Travelzoo 2003 Annual Report Download - page 59

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TRAVELZOO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
(6) SigniÑcant Customer Information and Segment Reporting
SFAS No. 131, Disclosure about Segments of an Enterprise and Related Information, establishes
standards for the reporting by business enterprises of information about operating segments, products and
services, geographic areas, and major customers. The method for determining what information to report is
based on the way that management organizes the operating segments within a company for making
operational decisions and assessing performance. As of December 31, 2003, the Company had one operating
segment: online advertising.
SigniÑcant customer information is as follows:
Percent of
Percentage of Accounts
Total Revenue Receivable
Year Ended December 31, December 31,
Customer 2003 2002 2001 2003 2002
A ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * * * * 12%
BÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10% 15% 15% 14% *
C ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11% 14% * * 21%
D ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì * 13% Ì Ì
All of the above customers are located in the United States of America.
* Less than 10%
(7) Unaudited Quarterly Information
The following represents unaudited quarterly Ñnancial data for 2003 and 2002.
Quarters Ended
Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sept 30, June 30, Mar 31,
2003 2003 2003 2003 2002 2002 2002 2002
(In thousands)
Revenues: ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $5,201 $4,785 $4,291 $3,714 $3,132 $2,538 $2,211 $1,966
Cost of revenues ÏÏÏÏÏÏÏÏÏÏÏÏ 141 93 81 83 89 90 86 86
Gross proÑt ÏÏÏÏÏÏÏÏÏÏ 5,060 4,692 4,210 3,631 3,043 2,448 2,125 1,880
Operating expenses:
Sales and marketing ÏÏÏÏÏÏÏ 2,821 2,526 2,295 1,924 1,904 1,510 1,316 996
General and administrative 1,214 1,115 903 1,057 647 522 562 562
Merger expenses ÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì Ì Ì 55
Total operating
expenses ÏÏÏÏÏÏÏÏÏÏÏ 4,035 3,641 3,198 2,981 2,551 2,032 1,878 1,613
Income from operations ÏÏÏÏÏÏ 1,025 1,051 1,012 650 492 416 247 267
Interest income ÏÏÏÏÏÏÏÏÏÏÏÏÏ 5 3 3 2 2 1 Ì 1
Income before income taxes ÏÏ 1,030 1,054 1,015 652 494 417 247 268
Income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 577 437 419 267 168 171 101 133
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 453 $ 617 $ 596 $ 385 $ 326 $ 246 $ 146 $ 135
Basic net income per share ÏÏÏ $ .03 $ .03 $ .03 $ .02 $ .02 $ .01 $ .01 $ Ì
Diluted net income per shareÏÏ $ .02 $ .03 $ .03 $ .02 $ .02 $ .01 $ .01 $ Ì
39