Net revenue for the first quarter increased 11.2% to $62.2 million from $55.9 million in the same quarter last year. This increase was all internal and marks our second consecutive quarter of double-digit internal revenue growth which is back inline with our historical growth rates. It was a strong quarter for our business segment which grew over 20%.We are especially pleased with our operating expenses declining by $4.4 million from the same quarter a year ago even with 11% revenue growth. As a percentage of revenue, our total operating expenses improved 1380 basis points to 52.7% from 66.5%. The combination of increase of revenue and decrease of expenses you saw for net operating loss to 250,000 or $0.01 cent from $3.1 million or $0.13 in the first Q of last year. We ended the quarter with $48 million in cash. Even after paying about $2 million for purchase of Discovery Media Catalog Library. We still have no debt. In the quarter, the gross in our media boosted Gaiam to number four U.S. ranking in non-theatrical DVD segment with 10% market share, which is dramatic improvement from number six and 5% market share, which we have in 2009. During the quarter, we also grew our brand of store-in-store presentation to 12,000 doors from 11,000 doors, which we had at end of the last quarter. In the latter half, we also see the benefits of additional discovery title releases and also, a launch of Reebok fitness accessories in media, which will give us additional 12 feet to our target store presentation. We are also focusing on digital media market and (inaudible) Gaiam TV as reflect for our digital library during the third quarter. In March, we commence an annual dividend, cash dividend of $0.15 per share. The purpose of dividend is to cover the cost of capital for our shareholders without limiting our growth opportunities. First annual dividend was paid to shareholders in record of April 1.
As we state in our last call, our goals for 2010 are double-digit internal revenue growth, which shall bring our revenue for the year to over $300 million. To continue improvements in our operating result and grow our overall market shares in non-theatrical media. It is also meaningful to point out because our defer tax assets, the next $30 million of our income will be tax free.Now, I will turn the call to Carole, who will provide more details and the numbers and then to Lynn for operational review. So, Carole. Carole Buyers Thank you, Jirka. For the first quarter of 2010 net revenue was $62.2 million an 11.2% increase from $55.9 million for the first quarter of 2009. Net revenue from our business segment increased 20.7% to $22.6 million for the first quarter of 2010 from $18.7 million for the same quarter last year. The revenue growth in our business segment reflects our success within media category management and increases in Discovery sales coupled with some improvement in the retailer climate. Net revenue from our solar segment increased to $50 million for the first quarter of 2010 from $9.5 million to the same quarter last year. For more information concerning the results of real good solar a separate earnings call will be held tomorrow May 6, at 8:30 a.m. Pacific Time. Net revenue generated by our direct to consumer segment for the first quarter of 2010, decreased 11.1% to $24.6 million from $27.7 million for the first quarter of 2009. As we continue to strategically reduce our catalog circulation. In the quarter, we reduced circulation by approximately 21%. Lynn will elaborate further on our business and direct to consumer segments result in just a moment. Overall, gross profit to the first quarter of 2010 was 51.8% of net revenue compared to 55.4% of net revenue for the same quarter of 2009. Excluding our solar business, gross profit for first quarter of 2010 was 59.7% compared to 61.8% for the same quarter last year. A higher mix of media category managed sales reduce gross profit margins modestly for the quarter. Read the rest of this transcript for free on seekingalpha.com