iMergent, Inc. (AMEX:IIG), a leading provider of eCommerce
software, site development, web hosting and search engine
optimization for businesses and entrepreneurs, today reported
financial results for its first quarter ended March 31, 2010.
First Quarter 2010 Compared to 2009
Net income for the first quarter of 2010 was $123,000 or $0.01
per diluted common share, compared to $1,552,000, or $0.14 per
common share in the comparable quarter last year. Income before
income tax provision for the first quarter of 2010 was $248,000
compared to income of $2,778,000 in the comparable quarter last
year. The income tax provision for the first quarter of 2010 was
$125,000, compared to an income tax provision of $1,226,000 in the
prior year quarter. The higher than normal income tax provision in
the current quarter is primarily due to the expiration of the
federal research and development tax credit.
Revenue for the first quarter of 2010 decreased 18% to
$17,094,000, compared to $20,921,000 for the comparable quarter
last year. The lower revenue was a result of a 5% reduction in the
number of workshops conducted during the first quarter of 2010 as
compared to the comparable quarter in 2009, a decrease in the
percentage of attendees purchasing products to 26% in the first
quarter of 2010 compared to 28% in the comparable quarter of 2009,
a 21% decrease in the number of preview buyers attending our
workshops compared to the prior year quarter, as well as a 39%
reduction in principal cash collected on our receivables portfolio.
The remaining decrease in revenue is primarily related to
commissions derived from third parties which decreased 22% to
$2,581,000 for the three months ended March 31, 2010 compared to
$3,330,000 for the three months ended March 31, 2009. The decrease
was primarily attributable to a decrease in commission from third
parties as a result of fewer leads sent to third parties due to a
decrease in the Company's product and service sales. The decrease
in revenue from workshops was off-set by an increase of $1,000,000
as a result of the change in the Avail 24/7 contract. Revenue from
our Crexendo Business Solutions Division was $242,000 compared to
zero revenue in the comparable period last year. Total
operating expenses decreased 9% to $17,975,000 for the first
quarter of 2010, compared to $19,704,000 for the comparable quarter
in 2009, primarily as a result of conducting fewer workshop
events.
Cash used for operating activities was $493,000 for the first
quarter of 2010, compared to $76,000 for the comparable period in
2009. As of March 31, 2010, cash and cash equivalents were
$20,220,000, working capital was $16,566,000, and working capital
excluding deferred revenue was $30,774,000.
During the quarter ended March 31, 2010, the Company repurchased
10,000 shares in the open market at $6.73 per share.
Steven G. Mihaylo, Chief Executive Officer of iMergent, stated,
"Our results continue to be negatively impacted by the general
economic downturn, particularly related to our StoresOnline
division. The SOHO market, which StoresOnline primarily serves,
appears to be particularly slow to recover from the downturn. We
however continue to work hard to manage costs and make the
StoresOnline product more relevant to our customers. The results of
the Crexendo division, although still essentially a start up,
continue to be promising. The division is growing at the rate we
expected and we are pleased by the customer response. We recently
acquired a small boutique SEO firm with an office in New York. This
acquisition provides us with an additional sales office in a
major city and expands our online marketing services capabilities.
We have completed assimilating their technology, sales and support
into Crexendo. We will continue to seek accretive and opportunistic
acquisitions to manage Crexendo's growth and improve its products
and services.
"We are on schedule with the telecom division and will be
starting a limited roll out in May and are on track for expected
nationwide roll out in the first calendar quarter of 2011. We
believe the Company is in a good position to take advantage of what
is expected to be an increase in business spending and we will
continue to target the Crexendo and telecom divisions in that
direction."
Conference Call
The Company is hosting a conference call today, May 4, 2010, at
4:30 p.m. Eastern Time. The conference call will be broadcast live
over the Internet at www.imergentinc.com. If you do not have
Internet access, the telephone dial-in number is 888-312-9863 for
domestic participants and 719-325-2261 for international
participants. The conference ID to join the call is 9695484. Please
dial in five to ten minutes prior to the beginning of the call at
4:30 PM EDT. A telephone replay will be available two hours after
the call for 90 days by dialing 888-203-1112 for domestic callers
or 719-457-0820 for international callers and entering access code
9695484. Online webcast replay will be available for 90 days from
the date of the call.
