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<div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">6.           Accounts Payable and Accrued Expenses</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table summarizes our accounts payable and accrued expenses as of December 31, 2011 and 2010 (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Payroll and related accrual</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,252</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,568</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Legal and related accrual</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">598</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">609</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Sales and marketing related accrual</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,529</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,772</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Other accruals</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5,696</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4,062</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Accounts payable and accrued expenses</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12,075</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">9,011</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div></div>
10466000
4868000
285000
423000
637483000
608522000
1.78
0.38
0.38
0
27023000
0
54087000
8071000
45011000
52576000
3064000
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-1591000
5598000
501000
204000
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">10.        Commitments and Contingencies</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">Operating Leases</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following is a schedule of significant future minimum lease payments under operating leases at December 31, 2011 (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="90%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" width="78%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Operating </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Lease </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Obligations</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td align="left" valign="bottom" width="78%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Years ending:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="78%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2012</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">419</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="78%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Thereafter</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="78%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">419</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Total rent expense was approximately $1.0 million, $959,000 and $657,000 in 2011, 2010 and 2009, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our facility lease agreement as amended extends through May 2012. The total remaining aggregate lease payments as of December 31, 2011 under the amended lease agreement is approximately $419,000.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
47500000
47500000
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16163000
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0
83000
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">9.           Income Taxes</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During 2011, our net income tax benefit consisted of a reduction of a portion of our valuation allowance on our deferred tax asset as described further below. Our effective income tax rate differs from the statutory income tax rate primarily as a result of the reduction of a portion of our valuation allowance. A full valuation allowance was originally recorded against our gross deferred tax assets as we determined the realization of these assets did not meet the more likely than not criteria. During 2008, we determined that a full valuation allowance against our gross deferred tax assets was not necessary and recorded a partial reversal of the deferred tax valuation allowance of $3.7 million based on the following discrete events:  (1) our attainment of three consecutive years of taxable income and (2) indication from the USPS that the market test for our PhotoStamps business, which constituted 21% of total revenue in 2007, would be extended for another year into 2009. </font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During 2009 no discrete event occurred to support an additional release of our valuation allowance. During the second quarter of 2010, we recorded an income tax benefit of approximately $4.0 million when we determined that a release of a portion of our valuation allowance was appropriate as a result of the following discrete events: (1) the attainment of over five consecutive years of taxable income,  (2) the material decline of our Section 382 ownership under the Internal Revenue Code from approximately 34% as of March 31, 2010 to approximately 24% as of June 30, 2010, and (3) the settlement of our outstanding patent infringement litigation with Kara Technology, which improved our confidence in our short-term taxable income projection by eliminating the uncertainty of a potential large negative judgment against us and eliminating the related on-going third party litigation expenses. During the fourth quarter of 2011 we released a portion of our valuation allowance totaling approximately $8.5 million as a result of an increase in our projected taxable income.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In making these determinations, we considered the available positive and negative evidence, including our recent earnings trend and expected future taxable income.  As of December 31, 2011, we continued to maintain a valuation allowance for the remainder of our gross deferred tax assets.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In September 2008, the State of California passed legislation temporarily suspending the use of NOLs to offset current state income tax expense for the tax years 2008 and 2009. In October 2010, the State of California passed legislation extending this suspension for tax years 2010 and 2011. As a result of not being able to use our state NOLs, we incurred approximately $370,000 and $523,000 of additional California state income tax expense during the years ended December 31, 2009 and 2008, respectively.  We did not incur any additional California state income tax as a result of the state NOL suspension during the year ended December 31, 2010 as we were able to offset 100% of our state income tax liability through the use of our research and development tax credits. During 2011 we were in a taxable loss position for tax reporting purposes and as a result we did not use any tax credits. We recorded a current tax provision for corporate alternative minimum federal taxes and state taxes of approximately $0, $34,000 and $554,000 during the years ended December 31, 2011, 2010 and 2009, respectively. Total tax (benefit) provision was approximately ($8.5) million, ($3.9) and $554,000 during the years ended December 31, 2011, 2010 and 2009, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Under the guidance related to uncertain tax positions, we are required to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In accordance with the guidance we have evaluated our research and development tax credits for uncertain tax positions. As of December 31, 2011 we have research and development tax credits totaling $4.8 million for Federal and California purposes. In addition, we had $1.7 million of unrecognized federal tax benefits which is subject to examination by the taxing authorities and upon further examination, we may increase or decrease our unrecognized tax benefit based on the results of the examination.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2011, 2010 and 2009 (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="80%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" width="68%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Unrecognized </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Tax Benefits</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2008</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Additions for tax positions of prior years</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(1,557</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Addition for tax position of the current year</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(153</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="68%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Settlement</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2009</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(1,710</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Additions for tax positions of prior years</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(23</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Addition for tax position of the current year</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="68%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Settlement</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2010</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(1,733</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Reductions for tax positions of prior years</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">71</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="68%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Additions for tax position of the current year</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(83</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="68%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Settlement</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="68%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2011</font></div></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(1,745</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our policy is to recognize interest and penalties expense, if any, related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2011, we have not recorded any interest and penalty expense.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We remain subject to examination by the relevant tax authorities.  These include the 2008 through 2010 tax years for federal purposes and the 2009 through 2010 tax years for California purposes.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our effective tax rate differs from the statutory federal income tax rate primarily as a result of the establishment of a valuation allowance for the future benefits to be received from the deferred tax assets including net operating loss carryforwards and tax credit carryforwards. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2011 and 2010 are presented below (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Deferred tax assets (liabilities):</font></div></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net operating loss carryforward</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">77,737</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">85,455</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Tax credits</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4,161</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4,260</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Depreciation</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">84</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">240</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Amortization</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">775</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">972</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Accruals</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,540</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,380</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total deferred tax assets</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">85,297</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">94,307</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Valuation allowance</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(69,172</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(86,657</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net deferred tax assets</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">16,125</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">7,650</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We have an NOL carryforward of approximately $230 million and $125 million for federal and state income tax purposes, respectively, at December 31, 2011 which can be carried forward to offset future taxable income. We have available tax credit carryforward of approximately<font style="display: inline; font-weight: bold;"> </font>$4.6 million and $2.0 million for federal and state income tax purposes, respectively at December 31, 2011, which can be carried forward to offset future taxable liabilities. Our federal NOLs will begin to expire in 2020, and our state NOLs will begin to expire in 2012. The federal tax credits begin to expire in 2018. Under California law, California tax credits do not have an expiration date.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We recognize excess tax benefits associated with the exercise of stock options directly to stockholders' equity only when realized. Accordingly, deferred tax assets are not recognized for NOL resulting from excess tax benefits. As of December 31, 2011, deferred tax assets do not include approximately $8.0 million of these excess tax benefits from employee stock option exercises that are a component of our NOL carryforwards. Accordingly, additional paid-in capital will increase up to an additional $8.0 million if and when such excess tax benefits are realized.