Advertisers\\\' desire to reach customers efficiently has led to the development and proliferation of market-specific content channels throughout all forms of media. Targeted content channels increase advertising efficiency by enabling advertisers to market specifically to the audience they are trying to reach. Content providers are finding new ways, such as specialized cable television channels, magazines and events, to offer increasingly targeted content to their audience and advertisers. The Internet has enabled even more market-specific content offerings, and the proliferation of market-specific websites provides advertisers with efficient and targeted media to reach their customers.

Advertisers are increasingly focused on measuring and improving return on investment, or ROI. Before the advent of Internet-based marketing, there were limited tools for accurately measuring the results of marketing campaigns in a timely fashion. The Internet has enabled advertisers to track individual user responses to their marketing programs. With the appropriate technology, vendors now have the ability to assess and benchmark the efficacy of their online advertising campaigns cost-effectively and in real-time. As a result, advertisers are now increasingly demanding a measurable ROI across all forms of media.

The Internet has improved the efficiency and effectiveness of researching purchases. The vast quantity of information available on the Internet, together with search engines and directories that facilitate information discovery, enables potential purchasers to draw information from many sources, including independent experts, peers and vendors, in an efficient manner. These benefits are most apparent in the research of complex and costly purchases which require information from a variety of sources.

Despite the high growth of online advertising and marketing directly to corporate purchasers, business-to-business, or B2B, online spending represented only 6.9% of marketing and advertising expenditure in the United States in 2005. eMarketer expects the share of the B2B online advertising to rise to 13.1% of total marketing and advertising expenditure by 2010, predominantly at the expense of print media.

The storage sector consists of the market for disk storage systems and tape hardware and software that store and manage data. The Company’s online property in this sector, SearchStorage.com has attracted approximately 425,000 registered members seeking solutions in key sub-sectors such as fibre channel SANs, IP & iSCSI SANs, NAS, backup hardware and software, and storage management software.

The security sector is constantly growing to adapt to new forms of threats and to secure new technologies such as mobile devices and wireless networks. The Company’s online property in this sector, SearchSecurity.com has built a database of approximately 550,000 registered members and offers navigable and structured guides on IT vendor and technology solutions in key sub-sectors such as network security, intrusion defense, identity management and authentication, application security, and security information management software.

Broadly defined, the networking market includes the hardware, software and services involved in the infrastructure and management of data networks. The Company’s online properties in this sector, SearchNetworking.com, SearchVoIP.com and SearchMobileComputing.com have attracted approximately 700,000 registered members.

Data centers house the systems and components, such as servers, storage devices, routers and switches, utilized in large-scale, mission critical computing environments. The Company’s key online properties in this sector provide targeted information on the IT vendors, technologies and solutions that serve these sub-sectors.

Gross profit was $37.8 million for the year ended December 31, 2006 and $32.7 million for the year ended December 31, 2005, an increase of $5.1 million, or 16%.

Total cost of revenues was $18.1 million for the year ended December 31, 2006 and $15.8 million for the year ended December 31, 2005, an increase of $2.3 million, or 15%.

Total operating expenses were $29.9 million for the year ended December 31, 2006 and $27.9 million for the year ended December 31, 2005, an increase of $1.9 million, or 7%.