Hypercom Corporation Annual Report - CiteSeer

HYPERCOM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2009 2008 2007
(Dollars in thousands)
Cash flows from continuing operations:
Loss before discontinued operations
Adjustments to reconcile loss
before discontinued operations to net cash provided by
operating activities:
$ (5,944 ) $ (84,909 ) $ (9,100 )
Depreciation and amortization 10,182 9,887 8,204
Amortization of purchased intangibles 9,038 8,753 829
Interest conversion to debt 6,708 4,613 —
Amortization of debt issuance costs 128 96 —
Impairment of goodwill and intangible assets — 67,798 —
Amortization of discount on notes payable 3,786 1,726 —
Amortization of discount on short-term investments — (61 ) (844 )
Provision (reversal) for doubtful accounts (416 ) (369 ) 2,115
Provision for excess and obsolete inventory 4,157 4,147 8,074
Provision for warranty and other product charges 4,116 2,266 2,328
Foreign currency (gains) losses (2,529 ) 3,426 (2,317 )
Gain on sale of real property — — (3,796 )
Non-cash stock-based compensation 1,942 3,484 1,919
Non-cash write-off of intangibles and other assets 1,002 458 509
Deferred income tax provision (benefit) (5,895 ) 1,673 434
Changes in operating assets and liabilities, net 4,291 (748 ) 4,809
Net cash provided by operating activities 30,566 22,240 13,164
Cash flows from investing activities:
Purchase of property, plant and equipment (8,115 ) (9,313 ) (7,481 )
Proceeds from the sale of real property — — 16,250
Cash paid for acquisitions, net of cash acquired (2,094 ) (115,168 ) (13,075 )
Cash deposit for acquisition — — (10,000 )
Software development costs capitalized (250 ) (57 ) (1,392 )
Purchase of short-term investments (1,376 ) (37,375 ) (141,006 )
Proceeds from the sale or maturity of short-term investments 1,875 41,925 184,090
Net cash provided by (used in) investing activities (9,960 ) (119,988 ) 27,386
Cash flows from financing activities:
Borrowings on revolving line of credit 7,800 6,400 —
Repayment of bank notes payable (7,985 ) (6,835 ) (6 )
Repayment of long tem debt (3,000 ) — —
Debt issuance cost — (687 ) (100 )
Proceeds from issuance of long term debt and warrants — 60,000 —
Proceeds from issuance of common stock 190 666 933
Net cash provided by (used in) financing activities (2,995 ) 59,544 827
Effect of exchange rate changes on cash and cash equivalents 1,975 (3,246 ) 716
Net increase (decrease) in cash flow from continuing
operations 19,586 (41,450 ) 42,093
Net cash provided by (used in) operating activities from
discontinued operations (127 ) 107 642
Cash and cash equivalents, beginning of year 35,582 76,925 34,190
Cash and cash equivalents, end of year $ 55,041 $ 35,582 $ 76,925
The accompanying notes are an integral part of these consolidated financial statements.
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