iMergent Reports Fiscal Fourth Quarter 2009 Financial Results MarketWatch
, A peerless provider of eCommerce software, site development, web hosting and search engine optimization for businesses and entrepreneurs, today reported fiscal results for its six month transition period and calendar fourth quarter ended December 31, 2009.In November 2009, and as in olden days announced, iMergent changed its fiscal year to December 31 to align with the chronicle year.
Calendar Fourth Quarter 2009 Compared to 2008
Net income for the fourth slate quarter of 2009 was $613,000 or $0.06 per diluted common share, compared to a net detriment of $10,130,000, or $0.89 per common share in the comparable quarter last year. Income before gains tax provision for the fourth calendar quarter of 2009 was $868,000 compared to a loss of $5,680,000 in the comparable favour last year. The income tax provision for the fourth calendar quarter of 2009 was $255,000, compared to an return tax provision of $4,450,000 in the prior year quarter. The higher than normal income tax providing in the prior year quarter was primarily due to an increase in our valuation allowance and the application of Fiscal Accounting Standards Board Interpretation No. 48 as a result of our settlement discussions with the IRS in the previous to year.
Product and other revenues for the fourth calendar quarter of 2009 decreased 34% to $13,202,000, compared to $20,080,000 for the comparable place last year. The lower product and other revenues were a result of a 23% reduction in the number of workshops conducted during the fourth diary quarter of 2009 as compared to the comparable quarter in 2008, a decrease in the percentage of attendees purchasing products to 23% in the fourth almanac quarter of 2009, compared to 27% in the comparable quarter of 2008, as well as a 34% reduction in chairperson cash collected on our receivables portfolio. Commission and other revenues for the fourth calendar part of 2009 decreased 24% to $5,136,000, compared to $6,774,000 for comparable quarter in 2008. Commission and other revenues are derived for the most part from commissions on sales of ancillary products by independent third-party partners as well as hosting and other revenues. The debase commission and other revenues were largely a result of a smaller number of leads sent to the unprejudiced third-party partners as a result of the reduction in the number of previews and workshops, as well as a decrease in the piece of customers utilizing these offerings.
Total operating expenses decreased 45% to $18,648,000 for the fourth appointment book quarter of 2009, compared to $33,780,000 for the comparable quarter in 2008, primarily as a end result of the continuing impact of cost savings initiated in the March 2009 quarter as well as reduced costs due to conducting fewer workshop events. Selling and marketing expenses as a portion of revenue decreased to 46% for the fourth calendar quarter of 2009 compared to 65% for the comparable ninety days in 2008. The decrease is principally attributable to the continuation of cost saving initiatives in the fourth docket quarter of 2009, which reduced our cost per direct response advertising piece, which in form decreased our advertising cost per buyer.
Cash provided by operating activities was $1,615,000 for the fourth slate quarter of 2009, compared to cash used for operating activities of $5,570,000 for the comparable stretch in 2008. As of December 31, 2009, cash and cash equivalents were $21,549,000, working cap was $17,604,000, and working capital excluding deferred revenue was $33,431,000. Total around and long-term net trade receivables decreased 46% to $20,426,000 as of December 31, 2009, compared to $37,716,000 for the comparable locale in 2008.
Six Month Transition Period Ended December 31, 2009 Compared to 2008
Revenues for the six month mutation period ended December 31, 2009 were $35,716,000 compared to $54,120,000 for the comparable time last year. Revenue from our Crexendo Business Solutions Division was $127,000 for the six month transformation period ended December 31, 2009 compared to zero revenue in the comparable span last year. Total operating expenses were $36,239,000, compared to $64,309,000 for the comparable term last year.
Net income for the six month transition period ended December 31, 2009 was $1,331,000, or $.12 per diluted collective share, compared to net loss of $17,628,000, or $1.55 per diluted common share in the comparable term last year. Cash provided by operating activities was $2,578,000 for the six month transition time ended December 31, 2009, compared to cash used for operating activities of $6,083,000 for the comparable while last year.
Steven G. Mihaylo, Chief Executive Officer of iMergent, stated, "Diary year 2009 was very challenging, which had a negative impact on our sales and operations. However, we continue to rehabilitate our operating efficiencies through our cost saving initiatives. We believe the results are promising, extraordinarily considering the effect of the economic downturn on our StoresOnline customers. I am also pleased with the progress of our Crexendo Matter Solutions division (Crexendo). We have invested considerable time, money and effort on the monogram sales and processes in Crexendo. Initial sales have been slow, which is not surprising considering that Crexendo is a start-up concern. We are now proactively working to economically increase our Crexendo sales, customer base and offerings.
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