LookSmart Reports Fourth Quarter And Full Year 2010 Results
Dr. Dexmier continued, "We are pleased that we returned to profitability in 2010, but our revenues fell short of our goal. We have accelerated our revenue growth plan, leveraging our new pricing models, and have taken action to reduce our operating costs by realigning our human capital to better serve our restructured business model. We believe that these steps, in addition to improvements in traffic quality that we made over the course of 2010, will position our business for growth and profitability."
Revenues from the Company's Advertiser Network were $9.4 million in the fourth quarter of 2010, a decrease of 21% from $11.9 million in the fourth quarter of 2009 and a decrease of 9% from $10.4 million in the third quarter of 2010. Revenues from the Company's Publisher Solutions were $0.5 million in the fourth quarter of 2010, a decrease of 46% from $0.8 million in the fourth quarter of 2009 and a decrease of 48% from $0.9 million in the third quarter of 2010.
Gross margin from continuing operations increased to 40% in the fourth quarter of 2010 from 33% in the fourth quarter of 2009, and decreased from 44% in the third quarter of 2010. The decrease in margin quarter over quarter in 2010 was due primarily to the comparatively lower fourth quarter Publisher Solutions revenue.
Total operating expenses in the fourth quarter of 2010 were $3.9 million, which includes $0.1 million of non-cash, share-based compensation. Operating expenses for the fourth quarter of 2009 were $5.3 million, which includes $0.2 million of non-cash, share-based compensation charges, $0.2 million of severance expense and $0.1 million of non-cash impairment charges. Operating expenses for the third quarter of 2010 were $4.3 million, which includes $0.2 million of non-cash, share-based compensation. The Company's lower operating expenses on a year-over-year basis include the benefit of the relocation of headquarters in November 2009.
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