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The Federal Tax Reform Act of 1986 and similar state tax laws contain provisions that may limit the NOL carryforwards to be used in any given year upon the occurrence of certain events, including a significant change in ownership interests.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We maintain a study to understand the status of net operating losses. Based on that study, we believe that we have not undergone an Internal Revenue Code (IRC) Section 382 change of ownership that would trigger an impairment of the use of our NOLs since our secondary offering in December 1999. Under IRC Section 382 rules, a change in ownership can occur whenever there is a shift in ownership by more than 50 percentage points by one or more “5% shareholders” within a three-year period. When a change of ownership is triggered, the NOLs may be impaired. We estimate that, as of December 31, 2011, we were at approximately 15% compared with the 50% level that would trigger impairment of our NOLs.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The provision for income taxes consists of (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Current:</font></div></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Federal</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">34</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">165</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">State</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">389</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="64%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">34</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">554</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="64%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Deferred:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Federal</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(7,245</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(3,396</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">State</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(1,230</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(583</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="64%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(8,475</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(3,979</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Provision (benefit) for income taxes</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(8,475</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(3,945</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">554</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Differences between the provision for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Income tax at statutory federal rate</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6,057</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">534</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,288</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">State income taxes, net of federal benefit</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,044</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">36</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">393</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Effect of permanent differences</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">467</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">757</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Change in valuation allowance - discrete release</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(8,475</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(3,979</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Other changes in valuation allowance, net <font style="display: inline; font-size: 70%; vertical-align: text-top;">(1)</font></font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(7,225</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(1,026</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(4,262</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Unrecognized tax benefits</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">23</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,710</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Other</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">100</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(332</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td valign="bottom" width="64%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(8,475</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(3,945</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">554</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="display: inline; font-size: 70%; vertical-align: text-top;"> (1)</font> Other changes in valuation allowance, net includes the tax effect of utilization of net operating losses of $0, $401,000 and $3.0 million for the years ended December 31, 2011, 2010 and 2009, respectively, which were provided for as part of the valuation allowance prior to utilization.</font></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
500000
-554000
0
837000
885000
107980000
57442000
0
5211000
0
13379000
14937000
20223000
-40368000
-13316000
10506000
-1372000
-4253000
15287000
4800000
10004000
26265000
5532000
6177000
0
0
0
6177000
0
0
0
0
5532000
0
0
0
0
26265000
0
46016000
-36940000
-7565000
506000
359000
300000
562000
756000
916000
17228000
1465000
5815000
0
0
0
0
1306000
1306000
0
0
0
0
629000
629000
0
0
0
0
-138000
-138000
0
1921000
0
2165000
1694000
1308000
1507000
225000
5321000
13807000
13731000
-420338000
-446603000
101585000
85544000
82124000
6000
27000
16000
34569000
31174000
31735000
1397000
12291000
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">2.           Summary of Significant Accounting Policies</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Principles of Consolidation</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The consolidated financial statements include the accounts of Stamps.com Inc. and PhotoStamps Inc. In October 2009, we formed PhotoStamps Inc., a wholly-owned subsidiary, for the purpose of managing our retail gift card operations. Because 100% of the voting control is held by us, we have consolidated PhotoStamps Inc. in the accompanying consolidated financial statements. All significant intercompany accounts and transactions have been eliminated.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Use of Estimates and Risk Management</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes.  Actual results could differ from those estimates, and such differences may be material to the financial statements. Examples include estimates of loss contingencies, promotional coupon redemptions, the number of PhotoStamps retail boxes that will not be redeemed, deferred income taxes and estimates regarding the useful lives of patents and other amortizable intangible assets.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"> Contingencies and Litigation</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We are involved in various litigation matters as a claimant and a defendant. We record any amounts recovered in these matters when received. We record liabilities for claims against us when the loss is probable and estimable. Amounts recorded are based on reviews by outside counsel, in-house counsel and management. Actual results could differ from estimates.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Cash Equivalents and Investments</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our cash equivalents, restricted cash and investments consisted of money market funds, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2011 and 2010. All investments are classified as available for sale and are recorded at market value using the specific identification method. Realized gains and losses are reflected in interest and other income, net while unrealized gains and losses are included as a separate component of stockholders' equity.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div> </div></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Accounts Receivable</font></div></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our accounts receivable relate to PC Postage services, PhotoStamps sales, branded insurance provided to customers prior to billing and other receivables. Accounts receivable are recorded at the invoiced amount, net of allowances for uncollectible accounts of approximately $117,000 and $108,000 as of December 31, 2011 and 2010, respectively, were $10.5 million and $4.9 million as of December 31, 2011 and 2010, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We evaluate the collectability of our accounts receivable based on a combination of factors. If we become aware of a customer's inability to meet its financial obligations, an allowance is recorded to reduce the net receivable to the amount reasonably believed to be collectible from the customer. For all other customers, we recognize allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and our historical experience.  If the financial condition of our customers deteriorates, resulting in their inability to make payments, additional provisions are recorded in that period.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Fair Value of Financial Instruments</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Carrying amounts of certain of our financial instruments, including cash, cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value due to their short maturities. The fair values of investments are determined using quoted market prices for those securities or similar financial instruments.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Concentration of Risk</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our cash, restricted cash, cash equivalents and investments are subject to market risk, primarily interest rate and credit risk. Our investments are managed by a limited number of outside professional managers within investment guidelines set by us. Such guidelines include security type, credit quality and maturity and are intended to limit market risk by restricting our investments. From time to time, our investments held with financial institutions may exceed Federal Deposit Insurance Corporation insurance limits. Interest rate fluctuations and changes in credit ratings impact the carrying value of our portfolio.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During 2011, 2010 and 2009, we did not recognize revenue from any one customer that represented 10% or more of revenues.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We have accounts receivable from one customer that represented approximately 42% and 21% of the total accounts receivable balance as of December 31, 2011 and 2010, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Inventories</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Inventories consist of finished product sold through our supplies store and are accounted for using the lower of cost (first-in, first-out method) or market. Inventories reported as a component of other current assets in 2011 and 2010 were $2.2 million and $2.7 million, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Property and Equipment</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Property and equipment are stated at cost. Depreciation is computed on a straight-line method over the estimated useful life of the asset, ranging from three to five years. Leasehold improvements are amortized over the term of the lease. We have a policy of capitalizing expenditures that materially increase assets' useful lives and charging ordinary maintenance and repairs to operations as incurred. When property or equipment is disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts, and any gain or loss is included in operations.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Trademarks and Patents</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Acquired trademarks, patents and other intangibles are included in intangible assets, net in the accompanying consolidated balance sheets and are carried at cost less accumulated amortization. Cost associated with internally developed intangible assets is typically expensed as incurred as research and development costs.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Amortization is calculated on a straight-line basis over the estimated useful lives of the assets, ranging from approximately 9 to 17 years. During 2011, 2010 and 2009, amortization expense, including the amortization of trademarks and patents, was approximately $47,000, $13,000 and $6,000, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: italic; display: inline;">Impairment of Long-Lived Assets and Intangible Assets</font></font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Long-lived assets including intangible assets with definitive useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset.  If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Intangible assets that have indefinite useful lives are not amortized but, instead, tested at least annually for impairment while intangible assets that have finite useful lives continue to be amortized over their respective useful lives.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Intangible assets are tested for impairment using a two-step process.  The first step is to determine the fair value of the reporting unit, which may be calculated using a discounted cash flow methodology, and compare this value to its carrying value.  If the fair value exceeds the carrying value, no further work is required, and no impairment loss would be recognized.  The second step is an allocation of the fair value of the reporting unit to all of the reporting unit's assets and liabilities under a hypothetical purchase price allocation.  Based on the annual evaluations performed by us, there was no impairment of intangible assets during the years ended December 31, 2011, 2010 or 2009.