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drugstore.com inc. Reports Solid Revenue Growth and Record Gross Margins in the Third Quarter of 2008
Date:11/5/2008

ivities:

Net loss $(3,619) $(2,374) $(8,576) $(9,167)

Adjustments to

reconcile net loss

to net cash

provided by

operating

activities:

Depreciation 3,043 1,941 7,895 5,743

Amortization of

intangible assets 206 240 661 990

Stock-based

compensation 1,846 2,147 5,778 7,114

Other, net (28) 18 (43) 12

Changes in:

Accounts

receivable 96 695 (11) 1,755

Inventories 107 2,740 498 3,995

Prepaid

marketing

expenses and

other (337) (766) 459 (991)

Accounts

payable,

accrued

expenses and

other

liabilities (970) (549) (2,914) (3,938)

Net cash

provided by

activities of

discontinued

operations 1,563 348 2,560 1,519

Net cash

provided by

operating

activities 1,907 4,440 6,307 7,032

Investing activities:

Purchases of

marketable

securities (7,772) (5,379) (43,116) (16,540)

Sales and

maturities

of marketable

securities 15,606 5,300 49,704 15,825

Purchases of fixed

assets (2,947) (5,653) (11,063) (10,783)

Purchases of

intangible

assets - (456) - (456)

Net cash

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SOURCE drugstore.com, inc.
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