All statements made in this conference call other than statements of historical fact are forward-looking statements. Forward-looking statements include but are not limited to words like believe, expect, anticipate, estimate, will, and other similar statements of expectation identifying forward-looking statements.Investors should be aware that any forward-looking statements are based on assumptions and are subjects to risks and uncertainties that could cause actual results to differ materially from those discussed here today. The risk factors are explained in detail in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the fiscal year ended December 31, 2009, and the Forms 10-Q for the period ending March 31, 2010; June 30, 2010; and September 30, 2010. iMergent does not undertake any obligation to publicly update or revise any forward-looking statements, whether a result of new information, future events or otherwise. With that, I'd like to turn the call back to Steve for some comments. Steven G. Mihaylo Thank you, Jeff. Let me just go over the broad overview of the numbers. For the year ended December 31, 2010, and this was the first 12 months under our new year-end, we had $64.5 million in sales compared to $75.9 million for the year ended 2009, December 31, 2009. For the quarter ended December 31, 2009, we had $16.6 million in sales compared to $18.4 million for the quarter in the previous year 2009. This also compares to $14.3 million in the third quarter of 2010, ended September 30. So it’s a decrease over 2009 and it’s an increase over the third quarter. Our net loss for the fourth quarter of 2010 was $2,405,000 or $0.21 per diluted common share compared to 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 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. And I’m going to let Jon Erickson get into the reasons for an increase in taxes over the previous year. 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 $21,464,000 as of December 1, 2010. As you know, 2010, we had a lot going on. We totally retooled our business. We added additional revenue streams. We went from a sale of software licenses to a software as a service model and we introduced a new product early in the first quarter of this year, our telecom product. I will get into the details of that, but first, I’d like to turn it over to Jon Erickson, our Chief Financial Officer, to get into the details. Jon? Jonathan R. Erickson Thank you, Steve. I’d like to start off by providing an update with where we are with several of our initiatives. As we mentioned in the last quarter earnings call, we saw fairly significant increase in the response to our mail piece during the quarter, while at the same time, maintaining relatively high sales metrics. To give you an example of the impact response rates have on our StoresOnline division, our advertising expenses associated with direct mail actually decreased by 3.5% from Q3 to Q4 this year. In other words, we sent out less mail pieces this quarter than last quarter, yet the number of attendees at our preview events increased by 43%.
Typically, when we see this dramatic of an increase in our response rates, we also see a decrease in our sales metrics. This quarter, however, we either maintained our sales metrics or improved them, as we were able to increase the average number of buying units per event from 70% during Q3 to 89% during Q4 and maintain a similar close percentage at 28% this quarter compared to 29% in Q3.Read the rest of this transcript for free on seekingalpha.com