Enom 2010 Annual Report Download - page 75

Table of Contents
development expenses decreased 40 basis points to 10.5% during the year ended December 31, 2010 compared to 10.9% during the same period
in 2009.
2009 compared to 2008. Product development expenses increased by $7.4 million or 52% to $21.7 million during the year ended December 31,
2009 compared to $14.3 million in the same period in 2008. The year-over-year increase was largely due to approximately $6.1 million increase
in personnel and related costs, net of internal costs capitalized as internal software development, to further develop our platform, our owned and
operated websites, and to support and grow our Registrar product and service offerings. As a percentage of revenue, product development
expenses increased 250 basis points to 10.9% during the year ended December 31, 2009 compared to 8.4% during the same period in 2008.
General and Administrative
2010 compared to 2009. General and administrative expenses increased by $8.9 million or 31% to $37.4 million during the year ended
December 31, 2010 compared to $28.5 million in the same period in 2009. The increase was primarily due to a $2.7 million increase in personnel
costs and a $1.6 million increase certain information technology costs to support the growth of our business, a $1.4 million increase in
professional fees primarily related to our public company readiness efforts, a $0.7 million increase in stock-based compensation expense, a
$0.4 million increase in rent expense for additional office space to support our growth, and the inclusion of a $0.6 million gain on sale of one of
our acquired website properties as a reduction to general and administrative expenses in the year ended December 31, 2009. As a percentage of
revenue, general and administrative costs increased 40 basis points to 14.8% during the year ended December 31, 2010 compared to 14.4%
during the year ended December 2009.
2009 compared to 2008. General and administrative expenses increased by $0.4 million or 1% to $28.5 million during the year ended
December 31, 2009 compared to $28.1 million in the same period in 2008. The increase was largely due to increases in personnel costs of
$0.9 million and facilities-related expenses of $0.6 million offset by decreases of $0.4 million in our bad debt expense due to improved cash
collections and the inclusion of a $0.6 million gain on sale of one of our acquired website properties as a reduction to general and administrative
expenses. As a percentage of revenue, general and administrative costs decreased 210 basis points to 14.4% during the year ended December 31,
2009 compared to 16.5% during the same period in 2008.
Amortization of Intangibles
2010 compared to 2009. Amortization expense for the year ended December 31, 2010 increased by $1.6 million or 5% to $33.8 million
compared to $32.2 million in the same period in 2009. The increase was primarily due to a $7.8 million increase in amortization of content due to
our increased investment in our content library during 2010 compared to prior years. Offsetting this increase was a $4.0 million decrease in
amortization of our identifiable intangible assets acquired in business combinations as a result of no business acquisition activities in 2010
compared to prior years, and a $2.1 million decrease in amortization of our undeveloped websites largely due to reduced investments in
undeveloped websites in 2010 compared to 2009. As a percentage of revenue, amortization of intangible assets decreased 290 basis points to
13.3% during the year ended December 31, 2010 compared to 16.2% during the same period in 2009 as the result of the increase in revenue and
the factors listed above.
2009 compared to 2008. Amortization expense for the year ended December 31, 2009 decreased by $1.0 million or 3% to $32.2 million
compared to $33.2 million in the same period in 2008. The decrease was due to a $1.8 million decrease in amortization of our identifiable
intangible assets acquired in business combinations as a result of no business acquisition activities in 2009
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