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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

For The Quarter Ended March 31, 2004

OR

Commission File Number: 000-22555

COINSTAR, INC.

(Exact name of registrant as specified in its charter)

(425) 943-8000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

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COINSTAR, INC.

FORM 10-Q

Index

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PART I. FINANCIAL INFORMATION

COINSTAR, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

See notes to consolidated financial statements.

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COINSTAR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

See notes to consolidated financial statements.

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COINSTAR, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

Three Month Period Ended March 31, 2004

(in thousands, except share data)

(unaudited)

See notes to consolidated financial statements.

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COINSTAR, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

See notes to consolidated financial statements.

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COINSTAR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Three Month Periods Ended March 31, 2004 and 2003

(unaudited)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of company: We develop, own and operate a network of automated, self-service coin-counting machines that provide consumers with a convenient means to convert loose coins into cash. As of March 31, 2004, we had a total installed base of nearly 11,000 coin-counting machines. In addition, acquisitions during the past twelve months have laid the foundation for the distribution of various prepaid products through point-of-sale and non-coin-counting kiosks and we are currently offering our prepaid products in over 13,000 drugstores, universities, shopping malls and convenience stores.

Basis of presentation: The unaudited consolidated financial statements of Coinstar, Inc. included herein reflect all adjustments, consisting only of normal recurring adjustments which, in the opinion of management, are necessary to present fairly our consolidated financial position, results of operations and cash flows for the periods presented.

These financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such SEC rules and regulations. These financial statements should be read in conjunction with our audited financial statements and the accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2003, filed with the SEC. The results of operations for the three month period ended March 31, 2004 are not necessarily indicative of the results to be expected for any future quarter or for the entire fiscal year.

Principles of consolidation: The accompanying consolidated financial statements include the accounts of our North American business and our wholly owned subsidiaries: Coinstar International, Inc. and CellCards LLC. All significant intercompany balances and transactions have been eliminated in consolidation.

Stock-based compensation: We account for stock-based awards to employees using the intrinsic value method in accordance with Accounting Principles Board (“APB”) Opinion No. 25, Accounting for Stock Issued to Employees. All options granted under the stock-based compensation plans had an exercise price equal to the fair market value of the stock at the date of grant. Accordingly, no compensation expense has been recognized for our stock option grants. The following illustrates the effect on net income and net income per share had we applied the fair value recognition provision of SFAS No. 123, Accounting for Stock-Based Compensation, to the stock option awards.

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The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience.

Goodwill: Goodwill represents the excess of cost over the estimated fair value of net assets acquired, which in accordance with SFAS No. 142, Goodwill and Other Intangible Assets, is not being amortized. Also in accordance with SFAS No. 142, we will test goodwill for impairment at the reporting unit level on an annual basis or as determined necessary. SFAS No. 142 requires a two-step goodwill impairment test whereby the first step, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. The second step of the impairment test compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess.

Intangible assets: Our intangible assets are comprised primarily of customer relationships acquired in connection with our acquisition of CellCards during February 2004 and the purchase of technology acquired in connection with our acquisition of Prizm Technology in 2003. An independent consultant used expectations of future cash flows to estimate the fair value of the acquired customer relationships. We will amortize our intangible assets over their expected useful lives. We recognized amortization expense of $192,000 and $138,000 for the quarters ended March 31, 2004 and 2003 respectively.

Revenue recognition: We recognize coin processing fee revenue at the time the customers’ coins are counted by the Coinstar units. We recognize revenue for our prepaid products at the point of sale based on our commissions earned, net of retailer fees.

Recent accounting pronouncements: In December 2003, the Financial Accounting Standards Board (“FASB”) revised FASB Interpretation No. 46, Consolidation of Variable Interest Entities. The interpretation addresses consolidation of certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. It also requires consolidation by the primary beneficiary. This interpretation applies to interests in variable interest entities for periods ending after March 15, 2004. We adopted this interpretation which did not have any impact on our financial statements.

Reclassifications: Certain reclassifications have been made to the prior year balances to conform to the current year presentation.

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NOTE 2: ACQUISITION

On February 13, 2004, we acquired 100% of the equity interests of CellCards of Illinois, LLC (“CellCards”) for a purchase price of approximately $6.6 million. CellCards is one of the nation’s largest distributors of prepaid products, including prepaid wireless minutes and prepaid phone cards.

The purchase consisted of a cash payment of $5.8 million, the issuance of 150,000 warrants and other related acquisition expenses totaling approximately $185,000. The warrants have an exercise price of $18.67; and were issued in two tranches of 25,000 and 125,000. The tranches become exercisable in six months and twelve months, respectively, upon achieving certain financial targets, or upon certain change of control provisions. Failure to achieve these targets will result in the expiration of these warrants.

