Segment Analysis

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 13. Segment Analysis

In 2012, management reorganized the operations along three new operating segments – Publisher Network, Software Search and Partner Programs.  Prior to 2012, our two segments were classified as Performance Marketing and Web Properties segments.

Listed below is an unaudited presentation of net revenue, gross profit and earnings before interest, taxes, and depreciation and amortization, and stock based payments for all reportable segments for the three months ended March 31, 2012 and 2011. We currently only track certain assets at the segment level and therefore assets by segment are not presented below. The Corporate category in the “Earnings before Interest, Taxes, Depreciation and Amortization, Stock Based Payments, and Indirect Merger Costs” from continuing operations table consists of corporate expenses not allocated to any segment.   Note that the “Earnings before Interest, Taxes, Depreciation and Amortization, and Stock Based Payments” is not a measure of performance defined in accordance with GAAP.

 Net Revenue by Industry Segment

	Three Months Ended March 31
	2012					2011
Segment:	Amount		Percent			Amount			Percent
Publisher Network	$	5,624,956		64.2	%	$	9,850,062			83.5	%
Software Search		1,767,340		20.2	%			-			-
Partner Programs		1,374,853		15.6	%		1,943,433			16.5	%
Total Revenue	$	8,767,149		100.0	%	$	11,793,495			100.0	%

Gross Profit by Industry Segment

	Three Months Ended March 31
Segment:	2012		2011
Publisher Network	$	1,241,195	$	4,113,419
Software Search		1,452,308		-
Partner Programs		725,895		1,308,610
Total	$	3,419,398	$	5,422,029

Earnings before Interest, Taxes, Depreciation and Amortization, Stock Based Payments, and Indirect Merger Costs by Industry Segment

	Three Months Ended March 31
Segment:	2012			2011
Publisher Network	$	904,270		$	1,487,292
Software Search		50,724
Partner Programs		1,056,492			627,169
Corporate		(1,799,250	)		(1,912,471)
Total	$	212,236		$	201,990