Investors and listeners 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. These 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, 2010, and the Forms 10-Q for the period ended March 30, 2011. iMergent, Inc. does not undertake any obligation to publicly update or revise any forward-looking statements, whether as result of new information, future events or any other reason.I'd now like to turn the call back to Steve. Steve? Steve Mihaylo Thank you, Jeff. At this time, Jon Erickson will you provide information on our financial results for Q1 2011. Jon Erickson I will. Thank you, Steve. This was a challenging and disappointing quarter. On a consolidated basis we had revenue of $14,568,000 compared to $17,094,000 in the prior year quarter. In the prior year we had a one-time benefit of $1 million related to a change in our Avail 24/7 contract compared with the decrease in revenue in the current quarter of $572,000 as a result of new accounting guidance. When adjusting for these two occurrences we had comparable revenue of $15,140,000 in the current quarter compared to $16,094,000 in prior year quarter, a decrease of approximately 6%. The demand for the Switzerland product offering has not been the cause for the decrease in our revenue, as we've generated 316 more buyers this quarter compared to the prior year quarter even though we held 10 less workshops. We had 29% sales rate in our workshops this quarter compared to 27% in the prior year quarter. We believe the unemployment rate and poor economic conditions has increased to demand in our StoresOnline product offering. As we have seen an increase on direct mail response rates, show rates to our workshops and close rates at our workshops.
The problem we are facing is that with this increase in demand, comes an increasing customer acquisition cost, which are incurred regardless of whether or not they pay cash for the purchase or they finance the purchase. The acquisition cost for buyers is high in the StoresOnline channel and is driven by a number of customers acquired, which as mentioned earlier increased over the prior quarter by 10%, not necessary by revenue.As a result, what you see in the financials is the cost associated with the increase in gross sales as compared to the prior year, which due to the fact we recognized revenue on a cash basis does not flow through to revenue. So while we believe the unemployment rate and poor economic conditions has increased the demands for the StoresOnline product, a customer's ability to afford and pay for product offering has continued to deteriorate. We have seen a percentage of customers able to pay cash steadily decreased since 2008. We experienced a significant decrease this past fourth quarter to 33%. But given the increase in our response rate and holding steady in our sales rate were able to deal with this decrease and generate positive cash from operations for the quarter. The first quarter of this year saw another significant decrease, down to 29% compared to 39% in the prior year quarter. The customers that we are currently attracting, which produce 29% cash rate have ramifications down the stream as well. Similar to what we are seeing at our events with the low cash rate, our third-party partners have seen similar circumstances. And as a result our commission from these third-party partners decreased $673,000 when compared to the prior year quarter. Despite an increase in leads sent to these partners. Our receivables portfolio saw slight improvement in our collection rates during the quarter, but our default rate remains high. Additionally the success rate of turning a high percentage of these customers into monthly recurring customers has not been high. This strength cannot continue, but expect to become and remain profitable in the future. We need to be able to attract a customer with more financial strength and business strength to be successful, which Steve will address later in his comments. Read the rest of this transcript for free on seekingalpha.com