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receive by reference to prices paid by other investors in the investee company and/or through obtaining independent third party valuations.
Valuation of private company equity securities is inherently subjective. We also record revenue from arrangements that contain multiple
revenue generating activities. In such arrangements, we recognize revenue for individual elements where evidence of the fair value of the
individual elements exists. Where no such evidence exists, revenue is recognized for the individual components as one element.
Historical Results of Operations
We have incurred losses since our inception and, as of December 31, 2001, we had an accumulated deficit of approximately $910.7
million. For the year ended December 31, 2001, our net loss was $502.1 million, including amortization of intangibles of $236.7 million,
impairment on intangibles of $107.7 million and loss on investments of $108.2 million. For the year ended December 31, 2000, our net loss
was $282.4 million, including amortization of intangibles of $171.3 million, impairment of intangibles of $9.0 million and $124.0 million in
acquisition and related charges associated with the acquisitions of Prio, Saraide, Millet Software, IQorder and Go2Net, of which $80.1 million
was a non cash charge for in process research and development associated with the acquisitions. For the year ended December 31, 1999, our
net loss totaled $240.1 million, including a $159.9 preferred stock dividend recorded by Go2Net in connection with the preferred stock sold to
Vulcan Ventures in March and June 1999 and $13.6 million in acquisition and related charges.
We believe that our future success will depend largely on our ability to continue to offer products and application services to merchants
and on wireline, wireless and broadband platforms that are attractive to our existing and potential future customers. Accordingly, we will need
to, among other things:
develop and continually enhance our technology and products and services;
continue to up sell and retain our existing carrier partners;
expand our base of international customers;
increase capital equipment expenditures to meet service level agreement requirements and build out our delivery infrastructure in
North America, Europe and Asia; and
sell additional services to our existing merchants and merchant aggregator partners and grow our network of merchants.
In light of the rapidly evolving nature of our business and limited operating history, we believe that period to period comparisons of our
revenues and operating results are not necessarily meaningful, and you should not rely upon them as indications of future performance. We do
not believe that our historical growth rates are necessarily sustainable or indicative of future growth. Our future operating results may fall
below the expectations of securities analysts or investors, which would likely cause the trading price of our common stock to decline.