SOURCE: Vertro, Inc

Vertro, Inc

March 09, 2011 16:05 ET

Vertro, Inc. Announces Fourth Quarter and Full Year 2010 Results

Company Delivers 30% Year-Over-Year Revenue Growth and $1.9 Million in 2010 Income From Continuing Operations

NEW YORK, NY--(Marketwire - March 9, 2011) - Vertro, Inc. (NASDAQ: VTRO) today reported financial results for the fourth quarter and full year ended December 31, 2010.

Summary of fourth quarter and full year 2010 results:

--  Revenue of $9.6 million in Q4 2010, compared to revenue of $9.8 million
    in Q3 2010; annual revenue of $35.9 million in FY 2010, compared to
    annual revenue of $27.6 million in FY 2009;

--  Gross margins of 94% in Q4 2010, compared to gross margins of 95% in Q3
    2010; annual gross margins of 95% in FY 2010, compared to annual gross
    margins of 94% in FY 2009;

--  Income from Continuing Operations of $0.8 million or $0.11 per diluted
    share in Q4 2010, compared to Income from Continuing Operations of $0.4
    million or $0.05 per diluted share in Q3 2010; Income from Continuing
    Operations was $1.9 million or $0.26 per diluted share in FY 2010,
    compared to a Loss from Continuing Operations of $7.7 million, or
    ($1.15) per diluted share in FY 2009;

--  EBITDA of $0.6 million in Q4 2010, compared to EBITDA of $0.4 million
    in Q3 2010; annual EBITDA of $1.6 million in FY 2010, compared to an
    annual EBITDA loss of $7.2 million in FY 2009;

--  Adjusted EBITDA of $0.9 million in Q4 2010, compared to Adjusted EBITDA
    of $0.4 million in Q3 2010; Adjusted EBITDA was $2.2 million in FY
    2010, compared to a Adjusted EBITDA loss of $6.4 million in FY 2009;

--  Adjusted EBITDA margins of 9% in Q4 2010 compared to Adjusted EBITDA
    margins of 4% in Q3 2010; Adjusted EBITDA margins were 6% in FY 2010,
    compared to Adjusted EBITDA negative margins of 23% in FY 2009.

"2010 was a milestone year for Vertro in which we achieved year-over-year growth in all of our key financial and non-financial metrics," commented Peter Corrao, Vertro's President and Chief Executive Officer. "Over the year, we continued to innovate within our product portfolio, launching our new ALOT Appbar, our new app marketplace at www.alot.com, and a range of new apps that have helped increase the stickiness of our products and diversify our revenue stream. We believe these new products will help underpin our continued expansion in 2011."

Fourth quarter 2010 results

Revenue of $9.6 million in Q4 2010, compared to Q3 2010 revenue of $9.8 million.

Gross margins of 94% in Q4 2010, compared to 95% in Q3 2010. Gross margins exclude customer acquisition costs of $6.2 million in Q4 2010 and $6.7 million in Q3 2010, which are included in Operating Expenses within the Marketing and Sales expense category.

Operating expenses of $8.5 million in Q4 2010, compared to $8.9 million in Q3 2010. Operating expenses in Q4 2010 and Q3 2010 included $0.3 million and $0.2 million, respectively, of non-cash compensation expense.

Income from Continuing Operations of $0.8 million or $0.11 per diluted share in Q4 2010, compared to Income from Continuing Operations of $0.4 million or $0.05 per diluted share in Q3 2010. Q4 2010 Income from Continuing Operations included a net non-recurring income tax benefit of approximately $0.4 million.

Adjusted net income from continuing operations of $0.8 million or $0.11 per diluted share in Q4 2010, compared to Adjusted net income from continuing operations of $0.4 million or $0.06 per diluted share in Q3 2010. Q4 2010 Adjusted net income excluded $0.3 million in non-cash compensation expense, and a gain of approximately $0.4 million from a net non-recurring income tax benefit; Q3 2010 Adjusted net income excluded $0.2 million in non-cash compensation expense and a non-recurring $0.2 million gain in deferred rent adjustments.

EBITDA of $0.6 million in Q4 2010 compared to $0.4 million in Q3 2010. Q4 2010 EBITDA included $0.3 million in non-cash compensation expense; Q3 2010 EBITDA included $0.2 million non-cash compensation expense and a non-recurring $0.2 million gain in deferred rent adjustments.