The acquisition was accounted for as a purchase. Accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed on the basis of their respective fair values on the acquisition date. The respective estimated fair values were determined at the acquisition date and resulted in excess purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired of $3.5 million.

The allocation of the purchase price is summarized below (in thousands):

NOTE 3: INCOME PER SHARE

Basic net income per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and potential common shares outstanding (if dilutive) during the period. Potential common shares, composed of incremental common shares issuable upon the exercise of stock options and warrants, are included in the calculation of diluted net income per share to the extent such shares are dilutive.

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:

For the three month periods ended March 31, 2004 and 2003, options to acquire 1.9 million and 1.4 million shares of common stock, respectively, were excluded from the computation of net income per common share because their impact would be antidilutive.

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NOTE 4: COMPREHENSIVE INCOME

Comprehensive income, net of related tax effects, is as follows:

NOTE 5: PROPERTY AND EQUIPMENT

During the period ended March 31, 2004, we evaluated our long lived assets in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long Lived Assets. As a result of our evaluation, we recorded a charge of approximately $1.3 million for the write down of the first generation technology of our prepaid products. This charge is reported in the line item titled, Depreciation, amortization and other, of our Consolidated Statement of Operations.

NOTE 6: BUSINESS SEGMENT INFORMATION

Operating segments as defined in SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, are components of an enterprise for which separate financial information is available and regularly reviewed by the chief operating decision-maker.

We are organized into two reportable business segments: the North American business (which includes the United States and Canada), and our International business (which includes the United Kingdom).

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The following discussion and analysis should be read in conjunction with the Financial Statements and related Notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Except for the historical information, the following discussion contains forward-looking statements that involve risks and uncertainties, such as our objectives, expectations and intentions. Our actual results could differ materially from results that may be anticipated by such forward-looking statements and discussed elsewhere herein. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below, those discussed under the caption “Factors That May Affect Our Business, Future Operating Results and Financial Conditions,” and those discussed elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2003. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made in this report and in our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business, prospects and results of operations.

Overview

Revenue

Coin Processing Services

We derive substantially all our revenue from coin processing services generated by our installed base of Coinstar units located in supermarket chains and other retail locations in the United States, Canada and the United Kingdom. We generate revenue based on a processing fee charged on the total dollar amount of coins processed in a transaction. We recognize coin processing fee revenue at the time the customers’ coins are counted by the Coinstar units. Overall revenue growth is primarily dependent on the growth in coin processing volumes of our installed base and, to a lesser degree, the rate of new installations. Our results to date show that coin processing volumes per unit generally increase with the length of time the unit is in operation as usage levels of the service increase, driving initial trial and repeat usage for the service. We believe that coin processing volumes per unit may also be affected by other factors such as (i) public relations, advertising and other activities that promote trial and usage of the units, (ii) the amount of consumer traffic in the stores in which the units are located and (iii) seasonality.

Prepaid Products

We are beginning to derive some revenue from sales of prepaid products, such as prepaid wireless, prepaid MasterCard^® cards and prepaid phone cards. We generate this revenue based on commissions earned, net of retailer fees, on the sale of our prepaid products. As part of our strategy to increase our prepaid product offerings, we recently acquired CellCards of Illinois, LLC, one of the nation’s largest distributors of prepaid products, including prepaid wireless minutes, prepaid phone cards and bill payment capabilities. The acquisition adds to our retail base approximately 13,000 new point-of-sale locations, including three nationwide drug store chains: Walgreen Co., CVS Corporation and Eckerd Corporation. In addition, we have relationships with some of the largest wireless carriers, such as VirginMobile, T-Mobile, AT&T Wireless and Cingular. With this acquisition, we intend to broaden our prepaid product offerings and provide an in-lane product delivery option to all of our retailers.

Expenses

Our direct operating expenses are comprised of the regional expenses associated with our coin-counting unit operations and support. The expenses consist primarily of coin pick-up, transportation and processing, field operations support and related expenses, retail operations support and the service fees that we pay to our retail partners. Direct operating expenses also consist of refurbishment expenses, which represent costs to bring machines to a like-new condition. Recently we began implementing new fee arrangements with our retail partners. These fee arrangements are based on our evaluation of certain factors with the retailer, such as total revenue, e-payment capabilities, long-term non-cancelable contracts, installation of our machines in high traffic and/or urban or rural locations, new product commitments, co-op marketing incentives or other criteria. Coin pick-up, transportation and processing costs, which represent a large portion of direct operating expenses, vary based on the level of total coin processing volume and the density of the units within a region. Field service operations and related expenses vary depending on the number of geographic regions in which Coinstar units are located and the density of the units within a region. Sales and marketing expenses are comprised of ongoing marketing, advertising and public relations efforts in existing market regions and, to a lesser degree, startup marketing expenses incurred to launch our services in new regional markets. Product research and development expenses consist of the development costs of the Coinstar unit software, network applications, Coinstar unit improvements and new product development. Selling, general and administrative expenses are comprised of

