 57 Additional paid-in capital 275,001 272,869 Accumulated deficit (146,113 ) (139,245 ) Treasury stock, 3,162,248 shares (at cost) at December 31, 2009 and 2008. (22,749 ) (22,749 ) Accumulated other comprehensive loss (15,301 ) (17,144 ) Total stockholders' equity 90,896 93,788 Total liabilities and stockholders' equity $ 306,888 $ 306,300 The accompanying notes are an integral part of these consolidated financial statements. - 50 -
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Hypercom Corporation Annual Report
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Page 54 and 55: Net Revenues Net revenues increased
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Page 62 and 63: Report of Independent Registered Pu
Page 64 and 65: Item 13. Certain Relationships and
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Page 72 and 73: Allowance for Doubtful Accounts Pay
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Page 84 and 85: 7. Leases Sales-Type Leases The Com
Page 86 and 87: 12. Product Warranty Liability The
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Page 94 and 95: enefit obligations as of December 3
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Page 100 and 101: The Company’s depreciation and am
Page 102 and 103: First Second Third Fourth Fiscal Qu
Page 104 and 105: EXHIBIT INDEX Exhibit Number Descri
Page 106 and 107: Exhibit Number Description of Exhib
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Page 112 and 113: NOTES HYPERCOM CORPORATION
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World Headquarters: hypercom Corpor
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