Adjusted EBITDA of $0.9 million in Q4 2010 compared to $0.4 million in Q3 2010. Q4 2010 Adjusted EBITDA excluded $0.3 million in non-cash compensation expense; Q3 2010 Adjusted EBITDA excluded $0.2 million in non-cash compensation expense and a non-recurring $0.2 million gain in deferred rent adjustments.

Adjusted EBITDA margins of 9% in Q4 2010, compared to Adjusted EBITDA margins of 4% in Q3 2010.

Cash and cash equivalents were $6.5 million at December 31, 2010, a decrease of $0.6 million from September 30, 2010 cash of $7.1 million. The decrease was primarily a result of higher than usual payables which were reflected on the balance sheet in Q3 2010. Working capital increased from $3.8 million in Q3 2010 to $4.2 million in Q4 2010.

As of December 31, 2010, the Company had 49 full time employees, which was unchanged from the 49 full time employees as of September 30, 2010.

Full year 2010 results:

Revenue of $35.9 million in FY 2010, compared to revenue of $27.6 million in FY 2009.

Gross margins of 95% in FY 2010, compared to 94% in FY 2009. Gross margins exclude customer acquisition costs of $23.0 million in FY 2010 and $21.0 million in FY 2009, which are included in consolidated operating expenses within the Marketing and Sales expense category.

Operating expenses of $32.8 million in FY 2010, compared to $33.7 million in FY 2009. Operating expenses in FY 2010 and FY 2009 included $1.0 million and $1.2 million, respectively, of non-cash compensation expense.

Income from Continuing Operations of $1.9 million, or $0.26 per diluted share in FY 2010, compared to a GAAP net loss of $7.7 million, or ($1.15) per diluted share in FY 2009. 2010 Income from Continuing Operations included a $0.3 million gain from the sale of an Internet domain name, a non-recurring $0.2 million gain in deferred rent adjustments, and a net non-recurring income tax benefit of approximately $0.4 million. 2009 Loss from Continuing Operations included a $0.4 million gain from the sale of a patent.

Adjusted net income of $2.2 million or $0.30 per diluted share in FY 2010, compared to an Adjusted net loss of $6.7 million or ($0.99) per diluted share in FY 2009. FY 2010 adjustments were $1.0 million non-cash compensation expense, a $0.3 million gain from the sale of an Internet domain name, a non-recurring $0.2 million gain in deferred rent adjustments, $0.1 million in severance charges, $0.1 million in depreciation and amortization, and a gain of approximately $0.4 million from a net non-recurring income tax benefit. FY 2009 adjustments were $1.2 million non-cash compensation expense, a $0.4 million gain from the sale of a patent, $0.3 million in depreciation and amortization.

EBITDA of $1.6 million in FY 2010, compared to an EBITDA loss of $7.2 million in FY 2009. 2010 EBITDA included $1.0 million in non-cash compensation expense, a non-recurring $0.2 million gain in deferred rent adjustments, $0.1 million in severance charges, and a $0.3 million gain from the sale of an Internet domain name. 2009 EBITDA included $1.2 million in non-cash compensation expense, and a $0.4 million gain from the sale of a patent.

Adjusted EBITDA of $2.2 million in FY 2010, compared to an Adjusted EBITDA loss of $6.4 million in FY 2009. FY 2010 Adjusted EBITDA excluded $1.0 million non-cash compensation expense, a non-recurring $0.2 million gain in deferred rent adjustments, $0.1 million in severance charges, and a $0.3 million gain from the sale of an Internet domain name. FY 2009 Adjusted EBITDA excluded $1.2 million non-cash compensation expense and a $0.4 million gain from the sale of a patent.

Adjusted EBITDA margins of 6% in FY 2010, compared to Adjusted EBITDA negative margins of 23% in FY 2009.

Selected metrics from continuing operations for FY 2010 and FY 2009 are available on Vertro's investor relations website at: http://ir.vertro.com/results.cfm

Management Conference Call

Management will participate in a conference call to discuss the full results for the Company on Wednesday, March 9, 2011, at approximately 5:00 p.m. ET. Details of the call for interested parties are as follows:

Date: Wednesday, March 9, 2011

Time: 5:00 p.m. ET

Dial-in numbers: (877) 353-0044 / (970) 315-0525 (Intl.)

