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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-->
<!-- xbrl,ns -->
<!-- xbrl,nx -->
<font style="font-family:times new roman" size="2"><b></b></font>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>1. BASIS OF PRESENTATION </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in the United States (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, condensed consolidated financial statements do not include all of
the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All
significant intercompany transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31,
2013. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The balance sheet at December 31, 2012 is consistent with the audited financial statements at that date but does not include all
of the information and footnotes required by US GAAP for a complete set of financial statements. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2012 (included
in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 1, 2013). </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:IncomeTaxDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>2. INCOME TAXES </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Income taxes are accounted for using the asset and liability method, whereby deferred tax assets and liabilities are determined based
on the temporary differences between the financial statement and tax bases of assets and liabilities measured at tax rates that will be in effect for the year in which the differences are expected to affect taxable income. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">During the three months ended March 31, 2013 and 2012, the Company recorded a provision for income taxes of $1.3 million and $940,000, respectively.
The Company’s effective tax rate for the three months ended March 31, 2013 and 2012 was 39.7% and 39.8%, respectively. The Company’s effective tax rate primarily reflects the statutory corporate income tax rate, the net effect of
state taxes, and the effect of various permanent tax differences. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>3. STOCK BASED COMPENSATION </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company maintains two stock incentive plans. The Company accounts for its stock based compensation plans using the fair-value based
method for costs related to share-based payments, including stock options and restricted share units (RSUs). During the three months ended March 31, 2013, the Company issued 77,750 RSUs with a weighted average grant date fair value of $21.70
per share, measured based on the closing fair market value of the Company’s stock on the date of grant. During the three months ended March 31, 2012, the Company issued 69,950 RSUs with a weighted average grant date fair value of $23.00
per share, measured based on the closing fair market value of the Company’s stock on the date of grant. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Total stock based compensation
expense recorded for the three months ended March 31, 2013 and 2012, which is recorded in the condensed consolidated statements of income, is as follows (in thousands): </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="84%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center">
<p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:times new roman" size="1">Three Months Ended</font></p>
<p style="margin-top:0px;margin-bottom:1px" align="center"><font style="font-family:times new roman" size="1">March 31,</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cost of revenues (excluding depreciation and amortization)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">16</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Product development</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">34</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">34</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Sales and marketing</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">36</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">38</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other general and administrative</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">224</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">160</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total stock based compensation expense</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">310</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">242</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:EarningsPerShareTextBlock-->
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>4. EARNINGS PER SHARE </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Basic earnings per share is computed by dividing the net income available to common shareholders for the period by the weighted-average
number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Common
equivalent shares, composed of incremental common shares issuable upon the exercise of stock options and restricted share units subject to vesting are included in diluted earnings per share only to the extent these shares are dilutive. Common
equivalent shares are dilutive when the average market price during the period exceeds the exercise price of the underlying shares. The total number of common equivalent shares excluded from the calculations of diluted earnings per share, due to
their anti-dilutive effect, was approximately 0.1 million and 0.2 million for the three months ended March 31, 2013 and 2012, respectively. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2013 and 2012 (in thousands, except per share data): </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Three Months Ended</font><br /><font style="font-family:times new roman" size="1">March 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Numerator:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net income</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,941</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,420</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Denominator:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Weighted-average shares outstanding</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">26,340</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">25,999</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Effect of dilutive shares</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,069</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,336</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Weighted-average diluted shares</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,409</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,335</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Basic earnings per share</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.07</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.05</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Diluted earnings per share</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.07</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.05</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - hstm:MarketableSecuritiesDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>5. MARKETABLE SECURITIES </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">At March 31, 2013 and December 31, 2012, the fair value of marketable securities, which were all classified as available for
sale, included the following (in thousands): </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="65%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="14" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">March 31, 2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Adjusted Cost</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Gains</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Losses</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Fair Value</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 1:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Mutual funds</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,051</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">30</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"> —  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,081</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 2:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Certificates of deposit</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,255</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,255</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Corporate debt securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">42,397</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">42,375</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">U.S. government securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Subtotal</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,652</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,630</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,703</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">33</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,711</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td height="16"> </td>
