Financial Statement

December 31, 2011

December 31, 2010

(In thousands, except share amounts)

ASSETS

Current assets:

Cash and cash equivalents

$

23,696

$

23,397

Short-term investments

1,505

6,300

Trade accounts receivable,
less allowances of $1,719 and $1,126, respectively

31,133

26,028

Deferred tax asset, net

2,981

—

Other current assets

4,502

5,057

Total current assets

63,817

60,782

Property and equipment, net

8,834

7,806

Goodwill

259,218

180,602

Intangibles, net

38,386

22,574

Indefinite-lived intangibles

30,453

30,552

Deferred tax asset, net

9,412

—

Other assets

1,062

984

Total assets

$

411,182

$

303,300

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

18,719

$

15,344

Accrued payroll and related benefits

5,034

4,536

Short term debt

6,667

5,000

Current portion of convertible debt,
net of discount of $0 and $56, respectively

—

4,944

Current portion of long term debt
and capital lease obligation

165

426

Deferred revenue

16,460

8,610

Current deferred rent

266

—

Other current liabilities

2,468

225

Total current liabilities

49,779

39,085

Revolving line of credit

31,750

25,000

Other long term debt and capital lease
obligation, less current portion

8,468

205

Deferred tax liability, net

—

3,534

Put option liability

—

537

Deferred revenue

328

126

Long term deferred rent

939

554

Other liabilities

3,803

2,991

Total liabilities

95,067

72,032

Commitments and Contingencies, Note 7

Stockholders' equity:

Convertible Series D Preferred stock,
$.10 par value, 500,000 shares authorized,
no shares issued and outstanding at
December 31, 2011 and 2010

—

—

Common stock*, $.10 par value,
60,000,000 shares authorized,
36,418,385 issued and 36,377,876
outstanding at December 31, 2011 and
36,057,791 issued and 36,017,282
outstanding at December 31, 2010

3,638

3,602

Additional paid-in capital

179,518

153,221

Treasury stock*
(40,509 shares as of December 31, 2011
and December 31, 2010 respectively)

(76)

(76)

Retained earnings

137,559

67,642

Accumulated other comprehensive income (loss)

(4,524)

6,879

Total stockholders' equity

316,115

231,268

Total liabilities and stockholders' equity

$

411,182

$

303,300