Live webcast: http://ir.vertro.com/events.cfm

Conference call replay: http://ir.vertro.com/events.cfm

Vertro believes that "EBITDA," "Adjusted EBITDA," "Adjusted net income/loss" and "Adjusted net income/loss per share" provide meaningful measures for comparison of the Company's current and projected operating performance with its historical results due to the significant changes in non-cash amortization that began in 2004 primarily due to certain intangible assets resulting from mergers and acquisitions that have since been written off. Vertro defines Adjusted EBITDA as EBITDA (earnings before interest, income taxes, depreciation and amortization) plus non-cash compensation expense and plus or minus certain identified revenues or expenses that are not expected to recur or be representative of future ongoing operation of the business. Vertro uses EBITDA and Adjusted EBITDA as internal measures of its business and believes they are utilized as important measures of performance by the investment community. Vertro sets goals and awards bonuses in part based on performance relative to Adjusted EBITDA. Vertro defines Adjusted net income/loss as net income/loss plus amortization and non-cash compensation expense, plus or minus certain identified revenues or expenses that are not expected to recur or be representative of future ongoing operation of the business, in each case including the tax effects (if any) of the adjustment. Vertro believes the use of these measures does not lessen the importance of GAAP measures.

About Vertro, Inc.

Vertro, Inc. (NASDAQ: VTRO) is an Internet company that owns and operates the ALOT product portfolio. Through ALOT, consumers can discover apps which they can display through three specific products: ALOT Appbar, ALOT Toolbar and ALOT Home. These apps are developed in-house and by third party app developers and are designed to enhance the way people interact with content online. ALOT has millions of users across its products. Together these users conduct high-volumes of type-in-search queries, which are monetized through third-party search and content agreements.

Source: VTRO-E

Forward-looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate", "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including (1) our ability to successfully execute upon our corporate strategies, (2) our ability to distribute and monetize our international products at rates sufficient to meet our expectations, (3) our ability to develop and successfully market new products and services, and (4) the potential acceptance of new products in the market. Additional key risks are described in Vertro's reports filed with the U.S. Securities and Exchange Commission, including the Form 10-K for fiscal 2010.

Non-GAAP Financial Measures

This press release includes discussion of additional financial measures "EBITDA", "Adjusted EBITDA," "Adjusted Net Loss," "Adjusted Net Income," "Adjusted Net Loss Per Share" and "Adjusted Net Income Per Share," which are not considered generally accepted accounting principles (GAAP) measures by the Securities and Exchange Commission, and may differ from non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Vertro provides reconciliations of these two financial measures to GAAP measures in its press releases regarding actual financial results. A reconciliation of these financial measures to income/loss from continuing operations and income/loss loss from continuing operations per share for the interim periods and years ended December 31, 2010 and 2009 are included in this press release.


                               Vertro, Inc.
              Unaudited Consolidated Statements of Operations
                 (in thousands, except per share amounts)


                    Three Months Three Months  Twelve Months Twelve Months
                        Ended        Ended         Ended         Ended
                     December 31, December 31, December 31,  December 31,
                        2010         2009          2010          2009
                    ------------  ------------  ------------  ------------

Revenues            $      9,571  $      8,008  $     35,894  $     27,633
Cost of services             534           387         1,908         1,767
                    ------------  ------------  ------------  ------------

Gross profit        $      9,037  $      7,621  $     33,986  $     25,866

Operating expenses
   Marketing and
    sales                  6,528         5,351        24,611        22,597
   General and
    administrative         1,640         1,641         6,339         8,521
   Product
    development              349           525         1,836         2,452
   Amortization               30             -            30           146
   Restructuring               -             -             -           (15)
                    ------------  ------------  ------------  ------------
Total operating
 expenses           $      8,547  $      7,517  $     32,816  $     33,701
                    ------------  ------------  ------------  ------------

Income (loss) from
 operations         $        489  $        104  $      1,170  $     (7,835)
Foreign exchange
 rate gain (loss)           (114)           11             4          (476)
Other income
 (expense), net                4           360           318           285
                    ------------  ------------  ------------  ------------

Income (loss)
 before provision
 for income taxes   $        379  $        475  $      1,492  $     (8,026)

Income tax expense
 (benefit)                  (423)         (313)         (368)         (285)
                    ------------  ------------  ------------  ------------

Income (loss) from
 continuing
 operations         $        802  $        788  $      1,860  $     (7,741)

Income (loss) from
 discontinued
 operations                  242           (30)          998        (3,513)

