TheStreet Q2 & Q3 2009 Earnings Call Transcript

123jump.com Staff
27 Jan, 2010
New York City

Second quarter revenues fell 19% to $15.0 million. Third quarter revenues fell 11% to $15.2 million & net loss of $1.4 million. Operating expenses in the 3rd quarter 2009 were $16.9 million an improvement of 6% as compared to a restated $18.0 million in the prior-year period.

TheStreet.com, Inc. ((TSCM))
Q2 & Q3 2009 Earnings Call Transcript
January 25, 2010 4:30 p.m. ET

Executive

Daryl R. Otte - Chief Executive Officer
Gregory E. Barton - Executive Vice President and General Counsel
Richard Broitman - Chief Accounting Officer

Analysts

Richard Fetyko - Merriman & Company
Sameet Sinha - JMP Securities
Michael Moskoff - MRM Capital
Robert Coolbrith - ThinkEquity LLC
Bob Sales - LMK Capital Management

Presentation

Operator

Good day, ladies and gentlemen and welcome to the Quarter Two and Quarter Three 2009 TheStreet.com Earnings Conference Call. My name is Jennifer and I''ll be your operator for today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. If that anytime you require operator system, please press start followed by zero and we will be happy to assist you.

I would now like to turn the conference over to your host for today, Daryl Otte, Chief Executive Officer. Please proceed.

Daryl R. Otte

Jennifer, thank you very much. Hello, everyone. I would like to welcome you to TheStreet.com''s second- and third-quarter 2009 earnings call. I am Daryl Otte, the company''s CEO. In addition to covering the final results for the second and third quarter of this year, we will also be providing you with preliminary Q4 results for revenue, bookings and cash balances as of year-end, a hint of the full results we will be issuing shortly.

With me today are Greg Barton, the company''s Executive VP and General Counsel and Rich Broitman, the company''s Chief Accounting Officer.

Before we start, I will hand the call to Greg to read our legal statement.

Gregory E. Barton

Thanks, Daryl and welcome, everyone. All statements made on this call other than statements of historical facts are deemed to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, including those described in the company''s filings with the Securities and Exchange Commission that could cause actual results to differ materially from those reflected in the forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee future results or occurrences. The company disclaims any obligation to update these forward-looking statements, whether as a result of new information, future developments or otherwise.

You may obtain copies of the company''s filings with the SEC at the Commission''s website, www.sec.gov. Additional information related to the matters discussed today also will be set forth on the company''s Quarterly Reports on Form 10-Q for the quarters ended June 30, 2009 and September 30, 2009 and in the amended filings related to other periods discussed on this call.

And now, I will hand the call back to Daryl.

Daryl R. Otte

Thanks, Greg. Let me start by thanking our investors for bearing with our silence over the last couple months -- in fact, quarters -- as we were completing the accounting review for our former Promotions.com business unit, which we divested in December. We will discuss the findings of that review later in the call, but as you see from our press release, we will be restating our 2008 results, which will raise revenue in some quarters, lower revenue in others, decrease expenses and improve the bottom line in some quarters and lower it in others.

Importantly, the issues we found impacted solely Promotions.com, which, by way of history, we acquired back in August of ''07 and only impacted accounting entries, not cash. The follow-on impact of correcting the 2008 accounting impacted 2009 accounting, so we were not able to release our Q2 and Q3 numbers at the standard time. We''re glad to have completed the review and to resume reporting our results as we''ve been enjoying favorable trends in our remaining businesses for the last couple quarters.

I''m confident that investors'' patience will be rewarded and that potential new investors will have a compelling opportunity before them. Specifically, the new streamlined TheStreet.com has the business model today that most publishers hope someday to achieve, with both paid access and advertising revenue streams. We are one of the leaders in successfully implementing the pay wall on the Web and we also enjoy a robust and resilient advertising business.

I''d note that, while we did suffer like the rest of the media industry and broader market during the past several quarters due to the macroeconomic environment, we were profitable on an adjusted EBITDA basis for the full cycle of the recession and remain so thus far when you exclude the results of our former Promotions.com business. This speaks to the strength of our dual revenue strategy, the power of our content and the great work of our employees, contributors and partners.

Before we get into the details, of which there are plenty, let me set the stage with an overview of the general themes we see in the results of our two lines of business.

First, with respect to the paid services business, bookings grew by double-digit percentage increases in the second half of 2009 as compared to the prior-year period, having been down in the first half. Bookings are the best measure of current performance as they are precursor to future paid services revenue and our strong recent bookings position helps us well for 2010.

We''ve come to see our ability to generate user revenue as a differentiating characteristic and key strategic advantage for us, as noted a moment ago. As such, we strengthened our capabilities in this area in December by acquiring Kikucall, Inc., an online subscription marketing firm.

Going forward, we intend to aggressively integrate their technology and know-how to expand and refine our paid services offerings, which already are an envy of the industry. As a reminder to our investors, paid services includes our information services businesses, RateWatch and TheStreet.com ratings.

In what I hope will be a pleasant surprise to those that follow the advertising markets closely, our ad-supported sites, TheStreet.com, MainStreet.com, Stockpickr.com and BankingMyWay excluding the drag of the divested Promotions.com business, also experienced favorable trends. The large year-on-year revenue decline we witnessed in the first quarter flattened in each of the second and third quarters and our fourth-quarter results exceeded the prior year''s results for the first time in five quarters.

This relative outperformance speaks to the value of our content, the desirability of the demographic characteristics of our users and the creativity of our sales teams. We are especially gratified by the solid support we have seen from our core advertisers and we look forward to serving their desire to connect with our desirable audience, which is one of the most affluent and active in our competitive set.

During the past several quarters, we sought to make our content more widely available to users throughout the Web and are glad to have formed or deepened relationships with a number of leading companies, Yahoo!, MarketWatch, MSN and United Online among them. We certainly enjoy working with these teams at these great organizations and we value the growing partnerships we are developing with each of them. We have made it a priority to grow and expand our Web relationships further and we expect to have more good news on this front in 2010.

As I touched on above, we are pleased that through the depths of the recent financial crisis and recession, we''ve maintained positive adjusted EBITDA every quarter but the first quarter 2009 and even that quarter was positive --excuse me, excluding Promotions.com.

Going forward, our bottom line will benefit from both the divestiture of Promotions.com, which had a negative contribution of $2.2 million in the first nine months of 2009 and from the high operating leverage inherent in our business model.

Because of these positive results and even after the payment of our quarterly dividend, the purchase of Kikucall and costs associated with the accounting review, we ended the year with approximately ($82 million) in cash, cash equivalents, restricted cash and marketable securities. This is an increase of $6.3 million from December 31, 2008.

