Enom 2011 Annual Report Download - page 64

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the year ended December 2009.
Amortization of Intangibles
2011 compared to 2010. Amortization expense for the year ended December 31, 2011 increased by $13.4 million, or 40%, to $47.2 million
compared to $33.8 million in the same period in 2010. The increase was primarily due to a $15.5 million increase in amortization of media content which
resulted from our increased investment in our content library during 2011 compared to 2010, $5.9 million of accelerated amortization expense resulting from
our election to remove certain content assets from service in the fourth quarter of 2011 in conjunction with improvements to our content creation and
distribution platform and incremental amortization expense of $1.4 million in the period arising from acquisitions completed in 2011. Offsetting this was a
decrease of $3.5 million in the amortization of certain intangible assets primarily acquired via acquisitions in prior years that are now fully amortized. As a
percentage of revenue, amortization of intangible assets decreased 120 basis points to 14.5% during the year ended December 31, 2011 compared to 13.3%
during the same period in 2010 as the result of the increase in revenue and the factors listed above.
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.
Interest Income
Interest income for the year ended December 31, 2011 changed by less than $0.1 million compared to the same period in 2010.
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.
Interest Expense
2011 compared to 2010. Interest expense for the year ended December 31, 2011 increased by $0.2 million compared to the same period in 2010
primarily due to a one-time acceleration of the unamortized debt issuance costs following the replacement of our credit facility in the third quarter of 2011.
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 200.
Other Income (Expense), Net
2011 compared to 2010. Other income (expense), net for the year ended December 31, 2011 increased by $0.1 million to $(0.4) million of expense
compared to $(0.3) million in the same period in 2010. The increase in other income (expense) net during the year ended December 31, 2011 was primarily a
result of the change in the value of our preferred stock warrants which were recorded at fair value with changes in value recorded in earnings through the
closing date of our IPO.
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.
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