Gain on sale of
 discontinued
 operations                    -             -             -         7,139
                    ------------  ------------  ------------  ------------

Net income (loss)   $      1,044  $        758  $      2,858  $     (4,115)
                    ============  ============  ============  ============

Basic earnings
 (loss) per share
   Continuing
    operations      $       0.11  $       0.12  $       0.27  $      (1.15)
                    ============  ============  ============  ============
   Discontinued
    operations      $       0.03  $          -  $       0.14  $       0.54
                    ============  ============  ============  ============
   Earnings (loss)
    per share       $       0.15  $       0.12  $       0.41  $      (0.61)
                    ============  ============  ============  ============

Diluted earnings
 (loss) per share
   Continuing
    operations      $       0.11  $       0.11  $       0.26  $      (1.15)
                    ============  ============  ============  ============
   Discontinued
    operations      $       0.03             -  $       0.14  $       0.54
                    ============  ============  ============  ============
   Earnings (loss)
    per share       $       0.14  $       0.11  $       0.40  $      (0.61)
                    ============  ============  ============  ============

Weighted-average
 number of common
 shares outstanding
   Basic                   7,014         6,774         6,927         6,730
                    ============  ============  ============  ============
   Diluted                 7,334         7,043         7,247         6,730
                    ============  ============  ============  ============

* All per share amounts reported are reflective of the 1-for-5 reverse
  split announced on August 17, 2010






                               Vertro, Inc.
        Unaudited Condensed Consolidated Statements of Operations
                 (in thousands, except per share amounts)



                    Three Months  Three Months  Three Months  Three Months
                        Ended         Ended        Ended         Ended
                    December 31,  September 30,   June 30,      March 31,
                        2010          2010          2010          2010
                    ------------  ------------  ------------  -------------
Revenues            $      9,571  $      9,759  $      8,461  $       8,104
Cost of services             534           505           363            506
                    ------------  ------------  ------------  -------------

Gross profit        $      9,037  $      9,254  $      8,098  $       7,598

Operating expenses
   Marketing and
    sales                  6,528         7,028         5,608          5,448
   General and
    administrative         1,640         1,459         1,802          1,436
   Product
    development              349           405           535            549
   Amortization               30             -             -              -
   Restructuring               -             -             -              -
                    ------------  ------------  ------------  -------------
Total operating
 expenses           $      8,547  $      8,892  $      7,945  $       7,433
                    ------------  ------------  ------------  -------------

Income from
 operations         $        489  $        362  $        153  $         165
Foreign exchange
 rate gain (loss)           (114)           (1)           50             70
Gain on sale of
 domain name                   -             -             -            285
Other income
 (expense), net                4            20            10              -
                    ------------  ------------  ------------  -------------

Income before
 provision for
 income taxes       $        379  $        381  $        213  $         520

Income tax expense
 (benefit)                  (423)           13            17             25
                    ------------  ------------  ------------  -------------

Income from
 continuing
 operations         $        802  $        368  $        196  $         495

Income (loss) from
 discontinued
 operations                  242             3           (51)           804

Gain on sale of
 discontinued
 operations                    -             -             -              -
                    ------------  ------------  ------------  -------------

Net income          $      1,044  $        371  $        145  $       1,299
                    ============  ============  ============  =============

Basic earnings
 (loss) per share
   Continuing
    operations      $       0.11  $       0.05  $       0.03  $        0.07
                    ============  ============  ============  =============
   Discontinued
    operations      $       0.03  $       0.00  $      (0.01) $        0.12
                    ============  ============  ============  =============
   Earnings (loss)
    per share       $       0.14  $       0.05  $       0.02  $        0.19
                    ============  ============  ============  =============

Diluted earnings
 (loss) per share
   Continuing
    operations      $       0.11  $       0.05  $       0.03  $        0.07
                    ============  ============  ============  =============
   Discontinued
    operations      $       0.03  $       0.00  $      (0.01) $        0.11
                    ============  ============  ============  =============
   Earnings (loss)
    per share       $       0.14  $       0.05  $       0.02  $        0.18
                    ============  ============  ============  =============

Weighted-average
 number of common
 shares outstanding
   Basic                   7,014         6,860         6,846          6,831
                    ============  ============  ============  =============
   Diluted                 7,334         7,194         7,076          7,055
                    ============  ============  ============  =============

* All per share amounts reported are reflective of the 1-for-5 reverse
 split announced on August 17, 2010





