Autobytel Inc. (ABTL, Financial) filed Quarterly Report for the period ended 2010-03-31.
Autobytel Inc. has a market cap of $35.7 million; its shares were traded at around $0.79 with and P/S ratio of 0.7. ABTL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
General and Administrative. General and administrative expense consists of executive, financial and legal personnel expenses and costs related to being a public company. General and administrative expense in first quarter 2010 decreased $1.0 million or 26% compared to first quarter 2009 due to a decrease in severance expense of $0.5 million, a reduction of professional fees of $0.3, and a decrease in rent expense of $0.2 million.
Dealix Patent Litigation Settlement. In 2004, the Company brought a lawsuit for patent infringement against Dealix Corporation (“Dealix”). In December 2006, the Company entered into a settlement agreement with Dealix (the “Settlement Agreement”). The Settlement Agreement provides that Dealix will pay the Company a total of $20.0 million in settlement payments for a mutual release of claims and a license from the Company to Dealix and its parent company, the Cobalt Group, of certain of the Company s patent and patent applications. On March 13, 2007, the Company received the initial $12.0 million settlement payment with the remainder to be paid out in installments of $2.7 million on the next three anniversary dates of the initial payment. As of March 31, 2010 the Company had received the final annual installment payment of $2.7 million. The Company recorded the payment as patent litigation settlement in the period payment was received, as a reduction to operating expenses. The Company did not have reasonable assurance that it would receive the remaining payment on its due date and therefore had not recorded any amounts receivable related to the Settlement Agreement as of December 31, 2009.
Our principal sources of liquidity are our cash and cash equivalents balances and litigation settlement proceeds. We entered into a Settlement Agreement with Dealix, which among other things, provides for settlement payments. As of March 31, 2010 we received the final annual installment payment of $2.7 million from Dealix. We continue to have no debt. Our cash and cash equivalents totaled $26.1 million as of March 31, 2010 compared to cash and cash equivalents of $25.1 million as of December 31, 2009.
Net Cash Provided by (Used in) Operating Activities. Net cash provided by operating activities the first quarter 2010 of $1.4 million resulted primarily from net income, as adjusted for non-cash charges to earnings, $0.8 million of cash received related to our accounts receivable, partially offset by cash used to reduce accrued liabilities of $1.0 million primarily related to the payment of annual bonus amounts accrued in 2009 and paid in first quarter 2010. Net cash used in operating activities in the three months ended 2009 was $1.6 million and resulted primarily from net losses and an increase in cash used to reduce accounts payable and other accrued expenses of $2.8 million primarily related to severance costs that were accrued as of December 31, 2008 and paid in the first quarter of 2009, partially offset by cash received related to our accounts receivable of $0.8 million.
Our common stock is currently listed on the NASDAQ Global Market. Continued listing of a security on the NASDAQ Global Market is conditioned upon compliance with various continued listing standards. There can be no assurance that we will continue to satisfy the requirements for maintaining a NASDAQ Global Market listing. The standards for continued listing require, among other things, that the closing minimum bid price for the listed securities be at least $1.00 per share for 30 consecutive trading days. Our common stock has traded below $1.00 per share in 2010, and there can be no assurances made that we will satisfy the $1.00 minimum bid price required for continued listing of our common stock on the NASDAQ Global Market. If our common stock trades below the minimum closing bid requirement for any 30 consecutive trading days, NASDAQ will send us a Deficiency Notice and we will be afforded a 180 day compliance period to regain compliance. If we are unable regain compliance, we will be delisted. If our common stock were to be delisted from the NASDAQ Global Market, the price of our common stock, the ability of holders to sell our stock, and our ability to raise additional capital will likely be adversely affected. If our common stock is delisted and thereafter traded over-the-counter, trading in our stock could be less efficient. If we sought to re-list our stock on the NASDAQ Global Market, we would be required to comply with all of the initial listing requirements to be re-listed on the NASDAQ Global Market, which in some instances are more stringent than the continued listing requirements.
