Consolidated Statements of Cash Flows (in thousands  except per share data) Year Ended December 31  2002 2001 2000 Cash flows from operating activities: Net income $ 34 562 $ 22 160 $ 17 683 Adjustments to reconcile net income to net cash provided  by operating activities: Depreciation and amortization 7 842 6 367 4 507 Provision for doubtful accounts 510 1 837 572 Deferred income taxes 12 7 791 6 341 Impairment loss on investment – 1 955 – Tax benefit related to stock option exercises 12 111 4 633 1 258 Changes in assets and liabilities: Trade accounts receivable (14 663) (3 833) (10 825) Other current assets (3 111) (4 115) (1 924) Other assets (370) 300 (902) Accounts payable 3 296 803 1 414 Accrued and other liabilities 16 493 (5 819) 12 096 Net cash provided by operating activities 56 682 32 079 30 220 Cash flows used in investing activities: Purchase of property and equipment (22 268) (14 953) (10 652) Intangible assets acquired (13 196) – – Investment – – (1 955) Net cash used in investing activities (35 464) (14 953) (12 607) Cash flows from financing activities: Proceeds from stock plans/compensatory grant  20 043 5 991 1 755 (Payments to) proceeds from related party – (8) 8 Net cash provided by financing activities 20 043 5 983 1 763 Effect of currency translation (27) (108) (41) Increase in cash and cash equivalents 41 234 23 001 19 335 Cash and cash equivalents  at beginning of year 84 977 61 976 42 641 Cash and cash equivalents  at end of year $1 26 211 $ 84 977 $ 61 976 Supplemental information: Cash paid for income taxes during the year $ 2 896 $ 3 797 $ 1 186 The accompanying notes are an integral part of the consolidated financial statements 27