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administrative support for field operations, our customer service center, sales and marketing support, systems and engineering support, computer network operations, finance, human resources, occupancy expenses, legal expenses and insurance. Depreciation, amortization and other consists primarily of depreciation charges on Coinstar units, and to a lesser extent, depreciation on computer equipment and leased automobiles.

Since 1995, we have devoted significant resources to building our sales and marketing organization, adding administrative personnel and developing the network systems and infrastructure to support the rapid growth of our installed base of Coinstar units. We expect to continue to evaluate new marketing and promotional programs to increase the breadth and rate of customer utilization of our Coinstar service. We also intend to continue to engage in systems and product research and development. We believe our prime retail locations, including drug store chain locations added through our recent acquisition of CellCards, form a strategic platform from which we will be able to deliver additional value-added products and services to consumers and our retail partners that may create additional revenue streams independent of coin counting. In the future we envision the Coinstar unit as a touch-point for a range of consumer products and services such as prepaid cards, prepaid wireless services and payroll debit cards.

We believe that our future coin-counting and prepaid product revenue growth, operating margin gains and profitability will depend on the success of our efforts to increase customer usage, retain our current retail partners, respond to competitive pressures, expand our installed base with retail partners in existing markets, expand into new geographies and distribution formats and undertake ongoing marketing and promotional activities that will sustain the growth in unit coin volume over time. Given the unpredictability of the timing of installations with retail partners and the resulting revenues, the growth in coin processing volumes of our installed base and the continued market acceptance of our services by consumers and retail partners, our operating results for any future periods may be subject to significant variation, and we believe that period-to-period comparisons of our results of operations are not necessarily predictive and should not be relied on as indications of future performance.

Results of Operations

The following table shows revenue and expense as a percent of revenue for the periods indicated:

Three Month Periods Ended March 31, 2004 and 2003

Revenue

Revenue increased to $43.1 million in the three months ended March 31, 2004 from $38.0 million for the comparable 2003 period. Revenue grew principally as a result of an increase in the number of transactions and the volume of coins processed by the units in service during this period. The total installed base of Coinstar units increased to 10,875 as of March 31, 2004 from 10,844 as of March 31, 2003. The total dollar value of coins processed through our network increased to $485.0 million during the three month period ended March 31, 2004 from $430.8 million for the comparable 2003 period.

Direct Operating Expenses

Direct operating expenses increased to $20.2 million in the three months ended March 31, 2004 from $17.7 million in the comparable prior year period. Direct operating expenses increased primarily due to 1) an increase in the service fees paid to our retail partners for coin processing, including fees paid to our retail partners for our prepaid product sales and 2) an increase in expenses to refurbish Coinstar units. Direct operating expenses as a percentage of revenue increased slightly to 47.0% in the three months ended March 31, 2004 from 46.5% in the same period of 2003. The increase in direct operating expenses as a percentage of revenue resulted from an increase in the expenses associated with the service fees we pay to our retail partners and the cost of refurbishing and maintaining our Coinstar units. These increases were offset by a decrease in per unit field service, coin

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processing and telecommunications expenses. During 2004 we expect to continue to refurbish and retrofit our Coinstar units. Recently we began implementing new fee arrangements with our retail partners. These fee arrangements are based on our evaluation of certain factors with the retailer, such as total revenue, e-payment capabilities, long term non-cancelable contracts, installation of our machines in high traffic and/or urban or rural locations, new product commitments, co-op marketing incentives or other criteria. We expect our expenses to increase in future periods due to these new fee arrangements and other factors such as our increasing revenue, anticipated refurbishment charges, possible increases or variations in transportation, processing and field service charges, and other costs associated with geographical expansion. However, we believe that we will be able to partially offset these increased costs through process improvement and cost reduction efforts.