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Deferred Revenue</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The majority of our deferred revenue relates to PhotoStamps retail boxes. We sell our PhotoStamps retail boxes to our customers through our website and selected third parties.  Proceeds from the sale of our PhotoStamps retail boxes are initially recorded as a liability when received. We record the liability for outstanding PhotoStamps retail boxes in deferred revenue.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Revenue Recognition</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We recognize revenue from product sales or services rendered, licensing the use of our software and intellectual property as well as commissions from advertising or sale of products by third party vendors to our customer base when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Service revenue is primarily derived from monthly subscription fees and is recognized in the period that services are provided. Product sales, net of return allowances, are recorded when the products are shipped and title passes to customers. Sales of items, including PhotoStamps, sold to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. Return allowances for expected product returns, which reduce product revenue, are estimated using historical experience. Commissions from the advertising or sale of products by a third party vendor to our customer base are recognized when the revenue is earned and collection is deemed probable.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Customers pay face value for postage purchased for use through our PC Postage software, and the funds are transferred directly from the customers to the United States Postal Service (“USPS”). We do not recognize revenue for this postage, as it is purchased by our customers directly from the USPS.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">PhotoStamps revenue, which includes the face value of postage, from the sale of PhotoStamps sheets and rolls is made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier (see further discussion below).</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Sale of PhotoStamps retail boxes are initially recorded as deferred revenue.  PhotoStamps revenue related to the sale of these PhotoStamps retail boxes is subsequently recognized when either: (i) the PhotoStamps retail box is redeemed, or (ii) the likelihood of the PhotoStamps retail box being redeemed is deemed remote (“breakage”) and there is no legal obligation to remit the value of the unredeemed PhotoStamps retail boxes.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On a limited basis, we allow third parties to offer products and promotions to our customer base. These arrangements generally provide payment in the form of a flat fee or revenue sharing arrangements where we receive payment upon customers accessing third party products and services. Total revenue from such advertising arrangements was not significant in 2011, 2010 and 2009.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We provide our customers with the opportunity to purchase parcel insurance directly through our software. Insurance revenue represents the gross amount charged to the customer for purchasing insurance and the related cost represents the amount paid to the insurance broker, Parcel Insurance Plan. We recognize revenue on insurance purchases upon the ship date of the insured package.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">PhotoStamps Retail Boxes</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We have been selling PhotoStamps retail boxes that are redeemable for PhotoStamps on our website.  The PhotoStamps retail boxes are sold through various third party retail partners.  Our PhotoStamps retail boxes are not subject to administrative fees on unredeemed boxes and have no expiration date.  PhotoStamps retail boxes sales are recorded as deferred revenue.  Prior to the second quarter of 2011, revenue was recognized only on boxes that were actually redeemed on our website.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During the second quarter of 2011, we concluded that sufficient company-specific historical evidence existed to determine the period of time after which the likelihood of the PhotoStamps retail boxes being redeemed was remote.  Based on our analysis of the redemption data, we estimate that period of time to be 60 months after the sale of our PhotoStamps retail boxes.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Beginning in the second quarter of 2011, we began recognizing breakage revenue related to our PhotoStamps retail boxes utilizing the redemption recognition method. Under the redemption recognition method, we recognize breakage revenue from unredeemed retail boxes in proportion to the revenue recognized from the retail boxes that have been redeemed.  During the second quarter of 2011, we recognized $2.2 million, which is $0.15 on a per share basis using fully diluted shares as of June 30, 2011, or $0.14 on a per shares basis using fully diluted shares as of the year-ended December 31, 2011 (revenue divided by fully diluted shares outstanding, exclusive of any current or prior period costs related to the retail programs), of retail box breakage revenue, of which $2.1 million related to a cumulative catch-up for previously sold and unredeemed PhotoStamps retail boxes originally recorded as deferred revenue. The retail box breakage revenue recognized was recorded in PhotoStamps revenue.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We will continue to recognize retail box breakage revenue from PhotoStamps retail boxes in future periods using the redemption recognition method.  Due to the cumulative catch-up and to a lesser extent variability of timing of sales and redemptions, retail box breakage revenue in the future will differ significantly from retail box breakage revenue recorded in the second quarter of 2011.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Cost of Service Revenue</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Cost of service revenue principally consists of the cost of customer service, certain promotional expenses, system operating costs, credit card processing fees and customer misprints that do not qualify for reimbursement from the USPS.  Cost of product revenue principally consists of the cost of products sold through our Mailing & Shipping Supplies Store and the related costs of shipping and handling.  The cost of insurance revenue principally consists of parcel insurance offering costs.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: italic; display: inline;">Promotional Expense</font></font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">New PC Postage customers are typically offered promotional items that are redeemed using coupons that are qualified for redemption after a customer is successfully billed beyond an initial trial period. We account for our promotional expense in accordance with Accounting Standard Codification (“ASC”) 605-50-25, “Recognition – Vendor's Accounting for Consideration Given to a Customer”, by recognizing a liability for promotional expense based on estimated amounts that will be claimed by customers unless the liability for promotional expense cannot be reasonable and reliably estimated.  This includes free postage and a free digital scale and is expensed in the period in which a customer qualifies using estimated redemption rates based on historical data. Promotional expense, which is included in cost of service, is incurred as customers qualify and thereby may not correlate directly with changes in revenue, as the revenue associated with the acquired customer is earned over the customer's lifetime. Promotional expense was $3.6 million, $2.7 million and $1.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Research and Development Costs</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Research and development costs are expensed as incurred. These costs principally consist of compensation for personnel involved in the development of our services, depreciation of equipment and software and expenditures for consulting services and third party software.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Sales and Marketing</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Sales and marketing expense principally consists of spending to acquire new customers and compensation and related expenses for personnel engaged in sales, marketing, and business development activities. Ongoing marketing programs include the following: traditional advertising, partnerships, customer referral programs, customer re-marketing efforts, telemarketing, direct sales, direct mail, and online advertising.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Advertising Costs</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We expense the costs of producing advertisements as incurred, and expense the costs of communicating and placing the advertising in the period in which the advertising space or airtime is used.  For the years ended December 31, 2011, 2010 and 2009, advertising and tradeshow costs were $7.0 million, $5.5 million and $4.7 million, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div> </div></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Internet Advertising</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We recognize Internet advertising expense based on the specifics of the individual agreements. Under partner and affiliate agreements, third parties refer prospects to our web site, and we pay the third parties when the customer completes the customer registration process, or in some cases, upon the first successful billing of a customer. We record these expenses on a monthly basis as prospects are successfully converted to customers. Under Internet search advertising, we record expenses based on actual “click activity” on our displayed advertisements following targeted key word searches.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">General and Administrative</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">General and administrative expense principally consists of compensation and related costs for executive and administrative personnel, fees for legal and other professional services, depreciation of equipment and software used for general corporate purposes and amortization of intangible assets.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Income Taxes</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We account for income taxes in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic No. 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. We record a valuation allowance to reduce our gross deferred tax assets, which are primarily comprised of US Federal and State tax loss carryforwards, to the amount that is more likely than not (a likelihood of more than 50 percent) to be realized. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income. We evaluate the appropriateness of our deferred tax assets and related valuation allowance in accordance with ASC 740 based on all available positive and negative evidence.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Under the guidance related to uncertain tax positions, we are required to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Net Income per Share</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Net income per share represents net income attributable to common stockholders divided by the weighted average number of common shares outstanding during a reported period. The diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options, were exercised or converted into common stock. Diluted net income per share is calculated by dividing net income during a reported period by the sum of the weighted average number of common shares outstanding plus common stock equivalents for the period.  The following table reconciles share amounts utilized to calculate basic and diluted net income per share (in thousands, except per share data):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="80%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" width="44%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="10" valign="bottom" width="34%"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Year Ended December 31,</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" width="44%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net income</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">26,265</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5,532</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6,177</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="44%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Basic - weighted average common shares</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,767</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,529</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">16,238</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Dilutive effect of common stock equivalents</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">401</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">156</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">131</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Diluted - weighted average common shares</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,168</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,685</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">16,369</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="44%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net income per share:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Basic</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1.78</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.38</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.38</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Diluted</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1.73</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.38</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.38</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="44%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 36pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="80%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" width="44%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="10" valign="bottom" width="34%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Year ended December 31,</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" width="44%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Anti-dilutive stock option shares</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,023</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,928</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,677</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Stock-Based Compensation</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and recognize stock-based compensation expense during each period based on the value of that portion of share-based payment awards that is ultimately expected to vest during the period, reduced for estimated forfeitures. We estimate forfeitures at the time of grant based on historical data and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recognized for all employee stock options granted is recognized using the straight-line method over their respective vesting periods of three to five years.