EXHIBIT 13.1 ------------ Selected Consolidated Financial Data Selected Consolidated Financial Data - The following table sets forth selected consolidated financial information of the Company for the five years in the period ended July 31, 2000. The following selected consolidated financial data should be read in conjunction with "Management's Discussion and Analysis of Results of Operations" and the Company's consolidated financial statements and notes to those statements included elsewhere in this report. The following consolidated financial data includes the results of operations (from dates of acquisition) of the Company's fiscal 1997 acquisition of Pacific Direct Marketing Corporation, the fiscal 1998 acquisitions of Accipiter, Inc., InSolutions, Inc., Servercast Communications, LLC and On-Demand Solutions, Inc., the fiscal 1999 acquisitions of Magnitude Network, Inc., 2CAN Media, Inc., Internet Profiles Corporation, Activerse, Inc., Nascent Technologies, Inc., Netwright, LLC and Digiband, Inc. and the fiscal 2000 acquisitions AltaVista Company, AdForce, Inc., Flycast Communications Corporation, yesmail.com inc., Tallan, Inc., uBid, Inc. and eighteen other companies. See Note 8 to the Company's consolidated financial statements for further information concerning these acquisitions. The historical results presented herein are not necessarily indicative of future results. Years ended July 31, 2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- (in thousands, except per share data) Consolidated Statement of Operations Data: Net revenue $ 898,050 $ 186,389 $ 92,197 $ 67,306 $ 20,873 Cost of revenue 737,264 179,553 83,021 42,116 14,353 Research and development expenses 153,974 22,253 19,108 17,767 5,412 In-process research and development expenses 65,683 6,061 10,325 1,312 2,691 Selling, general and administrative expenses 694,056 89,054 46,909 45,777 16,812 Amortization of intangible assets and stock-based compensation 1,436,880 16,127 3,093 1,254 -- ----------- ---------- -------- -------- -------- Operating loss (2,189,807) (126,659) (70,259) (40,920) (18,395) Interest income (expense), net (15,096) 269 (870) 1,749 2,691 Gains on issuance of stock by subsidiaries and affiliates 80,387 130,729 46,285 -- 19,575 Other gains, net 525,265 758,312 96,562 27,140 30,049 Other income (expense), net 113,385 (13,406) (12,899) (769) (746) Income tax benefit (expense) 121,173 (325,402) (31,555) (2,034) (17,566) ----------- ---------- -------- -------- -------- Income (loss) from continuing operations (1,364,693) 423,843 27,264 (14,834) 15,608 Discontinued operations, net of income taxes -- 52,397 4,640 (7,193) (1,286) ----------- ---------- -------- -------- -------- Net income (loss) (1,364,693) 476,240 31,904 (22,027) 14,322 Preferred stock accretion and amortization of discount (11,223) (1,662) -- -- -- ----------- ---------- -------- -------- -------- Net income (loss) available to common stockholders $(1,375,916) $ 474,578 $ 31,904 $(22,027) $ 14,322 =========== ========== ======== ======== ======== Diluted earnings (loss) per share: Earnings (loss) from continuing operations $ (5.26) $ 2.05 $ 0.15 $ (0.10) $ 0.10 Discontinued operations -- 0.25 0.03 (0.05) (0.01) ----------- ---------- -------- -------- -------- Net earnings (loss) $ (5.26) $ 2.30 $ 0.18 $ (0.15) $ 0.09 =========== ========== ======== ======== ======== Shares used in computing diluted earnings (loss) per share 261,555 206,832 180,120 150,864 154,912 =========== ========== ======== ======== ======== Consolidated Balance Sheet Data: Working capital $ 1,110,105 $1,381,005 $ 12,784 $ 38,554 $ 72,009 Total assets 8,557,107 2,404,594 259,818 146,248 106,105 Long-term obligations 278,968 34,867 5,801 16,754 514 Redeemable preferred stock 383,140 411,283 -- -- -- Stockholders' equity 6,190,182 1,062,461 133,136 29,448 53,992