Six Months Ended June 30, ----------------------------------------------- 2006 2005 ----------------------- ----------------------- Change As a % of As a % of Total Total Amount Revenue Amount Revenue $ % ---------- ------------ ---------- ------------ ----------- --------- Revenues Product revenues $ 42,007 71 % $ 30,064 85 % $ 11,943 40 % Royalty revenues 14,797 25 % 2,513 7 % 12,284 489 % Funded product development revenues 2,307 4 % 2,691 8 % (384 ) (14 %) ---------- ------------ ---------- ------------ ----------- Total revenues 59,111 100 % 35,268 100 % 23,843 68 % ---------- ------------ ---------- ------------ ----------- Cost and expenses Cost of product revenues 11,653 20 % 9,757 28 % 1,896 19 % Cost of royalty revenues 5,919 10 % 1,005 3 % 4,914 489 % Research & development 7,484 13 % 6,057 17 % 1,427 24 % Selling & marketing 11,221 19 % 8,177 23 % 3,044 37 % General & administrative 684 1 % 3,020 9 % (2,336 ) (77 %) ---------- ------------ ---------- ------------ ----------- Total cost & expenses 36,961 63 % 28,016 79 % 8,945 32 % ---------- ------------ ---------- ------------ ----------- Income from operations 22,150 37 % 7,252 21 % 14,898 205 % Interest income 2,445 4 % 426 1 % 2,019 474 % ---------- ------------ ---------- ------------ ----------- Income before income taxes 24,595 42 % 7,678 22 % 16,917 220 % Provision for income taxes 984 2 % 153 0 % 831 543 % ---------- ------------ ---------- ------------ ----------- Net income $ 23,611 40 % $ 7,525 21 % $ 16,086 214 % ---------- ------------ ---------- ------------ -----------
Six months ended, June 30, ---------------------- Change 2006 2005 $ % ----------- ---------- ----------- --------- Operating cash flows $ 20,835 $ 6,824 $ 14,011 205 % Investing cash flows (17,250 ) (6,821 ) (10,429 ) (153 %) Financing cash flows 3,879 2,149 1,730 81 % Capital expenditures $ 350 $ 121 $ 229 189 % . . .
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