Inuvo, Inc. (INUV) Internet marketing and technology company that manages a network of websites and builds and markets browser based consumer applications recently announced that it plans to relocate its head office to Conway, Arkansas. The relocation will result in a $1.5 million dollar reduction of annual operating expenses. Additional according to an 8K filed with the SEC Company may utilize a grant of up to $1,750,000 for expenses related to the relocation of the Company's headquarters and operations to Arkansas and for the purchase of equipment for use in Arkansas. Inuvo's newly formed relationship with the Arkansas Economic Development Commission [AEDC] will ultimately allow Inuvo to secure the bottom-line growth critical for improved shareholder value.
This significant cost saving strategy comes on the heels of Inuvo's most recent financial growth announcement that the Company's preliminary unaudited revenue for fiscal year 2012 was $53.3 million, up from $35.8 million in fiscal year 2011. Preliminary unaudited revenue for the fourth quarter of 2012 was $16.2 million, a nearly 5% increase over the $15.5 million in revenue reported in the third quarter of 2012. The cost savings realized by the move should begin to be reflected should allow the net income number to follow suit.
Arkansas as the 13th fastest job growth County in the Country and one of the most rapidly growing areas in the Little Rock metro region. Surrounded by 3 Universities, an educated population and home to a growing community of technology Companies like Hewlett Packard and Acxiom (ACXM) . The company will also sharing a state with other public companies such as; ALLTEL Corp (AT), Wal-Mart Stores, Inc. (WMT), and Tyson Foods Inc. (TSN).
On top of this major announcement Inuvo announced that its wholly-owned subsidiary Vertro, Inc. renewed its advertising relationship with Google (GOOG). Starting on February 1, 2013 they have extended their current contract for an additional 2 years. This contract should be considered a huge win for the company, as it will significantly assist in the monetization of Inuvo's ALOT properties.
These recent events appear to represent an infliction point within the company. They have proven that they can increase top line numbers, yet were previously unable to reduce expenses. This change of scenery, coupled with a new strong relationship with Google positions the value of Inuvo to rise throughout 2013 based on strengthened operations and the removal of unnecessary expenses. I am optimistic in the long term growth opportunities of the company and excited to see how these developments impact the company's overall earnings