Exhibit 99.2
HGS CALCULATION OF NET CASH BURN
Our July 30, 2008 press release announcing second quarter 2008 financial results includes a discussion of net cash burn, which is a non-GAAP financial measure. This non-GAAP measure may be considered in addition to results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), but should not be considered a substitute for, or superior to, GAAP results. We believe that net cash burn is relevant and useful information for the Company and our investors as it provides a simple method of determining net cash used by the Company. A calculation of net cash burn is provided below:
Six months ended | ||||
June 30, 2008 | ||||
(dollars in thousands) | ||||
Net income (loss) | $ | (121,106 | ) | |
Stock-based compensation expense | 9,304 | |||
Depreciation and amortization | 10,402 | |||
Change in deferred revenues | (22,610 | ) | ||
Capital expenditures | (3,951 | ) | ||
Proceeds from sale of long-term investment, net of gain of $32,518 | 14,818 | |||
Net Cash Burn | $ | (113,143 | ) | |