Table of Contents 
  
The following table sets forth the historical results of our operations expressed as a percentage of total revenues.  
  
2001 
2000 
1999 
  
     
  
     
  
     
  
Revenues 
     
100.0 % 
     
100.0 % 
     
100.0 % 
Cost of revenues 
     
25.8 % 
     
16.6 % 
     
18.7 % 
  
     
     
     
Gross profit 
     
74.2 % 
     
83.4 % 
     
81.3 % 
Operating expenses: 
     
  
  
     
  
  
     
  
  
Product development 
     
24.3 % 
     
18.9 % 
     
21.7 % 
Sales, general and administrative 
     
73.1 % 
     
61.1 % 
     
108.0 % 
Amortization of intangibles 
     
146.2 % 
     
79.9 % 
     
59.4 % 
Impairment of intangibles 
     
66.5 % 
     
4.2 % 
     
      
Acquisition and other related charges 
     
(2.2 )% 
     
57.8 % 
     
18.9 % 
Other charges 
     
7.1 % 
     
2.2 % 
     
15.8 % 
Restructuring charges 
     
10.8 % 
     
1.1 % 
     
0.0 % 
  
     
     
     
Total operating expenses 
     
325.8 % 
     
225.2 % 
     
223.8 % 
  
     
     
     
Loss from operations 
     
(251.6 )% 
     
(141.8 )% 
     
(142.5 )% 
Loss on investments 
     
(66.8 )% 
     
(0.2 )% 
     
0.0 % 
Other income, net 
     
10.7 % 
     
12.9 % 
     
31.1 % 
Minority interest 
     
0.0 % 
     
(1.5 )% 
     
0.0 % 
  
     
     
     
Loss from operations before income tax expense and cumulative effect of change in accounting 
principle 
     
(307.7 )% 
     
(130.6 )% 
     
(111.4 )% 
Income tax expense 
     
(0.4 )% 
     
(0.1 )% 
     
0.0 % 
  
     
     
     
Loss from operations before cumulative effect of change in accounting principle and preferred 
stock dividend 
     
(308.1 )% 
     
(130.7 )% 
     
(111.4 )% 
Preferred stock dividend 
     
      
     
0.0  % 
     
(222.2 )% 
Cumulative effect of change in accounting principle 
     
(2.0 )% 
     
(1.0 )% 
     
0.00 % 
  
     
     
     
Net loss applicable to common stockholders 
     
(310.1 )% 
     
(131.7 )% 
     
(333.6 )% 
  
     
     
     
  
Results of Operations for the Years Ended December 31, 1999, 2000 and 2001 
  
Revenues.     
Our revenues are derived from our products and application services, which are delivered to users and subscribers on 
wireline, wireless and broadband platforms and to merchants via merchant aggregators including merchant banks. We tailor agreements to fit 
the needs of our customers, merchant banks and aggregators and wireless carriers. Under any one agreement we may earn revenue from a 
combination of our products and application services. We identify revenues by our three business areas, which are wireline and broadband, 
merchant and wireless. We do not expect broadband to generate meaningful revenue until 2003.  
  
Revenues for wireline and broadband were $90.4 million in the year ended December 31, 2001, $156.9 million in the year ended 
December 31, 2000 and $56.1 million in the year ended December 31, 1999. The decline in total revenue from 2000 to 2001 reflects several 
factors including our decision in the first quarter of 2001 to eliminate direct to consumer properties including certain destination sites acquired 
in the Go2Net merger, our announcement in the second quarter of 2001 of our intention to not pursue agreements that are short term and 
comprised of non recurring revenue streams and declines in general economic conditions during the year. The revenue growth from 1999 to 
2000 reflects the growth of our network of Web portals and affinity Web sites, Go2Net's acquisition of Dogpile in August 1999, and the launch 
of new services that drove Web traffic and promoted longer usage at Web sites.  
  
Revenues for merchant were $39.8 million in the year ended December 31, 2001, $36.9 million in the year ended December 31, 2000 and 
$15.2 million in the year ended December 31, 1999. The decline in the annual  
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