About iMergent
iMergent provides eCommerce solutions to entrepreneurs and
businesses enabling them to market and sell their business products
or ideas via the Internet. The company sells its proprietary
software and training services which help users build Internet
strategies to allow entrepreneurs and businesses to market and sell
their products, accept online orders, analyze marketing performance
and manage pricing and customers over the Internet. In addition to
software and training, iMergent offers site development, web
hosting and search engine optimization (SEO). iMergent,
StoresOnline and Crexendo Business Solutions, Inc. are trademarks
of iMergent, Inc.
Safe Harbor Statement
This press release contains forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for such forward-looking statements. The words "believe,"
"expect," "anticipate," "estimate," "will" and other similar
statements of expectation identify forward-looking statements.
Specific forward-looking statements in this press release include
information about iMergent, (i) results being negatively
impacted by the general economic downturn particularly in the
SOHO market, (ii) working hard to manage costs and to make the
StoresOnline product more relevant to our customers, (iii) Crexendo
division results continues to be promising, (iv) Crexendo
division is growing at the rate expected and being pleased
with the customer response, (v) the the boutique
SEO acquisition expanding online marketing services
capabilities, (vi) continuing to seek accretive and opportunistic
acquisitions to manage Crexendo's growth and improve its products
and services, (vii) the telecom division starting a
limited roll out in May and being on track for a nationwide roll
out in the first calendar quarter of 2011, and (viii) belief
that the Company is in a good position to take advantage of what is
expected to be an increase in business spending and that the
Company will continue to target the Crexendo and telecom divisions
in the direction of increased business spending.
For a more detailed discussion of risk factors that may affect
iMergent's operations and results, please refer to the Company's
Form 10- KT for the six months ended December 31, 2009 and the
Company's form 10Q for the period ended March 31, 2010. These
forward-looking statements speak only as of the date on which such
statements are made, and the company undertakes no obligation to
update such forward-looking statements, except as required by
law.
iMERGENT, INC. AND SUBSIDIARIES
|
Condensed Consolidated Balance Sheets
|
(In thousands, except par value and share
data)
|
(unaudited)
|
|
|
|
|
March 31, 2010
|
December 31, 2009
|
Assets
|
|
|
|
|
|
Current Assets:
|
|
|
Cash and cash equivalents
|
$ 20,220
|
$ 21,549
|
Restricted cash
|
1,088
|
1,088
|
Trade receivables, net of allowance for doubtful accounts
of $11,407
as of March 31, 2010 and $11,827 as of December 31,
2009
|
13,005
|
14,162
|
Inventories
|
372
|
243
|
Income taxes receivable
|
857
|
387
|
Deferred income tax assets, net
|
243
|
1,009
|
Prepaid expenses and other
|
2,978
|
2,988
|
Total Current Assets
|
38,763
|
41,426
|
|
|
|
Certificate of deposit
|
500
|
500
|
Long-term trade receivables, net of allowance for doubtful
accounts of $6,832
as of March 31, 2010 and $5,882 as of December 31,
2009
|
6,988
|
6,264
|
Property and equipment, net
|
1,663
|
1,446
|
Deferred income tax assets, net
|
5,808
|
5,298
|
Intangible assets, net
|
1,315
|
1,206
|
Goodwill
|
616
|
--
|
Merchant account deposits and other
|
284
|
302
|
Total Assets
|
$ 55,937
|
$ 56,442
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current Liabilities:
|
|
|
Accounts payable
|
$ 3,339
|
$ 3,154
|
Accrued expenses and other
|
4,421
|
4,588
|
Dividend payable
|
229
|
229
|
Income taxes payable
|
--
|
24
|
Deferred revenue, current portion
|
14,208
|
15,827
|
Total Current Liabilities
|
22,197
|
23,822
|
|
|
|
Deferred revenue, net of current portion
|
7,100
|
6,447
|
Other long-term liabilities
|
434
|
191
|
Total Liabilities
|
29,731
|
30,460
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
Preferred stock, par value $0.001 per share - authorized
5,000,000
shares; none issued
|
--
|
--
|
Common stock, par value $0.001 per share - authorized
