Mozilla's financials: 2007 strong; Portfolio takes 2008 lumps

Mozilla's 2007 annual report reveals a foundation that's well funded--primarily by a Google search deal--and can weather a downturn. Nevertheless, 2008 is going to be a different story as Mozilla's portfolio has taken some big hits.

Mozilla's 2007 annual report reveals a foundation that's well funded--primarily by a Google search deal--and can weather a downturn. Nevertheless, 2008 is going to be a different story as Mozilla's portfolio has taken some big hits.

In 2007, Mozilla had revenue of $75 million, up 12 percent from 2006. Most of that revenue comes from Google. Expenses were also up in 2007--68 percent to be exact to $33 million. Mozilla at the end of 2007 had 150 employees. Mozilla's total assets as of Dec. 31, 2007 were $99 million, up from $74 million in 2006.

What's not love here? 2008. We were all wealthier in 2007 just based on our stock ownership. December 2007 might as well been two decades ago. That fact isn't lost on Mozilla's Mitchell Baker, who writes in a blog:

We believe that Mozilla’s structure and financial management will allow us to continue with relative stability despite the disturbing economic conditions that developed over the summer and fall of 2008. There are no guarantees of course and Mozilla is not immune. We will certainly feel the effects of the economic situation.

So the question is this: How big of a hit will Mozilla take? Here's a look at Mozilla's investments from its annual report:

mozilla12.png

The two problem areas are common stock and mutual funds. Unless you've been on a deserted island you know the markets are in a freefall.

Mozilla's tax forms offer a little more detail on the foundation's holdings.

mozilla2.png

The upshot: Mozilla's portfolio has taken a hit this year. Check out the chart for the Legg Mason Opportunity Fund, which owns a few former highfliers--Amazon, Yahoo and First Solar--that have been whacked.

mozilla3.png

I went through all of Mozilla's holdings listed on its tax form with the IRS and they all look the same. The Pimco Total Return fund is also down, but has held its own. Other than that it has been look out below.

Mozilla will be fine, but remember this 2007 report because the 2008 version is likely to have a few land mines.