iMergent Inc (IIG, Financial) filed Quarterly Report for the period ended 2009-09-30.
Imergent Inc. is an eCommerce application service provider that enables companies of any size to extend their business to eCommerce. Imergent Inc has a market cap of $75.92 million; its shares were traded at around $6.65 with and P/S ratio of 0.8. The dividend yield of Imergent Inc stocks is 1.2%.
General and administrative expenses consist of payroll and related expenses for executive, accounting, and administrative personnel, legal, and other professional fees, finance company service fees, and other general corporate expenses. General and administrative expenses in the current quarter decreased 20% to $3,601,000 from $4,512,000 in the prior year quarter. The decrease is attributable to a decrease in professional services expense of approximately $538,000 as a result of fewer legal claims and $286,000 decrease in fees paid to companies that service our trade receivables. In addition, salaries and wages expense decreased approximately $91,000 due to changes in the executive management team and their compensation. The remaining decrease was related to other general and administrative expenses.
As of September 30, 2009, we had working capital of $16,495,000 compared to $16,337,000 as of June 30, 2009. As of September 30, 2009, we had working capital, excluding deferred revenue, of $37,867,000 compared to $39,964,000 as of June 30, 2009. Deferred revenue balances represent historical contract sales for which the Company cannot immediately recognize revenue. The costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenue are expected to be insignificant. Consequently, we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements. The increase in working capital and working capital excluding deferred revenue is primarily attributable to the increase in prepaid expenses as a result of direct-response advertising costs that relate to future workshops. We believe we have sufficient liquidity and capital resources to meet our needs for at least the next twelve months.
As of September 30, 2009, we had $20,309,000 of cash and cash equivalents compared to $20,474,000 as of June 30, 2009. During the three months ended September 30, 2009, we generated $963,000 in cash from operating activities. During the three months ended September 30, 2008, we used cash flows from operating activities of $513,000. During the three months ended September 30, 2009 and 2008, we used cash of $474,000 and $963,000, respectively, in financing activities, primarily for the payment of dividends to stockholders.
Current trade receivables, net of allowance for doubtful accounts, totaled $19,427,000 as of September 30, 2009 compared to $20,771,000 as of June 30, 2009. Long-term trade receivables, net of allowance for doubtful accounts, were $8,476,000 as of September 30, 2009 compared to $9,985,000 as of June 30, 2009. We offer our customers a 24-month installment contract as one of several payment options. The payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables.
As of September 30, 2009, total stockholders equity was $25,318,000, up 3.8% from $24,400,000 at June 30, 2009. In addition to net income of $718,000, other significant changes in stockholders equity during the first three months of fiscal year 2010 included $429,000 in expense for options granted and $229,000 in common stock dividends,
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Imergent Inc. is an eCommerce application service provider that enables companies of any size to extend their business to eCommerce. Imergent Inc has a market cap of $75.92 million; its shares were traded at around $6.65 with and P/S ratio of 0.8. The dividend yield of Imergent Inc stocks is 1.2%.
Highlight of Business Operations:
Fees for SOS licenses sold under EPTAs are recognized as revenue as cash payments are received from the customer and not at the time of sale. Revenues related to cash collected under EPTA agreements included in product and other revenue decreased to $5,448,000 for the three months ended September 30, 2009, compared to $7,979,000 for the three months ended September 30, 2008. The remaining decrease in product and other revenues from current quarter compared to the prior year quarter is primarily related to a decrease in cash sales of SOS licenses at workshop and preview events from $10,682,000 for the three months ended September 30, 2008 compared to $7,022,000 for the three months ended September 30, 2009. The decrease is attributable to: (1) the number of Internet Training Workshops conducted for the three months ended September 30, 2009 decreased 26% to 154 (including 4 that were held outside the United States) compared to 208 (including 8 that were held outside the United States) for the three months ended September 30, 2008, (2) the average number of buying units in attendance at our workshops for the three months ended September 30, 2009 was 78 compared to 87 for the three months ended September 30, 2008; (attendees who pay an enrollment fee to attend our workshops are allowed to bring a guest at no additional charge, and that individual and his/her guest constitute one buying unit. If the person attends alone, that single person also counts as one buying unit), and (3) approximately 23% of the buying units made a purchase at the workshops for the three months ended September 30, 2009 compared to 32% for the three months ended September 30, 2008. These decreases were partially offset by the amount of cash collected per sale. Cash purchases as a percentage of total workshop purchases increased to 42% for the three months ended September 30, 2009 compared to 40% for the three months ended September 30, 2008.General and administrative expenses consist of payroll and related expenses for executive, accounting, and administrative personnel, legal, and other professional fees, finance company service fees, and other general corporate expenses. General and administrative expenses in the current quarter decreased 20% to $3,601,000 from $4,512,000 in the prior year quarter. The decrease is attributable to a decrease in professional services expense of approximately $538,000 as a result of fewer legal claims and $286,000 decrease in fees paid to companies that service our trade receivables. In addition, salaries and wages expense decreased approximately $91,000 due to changes in the executive management team and their compensation. The remaining decrease was related to other general and administrative expenses.
As of September 30, 2009, we had working capital of $16,495,000 compared to $16,337,000 as of June 30, 2009. As of September 30, 2009, we had working capital, excluding deferred revenue, of $37,867,000 compared to $39,964,000 as of June 30, 2009. Deferred revenue balances represent historical contract sales for which the Company cannot immediately recognize revenue. The costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenue are expected to be insignificant. Consequently, we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements. The increase in working capital and working capital excluding deferred revenue is primarily attributable to the increase in prepaid expenses as a result of direct-response advertising costs that relate to future workshops. We believe we have sufficient liquidity and capital resources to meet our needs for at least the next twelve months.
As of September 30, 2009, we had $20,309,000 of cash and cash equivalents compared to $20,474,000 as of June 30, 2009. During the three months ended September 30, 2009, we generated $963,000 in cash from operating activities. During the three months ended September 30, 2008, we used cash flows from operating activities of $513,000. During the three months ended September 30, 2009 and 2008, we used cash of $474,000 and $963,000, respectively, in financing activities, primarily for the payment of dividends to stockholders.
Current trade receivables, net of allowance for doubtful accounts, totaled $19,427,000 as of September 30, 2009 compared to $20,771,000 as of June 30, 2009. Long-term trade receivables, net of allowance for doubtful accounts, were $8,476,000 as of September 30, 2009 compared to $9,985,000 as of June 30, 2009. We offer our customers a 24-month installment contract as one of several payment options. The payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables.
As of September 30, 2009, total stockholders equity was $25,318,000, up 3.8% from $24,400,000 at June 30, 2009. In addition to net income of $718,000, other significant changes in stockholders equity during the first three months of fiscal year 2010 included $429,000 in expense for options granted and $229,000 in common stock dividends,
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