With no debt, our rock-solid balance sheet is a source of great strength and opportunity. During the past several quarters, we have concentrated on strengthening our board and management team, aggressively managing costs and honing our strategic focus. With the acquisition of Kikucall and sale of Promotions, we sharpened our focus on our core business of providing financial information services to paid subscribers and through ad-supported platforms.

We added two strong new members to our board Ronni Ballowe, who has deep experience as a senior media executives in both the online and offline worlds and Woody Marshall of Technology Crossover Ventures, who has had a long career investing in and nurturing companies and who provides us with a strong link to the West Coast technology universe.

We also hired a new Chief Information Officer, Daniel Flax, hired Greg as Executive VP and General Counsel, appointed Brian Hecht, formerly CEO of Kikucall, as the Publisher of Premium Services and promoted Glenn Hall to Editor-in-Chief of our flagship property, TheStreet.com. We believe we now have the team in place to execute on our strategy and to deliver consistent above-market revenue growth profitably.

Before handing the call back to Greg to discuss some of the financial metrics, I extend a particular note of thanks to our employees and contributors. Many, I see, are on this call for their focus and great work during these uncertain and challenging times. If you''ve not visited our services lately, including RealMoney, RealMoney Silver, Action Alerts PLUS and of course, our flagship property, TheStreet.com, they''re doing great. It is this quality that enables us to have such success both in front of and behind the paid wall and that is the foundation on which we think there is opportunity for shareholders and all stakeholders going forward.

We would love our investors and potential investors to become more familiar with our paid services. If there are participants on the call who would like a subscription, please send an e-mail to ir@thestreet.com and we will be in touch with a special offer.

In summary, we''re excited to be starting 2010 with a solid business model, with all of our businesses showing good momentum, having a strong balance sheet and generating positive adjusted EBITDA. We believe that 2010 will be a year of many opportunities for us and we look forward to reengaging with our investors and reporting on that progress.

With that, I''ll turn the call over to Greg.

Gregory E. Barton

Thanks, Daryl. First I would like to note that, as Daryl mentioned, as discussed below the company will restate certain items of its consolidated financial statements for the year ended December 31, 2008 and the quarters within such financial year. The 2008 period results discussed below reflect the impact of the anticipated restatement. Please see the unaudited tables attached to our press release for a description of previously reported 2008 period results, anticipated adjustments in connection with the restatement and anticipated restated results.

The company reported revenue of $15.0 million in the second quarter 2009, a reduction of 19% as compared to a restated $18.4 million in the second quarter of 2008. Operating expenses in the second quarter of 2009 were $15.2 million, an improvement of 14% as compared to a restated $17.6 million in the prior to year period.

The company had net income of $0.3 million in the second quarter of 2009 as compared to a restated net income of $1.1 million in the prior-year period. The company reported basic and diluted net income per share attributable to common stockholders of $0.01 a share and $0.01 a share, respectively in the second quarter of 2009 as compared with the restated $0.03 and $0.03 a share, respectively in the prior-year period.

Adjusted EBITDA for the second quarter of 2009 was $2.0 million as compared to a restated $3.3 million for the prior-year period.

For the third quarter of 2009, the company recorded revenue of $15.2 million, a reduction of 11% as compared to a restated $17.0 million in the third quarter of 2008. Operating expenses in the third quarter 2009 were $16.9 million, an improvement of 6% as compared to a restated $18.0 million in the prior-year period.

The company had a net loss of $1.4 million in the third quarter of 2009 as compared to a restated net loss of $0.7 million in the prior-year period. The company reported basic and diluted net loss per share attributable to common stockholders of minus $0.05 and minus $0.05, respectively in the third quarter of ''09 as compared to a restated minus $0.03 and minus $0.03, respectively in the prior-year period.

Adjusted EBITDA for the third quarter of 2009 was $1.7 million as compared to a restated $1.5 million for the prior-year period.

The profile of the company has changed with the divestiture of Promotions.com and to provide better transparency to you, we included in our press release a schedule showing the impact of Promotions.com on a quarterly basis since January 2008. Without drowning everyone in details, I highlight that whereas the company reported adjusted EBITDA during the nine months through September of 2009 of $3.0 million, the figure excluding revenue and direct expense at Promotions.com would have been $4.8 million.

Similarly, whereas the company reported adjusted EBITDA for 2008 of $10.6 million, the figure excluding revenue and direct expenses at Promotions.com would have been $12.8 million.

Today we also announced certain estimated results for the quarter ended December 31, 2009, as follows. We expect our paid services revenue to be in the range of $9.5 million to $9.7 million as compared to $9.9 million in the prior-year period, with the decline primarily reflecting the year-over-year decline in paid services bookings experienced in the first half of the year. We expect our paid services bookings to be up from the prior-year period by approximately 10% to 13% in the quarter and I would note that the restatement of certain 2008 period results does not affect our paid services revenue.

Going forward, we do not intend to report gross subscriber numbers, as we feel that the more important metrics to use are bookings and revenues. But since we have reported this number previously, as a type of exit report, we would note that our subscriber counts were sequentially higher at the end of each quarter in 2009 after March.

We expect that our marketing services revenue, including Promotions.com through its divestiture in December 2009 will be in the range of $6.7 million to $6.9 million for the quarter as compared to a restated $7.5 million in the prior-year period. We expect that our marketing services revenue, excluding Promotions.com will be in the range of $5.5 million to $5.6 million for the quarter as compared to $5.3 million in the prior-year period.

And I would note that the restatement of certain 2008 period results will not affect our marketing services revenue figures excluding Promotions.com.

I want to highlight that despite all the difficulties of 2009, our marketing services revenue, excluding Promotions.com will rank as the third-best year in the company''s 13 year history. As Daryl noted earlier, we think this speaks to the exceptional demographics and scale of our audience, which has made us a must-buy for our core advertisers for which we are grateful.

As Daryl noted, our balance of cash, cash equivalents, restricted stock, restricted cash and marketable securities at December 31, 2009, will be approximately $82.7 million, an increase of $6.3 million from December 31, 2008. The increase primarily reflects the company''s operating cash flow, together with receipt of $1.0 million in cash from the sale of Promotions, offset in part by cash payments totaling $5.5 million in connection with the acquisition of Kikucall, fees to professional advisors in connection with the acquisition of Kikucall and divestiture of Promotions and expenses incurred in connection with the accounting review and also payment of $3.6 million in dividends.

