NetZero 2011 Annual Report Download - page 79
Download and view the complete annual report
Please find page 79 of the 2011 NetZero annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
 |
 |
Table of Contents
The decrease in Communications revenues was primarily due to a decrease in services revenues as a result of a 28% decrease in our average
number of dial-up Internet access pay accounts for the year ended December 31, 2010, compared to the prior-year period, partially offset by a
slight increase in ARPU for the year ended December 31, 2010, compared to the prior-year period. The decrease in Communications revenues
was also due to a decrease in advertising revenues resulting from the decrease in pay accounts and a decrease in search revenues following our
transition to a new search provider in the first quarter of 2010.
Communications Cost of Revenues
Communications cost of revenues as a percentage of Communications revenues increased for the year ended December 31, 2010, compared
to the prior-year period due to a higher percentage of revenues being generated from our broadband services, which have a higher cost of
revenues than our dial-up Internet access services. The decrease in Communications cost of revenues was primarily due to a $3.9 million
decrease in telecommunications costs associated with our dial-up Internet access services due to a decrease in the number of dial-up Internet
access pay accounts and a decrease in hourly usage per pay account and a $3.1 million decrease in customer support and billing-
related costs due
to a decrease in the number of dial-up Internet access pay accounts. In addition, Communications cost of revenues decreased due to a
$0.9 million decrease in personnel-related costs as a result of reduced headcount, a $0.9 million decrease in costs associated with our broadband
services and a $0.3 million decrease in costs associated with our web hosting services.
Communications Sales and Marketing
The decrease in Communications sales and marketing expenses reflects the Company's decision to reduce sales and marketing expenses.
The decrease was primarily attributable to a $15.1 million decline in advertising, promotion and distribution costs related to our dial-up Internet
access services, a $2.1 million decrease in customer service costs related to our dial-up Internet access services and a $1.8 million decrease in
personnel- and overhead-related expenses as a result of reduced headcount.
76
Year Ended
December 31,
Change
2010
2009
$
%
(in thousands, except percentages)
Communications cost of revenues
$
39,573
$
48,671
$
(9,098
)
(19
)%
Communications cost of revenues as a percentage of
Communications revenues
23.7
%
23.0
%
Year Ended
December 31, Change
2010 2009 $ %
(in thousands, except percentages)
Communications sales and marketing
$
20,521
$
39,802
$
(19,281
)
(48
)%
Communications sales and marketing expenses as a
percentage of Communications revenues
12.3
%
18.8
%