CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

(In thousands)

(Unaudited)

First Quarter of

2014

2013

Cash flow from operating activities:

    Net Income

$          68,125

$  48,932

    Adjustments to reconcile net income to net cash provided by

       operating activities:

         Depreciation expense

7,520

6,193

         Amortization expense

40,569

39,332

         Provision for doubtful accounts

516

65

         Deferred income taxes

(1,454)

(11,809)

         Stock-based compensation

10,112

8,818

         Income from equity method investments

(3,463)

(4,257)

         Gain on an equity sale

(15,091)

-

         Excess tax benefit for stock-based compensation

(10,211)

(4,784)

         Provision for excess and obsolete inventories

1,089

584

         Other non-cash items

(728)

104

    Add decrease (increase) in assets:

         Accounts receivables

(61,875)

(61,956)

         Other receivables

(1,661)

5,027

         Inventories

(13,395)

(20,218)

         Other current and non-current assets

(2,224)

(10,867)

    Add increase (decrease) in liabilities:

         Accounts payable

10,487

(6,081)

         Accrued compensation and benefits

(11,503)

(12,037)

         Deferred revenue

47,077

51,964

         Accrued warranty expense

382

439

         Other liabilities

19,123

7,939

 Net cash provided by operating activities 

83,395

37,388

 Cash flow from investing activities: 

      Acquisitions of businesses, net of cash acquired 

(10,961)

(65,192)

      Acquisitions of property and equipment 

(13,574)

(14,927)

      Dividends received from equity method investments 

12,443

1,284

      Other 

(2,050)

2,430

 Net cash used in investing activities 

(14,142)

(76,405)

 Cash flow from financing activities: 

      Issuance of common stock, net of tax withholdings 

32,465

14,437

      Excess tax benefit for stock-based compensation 

10,211

4,784

      Proceeds from debt and revolving credit lines 

17,000

113,000

      Payments on debt and revolving credit lines 

(110,805)

(103,981)

 Net cash provided by (used in) financing activities 

(51,129)

28,240

 Effect of exchange rate changes on cash and cash equivalents 

(125)

(3,442)

 Net increase (decrease) in cash and cash equivalents 

17,999

(14,219)

 Cash and cash equivalents - beginning of period 

147,227

157,771

 Cash and cash equivalents - end of period 

$        165,226

$ 143,552