The company had no debt at December 31, 2009. The above estimates for the quarter ended 12/31/09 are preliminary and may be subject to change.

I would also like to note that the year-over-year numbers for Q2 and Q3, like those previously reported for Q1, reflect particularly difficult comparisons, as the 2008 periods almost entirely preceded the shock that ensued with the collapse of Lehman Brothers in mid-September 2008 and the severe disruption to the economy and in particular the financial and advertising sectors.

Conversely, the prior-period comparables will become easier in the next couple quarters, particularly when comparisons are made to the first quarter of 2009 in which our results, like those of many other companies bottomed.

Now, I would like to provide a summary of the results of our accounting review. We previously announced that we had identified an issue relating to our recording of certain revenues of our Promotions.com subsidiary which we''d acquired in August 2007. And that as a result, our audit committee engaged outside counsel Skadden, Arps, Slate, Meagher & Flom and accounting experts AlixPartners and conducted an independent review of accounting matters related to Promotions.com.

As a result of the review, the audit committee concluded that due to certain inaccuracies in the previously issued consolidated financial statements for the year ended 12/31/08 and for the fiscal quarters within such year, such consolidated financial statements no longer should be relied upon. We will restate our consolidated financial statements for the year ended 12/31/08 and we anticipate filing on or before February 8, 2010, a Form 10-KA for the year ended December 31, ''08, which shall contain certain revised results for the quarters within such fiscal year.

We also anticipate revising certain amounts in our consolidated financial statements for the quarter ended March 31, 2009 including a reduction of revenue of approximately $0.5 million, a reduction of expense of approximately $0.1 million and an increase in each of operating loss and net loss of approximately $0.4 million.

A summary of the anticipated restated financials is attached to our press release. The restatement will not affect the company''s previously recorded cash, cash equivalents, restricted stock and marketable securities. The restatement will make adjustments to correct errors related to the timing of recognition of revenue within the Promotions.com business unit and to make to revenue and expense related to transactions with certain third parties involved in the Promotions.com unit in which the company contracted both to provide services to and receive services from such third parties.

The adjustments will result in reduced revenue in certain quarters, increased revenue in other quarters as compared to results previously reported, reduced expense in certain quarters compared to results previously reported and reduced net income or increased net loss in certain quarters and reduced net loss in other quarters as compared to results previously reported. Moreover, as a result of the restatement certain revenue previously reported within 2008 periods will be deferred and recognized in 2009.
Certain inaccuracies identified in the review affected the company''s previously reported consolidated financial statements for the year ended December 31st, 2007 and for the quarters ended September 30, 2007 and December 31, 2007. However, the company concluded that such errors were not material to the company''s consolidated financial statements for the 2007 periods and therefore such consolidated financial statements will not be restated.

The company does however provide, disclosed the impact of the errors identified on the review on the 2007 period statements as follows. Revenue, all of which was recorded in the company''s interactive marketing services within the company''s marketing services line, was overstated by $0.8 million, $0.1 million and $0.8 million, respectively in Q3 ''07, Q4 ''07 and fiscal year ''07, respectively.

Operating expense was overstated by approximately $0.03 million, $0.04 million and $0.07 million, respectively, in Q3 ''07, Q4 ''07 and fiscal ''07, respectively. And each of operating income, net income and EBITDA was overstated by approximately $0.7 million, $0.03 million and $0.8 million, respectively, in Q3 ''07, Q4 ''07 and fiscal year ''07, respectively. The errors did not affect the company''s previously reported cash flows from operating activities, cash flows from investing activities or cash flows from financing activities for the 2007 periods.

As previously reported, we received from NASDAQ an exception through February 8, 2010, within which time to regain compliance with the NASDAQ listing rule that requires the filing of all required periodic financial reports with the SEC. And we anticipate regaining compliance with that NASDAQ listing rule on or before February 8, 2010.

And now I will turn the call back over to Daryl.

Daryl R. Otte

Thanks, Greg. Again, we''re proud of all the many actions we''ve taken over the past year to strengthen the company which are already beginning to bear fruit. With that, I would like to open up the call for questions, Jennifer?

Question-and-Answer Session

Operator

Ladies and gentlemen, if you wish to ask the question, please press star followed by one your telephone. If your question has been answered or you''d like to withdraw your question, please press star followed by two. Questions will be taken in the order received. Please press star one to begin.

And the first question comes from the line of Richard Fetyko from Merriman &Co. Please proceed.

Richard Fetyko - Merriman & Company

Good evening guys.

Daryl R. Otte

Hello.

Richard Fetyko - Merriman & Company

A couple of questions, first, more of a just housekeeping question. Just to make sure the third-quarter revenue of $15.2 million includes Promotions.com?

Daryl R. Otte

Yes.

Richard Fetyko - Merriman & Co

Correct, okay. So when you guys…

Daryl R. Otte

As of Q4 through mid-December, when we sold it.

Richard Fetyko - Merriman & Company

Okay, okay. And somewhere in this long press release, you stated how much of a contribution Promotions.com was?

Daryl R. Otte

Yeah. And we''ve taken a step further. We''ve restated the historical quarters excluding Promotions, you can look at the underlying trends.

Richard Fetyko - Merriman & Company

Okay. I''ll do that. It''s a long press release, sorry. And then…

Daryl R. Otte

I think we wanted to make sure everyone had the information.

Richard Fetyko - Merriman & Company

Right, right. From seeing these numbers right and I don''t have the numbers yet excluding Promotions.com, but your marketing services revenue line sort of bottomed out in the first quarter and improved in the second and third and it looks like in the fourth quarter as well. Is that right?

Daryl R. Otte

Yeah at Q4, I would noted that it''s ahead of, Q4 ''09 looks to be ahead of Q4 ''08.

Richard Fetyko - Merriman & Company

Right, right. Okay. And within that, what types of advertisers are you seeing strength from? What kind of trends in CPMs are you seeing? And also underlying that, what kind of traffic trends have you seen throughout 2009? Previously, the company used to disclose page views, I think even some unique visitor numbers. As I assume you guys decided not to. But at least trend-wise, can you give us some idea how visitors and or page views were trending throughout 2009 and what contributed to that strength on a year-over-year basis in that marketing services line?

Gregory E. Barton

Hi. Yeah, this is Greg. Let me take that one. As we noted with respect to our subscriber metrics in the past, the company''s prior management I think was disclosing a lot of granularity with respect to the operating data of the Company. We thought about it and taking a look around at our competitive set, we view that this really would kind of put us at a competitive disadvantage because we would be pretty much the only people out there providing that type of transparency into our operating metrics in a way that we feel could be useful to our competitors to the detriment of the company and our shareholders.