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During the fourth quarter of 2010, in connection with our special dividend of $2.00 per share, in order to prevent that dividend from diluting or enlarging the rights of the holders of outstanding stock options and purchase rights under certain of our employee plans, including our equity plans, we reduced the exercise price of affected options and rights in a manner that is both value neutral and that did not result in the incurrence of any incremental stock-based compensation expense.  Because the exercise price could not be adjusted in this manner without adverse tax consequences for certain option grants, we made value neutral cash payments with respect to those option grants, which compensated option holders for lost economic value in those option grants.  These cash payments were expensed as compensation and did not affect our stock-based compensation expense. We did not recognize any similar cash payment in 2011.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Stock-based compensation expense relating to:</font></div></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Employee and director stock options</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,112</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,725</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,044</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Employee stock purchases</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">307</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">115</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">53</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total stock-based compensation expense</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,419</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,840</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,097</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Stock-based compensation expense relating to:</font></div></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cost of revenues</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">278</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">253</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">275</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Sales and marketing</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">764</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">727</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">769</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Research and development</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">750</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">575</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">651</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">General and administrative</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,627</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,285</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,402</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total stock-based compensation expense</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,419</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,840</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,097</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We use the Black-Scholes option valuation model to estimate the fair value of share-based payment awards on the date of grant, which requires us to make a number of highly complex and subjective assumptions, including stock price volatility, expected term, risk-free interest rates and actual and projected employee stock option exercise behaviors. In the case of options we grant, our assumption of expected volatility is based on the historical volatility of our stock price over the term equal to the expected life. We base the risk-free interest rate on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant.  The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding determined based on an analysis of historical exercise behavior.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated:</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" width="90%" style="text-align: left; font-family: times new roman; font-size: 10pt;"><tr style="text-align: left;"><td valign="bottom" width="54%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="54%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Expected dividend yield</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="54%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Risk-free interest rate</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1.39</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1.67</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2.00</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="54%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Expected volatility</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">48</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">49</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">53</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="54%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Expected life (in years)</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.4</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.5</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.5</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="54%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Expected forfeiture rate</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">9</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">20</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">20</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">%</font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We elected to utilize the alternative transition method for calculating the tax effects of stock-based compensation. The alternative transition method includes computational guidance to establish the beginning balance of the additional paid-in capital pool (“APIC Pool”) related to the tax effects of employee stock-based compensation, and a simplified method to determine the subsequent impact on the APIC Pool for employee stock-based compensation awards that are vested and outstanding upon adoption of ASC 718. There has been no tax benefit recognized to date from the exercise of stock options. A tax benefit will be recorded in additional paid-in capital when these deductions reduce our future income taxes payable.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">At December 31, 2011, we had approximately $8.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under our stock incentive plans, which is expected to be recognized over a weighted-average period of 2.6 years.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="display: inline; font-size: 10pt;">Treasury</font> Stock</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During 2011, 2010 and 2009, we repurchased 426,000 shares for $5.3 million, 1.5 million shares for $13.8 million and 1.6 million shares for $13.7 million, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Segment Information</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We operate in a single segment. We are a provider of Internet-based postage solutions located in a single geographic location from which substantially all of our revenue is generated. While components of revenue include both services and products associated with our postage solutions, our Chief Executive Officer, who is the chief operating decision maker, evaluates performance, makes operating decisions and allocates resources based on the financial data provided in our financial statements as a single operating segment. In addition, discrete financial information is not generated, prepared or reviewed at any level that allow for the creation of an additional operating segment.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div> </div></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Website Development Costs</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We develop and maintain our website. Costs associated with the operation of our website consist primarily of software and hardware purchased from third parties and administrative cost relating to the maintenance and development of the website. Costs related to the purchase of software and hardware are capitalized based on our capitalization policy. These capitalized costs are amortized based on their estimated useful life. Administrative costs related to the maintenance and development of our website are expensed as incurred.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Recent Accounting Pronouncements </font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In May 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-04, <font style="font-style: italic; display: inline;">Fair Value Measurement (Topic 820) – Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS </font>, which amends ASC 820 providing consistent guidance on fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 is effective for fiscal years beginning after December 15, 2011. We do not expect the adoption of ASU 2011-04 will have a material impact on our consolidated financial statements.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In September 2011, the FASB issued ASU No. 2011-08<font style="font-style: italic; display: inline;">, Intangibles – Goodwill and Other</font> (Topic 350) – <font style="font-style: italic; display: inline;">Testing Goodwill for Impairment</font>, which amends ASC 350 to first assess qualitative factors before performing the quantitative goodwill impairment testing. ASU 2011-08 is effective for fiscal years beginning after December 15, 2011. We do not expect the adoption of ASU 2011-08 will have a material impact on our consolidated financial statements.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
-124000
-199000
-706000
71926000
29245000
15168000
14685000
16369000
14767000
14529000
16238000
<div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-weight: bold;">8.</font>           <font style="display: inline; font-weight: bold;">Property and Equipment</font></font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">  Property and equipment is summarized as follows (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Furniture and equipment</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,178</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,789</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Computers and software</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,494</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,575</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Leasehold improvements</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,769</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,768</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="76%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">18,441</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">17,132</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Less accumulated depreciation and amortization</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(16,276</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(15,438</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="76%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Property and equipment, net</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,165</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,694</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During 2011, 2010 and 2009, depreciation expense was approximately $838,000, $881,000 and $1.2 million, respectively.  In prior years we incurred $634,000 in capitalized fixed assets related to a project to launch a new third party billing system. During 2010, we made a decision to abandon this project before it was completed and went live. As a result, we wrote-off $634,000 of fixed assets in the fourth quarter of 2010.  We did not have any similar write-off in 2011 or 2009.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
9395000
9420000
8699000
107980000
57442000