                               Vertro, Inc.
    Reconciliations to Condensed Consolidated Statements of Operations
                  (in thousands, except per share data)
                                (Unaudited)



 Additional information:
                         Three Months Three Months   Twelve       Twelve
                           Ended        Ended     Months Ended Months Ended
                        December 31, December 31, December 31, December 31,
                            2010         2009         2010        2009
                        ------------ ------------ ------------ -----------

 Adjusted EBITDA        $        902 $        321 $      2,228 $    (6,416)
                        ============ ============ ============ ===========
 Adjusted net income
  (loss)                $        803 $        645 $      2,192 $    (6,682)
                        ============ ============ ============ ===========
 Adjusted net income
  (loss) per share -
  basic                 $       0.11 $       0.10 $       0.32 $     (0.99)
                        ============ ============ ============ ===========
 Adjusted net income
  (loss) per share -
  diluted               $       0.11 $       0.09 $       0.30 $     (0.99)
                        ============ ============ ============ ===========

 Additional information:
                        Three Months Three Months
                            Ended       Ended
                         December 31, September 30,
                            2010         2010
                        ------------ ------------

 Adjusted EBITDA        $        902 $        408
                        ============ ============
 Adjusted net income
  (loss)                $        803 $        407
                        ============ ============
 Adjusted net income
  (loss) per share -
  basic                 $       0.11 $       0.06
                        ============ ============
 Adjusted net income
  (loss) per share -
  diluted               $       0.11 $       0.06
                        ============ ============


                         Three Months Three Months   Twelve       Twelve
                           Ended        Ended     Months Ended Months Ended
                        December 31, December 31, December 31, December 31,
                           2010          2009         2010         2009
                        -----------  -----------  -----------  -----------

 Reconciliation of Net
  Income to Adjusted
  EBITDA
 Income (loss) from
  continuing operations $       802  $       788  $     1,860  $    (7,741)
 Interest (income)
  expense                         -            -            -           75
 Income tax (benefit)
  expense                      (423)        (313)        (368)        (285)
 Exchange rate loss
  (gain)                        114          (11)          (4)         476
 Depreciation                    41          (17)          81          136
 Amortization                    30            -           30          146

                        -----------  -----------  -----------  -----------
 EBITDA                 $       564  $       447  $     1,599  $    (7,193)
                        ===========  ===========  ===========  ===========

 Non-cash compensation  $       338  $       234  $       996  $     1,152
 Non-recurring other
  income (expense), net           -         (360)        (285)        (360)
 Restructuring                    -            -            -          (15)
 Rent                             -            -         (200)           -
 Severance                        -            -          118            -

                        -----------  -----------  -----------  -----------
 Adjusted EBITDA        $       902  $       321  $     2,228  $    (6,416)
                        ===========  ===========  ===========  ===========

                        Three Months Three Months
                            Ended       Ended
                         December 31, September 30,
                            2010         2010
                        ------------ ------------

 Reconciliation of Net
  Income  to Adjusted
  EBITDA
 Income from continuing
  operations            $       802  $       368
 Interest (income)
  expense                         -            -
 Income tax (benefit)
  expense                      (423)           -
 Exchange rate loss
  (gain)                        114            1
 Depreciation                    41           18
 Amortization                    30            -

                        -----------  -----------
 EBITDA                 $       564  $       387
                        ===========  ===========

 Non-cash compensation  $       338  $       221
 Non-recurring other
  income (expense), net           -            -
 Rent                             -         (200)
 Restructuring                    -            -
 Severance                        -            -

                        -----------  -----------
 Adjusted EBITDA        $       902  $       408
                        ===========  ===========

                         Three Months Three Months   Twelve       Twelve
                           Ended        Ended     Months Ended Months Ended
                        December 31, December 31, December 31, December 31,
                            2010         2009         2010        2009
                        -----------  -----------  -----------  -----------

 Reconciliation of Net
  Income (Loss) to
  Adjusted Net Income
  (Loss)
 Income (loss) from
  continuing operations $       802  $       788  $     1,860  $    (7,741)
 Non-recurring income
  tax (benefit) expense        (408)           -         (408)           -
 Depreciation                    41          (17)          81          136
 Amortization                    30            -           30          146
 Non-cash compensation          338          234          996        1,152
 Non-recurring other
  income (expense), net           -         (360)        (285)        (360)
 Restructuring                    -            -            -          (15)
 Rent                             -            -         (200)           -
 Severance                        -            -          118            -