So going forward, we thought that we would be focusing on kind of the key financial metrics. Clearly with respect to the ad-supported sites, what''s going to drive that revenue is primarily a function of traffic times revenue per page. But we''ve decided that we''re not going to be breaking out those statistics going forward. We''re going to focus on the revenue numbers.

That said, obviously there''s some third-party data sources like comScore, which, although we, like every other publisher, feels that comScore which although we like every other publisher feels that comScore can undercounts versus what our own server log show. Nevertheless, to the extent that you want to get a sense for our performance relative to the competitive set in terms of trends or sequentially, you could certainly look to data sources like that.

Richard Fetyko - Merriman & Company

Okay. So you''re not going to even talk about trends in the traffic at least, throughout 2009, not necessarily the numbers themselves and trends in CPMs and what types of advertisers you saw some strength in the fourth quarter relative to last year?

Daryl R. Otte

No, we''re not going to. We''re reluctant to share the information because we know firsthand that many of our competitors are on this call, for example. And, again, we don''t want to put our sales teams at a disadvantage in terms of pricing.

Richard Fetyko - Merriman & Company

Okay, all right. So even directional information you feel like is counterproductive?

Daryl R. Otte

My perspective is that the shareholders hired the management team to worry about the metrics and we''re responsible to you guys to deliver the financial results.

Richard Fetyko - Merriman & Company

Right.

Daryl R. Otte

Thanks Richard.

Richard Fetyko - Merriman & Company

With respect to the expenses related to the restatement, the accounting restatements and so forth, I guess more general, what types of one-time expenses or unusual expenses were there in 2009, if you could quantify them?

Gregory E. Barton

This is Greg. With respect to the accounting review, it''s essentially professional fees for the law firm, our accounting experts, our auditors, who needed to perform a good deal of additional work in connection with this process as well. As you can see from the schedule attached to our press release, we quantified -- we put a line item for that and you can see in the third quarter that we had about $1.3 million of expenses incurred in connection with the review. There were some additional expenses in Q4 as well that are much less, I think probably in the range of about $500,000 or so. And there may be some much smaller amount of follow-on expenses as we get through having our amended filings made with the SEC.

Richard Fetyko - Merriman & Company

Got you. So the $1.7 million in adjusted EBITDA in the quarter is after the $1.3 million in expenses?

Gregory E. Barton

That''s correct.

Richard Fetyko - Merriman & Company

Okay. Thanks for that. That''s all the questions I had, thanks.

Operator

And your next question comes from the line of Sameet Sinha from JMP Securities. Please proceed.

Sameet Sinha - JMP Securities

Yes, thank you very much. Just going on the same lines as Richard, could you talk about some of the trends in your paid services revenue line? Obviously we''ve been through a pretty rough recession. Have you shut down certain products? If you have, what type of products have you shut down? Are these lower-ARPU products or the higher ARPU? That''s the first one. And secondly, obviously the previous management team made some acquisitions, Rate-Watch and BankingMyWay. There are pretty aggressive plans for those companies as it goes against Bankrate. Now that Bankrate is also private, can you talk about some trends there?

My third question is, could you talk about the latest acquisition of Kikucall and what''s the strategic rationale behind it? Thank you.

Daryl R. Otte

Alright, so culling the portfolio, we have indeed culled the subscription services portfolio. Memory serve, there we cut out five or six of the lower-value services where we didn''t see a lot of opportunity. But beyond that, I don''t think we''ve cut any other products or services.

We report Rate-Watch as part of the premium services line. It''s doing great. The team out there is terrific. I think that we still have some work go in terms of BankingMyWay is certainly looking for an opportunity there to take the terrific data that Rate-Watch has in the B2B marketplace and make it available more to consumers and that''s a big initiative for us for 2010.

BankingMyWay presently, as you could probably tell from going to the site, is not generating material revenue for us at the time being.
With respect to Kikucall, they are expert in subscription acquisition and management. They bring to us both technology and know-how and an assembled workforce. It''s accretive already and you''re seeing the results in the kind of terrific bookings results that we''re delivering for the second half of the year which I think, as I mentioned, is kind of double digits over the prior six months which was still a pretty good period for us.

So we think that they''re integral to our strategy going forward in terms of delivering on the promise of having well-balanced sources of revenue both advertising in front of the wall and of course, subscriber revenue behind the wall.

Sameet Sinha - JMP Securities

Sure. So now that, I mean obviously, you guys have come out of a really tough period change in management team, tough recession. Can you talk about the strategic rationale behind being in each of the businesses that you are? One is advertising-supported, the other one is subscription services. A surprising fact and I guess it''s kudos to you, that subscription business you grew subscribers every month since March. But do you think its helpful being in both these businesses, or do you think you could potentially get rid of one or the other businesses?

Daryl R. Otte

I think everywhere I read, for sure. I don''t know about you, but everywhere I read is everyone wants to have the business model that we have, which is that in order to have good content, subscribers have to be paying part of the freight. And so we completely think we''re in the right spot strategically and we''re working hard to build our capabilities as quickly and as best as we can, because we think this is where the world is headed, that users are going to have to pay for quality content as part of the mix.

Sameet Sinha - JMP Securities

Sure. And one final question. Obviously, more than $80 million in cash, what sort of plans do you have for that, if you can discuss some of that?

Daryl R. Otte

And I think that we certainly are on the lookout for anything that would be additive to our strategy. We are going to stay far field from acquisitions which, in the vein of, I would say, Promotions.com which would take us into new fields. But certainly within our stated strategy and marketplace, there are accretive acquisitions that we can do to grow. We are very excited to put our cash at work, which is otherwise earning I think 0.01% interest.

Sameet Sinha - JMP Securities

Okay. Thank you very much.

Daryl R. Otte

Thanks Sameet.

Operator

And your next question comes from the line Michael Moskoff from MRM Capital. Please proceed.

Michael Moskoff - MRM Capital

It''s MRM Capital. How''re you doing guys? Being one of your largest shareholders, I will say that to not get the clarity of the metrics is extremely disappointing because it surely helps out a hell of a lot on how your business is progressing.

Daryl R. Otte

Yeah, I''m sorry about that.

Michael Moskoff - MRM Capital

In your press release, you basically implied that you''re almost going back to how you guys started from almost the beginning, meaning you''re focusing, for you to buy this new company, you''re focusing on the existing business and going back to your core. Would that be a correct assessment which I''m very happy about, versus some of the other things that have been done in the past?

