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Website Pros Inc. Reports Operating Results (10-Q)

August 06, 2012 | About:
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Website Pros Inc. (WWWW) filed Quarterly Report for the period ended 2012-06-30.

Web.com Group, Inc. has a market cap of $874.6 million; its shares were traded at around $17.58 with a P/E ratio of 15.7 and P/S ratio of 4.4.

Highlight of Business Operations:Sales and Marketing Expenses. Sales and marketing expenses increased $18.4 million to $29.0 million, or 29% of total revenue, during the three months ended June 30, 2012, up from $10.7 million, or 25% of total revenue, during the three months ended June 30, 2011. Our sales and marketing expenses increased primarily due to the acquisition of Network Solutions. However, the increase is also driven by our further investment in sales and marketing activities including direct response television advertising, additional sales resources and online marketing. Overall, there were increases in compensation and benefits of $8.5 million and customer acquisition and marketing expenses of $9.0 million as compared to the same prior year period.

General and Administrative Expenses. General and administrative expenses increased $6.4 million to $12.7 million, or 13% of total revenue, during the three months ended June 30, 2012, up from $6.3 million, or 15% of total revenue, during the three months ended June 30, 2011. Our general and administrative expenses increased as compared to the same prior year period primarily due to the acquisition of Network Solutions. Overall, there were increases in compensation and benefits of $3.7 million, professional fees of $0.6 million, additional facilities-related expense of $0.7 million, software and maintenance expense of $0.6 million and corporate development expenses of $0.3 million.

Sales and Marketing Expenses. Sales and marketing expenses increased $34.8 million to $55.9 million, or 29% of total revenue, during the six months ended June 30, 2012, up from $21.1 million, or 26% of total revenue, during the same prior year period ended. Our sales and marketing expenses increased primarily due to the acquisition of Network Solutions. The increase is also driven by our further investment in sales and marketing activities including direct response television advertising, additional sales resources and online marketing. Overall, there were increases in compensation and benefits of $16.9 million and customer acquisition and marketing expenses of $16.3 million as compared to the same prior year period. In addition, facility related expenses increased by $0.7 million during the six months ended June 30, 2012.

Research and Development Expenses. Research and development expenses increased $11.2 million to $18.2 million, or 9% of total revenue, during the six months ended June 30, 2012 from $6.9 million, or 8% of total revenue, during the six months ended June 30, 2011. Our research and development expenses increased primarily due to the acquisition of Networks Solutions. Overall, there were increases in compensation and benefits of $6.0 million, data and software supporting costs of $4.4 million and facilities rent and related costs of $0.5 million as compared to the same prior year period.

General and Administrative Expenses. General and administrative expenses increased $14.3 million to $27.0 million, or 14% of total revenue, during the six months ended June 30, 2012, up from $12.7 million, or 16% of total revenue, during the six months ended June 30, 2011. Our general and administrative expenses increased as compared to the same prior year period primarily due to the acquisition of Network Solutions. Overall, there were increases in compensation and benefits of $9.1 million, legal and professional fees of $0.9 million, additional facilities-related expense of $1.6 million, software and maintenance expense of $0.6 million and corporate development expenses of $0.6 million. In addition, there was a $0.4 million charge from exiting the Belleville, Illinois lease and writing off facility assets.

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