PHOENIX, Feb. 22, 2011 (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 fourth quarter and year ended December 31, 2010.
Fourth Quarter 2010 Compared to 2009
Net loss for the fourth quarter of 2010 was $2,405,000 or $0.21 per diluted common share, compared to a net income of $613,000 or $0.06 per diluted common share in the prior year quarter. Loss before income tax provision for the fourth quarter of 2010 was $1,538,000 compared to an income of $868,000 in the prior year quarter. The income tax provision for the fourth quarter of 2010 was $867,000, compared to an income tax provision of $255,000 in the prior year quarter. The increase in income tax provision in the current year quarter was primarily due to an increase in our valuation allowance on foreign tax credits as a result of our decision to focus primarily on domestic markets over the next several years as well as an increase in our liability for uncertain tax positions as a result of amended returns filed during the fourth quarter of 2010 to reflect an extraterritorial income redetermination and reassessment of our foreign source income.Cash from operations for the fourth quarter of 2010 was $665,000 compared to $1,615,000 for the prior year quarter. As of December 31, 2010, cash and cash equivalents were $14,207,000, working capital was $11,388,000, and working capital excluding deferred revenue was $25,145,000. Total current and long-term trade receivables were $21,564,000 as of December 31, 2010. Segment Results StoresOnline Revenue for the fourth quarter of 2010 decreased 10% to $16,567,000 compared to $18,255,000 for the prior year quarter. The lower revenue was primarily the result of a 20% reduction in our principal collected on accounts receivable to $4,157,000 in the current year quarter from $5,206,000 in the prior year quarter. The majority of the remaining decrease was due to a 24% decrease in commissions from third parties to $2,279,000 in the current year quarter from $2,994,000 in the prior year quarter.