LookSmart, Ltd. (NASDAQ:LOOK)’s revenue in quarter ending March 31, 2015 came at $984,000, compared to $1.05 million in the quarter ending March 31, 2014. The company derives its revenue from two service offerings, Advertiser Networks and Publisher Solutions.

The revenue from Advertiser Networks came at $983,000 in 1Q2015 compared to $1.01 million in 1Q2014. Publisher Solutions contributed $1,000 to the revenue, compared to $48,000 in the comparable quarter.

The decline

LookSmart, Ltd. (NASDAQ:LOOK) reported that the decline in advertiser Networks revenue for the quarter ended March 31, 2015 can be attributed to decline in revenues from all segments including self service advertisers, direct advertisers and intermediaries. The company experienced a continuing decline in Advertising Network revenue in the first quarter of 2015 following a trend that commenced late 2011. LookSmart intends to invest in its Self Service segment in the future. The revenue from Publisher Solutions segment declined in the quarter ending March 31, 2015 due to volume drops by licensees.

LookSmart, Ltd. (NASDAQ:LOOK) reported that cost paid to distribution network associates declined $40,000 compared to the same period in FY2014. The company has been shifting its focus on intermediary category, which has lower margins compared to self service and direct segment.

The expenses

LookSmart, Ltd. (NASDAQ:LOOK) reported that total operating expenses came at $1.5 million for the quarter ending March 31, 2015, compared to $2.3 million in the same period in 2014. The decline in operating expenses was due to decline in product and development costs, sales and marketing expenses and general and administrative costs. The sales and marketing expenses came at $408,000 in 1Q2015 compared to $455,000 in the same period, a year earlier.

The decline can be attributed to the amortization of the principal investment recorded in higher-yield collateralized debt obligations. The total assets reduced to $4.4 million in 1Q2015 from $4.7 million in the same quarter, a year ago.