Daryl R. Otte

Yeah. I think that that is a fair statement, although I would say that as we''re going back to the core, the world is catching up with kind of the model that TheStreet has always had. So whereas to the extent we took, perhaps the company took a little slack in the past for having subscriber revenue as part of the mix and questions arose, such as why don''t you make the paid content free and therefore generate a lot more ad pages or, I''m sorry, page views to advertising again. So I think those kind of questions are going to subside. I think the logic of the company''s strategy is going to be more apparent going forward.

Michael Moskoff - MRM Capital

Okay. Is there any way, I mean, when you mentioned the metrics, you talked about you didn''t want to discuss the subs. But you won''t discuss anything else, bookings or monthly renewals, average subscriber number?

Daryl R. Otte

I think my perspective is that bookings encompass all of that, right? Bookings is the effect of what we''ve sold on a current basis, new, less, plus renewals, less what we''ve lost in terms of cancellations. So from my perspective, in terms of evaluating our performance in the last quarter, you should be very happy that we''re growing that. And you can bet that every day of the week, I''m looking at all those statistics and making sure they''re all going in the right direction. I just don''t want to hand the good work that all of our folks are doing here in terms of pricing and other tactics over to our competitors.

Michael Moskoff - MRM Capital

Would you do it offline?

Daryl R. Otte

I''m not sure. I mean, I don''t think the laws allow me to. To the extent it''s material, I have to tell everyone or tell no one.

Michael Moskoff - MRM Capital

Oh, man. Okay. Regarding, Rich was nominated as Chief Accounting Officer back in June?

Daryl R. Otte

Yes.

Michael Moskoff - MRM Capital

Is there going to be a CFO or is he basically the guy now?

Daryl R. Otte

I mean, he''s the guy.

Michael Moskoff - MRM Capital

Okay. I wasn''t sure if Chief Accounting Officer.

Daryl R. Otte

I think we have a bit of what, I mean, I think that Rich is doing a terrific job serving the need that the company has.

Michael Moskoff - MRM Capital

Okay. And for curiosity, when I go back to the last conference call on May 19, or I should say on May 5, when you guys were talking about a new CEO when you were the interim and you said, things were looking good to hire a new CEO and then quickly thereafter you were nominated and the search was over, for curiosity, what transpired that all of a sudden they wanted you versus continuing the search and whatever?

Daryl R. Otte

I mean. I think there was no…There was certainly a fulsome search and there were several good candidates eager to take the job. I think that once I got involved in the company and saw the promise of these amazing assets, I got much more excited about taking the position over the long haul. And I''m frankly a little bit of a fixer and the minute I got involved, we started working on some of these changes and it became clear to the Board that I could do the job. I was excited to do it and it seemed natural.

Michael Moskoff - MRM Capital

Okay. And as far as with the stock being so disheveled, trading pretty much at cash value in the business and that''s it, I''m surprised or should we expect some insider buying as far as buybacks, I''m not sure if I''m more enamored with that versus, would you consider even raising the dividend to make it even that much more beneficial, which is incredible to get a 4, 5% dividend right for a $2.50 stock.

Daryl R. Otte

Thank you very much. I couldn''t agree more.

Michael Moskoff - MRM Capital

But you have so much cash and I really would love you to husband the cash and just do what you''ve been doing and because, again we''re in an uncertain world and also, because now with the lack of transparency, which we''re supposed to be going into a transparent environment across the board with, from the powers that be on down. And obviously, when you guys are giving less, just like any company that any shareholder buys, you''re betting with management.

But, job as money managers, we need to get some feel and we really don''t have too much, except for what you guys come out with and it''s just not in detail. So be that as it may, I just want to know these other things, because if I see insider buying, you put your money where your mouth is, let alone you guys have so much cash a dime, if it went to $0.15, I mean we''re talking about an astronomical dividend. That alone will be better than a buyback and probably the stock will be 5, just from a raise of the dividend because with the environment.

Daryl R. Otte

Thanks, Michael. I appreciate the sentiment. I mean, I think that there''s, we get a lot of feedback from our shareholders, both pro and con on dividend and so I''m not sure if everyone agrees with you, although I do agree it''s a great return. Our agreement with TCB with respect to the preferred Tranche that they own, limits the flexibility that the company has in terms of stock buybacks or raising the dividend. So I think the logic goes, which I support that a traditional technology company would support the stock by a traditionally by buying shares back, but we''re limited from doing that. And so we have some limited return of capital to our shareholders in the form of a dividend instead of that.

Michael Moskoff - MRM Capital

So, if you think the stock is so cheap or were you waiting because you were prevented of doing anything right, until this?

Daryl R. Otte

We were completely, until we get all this information well out, the insiders can''t do anything.

Michael Moskoff - MRM Capital

Okay. So should we be expecting some things, because you guys think it''s so cheap? Would that be a, I''m just trying to read between the lines here.

Daryl R. Otte

Yeah. I think until people do things and we report them I''m not sure, I want to speak for anyone. But I think we agree with you and I said in my prepared remarks that we think this is a great opportunity.

Michael Moskoff - MRM Capital

Okay. Thank you.

Daryl R. Otte

Thanks, Michael.

Operator
And your next question comes from the line of Robert Coolbrith from Thinkequity. Please proceed.

Robert Coolbrith - ThinkEquity LLC

Good afternoon. I understand that you''re hesitant to provide too many operational metrics, but I know in the past you''ve maybe given some color on financial versus non-financial advertisers, performance versus brand advertising things of that nature, also visibility or trends in visibility. Yeah, to the extent that it wouldn''t harm your business to do so, just it''s been awhile since, we''ve spoken and just to sort of reorient yourself. I think, if you could give us any color on anything really, in the ad business?

And then secondly, a little bit of postmortem, could you describe what the situation was in Promotions that led to the restatement, were there just sort of inadequate controls in place? Have you done anything to beef that up? Yeah, I''m sorry, if I missed this on the first couple minutes of the call; I''m sorry, I dialed in a couple minutes late. But any color you could give on what happened with Promotions? Thank you.

Daryl R. Otte

Right, Bill. It''s hard for me -- it''s hard for me, it''s hard to think of what it is that I could talk about in the lines of the advertising business that kind of wouldn''t breach the ground rules that we''ve set in terms of trying not to handover competitive information to our competitors. I think we rely on the results in lieu of that Q4 was up quarter-on-quarter and we''re quite happy about that.

Robert Coolbrith - ThinkEquity LLC

Okay.

Daryl R. Otte

I think Greg is going to take the, what really happened at Promotions question.

