Selected Consolidated Financial Data (in thousands, except per share data) The selected financial data presented below is derived from the consolidated financial statements of Forrester and should be read in connection with those statements which are included herein. Year Ended December 31, 1996 1997 1998 1999 2000 Consolidated Statement of Income Data: Revenues: Core research $18,206 $30,431 $ 46,842 $ 64,697 $120,477 Advisory services and other 6,757 9,990 14,725 22,571 36,670 Total revenues 24,963 40,421 61,567 87,268 157,147 Operating expenses: Cost of services and fulfillment 8,762 13,698 22,038 27,715 45,470 Selling and marketing 8,992 14,248 20,896 31,131 57,957 General and administrative 2,509 4,500 6,688 9,865 18,632 Depreciation and amortization 618 1,209 2,763 4,003 7,944 Costs related to acquisition — — — 694 — Total operating expenses 20,881 33,655 52,385 73,408 130,003 Income from operations 4,082 6,766 9,182 13,860 27,144 Other income, net 634 2,515 2,957 3,710 6,893 Income before income tax provision 4,716 9,281 12,139 17,570 34,037 Income tax provision 712 3,683 4,592 6,589 12,423 Net income 4,004 $ 5,598 $ 7,547  $ 10,981 $ 21,614 Pro forma income tax adjustment 1,198 Pro forma net income $ 2,806 Basic net income per common share $ 0.32 $  0.34 $ 0.44 $ 0.61 $ 1.03 Diluted net income per common share $ 0.31 $ 0.32 $ 0.40 $ 0.55 $ 0.88 Basic pro forma net income per  common share $ 0.23 Diluted pro forma net income per  common share $ 0.22 Basic weighted average common  shares outstanding 12,384 16,679 17,041 18,028 20,989 Diluted weighted average common  shares outstanding 12,852 17,703 18,744 20,067 24,526 Consolidated Balance Sheet Data: Cash, cash equivalents,  and marketable securities $44,640 $54,914 $ 66,483 $ 98,787 $174,739 Working capital $31,291 $36,016 $ 45,720 $ 65,366 $115,547 Deferred revenue $17,816 $27,074 $ 38,894 $ 66,233 $102,527 Total assets $56,782 $73,536 $100,518 $159,393 $303,803 Total stockholders’ equity $33,762 $40,505 $ 53,533 $ 78,805 $176,928 Forrester Research | Annual Report 2000 f-2 | 3