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Autobytel Inc. has a market cap of $35.7 million; its shares were traded at around $0.79 with and P/S ratio of 0.7. ABTL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The $1.8 million or 21% decrease in the cost of revenues in first quarter 2010, compared to first quarter 2009, was primarily due to a decrease of $2.4 million in Lead acquisition costs directly related to the decline in volume of Leads delivered, and a $0.4 million decrease in other traffic acquisition costs, partially offset by a $1.0 million increase in SEM.General and Administrative. General and administrative expense consists of executive, financial and legal personnel expenses and costs related to being a public company. General and administrative expense in first quarter 2010 decreased $1.0 million or 26% compared to first quarter 2009 due to a decrease in severance expense of $0.5 million, a reduction of professional fees of $0.3, and a decrease in rent expense of $0.2 million.
Dealix Patent Litigation Settlement. In 2004, the Company brought a lawsuit for patent infringement against Dealix Corporation (“Dealix”). In December 2006, the Company entered into a settlement agreement with Dealix (the “Settlement Agreement”). The Settlement Agreement provides that Dealix will pay the Company a total of $20.0 million in settlement payments for a mutual release of claims and a license from the Company to Dealix and its parent company, the Cobalt Group, of certain of the Company s patent and patent applications. On March 13, 2007, the Company received the initial $12.0 million settlement payment with the remainder to be paid out in installments of $2.7 million on the next three anniversary dates of the initial payment. As of March 31, 2010 the Company had received the final annual installment payment of $2.7 million. The Company recorded the payment as patent litigation settlement in the period payment was received, as a reduction to operating expenses. The Company did not have reasonable assurance that it would receive the remaining payment on its due date and therefore had not recorded any amounts receivable related to the Settlement Agreement as of December 31, 2009.
Our principal sources of liquidity are our cash and cash equivalents balances and litigation settlement proceeds. We entered into a Settlement Agreement with Dealix, which among other things, provides for settlement payments. As of March 31, 2010 we received the final annual installment payment of $2.7 million from Dealix. We continue to have no debt. Our cash and cash equivalents totaled $26.1 million as of March 31, 2010 compared to cash and cash equivalents of $25.1 million as of December 31, 2009.
Net Cash Provided by (Used in) Operating Activities. Net cash provided by operating activities the first quarter 2010 of $1.4 million resulted primarily from net income, as adjusted for non-cash charges to earnings, $0.8 million of cash received related to our accounts receivable, partially offset by cash used to reduce accrued liabilities of $1.0 million primarily related to the payment of annual bonus amounts accrued in 2009 and paid in first quarter 2010. Net cash used in operating activities in the three months ended 2009 was $1.6 million and resulted primarily from net losses and an increase in cash used to reduce accounts payable and other accrued expenses of $2.8 million primarily related to severance costs that were accrued as of December 31, 2008 and paid in the first quarter of 2009, partially offset by cash received related to our accounts receivable of $0.8 million.
Our common stock is currently listed on the NASDAQ Global Market. Continued listing of a security on the NASDAQ Global Market is conditioned upon compliance with various continued listing standards. There can be no assurance that we will continue to satisfy the requirements for maintaining a NASDAQ Global Market listing. The standards for continued listing require, among other things, that the closing minimum bid price for the listed securities be at least $1.00 per share for 30 consecutive trading days. Our common stock has traded below $1.00 per share in 2010, and there can be no assurances made that we will satisfy the $1.00 minimum bid price required for continued listing of our common stock on the NASDAQ Global Market. If our common stock trades below the minimum closing bid requirement for any 30 consecutive trading days, NASDAQ will send us a Deficiency Notice and we will be afforded a 180 day compliance period to regain compliance. If we are unable regain compliance, we will be delisted. If our common stock were to be delisted from the NASDAQ Global Market, the price of our common stock, the ability of holders to sell our stock, and our ability to raise additional capital will likely be adversely affected. If our common stock is delisted and thereafter traded over-the-counter, trading in our stock could be less efficient. If we sought to re-list our stock on the NASDAQ Global Market, we would be required to comply with all of the initial listing requirements to be re-listed on the NASDAQ Global Market, which in some instances are more stringent than the continued listing requirements.
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