XML 35 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Reporting and Geographic Information
 9 Months Ended
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.