Sales and Marketing

Sales and marketing expenses decreased to $0.6 million in the quarter ended March 31, 2004 from $0.7 million in the comparable prior year quarter. Sales and marketing expenses decreased due to decreased spending for regional marketing and local advertising support for new product pilots. The timing of promotional advertising may vary from quarter to quarter. For example, we had anticipated spending approximately $600,000 on regional advertising for new product offerings in the period ending March 31, 2004; however, we shifted this advertising spend into the second quarter. Historically, advertising during the first quarter of our fiscal year has not resulted in significant increases in the volume of coin processed by our customers during our seasonally low first quarter. Consistent with prior years, we plan to increase advertising levels during the remainder of this year. Sales and marketing as a percentage of revenue decreased to 1.3% in the three months ended March 31, 2004 from 1.9% in the comparable prior year quarter, primarily due to the timing of our advertising activity.

Product Research and Development

Product research and development expenses increased to $1.4 million in the quarter ended March 31, 2004 from $1.3 million in the comparable prior year quarter. Product research and development expenses grew primarily as the result of an increase in staffing levels to support research and development to design and integrate complementary new product ideas and continue our ongoing efforts to enhance our existing coin processing network. Product research and development expenses as a percentage of revenue decreased to 3.3% for the quarter ended March 31, 2004 from 3.4% in the comparable prior year quarter.

Selling, General and Administrative

Selling, general and administrative expenses increased slightly to $5.5 million in the quarter ended March 31, 2004 from $5.4 million in the comparable prior year quarter. Selling, general and administrative expenses remained relatively flat with slight increases in professional and consulting fees related to compliance documentation. Selling, general and administrative expenses as a percentage of revenue decreased to 12.9% in the quarter ended March 31, 2004 from 14.3% in the comparable prior year quarter.

Depreciation, Amortization and Other

Depreciation, amortization and other expense increased to $8.0 million in the quarter ended March 31, 2004 from $6.4 million in the comparable prior year quarter. Depreciation expense increased primarily due to improvements in our second generation of prepaid product technology which caused us to impair the value and accelerate depreciation expense of our first generation technology that now has a shortened expected useful life. Depreciation and amortization as a percentage of revenue increased to 18.5% in the three months ended March 31, 2004 from 16.8% in the same period in the prior year.

Other Income and Expense

Interest income and other decreased to $69,000 in 2004 from $132,000 in 2003. The decrease in interest income and other was primarily attributed to both lower interest rates earned on investments and lower amounts of funds invested in the quarter ended March 31, 2004 than in the prior year.

Interest expense decreased to $246,000 in the three months ended March 31, 2004 from $358,000 in the comparable prior year period. The decrease is due to a combination of a decreased amount of outstanding debt and reduced interest rates over the last twelve months. As of March 31, 2004, we had $12.0 million of term debt outstanding on our credit facility.

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Liquidity and Capital Resources

As of March 31, 2004, we had cash, cash equivalents and cash being processed totaling $92.2 million, which consisted of cash and cash equivalents available to fund our operations of $39.0 million and cash being processed of $53.2 million. Cash being processed represents cash residing in Coinstar units, cash in transit or cash which is payable to our retail partners as service fees. Working capital was $28.6 million at March 31, 2004 compared with $26.3 million at December 31, 2003.

Net cash provided by operating activities was $5.9 million for the three months ended March 31, 2004, compared to net cash provided by operating activities of $1.5 million for the three months ended March 31, 2003. Cash provided by operating activities increased primarily as the result of a decreased use of cash from changes in operating assets and liabilities, and an increase in net income for the quarter ended March 31, 2004. The decreased use of cash during the period was mainly due to the timing of payments to our suppliers compared to the prior year’s quarter.

Net cash used by investing activities for the three month period ended March 31, 2004 was $10.6 million compared to $7.5 million in the comparable prior year quarter. Net cash used by investing activities consisted of capital expenditures made in each of the three month periods ended March 31, 2004 and 2003, mainly for the purchase of Coinstar units. Additionally, we used cash, net of $1.1 million cash we acquired in connection with our acquisition, totaling $4.8 million to fund our acquisition of CellCards of Illinois. Additionally, as of March 31, 2004, we had entered into certain purchase agreements with suppliers of Coinstar units, which require aggregate purchases during the second quarter of 2004 for Coinstar units in the amount of $12.5 million.

Net cash used by financing activities for the three month period ended March 31, 2004 was $3.1 million. This amount represented cash used to make scheduled principal payments of $4.0 million on our term loan and for capital lease payments offset by proceeds from the exercise of stock options, warrants and employee stock purchases of $969,000. Net cash used by financing activities for the three months ended March 31, 2003 was $5.4 million.

Our board of directors approved a stock repurchase program authorizing purchases of up to $30.0 million of common stock, plus additional amounts equal to proceeds received from option exercises or other equity purchases under our equity compensation plans, in open market or private transactions. As of March 31, 2004, the cumulative proceeds received from option exercises or other equity purchases under our equity compensation plans totaled approximately $4.6 million bringing the total authorized for purchase under this plan to $34.6 million of common stock. Under this program we have repurchased 1,233,214 shares of our common stock for $22.8 million. We did not repurchase any shares during the quarter ended March 31, 2004. As of March 31, 2004, $11.8 million of common stock is eligible for repurchase under our stock repurchase program.