<div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">3.           Intangible Assets</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We have amortizable and non-amortizable intangible assets consisting of patents, trademarks and other intellectual property with a gross carrying value of $8.7 million as of December 31, 2011 and 2010 and accumulated amortization of $7.8 million as of December 30, 2011 and 2010. During 2010 we purchased two patents for $400,000 in connection with our settlement agreement with Kara Technology Incorporated and Mr. Salim Kara to resolve all outstanding litigation among the parties. The expected useful lives of our amortizable intangible assets range from approximately 9 to 17 years. <a name="stampscom10k_htm__toc98166153"><!--EFPlaceholder--></a><a name="stampscom10k_htm__toc98197511"><!--EFPlaceholder--></a>The weighted average amortization period for our amortizable intangible assets is 7.4 years. During 2011, we assessed whether events or changes in circumstances occurred that could potentially indicate that the carrying amount of our intangible assets may not be recoverable. We concluded that there were no such events or changes in circumstances during 2011 and determined that the fair value of our intangible assets was in excess of their carrying value as of December 31, 2011.  Aggregate amortization expense on patents and trademarks was approximately $47,000, $13,000 and $6,000 for the years ended December 31, 2011, 2010 and 2009, respectively. Our expected yearly amortization expense for the next five years is approximately $47,000.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">14.        Quarterly Information (Unaudited)</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="14" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Quarter Ended</font></font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">March</font></font></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">June</font></font></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">September</font></font></td><td nowrap="nowrap" valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: center; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">December</font></font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="14" valign="bottom" style="text-align: center;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(in thousands except per share data)</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fiscal Year 2011:</font></div></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Revenues</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">22,817</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">26,630</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-size: 70%; vertical-align: text-top;">(3)</font></font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">24,918</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">27,220</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Gross profit</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">16,593</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">19,945</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">18,596</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">20,239</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Income from operations</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,584</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5,627</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4,434</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4,583</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net income</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,675</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5,677</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4,528</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,385</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net income per share:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Basic</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.18</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.40</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.31</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.85</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Diluted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.18</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.39</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.30</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.81</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted average shares outstanding:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Basic</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,484</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,321</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,556</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,694</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Diluted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,613</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,450</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,059</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">16,551</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fiscal Year 2010:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Revenues</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">20,989</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">21,189</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">20,689</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">22,677</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Gross profit</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,175</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,365</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,185</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">16,135</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Income (loss) from operations</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,054</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(3,211</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)<font style="display: inline; font-size: 70%; vertical-align: text-top;"> (1)</font></font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,592</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">30</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-size: 70%; vertical-align: text-top;">(2)</font></font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net income (loss)</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,145</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">941</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,729</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(283</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net income per share:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Basic</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.14</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.07</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.19</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(0.02</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Diluted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.14</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.07</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.19</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(0.02</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted average shares outstanding:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Basic</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,142</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,290</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,280</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,417</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Diluted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">15,272</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,450</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,452</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,417</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Quarterly and year-to-date computations of per share amounts are made independently.  Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year shown elsewhere in our Annual Report on Form 10-K.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"> </font><div><hr align="left" noshade="noshade" size="1" width="15%" style="color: black;" /></div></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">(1) In the second quarter of 2010 we incurred a legal settlement totaling $5.2 million in connection with our settlement agreement with Kara Technology Incorporated and Mr. Salim Kara to resolve all outstanding litigation among the parties.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">(2) During the fourth quarter of 2010, we completed a $2.00 per share special dividend to shareholders. The total amount of cash distributed in the dividend payment was $28.9 million based on 14.5 million shares outstanding as of the November 11, 2010 record date. The Company incurred compensation expense of $3.4 million in the fourth quarter related to the special dividend as described in Note 2 “Summary of Significant Accounting Policies – Stock Based Compensation”.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">(3) During the second quarter of 2011 we recognized $2.2 million of retail box breakage revenue, of which $2.1 million related to a cumulative catch-up for previously sold and unredeemed PhotoStamps retail boxes originally recorded as deferred revenue. The retail box breakage revenue recognized was recorded in PhotoStamps revenue.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
123472000
118151000
-2295000
123000
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3548000
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0.001
0.001
10693000
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94007000
44238000
47000
626810000
-90613000
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78341000
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630322000
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2024000
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25036000
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25038000
43000
48000
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18000
280000
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-1622000
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27023000
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13731000
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13807000
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<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">1.           Description of Business</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Stamps.com Inc. and Subsidiary (“the Company” or “we”) are the leading provider of Internet-based postage solutions.  Our customers use our service to mail and ship a variety of mail pieces, including postcards, envelopes, flats and packages, using a wide range of United States Postal Service (the “USPS”) mail classes, including First Class Mail®, Priority Mail®, Express Mail®, Media Mail®, Parcel Post®, and others. Our customers include individuals, small businesses, home offices, medium-size businesses and large enterprises, and within these segments we target both mailers and shippers.   We were the first ever USPS-licensed vendor to offer PC Postage® in a software-only business model in 1999.</font></div></div>
12075000
9011000
0
3097000
0
0
0
3097000
0
2840000
0
0
0
2840000
0
3419000
0
0
0
3419000
17790000
1587000
6731000
5476000
4015000
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">12.        Legal Proceedings</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On October 22, 2004, Kara Technology Incorporated filed suit against us in the United States District Court for the Southern District of New York, alleging, among other claims, that we infringed certain Kara Technology patents and that we misappropriated trade secrets owned by Kara Technology, most particularly with respect to our NetStamps feature.  On October 6, 2010, we entered into the final settlement agreement with Kara Technology Incorporated and Mr. Salim Kara to resolve all outstanding litigation among the parties.  Under the terms of the agreement, we made a $5.1 million payment for settlement of all claims asserted in the litigation, purchased the patents asserted in the litigation for $0.4 million, and granted Mr. Salim Kara options to purchase 35,000 shares of Stamps.com common stock.  Mr. Kara also agreed to cooperate with us in the prosecution and enforcement of any patents on which he is named as an inventor, including the patents asserted in the Stamps.com vs. Endicia litigation matters.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On November 22, 2006, we filed a lawsuit against Endicia, Inc. and PSI Systems, Inc. in the United States District Court for the Central District of California for infringement of eleven of our patents covering, among other things, Internet postage technology. We sought an injunction, unspecified damages, and attorneys' fees. On November 10, 2008, we were required to select fifteen claims (from over six hundred claims available) to be the subject of the trial. On November 9, 2009, the Court granted the summary judgment motion of Endicia, Inc. and PSI Systems, Inc. that the fifteen claims we selected are invalid. On June 15, 2011, the United States Court of Appeals for the Federal Circuit affirmed the summary judgment ruling. We do not anticipate any further appeals.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On August 8, 2008, PSI Systems, Inc. filed a lawsuit against us in the same court, alleging that we infringed three PSI Systems patents related to Internet postage technology. PSI Systems seeks an injunction, unspecified damages, and attorneys' fees. On September 16, 2008, we filed counterclaims for infringement of four more of our patents. In our counterclaim, we seek an injunction, unspecified damages, and attorneys' fees. The Court issued a “Markman order” to determine the meaning of the claims on May 14, 2010.