Common use of Results of Operations Clause in Contracts

Results of Operations. Overview of the Three and Six Months Ended June 30, 2015 and 2014 The following tables set forth selected information concerning our results of operations as a percentage of consolidated net revenue for the periods indicated (in thousands): Three Months Ended June 30, 2015 % of Revenue 2014 % of Revenue Dollar Change % Change Revenue $ 1,020 100.0 % $ 1,410 100.0 % $ (390 ) (28 %) Cost of revenue 412 40.4 % 699 49.6 % (287 ) (41 %) Gross profit 608 59.6 % 711 50.4 % (103 ) (14 %) Operating expenses: Sales and marketing 295 28.9 % 390 27.7 % (95 ) (24 %) Product development and technical operations 631 61.9 % 1,217 86.3 % (586 ) (48 %) General and administrative 477 46.8 % 999 70.9 % (522 ) (52 %) Restructuring charge 217 21.4 % 7 0.5 % 210 3000 % Total operating expenses 1,620 158.8 % 2,613 185.3 % (993 ) (38 %) Income loss from operations (1,012 ) (99.2 %) (1,902 ) (134.9 %) 890 (47 %) Non-operating income (expense), net 19 1.9 % 41 2.9 % (22 ) (54 %) Loss from operations before income taxes (993 ) (97.4 %) (1,861 ) (132.0 %) 868 (47 %) Net loss $ (993 ) (97.4 %) $ (1,861 ) (132.0 %) $ 868 (47 %) Six Months Ended June 30, 2015 % of Revenue 2014 % of Revenue Dollar Change % Change Revenue $ 2,004 100.0 % $ 2,468 100.0 % $ (464 ) (19 %) Cost of revenue 864 43.1 % 1,390 56.3 % (526 ) (38 %) Gross profit 1,140 56.9 % 1,078 43.7 % 62 6 % Operating expenses: Sales and marketing 703 35.1 % 845 34.2 % (142 ) (17 %) Product development and technical operations 1,333 66.5 % 2,417 97.9 % (1,084 ) (45 %) General and administrative 807 40.3 % 1,641 66.5 % (834 ) (51 %) Restructuring charge 293 14.7 % 16 0.7 % 277 1731 % Total operating expenses 3,136 156.5 % 4,919 199.3 % (1,783 ) (36 %) Loss from operations (1,996 ) (99.6 %) (3,841 ) (155.6 %) 1,845 (48 %) Non-operating income (expense), net 15 0.7 % 84 3.4 % (69 ) (82 %) Loss from continuing operations before income taxes (1,981 ) (98.9 %) (3,757 ) (152.2 %) 1,776 (47 %) Income tax expense — — — 0.0 % — — Net loss $ (1,981 ) (98.9 %) $ (3,757 ) (152.1 %) $ 1,776 (47 %) Overview of the Years Ended December 31, 2014 and December 31, 2013 The following table sets forth selected information concerning our results of operations as a percentage of consolidated net revenue for the years ended December 31, 2014 and 2013 (in thousands): Year Ended December 31, % of % of Dollar % 2014 Revenue 2013 Revenue Change Change Revenue $ 4,702 100.0 % $ 6,679 100.0 % $ (1,977 ) (30 )% Cost of revenue 2,441 51.9 % 4,474 67.0 % (2,033 ) (45 )% Gross profit 2,261 48.1 % 2,205 33.0 % 56 3 % Operating expenses: Sales and marketing 1,690 35.9 % 1,082 16.2 % 608 56 % Product development and technical operations 4,561 97.0 % 3,557 53.3 % 1,004 28 % General and administrative 2,561 54.5 % 3,052 45.7 % (491 ) (16 )% Restructuring charge 30 0.7 % 40 0.6 % (10 ) (25 )% Total operating expenses 8,842 188.0 % 7,731 115.8 % 1,111 14 % Loss from operations (6,581 ) (140.0 )% (5,526 ) (82.7 )% (1,055 ) 19 % Non-operating income (expense), net 162 3.4 % 177 2.7 % (15 ) (8 )% Loss from continuing operations before income taxes (6,419 ) (136.5 )% (5,349 ) (80.1 )% (1,070 ) 20 % Income tax expense — — (7 ) (0.1 )% 7 (100 )% Net loss $ (6,419 ) (136.5 )% $ (5,356 ) (80.1 )% $ (1,063 ) 20 % Revenue Overview of the Three and Six Months Ended June 30, 2015 and 2014 Revenue is derived from two service offerings or “products” of the Company. Advertiser Networks and Publisher Solutions. Total revenue and revenue from Advertiser Networks and Publisher Solutions for the three and six months ended June 30, 2015, and 2014, was as follows (in thousands): Three Months Ended June 30, 2015 % of Revenue 2014 % of Revenue Dollar Change % Change Advertiser Networks $ 1,020 100 % $ 1,241 88 % $ (221 ) (18 %) Publisher Solutions — — 169 12 % (169 ) (100 %) Total revenue $ 1,020 100 % $ 1,410 100 % $ (390 ) (28 %) Six Months Ended June 30, 2015 % of Revenue 2014 % of Revenue Dollar Change % Change Advertiser Networks $ 2,003 100 % $ 2,251 91 % $ (248 ) (11 %) Publisher Solutions 1 0 % 217 9 % (216 ) (100 %) Total revenue $ 2,004 100 % $ 2,468 100 % $ (464 ) (19 %)