<td height="16" colspan="16"> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="14" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">December 31, 2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Adjusted Cost</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Gains</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Losses</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Fair Value</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 1:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Mutual funds</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,042</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">30</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"> —  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,072</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 2:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Certificates of deposit</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,254</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,254</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Commercial paper</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,122</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,123</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Corporate debt securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,017</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(17</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,001</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">U.S. government securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">14,499</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">14,502</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Subtotal</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,892</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(17</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,880</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,934</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">35</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(17</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,952</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The carrying amounts reported in the condensed consolidated balance sheet approximate the fair value based on quoted market prices or
alternative pricing sources and models utilizing market observable inputs. As of March 31, 2013, the Company does not consider any of its marketable securities to be other than temporarily impaired. During the three months ended March 31,
2013 and 2012, the Company did not reclassify any items out of accumulated other comprehensive income to net income. </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:SegmentReportingDisclosureTextBlock-->
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>6. BUSINESS SEGMENTS </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company primarily provides services to healthcare organizations and other members within the healthcare industry. The
Company’s services are primarily focused on the delivery of learning and talent management products and services (HealthStream Learning & Talent Management), as well as survey and research services (HealthStream Research). The
accounting policies of the segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company measures segment performance based on operating income before income taxes and prior to the allocation of certain corporate overhead
expenses, interest income, interest expense, and depreciation. The following is the Company’s business segment information as of and for the three months ended March 31, 2013 and 2012 (in thousands). </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Three Months Ended</font><br /><font style="font-family:times new roman" size="1">March 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Revenues</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Learning & Talent Management</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23,140</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,798</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Research</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,506</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,876</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total net revenue</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">29,646</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23,674</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Income from operations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Learning & Talent Management</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,816</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,757</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Research</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">301</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">279</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Unallocated</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(3,944</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,695</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total income from operations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,173</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,341</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="68%"> </td>
<td valign="bottom" width="9%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="9%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"> <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">March 31, 2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">December 31, 2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Segment assets *</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Learning & Talent Management</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">50,905</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,693</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Research</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">25,529</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23,978</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Unallocated</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">105,222</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">103,857</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">181,656</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">174,528</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">*</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Segment assets include accounts and unbilled receivables, prepaid and other current assets, other assets, capitalized software development, certain property and
equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within
Unallocated. </font></td>
</tr>
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:CollaborativeArrangementDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>7. COLLABORATIVE ARRANGEMENT </b></font></p>
<p style="margin-top:6px;margin-bottom:0px;padding-bottom:0px; "><font style="font-family:times new roman" size="2">The Company participates in a collaborative arrangement, SimVentures</font><font style="font-family:times new roman" size="1">
<sup>TM</sup></font><font style="font-family:times new roman" size="2">, with Laerdal Medical A/S (Laerdal Medical). The Company receives 50
percent of the profits or losses generated from this collaborative arrangement. For the three months ended March 31, 2013, the Company has recorded approximately $0.4 million of revenues and $0.4 million of expenses related to the collaborative
arrangement. For the three months ended March 31, 2012, the Company recorded $0.4 million of revenues and $0.5 million of expenses related to the collaborative arrangement. The Company has also recorded approximately $0.3 million of capitalized
software development for SimVentures during 2013. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: note3_table1 - us-gaap:ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock-->
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="84%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center">
<p style="margin-top:0px;margin-bottom:0px" align="center"><font style="font-family:times new roman" size="1">Three Months Ended</font></p>
<p style="margin-top:0px;margin-bottom:1px" align="center"><font style="font-family:times new roman" size="1">March 31,</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cost of revenues (excluding depreciation and amortization)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">16</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Product development</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">34</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">34</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Sales and marketing</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">36</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">38</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other general and administrative</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">224</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">160</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total stock based compensation expense</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">310</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">242</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: note4_table1 - us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock-->