Gregory E. Barton

In the accounting review, as we indicated in the press release, well actually in, I guess a number of filings that the company has made since July, it first came to our attention that there was an issue related to the recording of revenue. It obviously, when we looked into it, the company felt that the appropriate thing to do was to hire outside counsel and accounting advisors to conduct a full-blown review of the business unit and as a result of that we found, as we said, that there were errors in the financial statement that we called out kind of two types in today''s press release.

The first type had to do with the timing of the recording of revenue and what I''ll say about that is that the Promotions business was different than that type of business that this company had historically engaged in. And they did software development and there is a slew of specific revenue recognition rules connected with that line of business that the company had not previously had a need to be familiar with and as we looked at it more closely, we determined that we felt that some of those policies ended up getting applied incorrectly. And the second thing that, we also called out was that we -- as a result of the restatement are eliminating some revenue and expense from periods related to transactions with third parties in which the company both got services, contracted to receive services from and to provide services to the third parties.

Those type of adjustments end up essentially not having much of a bottom-line impact. So clearly, anytime you restate that raises issues around controls, which we''re obviously looking into and to the extent that we feel that we need to enhance any of the controls or the accounting manpower here, we will. With that, I''ll point out that we''ve had obviously turnover in that department subsequent to these events. Rich was elevated to Chief Accounting Officer and today we hired a new controller. So I think we''re taking steps and we''re obviously, we''ve been in close consultation with our auditors and our accounting experts for the past several months. And we intend to ensure that when we come out of this process that we have whatever kind of enhancements are appropriate.

Robert Coolbrith - ThinkEquity LLC

And I mean was there an earnout on Promotions or anything, I mean…

Daryl R. Otte

There was no earnout per se, but a lot of their consideration was taken in restricted stock.

Robert Coolbrith - ThinkEquity LLC

Okay. Is there anything outstanding on this matter or is it pretty much water under the bridge?

Daryl R. Otte

Trying to make it be water under the bridge as effectively as possible.

Robert Coolbrith - ThinkEquity LLC

Okay.

Daryl R. Otte

Part of the solution to the problem is that we don''t own it anymore, too.

Robert Coolbrith - ThinkEquity LLC

Fair enough. Well, thank you.

Daryl R. Otte

Thanks, Robert.

Operator

And your next question comes from the line of Sameet Sinha from JMP Securities.

Sameet Sinha - JMP Securities

Actually, my question has been answered. So thank you very much.

Daryl R. Otte

Thanks, Sameet.

Operator

Again, ladies and gentleman, would you like to ask a question press star one. Your next question comes from the line of Michael Moskoff from MRM Capital.

Michael Moskoff - MRM Capital

In the second quarter, in the press release you said you did 15 million in revenue third quarter, 15.2 and you''re guiding for anywhere from 15 to 15.3 so far. And so with the bookings being I mean, with the booking being sequentially or I should say subscriber growth you said, being sequentially higher, the revenue is up a tiny bit. So are you seeing better numbers on the subside than the -- from a revenue point of view than the advertising side? And what are you seeing in advertising? You''re a small company versus obviously, a Google and names like that, where or comScore like you were saying, you can get color there. But to get color from TheStreet.com, when you''re not going to give us any metrics, how are you guys seeing, from the first quarter report, which is the only thing we''ve got to go by in ''09, how are the numbers? You know?

Daryl R. Otte

Are you talking about advertising or subscription?

Michael Moskoff - MRM Capital

Well, I''m talking about advertising, because when you talk about the total revenue numbers, basically it''s kind of flat -- from second quarter to let''s say Q4.

Daryl R. Otte

So Q1, we did 3.2 million in advertising revenue, excluding -- this is all excluding Promotions Q2, 4.6, Q3, 4.3, Q4, $5.6.

Michael Moskoff - MRM Capital

Okay.

Daryl R. Otte

So that strikes me as an upward trend. The 5.6 in Q4 compares to 5.3 in ''08.

Michael Moskoff - MRM Capital

Okay. And so the sub revenue in Q2 is 10.4?

Daryl R. Otte

I''m sorry, Q…

Michael Moskoff - MRM Capital

Q2. You said 4.6 is the advertising revenue in Q2 of ''09?

Gregory E. Barton

Excluding Promotions.

Daryl R. Otte

Yes.

Michael Moskoff - MRM Capital

Yeah. I don''t -- right. We have to exclude Promotions now.

Daryl R. Otte

Right. The paid services is 9.4 in Q2.

Michael Moskoff - MRM Capital

Okay. So…

Daryl R. Otte

Do you want the trend for paid services?

Michael Moskoff - MRM Capital

Can you give me the total revenue? Because I''m -- it''s tough the way this thing is printed out. You have to scroll from left to right the way it came out off the wire services, so…

Daryl R. Otte

I''m sorry about that.

Michael Moskoff - MRM Capital

If that could be corrected, that would be great. But the total -- so the total revenue excluding Promotions in Q2, Q3 and Q4, can you give me that?

Gregory E. Barton

Yeah. So Q2 was 14.0 million, Q3 was 13.7 million and Q4 -- kind of, I guess at the midpoint of our estimates, would be around 15.3.

Michael Moskoff - MRM Capital

So I take back a little what I said, then. Okay. And then…

Daryl R. Otte

And I think that you need to, second derivative analysis look at the bookings for subscriptions, because that''s what is going to feed future subscription revenue, of course.

Michael Moskoff - MRM Capital

Okay. Well, but you didn''t give any numbers for bookings.

Daryl R. Otte

Sure we did. We did 10 to 13%, I think we said.

Michael Moskoff - MRM Capital

Right. But…

Daryl R. Otte

Second half of the year over-year.

Michael Moskoff - MRM Capital

10 to 13% in the fourth quarter of this year versus the fourth quarter of last year?

Daryl R. Otte

Second half.

Gregory E. Barton

Both.

Daryl R. Otte

Both, actually.

Michael Moskoff - MRM Capital

Okay. Because last year''s fourth quarter, you had 6.7 million in bookings. So obviously, I could do the math, but...

Gregory E. Barton

Yeah. That 6.7, I think was just in the -- kind of what was previously referred to as like the subscription service part of the paid service. So the all of paid services were 8.5 million, but when we''re talking about 13% approximately, at favorable comparisons to the year-over-year period, both second half and fourth quarter for paid services, we''re referring to the whole paid services line not to the -- not to just the subscription line in isolation. So the company had 8.5 million in Q4, ''08 on paid services and that''s what we''re expecting to be up by, approximately 13% in Q4.

Michael Moskoff - MRM Capital

Okay. But it has nothing to do with marketing, correct?

Gregory E. Barton

No, that''s just paid services.

