Organization and Operations

6 Months Ended

Jun. 30, 2011

Organization and Operations [Abstract]

Organization and Operations [Text Block]

1. Organization and Operations

Autobytel Inc. ("Autobytel" or the "Company") is an automotive marketing services company that assists automotive retail dealers ("Dealers") and automotive manufacturers ("Manufacturers") market and sell new and used vehicles through its internet purchase request referral programs, together with related Dealer marketing products and services, online advertising programs and data products.

Internet purchase request referrals ("Purchase Requests") are internet requests from consumers seeking information or quotes regarding pricing and availability of new or used vehicles or for vehicle financing.  The Company's network of owned, consumer-facing automotive websites ("Owned Websites"), which include our flagship website, Autobytel.com�, Autotropolis.com�, Autoweb.com�, AutoSite.com�, Car.comsm, CarSmart.com�, CarTV.com�, MyGarage.com� and MyRide.com�, provide consumers with information and tools to aid them with their automotive purchase decisions and the opportunity to submit Purchase Requests.  Purchase Requests are internally generated from the Company's Owned Websites ("Internally-Generated Purchase Requests") or purchased from third parties ("Other Purchase Requests") that generate Purchase Requests from their websites ("Third Party Websites").  Autobytel sells Internally-Generated Purchase Requests and Other Purchase Requests directly to Dealers and indirectly to Dealers through a wholesale market consisting of Manufacturers and other third parties in the automotive Purchase Request distribution industry.  In conjunction with the Company's Purchased Request programs, Autobytel also offers Dealers and Manufacturers other products and services to assist them in capturing online, in-market customers and selling more vehicles, including the Company's iControl by Autobyteltm, WebLeads+, Email Marketing Manager and Lead Call products and services.  Through their advertising placements on the Company's Owned Websites, Manufacturers can direct consumers to their respective websites for further information.

The Company was incorporated in Delaware on May 17, 1996. Its principal corporate offices are located in Irvine, California. The Company's common stock is listed on The NASDAQ Global Market under the symbol ABTL.

In June 2011, the Company launched the first phase of a multi-phase redesign of its flagship website, Autobytel.com. 

On September 17, 2010 ("Acquisition Date"), the Company acquired substantially all of the assets of privately-held Autotropolis, Inc., a Florida corporation, and Cyber Ventures, Inc., a Florida corporation (collectively, "Auto/Cyber"). The business acquired from Cyber Ventures, Inc. generates and sells in-market consumer automotive Purchase Requests.  The business acquired from Autotropolis, Inc., through its Autotropolis.com website, provides new vehicle Purchase Requests and related products and services directly to Dealers and expanded the Company's ability to monetize the acquired, incremental traffic through advertising on the site.  Auto/Cyber's results of operations are included in the Company's consolidated financial statements beginning September 17, 2010.

Although the Company achieved positive cash flow for the quarter ended June 30, 2011, the Company has historically experienced negative cash flow and at June 30, 2011 had an accumulated deficit of $283 million. Based on the Company's current operating plan for 2011, the Company expects that its net operating cash flows will improve from 2010 levels.  The Company continues to face many risks and uncertainties related to the general economic conditions and the automotive industry in particular; however, the Company believes current cash and cash equivalents are sufficient to meet anticipated cash needs for working capital and capital expenditures for at least the next 12 months.