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Three Months Ended</font><br /><font style="font-family:times new roman" size="1">March 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Numerator:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net income</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,941</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,420</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Denominator:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Weighted-average shares outstanding</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">26,340</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">25,999</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Effect of dilutive shares</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,069</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,336</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Weighted-average diluted shares</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,409</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,335</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Basic earnings per share</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.07</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.05</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Diluted earnings per share</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.07</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.05</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: note5_table1 - us-gaap:ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock-->
<table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="65%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="14" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">March 31, 2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Adjusted Cost</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Gains</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Losses</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Fair Value</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 1:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Mutual funds</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,051</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">30</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"> —  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,081</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 2:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Certificates of deposit</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,255</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,255</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Corporate debt securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">42,397</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">42,375</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">U.S. government securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Subtotal</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,652</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,630</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,703</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">33</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,711</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td height="16"> </td>
<td height="16" colspan="16"> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="14" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">December 31, 2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Adjusted Cost</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Gains</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Unrealized<br />Losses</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Fair Value</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 1:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Mutual funds</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,042</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">30</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"> —  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,072</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Level 2:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Certificates of deposit</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,254</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,254</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Commercial paper</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,122</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,123</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Corporate debt securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,017</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(17</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27,001</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">U.S. government securities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">14,499</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">14,502</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Subtotal</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,892</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(17</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,880</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,934</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">35</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(17</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">51,952</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: note6_table1 - us-gaap:ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock-->
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Three Months Ended</font><br /><font style="font-family:times new roman" size="1">March 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Revenues</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Learning & Talent Management</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23,140</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,798</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Research</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,506</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,876</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total net revenue</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">29,646</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23,674</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Income from operations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Learning & Talent Management</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,816</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,757</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Research</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">301</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">279</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Unallocated</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(3,944</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,695</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total income from operations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,173</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,341</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: note6_table2 - us-gaap:ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock-->
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="68%"> </td>
<td valign="bottom" width="9%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="9%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"> <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">March 31, 2013</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">December 31, 2012</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Segment assets *</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Learning & Talent Management</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">50,905</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,693</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Research</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">25,529</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23,978</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Unallocated</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">105,222</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">103,857</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:5.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">181,656</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">174,528</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">*</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Segment assets include accounts and unbilled receivables, prepaid and other current assets, other assets, capitalized software development, certain property and
equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within
Unallocated. </font></td>
</tr>
</table>
false
--12-31
Q1
2013
2013-03-31
10-Q
0001095565
26623985
Accelerated Filer
HEALTHSTREAM INC
500000
400000
232000
270000
-1550000
-1652000
2
2266000
2496000
0.50
3738000
2086000
400000
400000
322000
742000
742000
158000
1057000
1286000
15348000
22777000
9708000
8587000
18706000
19466000
18000
8000
310000
310000
242000
160000
34000
10000
38000
310000
224000
34000
16000
36000
142000
174000
200000
100000
174528000
46693000
23978000
103857000
181656000
50905000
25529000
105222000
118291000
125333000
51934000
46892000
5042000
2254000
3122000
27017000
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51703000
46652000
5051000
2255000
42397000
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51952000
51711000
51952000
46880000
5072000
2254000
3123000
27001000
14502000
51711000
46630000
5081000
2255000
42375000
2000000
35000
5000
30000
1000
1000
3000
33000
3000
30000
3000
17000
17000
17000
25000
25000
25000
10987000
11609000
9732000
10182000
-181000
76904000
24268000
41365000
43888000
-52636000
2523000
158020000
159072000
75000000
75000000
26233000
26555000
26233000
26555000
1420000
1931000
9575000
12520000
21333000
26473000
940000
1279000
23146000
28432000
2459000
1180000
6474000
6474000
1534000
1876000
0.05
0.07
0.05
0.07
0.398
0.397
1121000
990000
10036000
10471000
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