100,000,000
shares; 11,457,147 shares outstanding as of
March 31, 2010 and
11,446,320 shares outstanding as of December 31, 2009
|
11
|
11
|
Additional paid-in capital
|
53,134
|
53,033
|
Accumulated deficit
|
(26,939)
|
(27,062)
|
Total Stockholders' Equity
|
26,206
|
25,982
|
|
|
|
Total Liabilities and Stockholders' Equity
|
$ 55,937
|
$ 56,442
|
|
|
|
|
|
|
iMERGENT, INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of
Operations
|
(In thousands, except per share and share
data)
|
(unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
Revenue
|
17,094
|
20,921
|
|
|
|
Operating expenses:
|
|
|
Cost of revenue
|
5,097
|
5,802
|
Selling and marketing
|
8,874
|
9,336
|
General and administrative
|
3,466
|
4,051
|
Research and development
|
538
|
515
|
Total operating expenses
|
17,975
|
19,704
|
|
|
|
Income (Loss) from operations
|
(881)
|
1,217
|
|
|
|
Other income (expense):
|
|
|
Interest income
|
1,188
|
1,627
|
Interest expense
|
(1)
|
(3)
|
Other expense, net
|
(58)
|
(63)
|
Total other income, net
|
1,129
|
1,561
|
|
|
|
Income before income tax provision
|
248
|
2,778
|
|
|
|
Income tax provision
|
(125)
|
(1,226)
|
|
|
|
Net income
|
$ 123
|
$ 1,552
|
|
|
|
Net income per common share:
|
|
|
Basic
|
$ 0.01
|
$ 0.14
|
Diluted
|
$ 0.01
|
$ 0.14
|
|
|
|
Dividends per common share:
|
$ 0.02
|
$ 0.02
|
|
|
|
Weighted average common shares outstanding:
|
|
|
Basic
|
11,423,649
|
11,366,853
|
Diluted
|
11,495,901
|
11,426,307
|
|
|
iMERGENT, INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of Cash
Flows
|
(In thousands)
|
(unaudited)
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
Net income
|
$ 123
|
$ 1,552
|
Adjustments to reconcile net income to net
cash used for operating activities:
|
|
Depreciation and amortization
|
343
|
369
|
Expense for stock options issued to employees
|
267
|
379
|
Tax benefit upon issuance of common stock
|
(3)
|
--
|
Deferred income tax provision
|
256
|
1,016
|
Changes in assets and liabilities net of effects from
acquisition:
|
|
|
Restricted cash
|
--
|
(1,600)
|
Trade receivables
|
434
|
4,313
|
Inventories
|
(129)
|
32
|
Income taxes receivable
|
(470)
|
--
|
Prepaid expenses and other
|
10
|
(155)
|
Merchant account deposits and other
|
20
|
14
|
Accounts payable, accrued expenses and other
|
(355)
|
(1,546)
|
Income taxes payable
|
(21)
|
44
|
Deferred revenue
|
(966)
|
(4,542)
|
Other long-term liabilities
|
(2)
|
48
|
Net cash used for operating activities
|
(493)
|
(76)
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
Acquisition of property and equipment
|
(370)
|
(52)
|
Acquisition of company
|
(250)
|
--
|
Proceeds from sale of available-for-sale securities
|
--
|
2,900
|
Net cash provided by (used for) investing activities
|
(620)
|
2,848
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
Proceeds from exercise of stock options and related income tax
benefit
|
13
|
269
|
Principal payments on note payable
|
--
|
(48)
|
Dividend payments
|
(229)
|
(227)
|
Net cash used for financing activities
|
(216)
|
(6)
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(1,329)
|
2,766
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
21,549
|
18,763
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ 20,220
|
$ 21,529
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
Cash paid during the period:
|
|
|
Interest
|
1
|
3
|
Income taxes
|
355
|
31
|
|
|
iMERGENT, INC. AND SUBSIDIARIES
|
Consolidated Statements of Cash Flows
(CONTINUED)
|
(In thousands)
|
|
|
|
|
Three Months Ended March 31,
|
|
2010
|
2009
|
|
|
|
Supplemental disclosure of non-cash investing and financing
information:
|
|
|
Dividends declared
|
$ 229
|
$ 228
|
Repurchase of common stock included in accrued liabilities
|
67
|
--
|
Purchase of property and equipment with accounts payable
|
74
|
--
|
Acquisition of company with stock
|
117
|
--
|
Contingent consideration related to acquisition
|
479
|
--
|
CONTACT: iMergent, Inc.
Steven G. Mihaylo, CEO
775-530-3955
Stevemihaylo@imergentinc.com
![](http://www.globenewswire.com/newsroom/ti?nf=MTYwIzE5MDQ5NiM5ODYz)
Iimia Investment (AMEX:IIG)
Historical Stock Chart
From May 2024 to Jun 2024
Iimia Investment (AMEX:IIG)
Historical Stock Chart
From Jun 2023 to Jun 2024