| Cash Flow for Rackable Systems Inc. (RACK) | | | | | | | Cash Flow | in Thousands of Dollars | | | 12/2007 | 12/2006 | 12/2005 | 12/2004 | 12/2003 | | | Net Income | (69,557) | 11,472 | 8,512 | (55,390) | (52,664) | | Depreciation & Amortization | 7,473 | 3,566 | 3,926 | 1,901 | 1,831 | | Deferred Income Taxes | 14,495 | (9,620) | (5,293) | (959) | (1,084) | | Operating Losses | 73 | - | 8,260 | 52,088 | 52,957 | | Extraordinary Losses | - | - | - | - | - | | | Decrease in Receivables | 54,008 | (53,833) | (40,417) | (1,339) | (6,020) | | Decrease in Inventories | 15,042 | (27,197) | (30,150) | (9,175) | (5,037) | | Decrease in Other Current Assets | - | - | - | - | - | | Increase in Payables | (13,853) | 32,055 | 22,802 | 6,385 | 2,367 | | Increase in Other Current Liabilities | (2,171) | 8,267 | 6,372 | 2,563 | 2,028 | | Decrease in Other Working Capital | 804 | 2,689 | - | - | - | | Other Non-Cash Items | 45,680 | 23,906 | - | (67) | (147) | | Net Cash from Continuing Operations | 46,075 | (17,584) | (28,384) | 810 | (4,859) | | Net Cash from Discontinued Operations | - | - | - | - | - | | Cash from Operating Activities | 46,075 | (17,584) | (28,384) | 810 | (4,859) | | | | Sale of Property, Plant, Equipment | - | - | - | - | - | | Sale of Short Term Investments | 565,836 | 442,089 | 30,907 | 3,527 | - | | | Purchase of Property, Plant, Equipment | (13,622) | (4,090) | (1,801) | (1,164) | (465) | | Acquisitions | (350) | (31,886) | - | - | - | | Purchase of Short Term Investments | (584,009) | (547,017) | (55,765) | - | - | | Other Investment Changes, Net | - | - | (158) | - | - | | Cash from Investing Activities | (32,145) | (140,904) | (26,817) | 2,363 | (465) | | | Issuance of Debt | - | - | - | 14,061 | - | | Issuance of Capital Stock | 4,525 | 144,899 | 114,988 | 1 | 990 | | | Repayment of Debt | - | - | (17,061) | - | (10) | | Repurchase of Capital Stock | (617) | - | (30,738) | (2,100) | - | | Payment of Cash Dividends | - | - | - | - | - | | Other Financing Charges, Net | 1,639 | 14,971 | - | (344) | - | | Cash from Financing Activities | 5,547 | 159,870 | 67,189 | 11,618 | 980 | | | | Effect of Exchange Rate Changes | (26) | (35) | - | - | - | | Net Change in Cash | 19,451 | 1,347 | 11,988 | 14,791 | (4,344) | | | Cash at Beginning of Year | 30,446 | 29,099 | 17,111 | 2,320 | 6,664 | | Cash at End of Period | 49,897 | 30,446 | 29,099 | 17,111 | 2,320 | | | |
