Earnings would have been better but the company took a $5.6 million write off on the discontinuance of the software. Depreciation, amortization and impairment charges were also up, rising to $7.5 million, 36.2 percent higher than the $5.5 million in fiscal 2008. Although it is dropping use of its own software, Liberty will continue to offer online preparation under the name e-Smart but will be using what was described as a "white label third party" product.
Liberty's biggest source of revenue, royalties and advertising fees, came in at $39.8 million, an increase of 11.1 percent from $31.7 million. Revenue from tax preparation fees was $5.4 million for 2010, up 17.5 percent from the prior year.