Classmates.com 2007 Annual Report Download - page 38

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This Annual Report on Form 10-K and the documents incorporated herein by reference contain forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on our current expectations,
estimates and projections about our operations, industry, financial condition, performance, results of operations, and liquidity. Statements
containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "projections," "business outlook," "estimate," or
similar expressions constitute forward-looking statements. These forward-
looking statements include, but are not limited to, statements about the
markets in which we compete, our pay accounts, our product and service offerings, the advertising market, operating expenses, operating
efficiencies, revenues, dividends, capital requirements, capital expenditures, tax payments, stock-based compensation, restructuring charges,
and our cash position. In addition, any statements that refer to expectations, projections or other characterizations of future events or
circumstances, including any underlying assumptions, are forward-looking statements. Such statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ
materially and adversely from those expressed in any forward-looking statements as a result of various factors. The section entitled "Risk
Factors" in this Annual Report on Form 10
-K and our other filings with the SEC set forth some of the important risk factors that may affect our
business, financial position, results of operations, and cash flows. Statements indicating factors that we believe may impact our results or
financial condition are not intended to be exclusive. We undertake no obligation to revise or update publicly any forward
-looking statements,
other than as required by law.
Overview
We are a leading provider of consumer Internet and media services through a number of brands including Classmates, MyPoints, NetZero,
and Juno. Our Classmates Media segment services are online social networking and online loyalty marketing. Our primary Communications
segment services are Internet access and email. On a combined basis, our Web properties attract a significant number of Internet users each
month, and we offer marketers a broad array of Internet advertising services as well as online market research and measurement services.
Segment Definitions
We report our businesses in two reportable operating segments:
We have modified our segment reporting structure during 2007 to establish Classmates Media as a separate operating segment in the place
of the former Content & Media segment that no longer will be reported. The new Classmates Media segment includes our online social
networking and online loyalty marketing operations, which had formerly been part of the Content & Media segment. Web hosting and photo
sharing, which also had formerly been part of the Content & Media segment, have been moved to the Communications segment. In addition, we
have eliminated our historical practice of separately reporting certain unallocated corporate expenses. Under the new reporting structure,
corporate expenses are allocated to the operating segments. The new segment reporting structure is aligned with how management reviews and
measures segment performance for internal reporting purposes. All prior periods have been adjusted to conform to the current presentation.
36
Segment
Internet Services
Classmates Media
Social networking and loyalty marketing
Communications
Internet access, email, Internet security, and Web hosting