Earthlink 2009 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2009 Earthlink 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.

Page out of 175

  • 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
  • 173
  • 174
  • 175

Table of Contents
restructuring costs and stock-based compensation expense, as they are not considered in the measurement of segment performance.
The following table set forth segment data for the years ended December 31, 2007, 2008 and 2009:
37
Year Ended December 31,
2008 vs. 2007
2009 vs. 2008
2007
2008
2009
$ Change
% Change
$ Change
% Change
(dollars in thousands)
Consumer Services
Revenues
$
1,025,408
$
779,876
$
575,412
$
(245,532
)
-
24%
$
(204,464
)
-
26%
Cost of revenues
324,465
259,851
186,570
(64,614
)
-
20%
(73,281
)
-
28%
Gross margin
700,943
520,025
388,842
(180,918
)
-
26%
(131,183
)
-
25%
Direct segment
operating
expenses
506,975
207,236
131,154
(299,739
)
-
59%
(76,082
)
-
37%
Segment operating
income
$
193,968
$
312,789
$
257,688
$
118,821
61%
$
(55,101
)
-
18%
Business Services
Revenues
$
190,586
$
175,701
$
148,317
$
(14,885
)
-
8%
$
(27,384
)
-
16%
Cost of revenues
118,232
101,069
87,185
(17,163
)
-
15%
(13,884
)
-
14%
Gross margin
72,354
74,632
61,132
2,278
3%
(13,500
)
-
18%
Direct segment
operating
expenses
58,548
51,276
41,975
(7,272
)
-
12%
(9,301
)
-
18%
Segment operating
income
$
13,806
$
23,356
$
19,157
$
9,550
69%
$
(4,199
)
-
18%
Consolidated
Revenues
$
1,215,994
$
955,577
$
723,729
$
(260,417
)
-
21%
$
(231,848
)
-
24%
Cost of revenues
442,697
360,920
273,755
(81,777
)
-
18%
(87,165
)
-
24%
Gross margin
773,297
594,657
449,974
(178,640
)
-
23%
(144,683
)
-
24%
Direct segment
operating
expenses
565,523
258,512
173,129
(307,011
)
-
54%
(85,383
)
-
33%
Segment operating
income
207,774
336,145
276,845
128,371
62%
(59,300
)
-
18%
Stock-based
compensation
expense
19,553
20,133
13,231
580
3%
(6,902
)
-
34%
Amortization of
intangible assets
14,672
13,349
7,749
(1,323
)
-
9%
(5,600
)
-
42%
Impairment of
goodwill and
intangible assets
4,250
78,672
24,145
74,422
*
(54,527
)
-
69%
Facility exit and
restructuring costs
65,381
9,142
5,615
(56,239
)
-
86%
(3,527
)
-
39%
Other operating
expenses
55,884
50,242
43,947
(5,642
)
-
10%
(6,295
)
-
13%
Income from
operations
$
48,034
$
164,607
$
182,158
$
116,573
243%
$
17,551
11%
*
denotes percentage is not meaningful or is not calculable