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Segment Information
 6 Months Ended
Dec. 31, 2012
Segment Information

11. Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its chief executive officer. The Company’s chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about operating segments, including net sales and operating (loss) income before depreciation, amortization and stock-based compensation expense.

The Company determined its reportable operating segments to be Direct Marketing Services (DMS), which derives revenue from fees earned through the delivery of qualified leads, clicks and, to a lesser extent, impressions, and Direct Selling Services (DSS), which derives revenue from the sale of direct selling services through a hosted solution. The accounting policies of the two reportable operating segments are the same as those described in Note 2.

The Company evaluates the performance of its operating segments based on operating (loss) income before depreciation, amortization, stock-based compensation expense and impairment of goodwill.

The Company does not allocate most of its assets, nor its depreciation and amortization expense, stock-based compensation expense, interest income, interest expense or income tax expense by segment. Accordingly, the Company does not report such information.

 

Summarized information by segment was as follows (in thousands):

 

     Three Months Ended
December 31, 2012		     Six Months Ended
December 31, 2012		  
     2012     2011     2012     2011  

Net revenue by segment:

         

DMS

    $ 71,514      $ 90,145      $ 149,848      $ 190,986   

DSS

      237        378        529        761   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenue

      71,751        90,523        150,377        191,747   
  

 

 

    

 

 

    

 

 

    

 

 

  

Segment operating income before depreciation, amortization, and stock-based compensation expense:

         

DMS

      11,085        19,307        22,909        39,685   

DSS

      143        223        294        478   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total segment operating income before depreciation, amortization, and stock-based compensation expense

      11,228        19,530        23,203        40,163   

Depreciation and amortization

      (10,179 )      (7,517 )      (18,458 )      (14,625 ) 

Stock-based compensation expense

      (3,029 )      (3,521 )      (5,799 )      (6,895 ) 

Impairment of goodwill

      (92,350 )      —          (92,350 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating (loss) income

    $ (94,330 )    $ 8,492      $ (93,404 )    $ 18,643   
  

 

 

    

 

 

    

 

 

    

 

 

  

The following tables set forth net revenue and long-lived assets by geographic area (in thousands):

 

     Three Months Ended
December 31, 2012		      Six Months Ended
December 31, 2012		  
     2012      2011      2012      2011  

Net revenue:

            

United States

    $ 71,180       $ 90,337       $ 149,089       $ 191,415   

International

      571         186         1,288         332   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total net revenue

    $ 71,751       $ 90,523       $ 150,377       $ 191,747   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31,
2012		      June 30,
2012		  

Property and equipment, net:

      

United States

    $ 7,773       $ 8,493   

International

      239         262   
  

 

 

     

 

 

  

Total property and equipment, net:

    $ 8,012       $ 8,755