Enom 2010 Annual Report Download - page 76

Table of Contents
compared to prior years, and a $1.4 million decrease in amortization of our undeveloped websites largely due to reduced investments in
undeveloped websites in 2009 compared to 2008. Offsetting these decreases was a $2.1 million increase in amortization of content due to our
growing investment in our platform. As a percentage of revenue, amortization of intangible assets decreased 330 basis points to 16.2% during the
year ended December 31, 2009 compared to 19.5% during the same period in 2008.
Interest Income
2010 compared to 2009. Interest income for the year ended December 31, 2010 decreased by $0.5 million or 95% to less than $0.1 million
compared to $0.5 million in the same period in 2009. The decrease in our interest income during the year ended December 31, 2010 was a result
of our maintaining higher average cash balances during the year ended December 31, 2009.
2009 compared to 2008. Interest income for the year ended December 31, 2009 decreased by $1.1 million or 70% to $0.5 million compared to
$1.6 million in the same period in 2008. The decrease in our interest income during the year ended December 31, 2009 was a result of our
receiving higher returns on our cash and short-term investment balances during the year ended December 31, 2008, coupled with higher average
cash balances during the year ended December 31, 2008 as a result of our decision to pay down $45.0 million on our revolving line of credit
throughout 2009.
Interest Expense
2010 compared to 2009. Interest expense for the year ended December 31, 2010 decreased by $1.1 million or 61% to $0.7 million compared to
$1.8 million in the same period in 2009. The decrease in our interest expense during the year ended December 31, 2010 was primarily a result of
lower average debt balances during the year ended December 31, 2010 as compared to 2009. In addition, we issued $10.0 million in unsecured
promissory notes in conjunction with the acquisition of our social media tools business in March 2008, which resulted in interest expense of
$0.2 million in 2009. These promissory notes were repaid in full in April 2009.
2009 compared to 2008. Interest expense for the year ended December 31, 2009 decreased by $0.3 million or 17% to $1.8 million compared to
$2.1 million in the same period in 2008. The decrease in our interest expense during the year ended December 31, 2009 was primarily a result of
lower overall interest rates associated with our revolving credit facility throughout the year ended December 31, 2009 compared to the same
period in 2008. In addition, we issued $10 million in unsecured promissory notes in conjunction with the acquisition of Pluck in March 2008,
which were repaid in full in April 2009. Interest expense related to these promissory notes was approximately $0.6 million in 2008 compared to
$0.2 million in 2009.
Other Income (Expense), Net
2010 compared to 2009. Other income (expenses), net for the year ended December 31, 2010 increased by $0.3 million to $0.3 million of
expense compared to less than $0.1 million in the same period in 2009. The increase in other income (expense) net during the year ended
December 31, 2010 was primarily a result of $0.3 million of expense increase in the impact of changes in the fair value associated with our
preferred warrant outstanding in 2010 and 2009.
2009 compared to 2008. Other income (expenses), net for the year ended December 31, 2009 decreased by $0.2 million or 92% to less than
$0.1 million of expense compared to $0.3 million of expense in the same period in 2008. The decrease in other income (expense) net during the
year ended December 31, 2009 was primarily a result of $0.2 million in lower overall transaction
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