                        -----------  -----------  -----------  -----------
 Adjusted net income
  (loss)                $       803  $       645  $     2,192  $    (6,682)
                        ===========  ===========  ===========  ===========

 Adjusted net income
  (loss) per share -
  basic                 $      0.11  $      0.10  $      0.32  $     (0.99)
 Adjusted net income
  (loss) per share -
  diluted               $      0.11  $      0.09  $      0.30  $     (0.99)
 Shares used in per
  share calculation -
  basic                       7,014        6,774        6,927        6,730
 Shares used in per
  share calculation -
  diluted                     7,334        7,043        7,247        6,730


                        Three Months Three Months
                            Ended       Ended
                         December 31, September 30,
                            2010         2010
                        -----------  -----------

 Reconciliation of Net
  Income to Adjusted
  Net Income
 Income from continuing
  operations            $       802  $       368
 Non-recurring income
  tax (benefit) expense        (408)           -
 Depreciation                    41           18
 Amortization                    30            -
 Non-cash compensation          338          221
 Non-recurring other
  income (expense), net           -
 Restructuring                    -            -
 Rent                             -         (200)
 Severance                        -            -

                        -----------  -----------
 Adjusted net income    $       803  $       407
                        ===========  ===========

 Adjusted net Income
  per share - basic     $      0.11  $      0.06
 Adjusted net Income
  per share - diluted   $      0.11  $      0.06
 Shares used in per
  share calculation -
  basic                       7,014        6,860
 Shares used in per
  share calculation -
  diluted                     7,334        7,194

* All per share amounts reported are reflective of the 1-for-5 reverse
  split announced on August 17, 2010




PART 1.      FINANCIAL INFORMATION
ITEM 1.      Financial Statements

                               Vertro, Inc.
                        CONSOLIDATED BALANCE SHEETS
                    (in thousands, except par values)


                                                  December 31, December 31,
                    ASSETS                            2010         2009
                                                  -----------  -----------


 CURRENT ASSETS
    Cash and cash equivalents                     $     6,430  $     4,837
    Restricted cash                                        58            -
    Accounts receivable, less allowances of $7
     and $679, respectively                             3,160        3,041
    Income tax receivable                                 329          695
    Prepaid expenses and other current assets             387          651
                                                  -----------  -----------

       TOTAL CURRENT ASSETS                            10,364        9,224

 Property and equipment, net                              319           71
 Intangible assets, net                                   549            -
 Restricted cash                                            -          200
 Other assets                                             329          517
                                                  -----------  -----------

       TOTAL ASSETS                               $    11,561  $    10,012
                                                  ===========  ===========
      LIABILITIES AND STOCKHOLDERS' EQUITY

 CURRENT LIABILITIES
    Accounts payable                              $     3,663  $     4,706
    Accrued expenses                                    2,482        2,778
    Income tax payable                                      5          299
    Deferred revenue                                        -           25
                                                  -----------  -----------

       TOTAL CURRENT LIABILITIES                        6,150        7,808

    Long-term liabilities                                 697        1,365
                                                  -----------  -----------

    TOTAL LIABILITIES                                   6,847        9,173
                                                  -----------  -----------
 COMMITMENTS AND CONTINGENCIES

 STOCKHOLDERS' EQUITY
    Preferred stock, $.005 par value; authorized,
     500 shares; none issued and outstanding                -            -
    Common stock, $.005 par value; authorized,
     40,000 shares; issued 7,401 and 7,128,
     respectively; outstanding 6,985 and 6,770,
     respectively                                          36           35
    Additional paid-in capital                        271,908      270,690
    Treasury stock, 416 and 358 shares at cost,
     respectively                                      (6,924)      (6,722)
    Accumulated other comprehensive income             12,914       12,914
    Accumulated deficit                              (273,220)    (276,078)
                                                  -----------  -----------

       TOTAL STOCKHOLDERS' EQUITY                       4,714          839
                                                  -----------  -----------

       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    11,561  $    10,012
                                                  ===========  ===========

* All per share amounts reported are reflective of the 1-for-5 reverse
  split announced on August 17, 2010

Contact Information

  • Contact:
    Alex Vlasto
    VP Marketing and Communications
    646-253-0627
    Email Contact

    OR

    ICR, Inc.
    Denise Garcia
    SVP
    203-682-8335
    Email Contact