Classmates.com 2010 Annual Report Download - page 72

Table of Contents
reclassifications to conform with the Company's financial statement presentation. Historical public filings of FTD Group, Inc. are available at the
SEC's website at www.sec.gov .
The following table presents the FTD segment's operating expenses and income (loss) from operations as a percentage of FTD revenues for
the years ended December 31, 2009 and 2008.
FTD Revenues.
FTD revenues decreased by $76.2 million, or 12%, to $545.8 million for the year ended December 31, 2009, compared to
$622.0 million for the year ended December 31, 2008. Excluding the foreign currency exchange rate impact of $27.3 million due to a weaker
British Pound versus the U.S. Dollar, revenues decreased by $48.9 million, or 8%, compared to the prior-year period, primarily due to reduced
consumer order volume and a decrease in sales of products and services to our floral network members. In the fourth quarter of 2009, the FTD
segment achieved a year-over-year increase in revenues for the first time since the acquisition.
FTD Cost of Revenues. FTD cost of revenues decreased by $50.7 million, or 14%, to $323.6 million for the year ended December 31,
2009, compared to $374.2 million for the year ended December 31, 2008. Excluding the impact of foreign currency exchange rates of
$18.8 million, cost of revenues decreased by $31.8 million, or 9%, compared to the prior-year period, primarily as a result of
69
Year Ended December 31,
2009 2008
(Combined) % Change
(in thousands, except average order value and average
currency exchange rates)
Revenues
$
545,845
$
622,003
(12.2
)%
Operating expenses:
Cost of revenues
323,581
374,231
(13.5
)%
Sales and marketing
89,720
103,046
(12.9
)%
Technology and development
11,868
12,770
(7.1
)%
General and administrative
43,748
56,189
(22.1
)%
Impairment of goodwill, intangible
assets and long
-
lived assets
—
175,867
N/A
Total operating expenses
468,917
722,103
(35.1
)%
Segment income (loss) from operations
$
76,928
$
(100,100
)
N/A
Consumer orders
6,071
6,548
(7.3
)%
Average order value
$
59.56
$
62.99
(5.4
)%
Average currency exchange rate: GBP to
USD
1.55
1.86
(16.7
)%
Year Ended
December 31,
2009
2008
(Combined)
Revenues
100.0
%
100.0
%
Operating expenses:
Cost of revenues
59.3
60.2
Sales and marketing
16.4
16.6
Technology and development
2.2
2.1
General and administrative
8.0
9.0
Impairment of goodwill, intangible
assets and long
-
lived assets
—
28.3
Total operating expenses
85.9
116.1
Segment income (loss) from operations
14.1
%
(16.1
)%