Move Inc. has a market cap of $317.8 million; its shares were traded at around $2.04 with and P/S ratio of 1.5. MOVE is in the portfolios of David Nierenberg of D3 Family of Funds, Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Cost of revenue decreased $1.7 million, or 14%, to $10.9 million for the three months ended March 31, 2010, compared to $12.6 million for the three months ended March 31, 2009. The decrease was primarily due to decreased costs of $0.7 million associated with development services provided to NAR, lower product fulfillment costs of $0.5 million associated with our featured products and other cost decreases of $0.5 million.
Sales and marketing. Sales and marketing expenses decreased $2.4 million, or 12%, to $18.3 million for the three months ended March 31, 2010, compared to $20.8 million for the three months ended March 31, 2009. The decrease was primarily due to a decrease in online distribution costs of $1.6 million, personnel related costs of $0.6 million and other cost decreases of $0.2 million.
General and administrative. General and administrative expenses decreased $12.9 million, or 55%, to $10.7 million for the three months ended March 31, 2010, compared to $23.6 million for the three months ended March 31, 2009. The decrease was primarily a result of a $9.1 million decrease in non-cash stock based compensation primarily due to the acceleration and modification of options upon the termination of two executive officers and restricted stock awards and options granted to our Chief Executive Officer that were immediately vested during the three months ended March 31, 2009. Additionally, there was a $2.6 million decrease in personnel related costs, a $0.9 million decrease in legal fees and a $0.7 million decrease in bad debt expense, partially offset by other cost increases of $0.4 million.
during the year ended December 31, 2006, we recorded certain indefinite lived intangible assets as a result of the purchase of Moving.comTM which creates a permanent difference as the amortization can be recorded for tax purposes but not for book purposes. A deferred tax provision of $41,000 was recorded in the three months ended March 31, 2010 and 2009, respectively. An additional $20,000 and $40,000 tax provision was recorded in the three months ended March 31, 2010 and 2009, respectively, as a result of federal alternative minimum taxes incurred in the utilization of net operating losses against our taxable income and a $2,000 and $15,000 tax provision was recorded in the three months ended March 31, 2010 and 2009, respectively, for state income taxes.
Net cash provided by financing activities was less than $0.1 million for the three months ended March 31, 2010 and was attributable to proceeds from the exercise of stock options of $0.3 million, reductions in restricted cash balances of $0.2 million and proceeds from our line of credit of $64.7 million offset by principal payments on our line of credit of $65.2 million.
In April 2010, we completed a sale of the entire portfolio of ARS for $109.8 million (par value of $129.4 million) to a broker in a secondary market. As a result of the impending sale, the investments were reclassified to short-term investments as of March 31, 2010 and an other-than-temporary loss of $19.6 million was recorded as Impairment of Auction Rate Securities in our Condensed Consolidated Statement of Operations for the three months ended March 31, 2010. The transaction costs of approximately $1.0 million associated with this transaction will be recorded in the quarter ended June 30, 2010.
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