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PHOENIX, July 27, 2010 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2010.
Second Quarter 2010 Compared to 2009
Net income for the second quarter of 2010 was $51,000, or $0.00 per diluted common share, compared to $8,535,000, or $0.74 per diluted common share in the comparable quarter last year. Income before income tax provision for the second quarter of 2010 was $127,000 compared to income of $2,659,000 in the comparable quarter last year. The income tax provision for the second quarter of 2010 was $76,000, compared to an income tax benefit of $5,876,000 in the prior year quarter. The higher than normal income tax provision in the current quarter is primarily due to the Company's permanent differences. The income tax benefit in the prior year quarter is primarily due to an IRS settlement in the prior year.
Revenue for the second quarter of 2010 decreased 10% to $17,448,000, compared to $19,370,000 for the comparable quarter last year. The lower revenue was a result of a 12% reduction in the number of workshops conducted during the second quarter of 2010 as compared to the comparable quarter in 2009, a 28% decrease in principal cash collected on our receivables portfolio, and a 17% decrease in the number of preview buyers attending our workshops compared to the prior year quarter. These decreases were offset by an increase in the percentage of attendees purchasing products to 26% in the second quarter of 2010, compared to 24% in the comparable quarter of 2009. Revenue from our Crexendo Business Solutions division was $365,000 compared to zero revenue in the comparable period last year. Total operating expenses increased 1% to $18,490,000 for the second quarter of 2010, compared to $18,278,000 for the comparable quarter in 2009, primarily as a result of an increase in the number of international events which have higher marketing and event costs and an increase in expenses associated with the Company's Crexendo enterprise division.