Michael Moskoff - MRM Capital

Great. Okay. And are you seeing -- okay, so that basically explains it. Okay. Thank you.

Gregory E. Barton

I would understand.

Operator

And your next question comes from the line of Richard Fetyko from Merriman & Company. Please proceed.

Richard Fetyko - Merriman & Company

Guys.

Daryl R. Otte

How many months since we last spoke?

Richard Fetyko - Merriman & Company

About a year half really. I like to be the first and the last. Just curious with respect to your 2010 strategy if you could give us some -- just some guidance regarding what your initiatives or areas of focus, whether you''re looking to introduce new subscription products on the subscription side, anything new on the marketing services side that you would like to do or additional or what do you think will be some of the revenue drivers?

Daryl R. Otte

On the premium services side, I think that we have a lot -- there are a lot of leg to run on, integration of the Kikucall operations into our business. And I think regardless of whether we launch new products or not that we should see the core benefit from their being involved with us. And that''s a huge focus of ours. It''s a lovely high margin business growing quickly. So we''re going to make sure we don''t waste that opportunity. I feel also that we on the advertising side, we need to do a better job of being partners with the rest of the Web in terms of distributing our content. I alluded to that in the prepared remarks a little bit.

And we have, as anyone who''s been to our site recognizes a bit of a user experience issue. And so we will be working on presenting our content better and also adding a lot more data and kind of neat functionality to the site. And we expect, we''ll be rewarded with that in terms of better page views higher, of course, pricing and a bigger, better site.

Richard Fetyko - Merriman & Company

Got you. Anything new on the mobile side? At one point, the company had…

Daryl R. Otte

It''s awesome. And thank you very much. Just today, we launched a new BlackBerry app featured on the home page of their store, a terrific new app, lot more functionality, integrates some of our paid services. Eventually, we''ll integrate all of our paid services. And we think that''s a terrific opportunity for us.

Richard Fetyko - Merriman & Company

Anything on the iPhone platform?

Daryl R. Otte

Yeah. We''re there now on Android as well. But it''s such a great setup, so I had to plug today''s launch.

Richard Fetyko - Merriman & Company

Okay. All right. Thanks.

Daryl R. Otte

And our users generally tend to skew BlackBerry, so that''s where we get the real performance and we assume eventually Android.

Richard Fetyko - Merriman & Company

And when you say Kikucall integration, I mean this sounds like a -- I suppose some sort of a platform to drive like, as I mentioned, subscriber acquisitions and management. So when you say integration and what does that mean? You''re just rolling it out through all the products or I mean what…

Daryl R. Otte

Yeah. They''re taking their expertise, broadly defined, people processes and technology and helping us do a better job at selling our products.

Richard Fetyko - Merriman & Company

When did that acquisition occur?

Daryl R. Otte

Mid December.

Richard Fetyko - Merriman & Company

Okay. All right, thanks.

Daryl R. Otte

Sure.

Operator

And your next question comes from the line of Michael Moskoff. Please proceed.

Michael Moskoff - MRM Capital

One last thing, guys. In regards to this lack of transparency, how do you guys expect to get analytical community coverage without really giving any clarity, so to speak except for what you''ve given?

Daryl R. Otte

I mean, I think that we expect people to look at our financial results and I think we will try to work with the community to get -- to help them use outside sources effectively to do what they need to do. But if you have to balance handing over kind of our pricing and product strategies to competitors versus making sure people''s spreadsheets are correct, we would defer to the former.

Michael Moskoff - MRM Capital

And you really think that this is a major detriment to whether you guys can grow your business or not versus what transpired?

Daryl R. Otte

I''ve absolutely seen it. You might recall, I was recruiting for the CEO position and I have spoken to -- some of the parties who were interested in this position, hold not surprisingly, hold positions at these other organizations. And it''s quite surprising the detailed level of competitive intelligence that is available. Also, if you looked at the screen here of who''s listening to the call, there would be some phone numbers and names that you would recognize, company affiliations.

Michael Moskoff - MRM Capital

Okay. So but as far as the analytical like, you guys are going to want to hopefully get some coverage picked up by the analysts as these numbers get reported, fourth quarter numbers get reported et cetera and I just, again…

Daryl R. Otte

Look, we''re not against helping folks understand our business better and getting as much visibility as possible.

Michael Moskoff - MRM Capital

Okay.

Daryl R. Otte

But I think we have to work with everyone to figure out a way to do that, that serves their needs, or your needs, but also doesn''t set our folks back in terms of what they''re trying to do.

Michael Moskoff - MRM Capital

And what''s the amount you still have in NOLs?

Daryl R. Otte

I think it''s…

Michael Moskoff - MRM Capital

I mean the number was like a 111.9, I believe as of the Q1 of ''09.

Daryl R. Otte

156 million approximately is what we have.

Michael Moskoff - MRM Capital

156?

Daryl R. Otte

Yeah.

Michael Moskoff - MRM Capital

Is that because of Promotions it went up or -- because it was 128, less a deferred tax or something. At least that''s what I believe it was.

Daryl R. Otte

Sorry, please forgive the roughness of this. This is our first call.

Michael Moskoff - MRM Capital

That''s no problem.

Gregory E. Barton

After 2008, 123.

Daryl R. Otte

123.

Michael Moskoff - MRM Capital

Okay.

Daryl R. Otte

I guess that''s unchanged, basically, yes.

Gregory E. Barton

2008, yeah.

Michael Moskoff - MRM Capital

Okay. Thank you.

Gregory E. Barton

Yeah.

Operator

And your next question comes from the line of Bob Sales from LMK Capital Management. Please proceed.

Bob Sales - LMK Capital Management

Sorry, I missed it earlier. I thought you disclosed in some of the later quarters what the impact of nonrecurring charges were?

Gregory E. Barton

Yeah. The nonrecurring charges associated with the accounting review were 1.3 million in the third quarter.

Bob Sales - LMK Capital Management

Okay. Was there anything else?

Gregory E. Barton

We had a -- there was a restructuring expense of 200K in the third quarter and 600K in the second quarter.

Bob Sales - LMK Capital Management

Okay. And were there any one-time benefits in the third quarter?

Gregory E. Barton

No.

Bob Sales - LMK Capital Management

Okay. Can you -- with respect to the subscription business and I appreciate, if you don''t want to go into any more detail. Can you help give us an idea of what the trends and your expectations have been in terms of kind of the base Street.com subscription versus some of the premium subscriptions? In other words, whether with the up tick in bookings that you are seeing, what side of the offerings that''s occurring?

