13. Segment Analysis

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

13. Segment Analysis

Note 13 - Segment Analysis

In 2012, management reorganized the operations along three new operating segments - Publisher Network, Software Search and Partner Programs.  Prior to 2012, our two segments were classified as Performance Marketing and Web Properties segments.

Listed below is an unaudited presentation of net revenue and gross profit for all reportable segments for the three and six months ended June 30, 2012 and 2011. We currently only track certain assets at the segment level and therefore assets by segment are not presented below.

Net Revenue by Industry Segment

(in thousands)

	Three Months Ended June 30,										Six Months Ended June 30,
	2012 ($)		% of Revenue			2011 ($)		% of Revenue			2012 ($)		% of Revenue			2011 ($)		% of Revenue
Publisher Network		4,835		37.6	%		8,113		88.1	%		10,460		48.3	%		17,963		85.5	%
Software Search		5,496		42.7	%		—		—	%		7,264		33.6	%		—		—	%
Partner Programs		2,543		19.8	%		1,100		11.9	%		3,918		18.1	%		3,043		14.5	%
Total net revenue		12,874		100.0	%		9,213		100.0	%		21,642		100.0	%		21,006		100.0	%

Gross Profit by Industry Segment

(in thousands)

	Three Months Ended June 30,										Six Months Ended June 30,
	2012		% of Net Revenue			2011		% of Net Revenue			2012		% of Net Revenue			2011		% of Net Revenue
Publisher Network		964		7.5	%		3,683		40.0	%		2,205		10.2	%		7,796		37.7	%
Software Search		4,151		32.2	%		-		-	%		5,604		25.9	%		-		-	%
Partner Programs		1,661		12.9	%		432		4.7	%		2,388		11.0	%		1,740		8.3	%
Total gross profit		6,776		52.6	%		4,115		44.7	%		10,197		47.1	%		9,536		45.4	%