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Segment Reporting and Geographic Information | 9 Months Ended
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Sep. 30, 2013
Segment Reporting and Geographic Information | (6) Segment Reporting and Geographic Information Operating segments are revenue-producing components of the enterprise for which separate financial information is produced internally for the Company’s management. During the fourth quarter of 2012, the Company changed its internal reporting available to its chief operating decision maker (CODM) for evaluating segment performance and allocating resources due to its intention to separate Archeo and revised segment disclosures accordingly. The reporting disaggregates the Company’s operations into the Call-driven and Archeo segments. Prior to the fourth quarter of 2012, the Company operated in a single operating segment. In July 2013, the Company sold certain assets related to Archeo’s pay per click advertising services. As a result, the operating results related to these certain pay per click assets are shown as discontinued operations, net of tax in the condensed consolidated statements of operations for all periods presented and are excluded from segment reporting. See Note.15 Discontinued Operations for further discussion. In September 2013, the Company announced a plan to operate Archeo as a distinct division and changed its segment reporting to reflect the reallocation of its general corporate overhead expenses to the Call-driven segment. The Company revised its segment reporting to reflect changes in how the CODM internally measures segment performance. Segment reporting for all prior periods presented have been revised to conform to current segment presentation. The Company’s Call-driven segment comprises its performance-based advertising business focused on driving phone calls. The Archeo segment comprises the Company’s click-based advertising and Internet domain name businesses. Call-driven segment expenses include direct costs incurred by the segment business and general corporate overhead expenses. Archeo segment expenses include only direct costs incurred by that segment. Segment expenses exclude the following: stock-based compensation, amortization of intangible assets from acquisitions, acquisition and separation related costs, and other income (expense). A measure of segment assets is not currently provided to the Company’s chief operating decision maker and has therefore not been disclosed. Selected segment information (in thousands):
|  | Nine months ended September 30, 2013 |
|  | Call-driven |  |  | Archeo |  |  | Total |
Revenue |  | $ | 100,668 |  |  | $ | 12,202 |  |  | $ | 112,870 |
Operating expenses |  |  | 96,127 |  |  |  | 8,962 |  |  |  | 105,089 |
Gain on sales of intangible assets, net |  |  | — |  |  |  | 3,739 |  |  |  | 3,739 |
Segment profit |  | $ | 4,541 |  |  | $ | 6,979 |  |  | $ | 11,520 |
Less reconciling items: |  |  |  |  |  |  |  |  |  |  |  |
Stock based compensation |  |  |  |  |  |  |  |  |  |  | 6,875 |
Amortization of intangible assets from acquisitions |  |  |  |  |  |  |  |  |  |  | 2,500 |
Acquisition and separation related costs |  |  |  |  |  |  |  |  |  |  | 940 |
Interest expense and other, net |  |  |  |  |  |  |  |  |  |  | 48 |
Income from continuing operations before provision for income taxes |  |  |  |  |  |  |  |  |  | $ | 1,157 |
|  | Nine months ended September 30, 2012 |
|  | Call-driven |  |  | Archeo |  |  | Total |
Revenue |  | $ | 83,418 |  |  | $ | 16,940 |  |  | $ | 100,358 |
Operating expenses |  |  | 79,534 |  |  |  | 9,904 |  |  |  | 89,438 |
Gain on sales of intangible assets, net |  |  | — |  |  |  | 5,434 |  |  |  | 5,434 |
Segment profit |  | $ | 3,884 |  |  | $ | 12,470 |  |  | $ | 16,354 |
Less reconciling items: |  |  |  |  |  |  |  |  |  |  |  |
Stock based compensation |  |  |  |  |  |  |  |  |  |  | 12,395 |
Amortization of intangible assets from acquisitions |  |  |  |  |  |  |  |  |  |  | 3,674 |
Acquisition and separation related costs |  |  |  |  |  |  |  |  |  |  | 164 |
Interest expense and other, net |  |  |  |  |  |  |  |  |  |  | 430 |
Loss from continuing operations before provision for income taxes |  |  |  |  |  |  |  |  |  | $ | (309 | )
|  | Three months ended September 30, 2013 |
|  | Call-driven |  |  | Archeo |  |  | Total |
Revenue |  | $ | 35,668 |  |  | $ | 4,892 |  |  | $ | 40,560 |
Operating expenses |  |  | 33,978 |  |  |  | 3,263 |  |  |  | 37,241 |
Gain on sales of intangible assets, net |  |  | — |  |  |  | 1,047 |  |  |  | 1,047 |
Segment profit |  | $ | 1,690 |  |  | $ | 2,676 |  |  | $ | 4,366 |
Less reconciling items: |  |  |  |  |  |  |  |  |  |  |  |
Stock based compensation |  |  |  |  |  |  |  |  |  |  | 2,365 |
Amortization of intangible assets from acquisitions |  |  |  |  |  |  |  |  |  |  | 709 |
Acquisition and separation related costs |  |  |  |  |  |  |  |  |  |  | 286 |
Interest expense and other, net |  |  |  |  |  |  |  |  |  |  | 19 |
Income from continuing operations before provision for income taxes |  |  |  |  |  |  |  |  |  | $ | 987 |
|  | Three months ended September 30, 2012 |
|  | Call-driven |  |  | Archeo |  |  | Total |
Revenue |  | $ | 29,269 |  |  | $ | 4,422 |  |  | $ | 33,691 |
Operating expenses |  |  | 27,070 |  |  |  | 2,702 |  |  |  | 29,772 |
Gain on sales of intangible assets, net |  |  | — |  |  |  | 713 |  |  |  | 713 |
Segment profit |  | $ | 2,199 |  |  | $ | 2,433 |  |  | $ | 4,632 |
Less reconciling items: |  |  |  |  |  |  |  |  |  |  |  |
Stock based compensation |  |  |  |  |  |  |  |  |  |  | 3,702 |
Amortization of intangible assets from acquisitions |  |  |  |  |  |  |  |  |  |  | 1,055 |
Acquisition and separation related costs |  |  |  |  |  |  |  |  |  |  | 296 |
Interest expense and other, net |  |  |  |  |  |  |  |  |  |  | 118 |
Loss from continuing operations before provision for income taxes |  |  |  |  |  |  |  |  |  | $ | (539 | )
Revenues from advertisers by geographical areas are tracked on the basis of the location of the advertiser. The vast majority of the Company’s revenue and accounts receivable are derived from domestic sales to advertisers engaged in various mobile, online and other activities. Revenues by geographic region are as follows (in percentages):
|  | Nine months ended September 30, |  |  | Three months ended September 30, |
|  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |
United States |  |  | 94 | % |  |  | 94 | % |  |  | 93 | % |  |  | 95 | %
Canada |  |  | 6 | % |  |  | 6 | % |  |  | 7 | % |  |  | 5 | %
Other countries |  |  |  | * |  |  |  | * |  |  |  | * |  |  |  | *
|  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
* | Less than 1% of revenue.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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