Under the terms of our credit agreement described below, there are no restrictions on our share repurchases provided our debt levels remain under $40.0 million, including amounts outstanding under our letters of credit. If debt levels exceed $40.0 million, we are limited to a total of $25.0 million in share repurchases between October 10, 2003 and May 20, 2005, the maturity date of the credit agreement.

As of March 31, 2004, we had four irrevocable letters of credit that totaled $11.3 million. These letters of credit, which expire at various times through May 31, 2005, are available to collateralize certain obligations to third parties. We expect to renew these letters of credit and have an agreement with Bank of America to automatically renew one of the letters of credit, in three-month increments, through December 31, 2004. As of March 31, 2004, no amounts were outstanding under these letters of credit agreements.

On April 18, 2002, we entered into a credit agreement with Bank of America, N.A., for itself and as agent for US Bank National Association, Silicon Valley Bank, KeyBank National Association and Comerica Bank-California. The credit agreement provides for a senior secured credit facility of $90.0 million, consisting of a revolving loan commitment of $50.0 million and a term loan commitment of $40.0 million. Loans made pursuant to the credit agreement are secured by a first priority security interest in substantially all of our assets and the assets of our subsidiaries, including the pledge of the subsidiaries’ capital stock we own. As of March 31, 2004, we had $12.0 million of debt outstanding on our credit facility.

Advances under this credit facility may be made as either base rate loans or LIBOR rate loans at our election. Applicable interest rates are based upon either the LIBOR or base rate plus an applicable margin dependent upon a consolidated leverage ratio of certain outstanding indebtedness to EBITDA (to be calculated in accordance with the terms specified in the credit agreement). Initially, interest rates payable upon advances were based upon either an initial rate of LIBOR plus 225 basis points

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or the base rate plus 75 basis points. Since January 15, 2003, we have qualified for an interest rate of LIBOR plus 175 basis points or the base rate plus 25 basis points.

The credit facility contains standard negative covenants and restrictions on actions by us including, without limitation, activity relating to our common stock repurchases, liens, investments, capital expenditures, indebtedness, restricted payments including cash payments of dividends, and fundamental changes or dispositions of our assets, among other restrictions. In addition, the credit agreement requires that we meet certain financial covenants, ratios and tests, including maintaining a minimum quarterly consolidated net worth, a minimum fixed charge coverage ratio, minimum quarterly EBITDA, a maximum consolidated leverage ratio and a minimum net cash balance, all as defined in the agreement. As of March 31, 2004, we were in compliance with all covenants under the credit facility.

Quarterly principal payments on the outstanding term loan began on September 30, 2002 and are based upon the repayment terms as specified in the agreement. To date we have made payments on principal balances of $31.0 million which includes our scheduled quarterly payments as well as an additional payment totaling $5.0 million. Our principal payments are currently $4.25 million per quarter with all remaining principal and interest due May 20, 2005. Commitment fees on the unused portion of the facility, equal to 20 basis points, may vary and are based on our maintaining certain consolidated leverage ratios.

As of March 31, 2004, our deferred income tax assets totaled $36.4 million. In the quarter ended March 31, 2004, we recorded $2.5 million in income tax expense, which, as a result of our NOL carryforwards, will not result in cash payments for income taxes other than those required by some states and alternative minimum taxes.

The tables below summarize our contractual obligations and other commercial commitments as of March 31, 2004:

We believe our existing cash, cash equivalents and amounts available to us under our credit facility will be sufficient to fund our cash requirements and capital expenditure needs for at least the next 12 months. After that time, the extent of additional financing needed, if any, will depend on the success of our business. If we significantly increase installations beyond planned levels, or if unit coin processing volumes generated are lower than historical levels, our cash needs may increase. Furthermore, our future capital requirements will depend on a number of factors, including customer usage, the timing and number of installations, the number of available Coinstar units held in inventory, the type and scope of service enhancements, the cost of developing potential new product and service offerings and enhancements and potential future acquisitions.

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Quarterly Financial Results

The following table sets forth selected unaudited quarterly financial information and operating data for the last eight quarters. This information has been prepared on the same basis as our audited consolidated financial statements and includes, in the opinion of management, all normal and recurring adjustments that management considers necessary for a fair statement of the quarterly results for the periods. The operating results and data for any quarter are not necessarily indicative of the results for future periods.