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On March 6, 2012, we entered into binding terms with PSI Systems, Inc. to resolve all outstanding patent litigation among the parties. Under the terms of the agreement, the parties agreed to a patent cross-licensing arrangement for the patents in dispute in (i) the lawsuit filed by Stamps.com against Endicia, Inc. and PSI Systems, Inc. on November 22, 2006 and (ii) the lawsuit filed by PSI Systems, Inc. against Stamps.com Inc. on August 8, 2008, both in the United States District Court for the Central District of California. In addition, the parties agreed to a five-year period where each will not sue the other for patent infringement. No payments were made to either party as part of the settlement.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On December 22, 2010, Patent Management Foundation filed suit against us in the United States District Court for the Northern District of California, alleging that we falsely marked certain of our products and advertisements with incorrect or inapplicable patents.  On July 6, 2011, the Court granted our motion to dismiss the complaint with leave to amend.  On July 20, 2011, the plaintiff voluntarily dismissed all claims in the lawsuit.  In addition, on February 22, 2011, Union Properties LLC filed suit against us in the United States District Court for the Western District of Texas, with similar allegations.  On August 24, 2011, the Court granted our motion to dismiss the complaint with leave to amend.  On September 13, 2011, the plaintiff voluntarily dismissed all claims in the lawsuit.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In 2001, we were named, together with certain of our current and former board members and/or officers, as a defendant in several purported class-action lawsuits, filed in the U.S. District Court for the Southern District of New York. The lawsuits alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 in connection with our initial public offering and a secondary offering of our common stock. Plaintiffs sought damages and statutory compensation, including interest, costs and expenses (including attorneys' fees). In October 2009, the court approved a settlement of this action, which does not require us to make any payments. In January 2012, that settlement became final following the resolution of all appeals.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><div> </div></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We are subject to various other routine legal proceedings and claims incidental to our business, and we do not believe that these proceedings and claims would reasonably be expected to have a material adverse effect on our financial position, results of operations or cash flows.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div></div>
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">13.        Subsequent Events</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We are not aware of any material subsequent events or transactions that have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements other than described below.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On January 23, 2012, we completed the previously announced purchase of two adjacent buildings in El Segundo, California for an aggregate purchase price of $13.4 million that will serve as the Company's future headquarters. We are currently engaged in a renovation and construction project on the property at a cost of approximately $10.0 million and expect to move in after substantial completion of the project in 2012. The Company will occupy a portion of the space, with the remaining portion of the space leased to the existing tenants. The purchase of the property and renovations are being funded out of the Company's existing cash and investments.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On March 6, 2012, we entered into binding terms with PSI Systems, Inc. to resolve all outstanding patent litigation among the parties. Under the terms of the agreement, the parties agreed to a patent cross-licensing arrangement for the patents in dispute in (i) the lawsuit filed by Stamps.com against Endicia, Inc. and PSI Systems, Inc. on November 22, 2006 and (ii) the lawsuit filed by PSI Systems, Inc. against Stamps.com Inc. on August 8, 2008, both in the United States District Court for the Central District of California. In addition, the parties agreed to a five-year period where each will not sue the other for patent infringement. No payments were made to either party as part of the settlement.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">11.        Employee Stock Plans</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Stock Incentive Plans</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our 1999 Stock Incentive Plan (the “1999 Plan”), which became effective in June 1999, was the successor to the 1998 Stock Plan (the “1998 Plan”). Upon approval of the 1999 Plan, all outstanding options under the 1998 Plan were transferred to the 1999 Plan, and no further option grants were made under the 1998 Plan. All outstanding options under the 1998 Plan continue to be governed by the terms and conditions of the existing option agreements for those grants, unless our compensation committee decides to extend one or more features of the 1999 Plan to those options. In June 2009, our 1999 Plan expired and no further options grants were made under the 1999 Plan. Our 2010 Equity Incentive Plan (the “2010 Plan”) was approved by our stockholders in June 2010. Under the 2010 Plan, we are authorized to issue 3,500,000 shares of common stock and stock units, although “full value” awards (such as restricted stock and restricted stock units) will be counted against the 2010 Plan's overall limits as two shares (rather than one), while options and stock appreciation rights will be counted as one share. A summary of stock option activity is as follows (in thousands, except per share amounts):</font></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="80%" style="font-family: times new roman; font-size: 10pt;"><tr><td align="left" valign="bottom" width="56%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Options </font></font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Outstanding</font></font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right; padding-bottom: 2px;"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Weighted </font></font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Average</font></font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td align="left" valign="bottom" width="56%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Number of </font></font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Options</font></font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> Exercise </font></font></div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Price</font></font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td align="left" valign="bottom" width="56%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2008</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,286</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">16.77</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Granted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">146</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8.93</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Forfeited</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(238</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">26.54</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Exercised</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(18</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6.57</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2009</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">3,176</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14.38</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Granted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">207</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">11.33</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Forfeited</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(325</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">21.69</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Exercised</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(280</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">7.22</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2010</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,778</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.58</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Granted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,718</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.20</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Forfeited</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(136</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.01</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Exercised</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(2,043</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.25</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2011</font></div></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,317</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.36</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The weighted-average fair value of stock grants for 2011, 2010 and 2009 using the Black-Scholes valuation method are as follows:</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted-average fair value of stock options with an exercise price equal to the market price on the grant date</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5.05</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.71</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.04</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="64%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted-average fair value of stock options with an exercise price greater than the market price on the grant date</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="64%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5.05</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.71</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.04</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Weighted average exercise prices for stock options exercised in 2011 are as follows:</font></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="88%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted-average exercise price of stock options with an exercise price equal to the market price on the grant date</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.06</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="88%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted-average exercise price of stock options with an exercise price greater than the market price on the grant date</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.40</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="88%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total weighted-average exercise price</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.25</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following tables summarize information concerning outstanding and exercisable options at December 31, 2011 (in thousands, except number of years and per share amounts):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="10" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Options Outstanding</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Options Exercisable</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Range of Exercise Prices</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Number </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Outstanding</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Weighted </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Average</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> Remaining </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Contractual </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Life (in Years)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Weighted </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Average </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Exercise </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Price per </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Share</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Number </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Exercisable</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Weighted</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> Average </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Exercise</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> Price</font><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> per </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Share</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.00 - $9.99</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">122,006</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6.3</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8.96</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">59,529</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8.75</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">10.00 - $19.99</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,053,802</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8.5</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.80</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">621,391</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.05</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">20.00 - $29.99</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">135,900</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6.5</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">25.21</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">80,900</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">23.56</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">30.00 - $39.99</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5,000</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.4</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">31.64</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5,000</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">31.64</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">0.00 - $39.99</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,316,708</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8.2</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.36</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">766,820</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.95</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table summarizes stock option activity for 2011:</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Number of </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Stock Options </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(in thousands)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Average</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Exercise</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Price</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Average </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Remaining </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Contractual </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Life</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(in years)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Aggregate</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Intrinsic </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Value</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(in thousands)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Outstanding at December 31, 2010</font></div></td><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,778</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.58</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Granted</font></div></td><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,718</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.20</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Exercised</font></div></td><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(2,043</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.25</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Forfeited or expired</font></div></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(136</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="text-align: right; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12.01</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Balance at December 31, 2011</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2,317</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.36</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8.2</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">29,687</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Exercisable at December 31, 2011</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">767</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13.95</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6.2</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">9,368</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing stock price of $26.13 at December 31, 2011, the last trading day of 2011, which would have been received by award holders had all award holders exercised their awards that were in-the-money as of that date.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The weighted average grant date fair value of options granted during 2011, 2010 and 2009 was $5.05, $4.71 and $4.04, respectively. The weighted average grant date fair value of options vested during 2011, 2010 and 2009 was $4.78, $6.12 and $6.55, respectively. The total intrinsic value of options exercised during 2011, 2010 and 2009 was approximately $25.1 million, $1.9 million and $48,000, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table summarizes the status of our non-vested stock options as of December 31, 2011:</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left"><table cellpadding="0" cellspacing="0" width="80%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" width="56%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Non-vested</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Number of </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Stock Options</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> (in thousands)</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Weighted </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Average </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Grant Date</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Fair Value</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Nonvested at December 31, 2010</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">513</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.57</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Granted</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,718</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5.05</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Vested</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(591</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.78</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Forfeited / Cancelled</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(90</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">4.82</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Nonvested at December 31, 2011</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,550</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">5.07</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">As of December 31, 2011, there was $8.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 2.6 years.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Employee Stock Purchase Plan</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In June 1999, our Board of Directors adopted an Employee Stock Purchase Plan (ESPP), which allows our eligible employees to purchase shares of common stock, at semi-annual intervals, with their accumulated payroll deductions.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Eligible participants may contribute up to 15% of cash earnings through payroll deductions, and the accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share is equal to 85% of the fair market value per share on the participant's entry date into the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Upon adoption of the plan, 150,000 shares of common stock were reserved for issuance. This reserve automatically increases on the first trading day in January each year, by an amount equal to 1% of the total number of outstanding shares of our common stock on the last trading day in December in the prior year.  In no event will any annual increase exceed 260,786 shares.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In July 2009, our board of directors amended our ESPP to extend it for a period of ten years beyond its original expiration date of July 31, 2009. Under this amendment, the total shares available for issuance may not increase. As of December 31, 2011, we had approximately 1.8 million shares available for issuance under our ESPP. Total shares of common stock issued pursuant to the ESPP during 2011, 2010 and 2009 were approximately 56,000, 48,000 and 43,000, respectively.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Savings Plan</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During 1999, we implemented a savings plan for all eligible employees, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 20% of their pretax salary, but not more than statutory limits. We match 50% of the first 4% a participant contributes. We expensed approximately $276,000, $228,000 and $233,000 in 2011, 2010 and 2009, respectively, related to this plan.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div></div>
<div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 36pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">5.</font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">Fair Value Measurements</font></div></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Financial assets measured at fair value on a recurring basis are classified in one of the three following categories, which are described below:</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 40.5pt;"><div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Level 1 - </font></div></td><td><div align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Valuations based on unadjusted quoted prices for identical assets in an active market.</font></div></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 40.5pt;"><div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Level 2 - </font></div></td><td><div align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.</font></div></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 40.5pt;"><div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Level 3 - </font></div></td><td><div align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing.</font></div></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2011 and 2010 (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="10" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Fair Value Measurement at Reporting Date Using</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Description</font></div></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">December 31, </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Quoted Prices </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">in Active</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Markets for </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Identical Assets</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(Level 1)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Significant</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Other </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Observable</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Inputs</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(Level 2)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Significant </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Unobservable </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Inputs</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(Level 3)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash, restricted cash  and cash equivalents</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">54,587</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">54,587</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Available-for-sale debt securities</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,776</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,776</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">69,363</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">54,587</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,776</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="10" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Fair Value Measurement at Reporting Date Using</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Description</font></div></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">December 31,</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> 2010</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Quoted Prices</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> in Active </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Markets for</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Identical Assets</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(Level 1)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Significant </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Other </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Observable </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Inputs</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(Level 2)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Significant </font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Unobservable</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> Inputs</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(Level 3)</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash and cash equivalents</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8,071</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8,071</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Available-for-sale debt securities</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">27,228</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">27,228</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">35,299</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8,071</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">27,228</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The fair value of our available-for-sale debt securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well established independent pricing vendors and broker-dealers.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">There were no non-financial assets or liabilities that were required to be measured at fair value as of December 31, 2011 and 2010.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
1461000
727000
-1138000
517000
-556000
239000
false
--12-31
2011-12-31
No
No
Yes
Accelerated Filer
158278993
STAMPS.COM INC
0001082923
16320263
2011
FY
10-K
75535000
64607000
61372000
4321000
2023000
1598000
8258000
7162000
8485000
14720000
13282000
11869000
1506000
641000
494000
5076000
5424000
6562000
13465000
11725000
10653000
10831000
4835000
16462000
8000
14776000
2396000
3473000
19506000
4146000
1982000
9984000
22240000
25038000
2024000
115000
-8475000
-3979000
0
