Local.com Corp. (LOCM, Financial) filed Quarterly Report for the period ended 2009-03-31.
Interchange Corporation provides paid-search services that enable businesses to reach consumers through targeted online advertising. Interchange serves the sponsored listings of local and national advertisers in response to consumer search requests from its Search Distribution Network. Interchange's Local Direct search and advertising platform delivers geographically-targeted search results to consumers via the Web. Local Direct can be licensed to websites and search engines that provide local business information and serve local advertisers. Local.com Corp. has a market cap of $47.9 million; its shares were traded at around $3.32 with and P/S ratio of 1.3.
Based on the above, total revenue for the three months ended March 31, 2009, increased to $11.1 million from $8.8 million for the three months ended March 31, 2008 an increase of $2.2 million, or 25.1%.
Amortization of intangibles expense was $355,000 and $318,000 for the three months ended March 31, 2009 and 2008, respectively. Amortization will increase in 2009 due to the LaRoss and LiveDeal acquisitions of customer-related intangible assets. The LaRoss and LiveDeal customer-related intangible assets of $1,113,000 and $3,092,000, respectively, will be amortized over two years.
Interest and other income (expense) was $3,000 and $135,000 for the three months ended March 31, 2009 and 2008, respectively, representing a decrease of $132,000. The decrease is due to a decrease in cash over the same period, coupled with a decline in interest rates. We expect interest and other income (expense) to continue at the same level.
We have funded our business, to date, primarily from issuances of equity and debt securities. Cash and cash equivalents were $11.1 million as of March 31, 2009 and $12.1 million as of December 31, 2008. We had working capital of $4.4 million as of March 31, 2009 and $10.8 million as of December 31, 2008.
Net cash provided by operations was $3.7 million for the three months ended March 31, 2009. Net loss adjusted for non-cash charges used cash of $1.8 million. Changes in operating assets and liabilities provided cash of $5.4 million, the largest component of which represents an increase in deferred revenue related to a prepayment from a significant customer.
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Interchange Corporation provides paid-search services that enable businesses to reach consumers through targeted online advertising. Interchange serves the sponsored listings of local and national advertisers in response to consumer search requests from its Search Distribution Network. Interchange's Local Direct search and advertising platform delivers geographically-targeted search results to consumers via the Web. Local Direct can be licensed to websites and search engines that provide local business information and serve local advertisers. Local.com Corp. has a market cap of $47.9 million; its shares were traded at around $3.32 with and P/S ratio of 1.3.
Highlight of Business Operations:
Local domestic revenue for the three months ended March 31, 2009 increased $2.8 million, or 34.7%, compared to the same period in 2008. The increase in revenue is primarily due to increased traffic at our website and increased monetization as our revenue per thousand visitors (RKV) increased to $246 for the three months ended March 31, 2009 from $228 for the three months ended March 31, 2008. The increase in traffic at our website is the result of higher marketing expense to attract users to Local.com as well as increased organic search traffic over the same period. The increase in RKV was a result of additional ad units per page, optimization of search results to improve page yields, greater revenue share received from our advertising partners and improved search engine marketing. Local domestic revenue also benefited from the LaRoss and LiveDeal transactions that closed in February and March 2009, respectively.Based on the above, total revenue for the three months ended March 31, 2009, increased to $11.1 million from $8.8 million for the three months ended March 31, 2008 an increase of $2.2 million, or 25.1%.
Amortization of intangibles expense was $355,000 and $318,000 for the three months ended March 31, 2009 and 2008, respectively. Amortization will increase in 2009 due to the LaRoss and LiveDeal acquisitions of customer-related intangible assets. The LaRoss and LiveDeal customer-related intangible assets of $1,113,000 and $3,092,000, respectively, will be amortized over two years.
Interest and other income (expense) was $3,000 and $135,000 for the three months ended March 31, 2009 and 2008, respectively, representing a decrease of $132,000. The decrease is due to a decrease in cash over the same period, coupled with a decline in interest rates. We expect interest and other income (expense) to continue at the same level.
We have funded our business, to date, primarily from issuances of equity and debt securities. Cash and cash equivalents were $11.1 million as of March 31, 2009 and $12.1 million as of December 31, 2008. We had working capital of $4.4 million as of March 31, 2009 and $10.8 million as of December 31, 2008.
Net cash provided by operations was $3.7 million for the three months ended March 31, 2009. Net loss adjusted for non-cash charges used cash of $1.8 million. Changes in operating assets and liabilities provided cash of $5.4 million, the largest component of which represents an increase in deferred revenue related to a prepayment from a significant customer.
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