Daryl R. Otte

The bookings refer to the paid services affiliated with TheStreet.com, RealMoney, Action Alerts PLUS, RealMoney Silver. There''s a suite of about 13 paid services there. In addition, it reflects our RateWatch business and to a lesser extent, TheStreet.com''s Ratings, which is a proprietary stock rating service, stock, mutual fund, ETF, bank and insurance company ratings. And that information is sold in subscriptions, historically to banks when they had to provide alternative ratings information as a part of the settlement. But that business has largely gone away and we''re now pursuing other opportunities there.

Bob Sales - LMK Capital Management

Okay. But what I''m trying to get a sense of is how the business is evolving as the market recovers, whether you are seeing more growth on the premium subscriptions, like RealMoney or whether your growth is more so in excuse me, whether your growth is more so in the premium subscriptions beyond RealMoney or whether it''s -- kind of what I consider kind of the core level premium subscriptions like RealMoney?

Daryl R. Otte

You''re talking about the rate of growth within our subscription services?

Bob Sales - LMK Capital Management

Yes.

Daryl R. Otte

Not really sure. We don''t give that detail.

Bob Sales - LMK Capital Management

Yeah. Fair enough.

Daryl R. Otte

I mean…

Bob Sales - LMK Capital Management

Okay.

Daryl R. Otte

We''re pushing everything.

Bob Sales - LMK Capital Management

Yeah. Got it. Okay. Thank you.

Daryl R. Otte

Yeah.

Operator

Your next question comes from the line of Michael Moskoff.

Michael Moskoff - MRM Capital

Regarding your assets, you seem to breakdown now under current assets marketable securities. You have two line items. Can you discuss why that is, number one? And number two, it seems like the PP&E went down about 1.5 million, if you could just clarify that?

Richard Broitman

Which balance sheet are you looking at, Michael?

Michael Moskoff - MRM Capital

I''m looking at the unaudited and consolidated balance sheet of September 30.

Richard Broitman

Okay.

Michael Moskoff - MRM Capital

I believe it''s the first…

Richard Broitman

Marketable securities that you see current are simply just investments we have in corporate notes and bonds that will mature within the next 12 months.

Michael Moskoff - MRM Capital

Okay. So that''s the 2.8.

Richard Broitman

Yes.

Michael Moskoff - MRM Capital

And then the 17.4…

Richard Broitman

Are longer than a year. They are between one to three years.

Michael Moskoff - MRM Capital

Okay. And then you have a new line item, current assets held for sale?

Richard Broitman

Yes. That relates to the Promotions.com subsidiary.

Michael Moskoff - MRM Capital

Okay. So you already received 1 million and then you''ve got the note, if I recall or something?

Richard Broitman

Well, again, this is as of September 30. So when you''re looking at that, there is no sale at this point. These are the assets that we were identifying as of September 30 that related to Promotions.com.

Michael Moskoff - MRM Capital

Got you, got you, got you.

Richard Broitman

And that is part of the reason why, as you pointed out the fixed assets are going down, because part of them have been moved down into those non-current assets held for sale.

Michael Moskoff - MRM Capital

Okay. And that''s the non -- okay. I got you. And then the PP&E down 1.5 million is that from the consolidation of the offices or something that you announced, I think back in…

Richard Broitman

No. As I just pointed out, a lot of that had to do just with the assets that were out at the Promotions.com locations that are now pulled out of the property line and now but again, you''re looking at, what are you looking at December to now?

Michael Moskoff - MRM Capital

Correct.

Richard Broitman

Down about 900,000. Part of that is a result of the Promotions review, one of the transactions that Greg was referring to that had to do with us both being a buyer and a contractor of services had to do with a fixed asset that we had booked.

Michael Moskoff - MRM Capital

Okay.

Richard Broitman

Some of it has to do with assets that we retired during the course of the year.

Michael Moskoff - MRM Capital

And last but not least, the deferred revenue from I believe the first quarter of this year, which is always nice to see went up, if I''m not mistaken 1.2 million from at least the unaudited September to -- from the Q1 to now. Is that right?

Richard Broitman

The deferred revenue, if you''re looking at it in total or…

Michael Moskoff - MRM Capital

Well, I''m just looking at the line item.

Richard Broitman

From last year end?

Michael Moskoff - MRM Capital

No, no. From last year, the March quarter, when you still were announcing numbers.

Richard Broitman

So the March quarter was previous to the restatement. Part of this restatement in reversing some of the timing of the revenue being recognized flows money back into deferred revenue for future periods. So it''s kind of in and out there.

Michael Moskoff - MRM Capital

Okay.

Gregory E. Barton

And I would also point out, as we disclosed in the press release, the accounting review also identified some errors in the March 31, ''09 financials, which we quantified being 0.5 million in revenue 100,000 expense, roughly. So to the extent that those end up getting revised, that could have an impact, if you''re just trying to identify certain discrete balance sheet items like deferred revenue where, as Rich noted, a lot of the timing of corrections go in and out of deferred revenue.

Michael Moskoff - MRM Capital

So if it was 15.7 in Q1 of ''09 and 16.9 as of September, what would the 15.7 number approximately be, since you''re saying it was in the announced revisions or whatever?

Richard Broitman

The fully restated numbers as of September about 16.9 million versus about 16.4 at last year end.

Michael Moskoff - MRM Capital

And what about in Q1 ''09?

Richard Broitman

I don''t know, where we were Q1 ''09.

Michael Moskoff - MRM Capital

You had reported 15.7, but you''re saying that would have changed since…

Richard Broitman

The 15.7 as of March actually climbs up to 17.3, all due to reversing revenue that was put back into deferred that is coming out now and a lot of that came back out in the next six months.

Michael Moskoff - MRM Capital

Okay. A lot of stuff here. All right. Thank you.

Daryl R. Otte

Yeah. I''m sorry. It''s complicated.

Operator

And your next question comes from the line of Bob Sales. Please proceed.

Bob Sales - LMK Capital Management

Yeah. In the press release, it says that Promotions had a negative contribution for the first nine months of 2.2 million. And just to understand, what the business will look like as that is gone, can we -- should we assume that the loss of $700,000 per quarter was -- if you take the average, was linear or was there less of a loss in September as the business was being disposed?

Gregory E. Barton

Yeah. Well, the press release includes a schedule where, in order to try to provide additional understanding around this issue, we show the impact of Promotions quarter-by-quarter since January ''08. So you can actually see what the Q1 ''09, Q2 ''09, Q3 ''09 impact of Promotions was. And I''d point out maybe just to save somebody getting their calculator out, if you take a look at that schedule, the negative contribution in the first three quarters of ''09 reflected on that sche