<div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">4.           Cash, Cash Equivalents and Investments</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our cash equivalents, restricted cash and investments consist of money market, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2011 and 2010. We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. All investments are classified as available for sale and are recorded at market value using the specific identification method. Unrealized gains and losses are included as a separate component of stockholders' equity. We have ten securities with a total fair value of $2.6 million that have unrealized losses of approximately $47,000 as of December 31, 2011. We do not intend to sell investments with amortized cost basis exceeding fair value, and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis.  Realized gains and losses are reflected in interest income and other income, net using the specific identification method.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table summarizes realized gains and losses for the period indicated (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="80%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" width="44%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="10" valign="bottom" width="34%"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Year Ended December 31,</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" width="44%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2011</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2010</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2009</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Realized gain</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">11</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">62</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">37</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="44%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Realized loss</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: right; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">­-</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(97</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(5</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="44%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net realized gain (loss)</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">11</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(35</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">32</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On at least a quarterly basis, we evaluate our available for sale securities and record an “other-than-temporary impairment” (“OTTI”) if we believe their fair value is less than historical cost and it is probable that we will not collect all contractual cash flows. We did not record any OTTI during 2011 after evaluating a number of factors including, but not limited to:</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 18pt;"><div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">  </font></div></td><td style="width: 18pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="display: inline; font-family: Symbol, serif;">·</font></font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">How much fair value has declined below amortized cost</font></div></td></tr></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 18pt;"><div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">  </font></div></td><td style="width: 18pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="display: inline; font-family: Symbol, serif;">·</font></font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The financial condition of the issuers</font></div></td></tr></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 18pt;"><div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">  </font></div></td><td style="width: 18pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="display: inline; font-family: Symbol, serif;">·</font></font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Significant rating agency changes on the issuers</font></div></td></tr></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 18pt;"><div><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">  </font></div></td><td style="width: 18pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="display: inline; font-family: Symbol, serif;">·</font></font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value</font></div></td></tr></table></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table summarizes our cash, cash equivalents, restricted cash and investments as of December 31, 2011 and 2010 (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline;">December 31, 2011</font></font></font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Cost or</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Gross</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Gross</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Amortized</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Unrealized</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Unrealized</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Estimated</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Cost</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Gains</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Losses</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fair Value</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash and cash equivalents:</font></div></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8,768</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8,768</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Money market</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">45,319</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">45,319</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash and cash equivalents</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">54,087</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">54,087</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Restricted cash:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Money market</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">500</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">500</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Restricted cash</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">500</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">500</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Short-term investments:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Corporate notes and bonds</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,400</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(9</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,397</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Short-term investments</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,400</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">6</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(9</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,397</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Long-term investments:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Corporate bonds and asset backed securities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12,084</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">309</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(38</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12,355</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">U.S. government and agency securities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,007</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">17</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,024</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Long-term investments</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,091</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">326</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(38</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,379</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash and equivalents, restricted cash and investments</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">69,078</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">332</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(47</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">69,363</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"><font style="display: inline;">December 31, 2010</font></font></font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Cost or</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Gross</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Gross</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Amortized</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Unrealized</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Unrealized</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Estimated</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Cost</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Gains</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Losses</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Fair Value</font></div></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash and cash equivalents:</font></div></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">7,633</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">7,633</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Money market</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">438</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">438</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash and cash equivalents</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8,071</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">8,071</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Short-term investments:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Corporate notes and bonds</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12,162</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">136</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(7</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12,291</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Short-term investments</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12,162</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">136</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(7</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">12,291</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Long-term investments:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Corporate bonds and asset backed securities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,634</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">309</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(33</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,910</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">U.S. government and agency securities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,009</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">18</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,027</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 27pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Long-term investments</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,643</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">327</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(33</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,937</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cash and equivalents and investments</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">34,876</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">463</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">(40</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">35,299</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Restricted cash of $500,000 as of December 31, 2011 is related to the escrow for the purchase of our new corporate headquarters building. See Note 13 - Subsequent Events for further discussion.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The following table summarizes contractual maturities of our marketable fixed-income securities as of December 31, 2011 (in thousands):</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="center"><table cellpadding="0" cellspacing="0" width="80%" style="font-family: times new roman; font-size: 10pt;"><tr><td valign="bottom" width="56%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Amortized</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Cost</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Estimated</font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Fair Value</font></div></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Due within one year</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,400</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">1,397</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Due after one year through five years</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,091</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">13,379</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="56%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Due after five years through ten years</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="56%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,491</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,776</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"> </font></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div></div>
<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt; font-weight: bold;">7.           Allowance for Doubtful Accounts</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">As of December 31, 2011 and 2010, our allowance for doubtful accounts totaled approximately $117,000 and $108,000, respectively. Increases in our allowance for doubtful accounts totaled approximately $9,000 and $12,000 for 2011 and 2010, respectively. There were no material write-offs against the allowance for doubtful accounts during 2011 or 2010.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div></div>
0
634000
0