2008-08-05 15:56:00
InfoSpace Announces Strong Second Quarter 2008 Results
BELLEVUE, Wash.–(EMWNews)–InfoSpace, Inc. (NASDAQ:INSP) today announced financial results for the
three months ended June 30, 2008.
“We achieved higher-than-expected revenue and
Adjusted EBITDA in the second quarter,” said
Jim Voelker, chairman and chief executive officer of InfoSpace, Inc. “Much
of our success can be attributed to growth in our owned-and-operated
properties, demonstrating the progress the team has made in executing
the Company’s new initiatives. As we look
toward the remainder of the year, we are optimistic about our ability to
grow profitably.”
Revenues for the second quarter of 2008 were $38.3 million, reflecting a
$6.6 million or 21% increase over the second quarter of 2007.
Income from continuing operations was $2.7 million in the second quarter
of 2008, compared to a loss from continuing operations of $21.0 million
in the second quarter of 2007. Adjusted EBITDA from continuing
operations was $9.7 million in the second quarter of 2008, compared to
Adjusted EBITDA from continuing operations of a negative $15.2 million
in the second quarter of 2007.
Net income for the second quarter of 2008 was $1.9 million or $0.06 per
diluted share versus a net loss of $28.1 million or $0.86 per share in
the second quarter of 2007. Net income in the second quarter of 2008
includes an impairment charge of $4.4 million on the Company’s
investments in auction rate securities.
Cash, cash equivalents, and marketable securities as of June 30, 2008
totaled $218.5 million, which includes an investment of $27.2 million in
auction rate securities.
Second Quarter Highlights and Recent Developments
InfoSpace:
-
Entered into a partnership with Petfinder.com, the largest searchable
site of pets in need of homes, to provide easy access for their users
to Dogpile’s web search and downloadable
products;
-
Released a new search widget featuring Dogpile’s
mascot Arfie that provides an interactive desktop pal, a customized
search bar, and access to SearchSpy;
-
Signed five new distribution partners and two contract extensions with
existing customers; and
-
Reauthorized a repurchase of up to $100 million of the Company’s
outstanding shares of common stock over the next twelve months.
Third Quarter and Full Year Outlook
For the third quarter of 2008, the Company expects revenue to be between
$37 million and $39 million. Additionally, the Company expects Adjusted
EBITDA from continuing operations to be between $4 million and $5
million and net income (loss) to be between net loss of $500 thousand
and net income of $500 thousand, or negative $0.01 and positive $0.01
per share.
For the full year 2008, the Company expects revenue to be between $156
million and $160 million. Additionally, the Company expects Adjusted
EBITDA from continuing operations to be between $26 million and $28
million and net income (loss) to be between net loss of $500 thousand
and net income of $1 million, or negative $0.01 and positive $0.03 per
share.
A conference call will be held today at 2 p.m. Pacific/ 5 p.m. Eastern.
The live Webcast can be accessed in the Investor Relations section of
the InfoSpace corporate Web site, at http://www.infospaceinc.com.
A replay of the call will be available approximately one hour after the
call through August 12, 2008 at 9:00 p.m. Pacific/ 12:00 a.m. Eastern.
Non-GAAP Financial Measures
InfoSpace’s Adjusted EBITDA from continuing
operations is calculated by adjusting GAAP net income (loss) to exclude
the effects of discontinued operations, income taxes, depreciation,
stock-based compensation expense, gain (loss) on investments, net, and
other income, net (including such items as interest income, foreign
currency gains or losses, and gains or losses from the disposal of
assets), as detailed in the accompanying table to the preliminary
condensed consolidated financial statements.
InfoSpace’s management believes that this
non-GAAP financial measure provides meaningful supplemental information
regarding our performance by excluding certain expenses and gains that
are not indicative of our core business operating results. InfoSpace
believes that management and the investors benefit from referring to
this non-GAAP financial measure in assessing InfoSpace’s
performance. Adjusted EBITDA from continuing operations should be
evaluated in light of the Company’s financial results prepared in
accordance with GAAP. A table reconciling the Company’s Adjusted EBITDA
from continuing operations to net income (loss) in accordance with GAAP
accompanies the preliminary condensed consolidated financial statements
in this release.
About InfoSpace, Inc.
InfoSpace, Inc., a leading developer of metasearch products, is focused
on bringing the best of the Web to Internet users. InfoSpace’s
proprietary metasearch technology combines the top results from several
of the largest online search engines, providing fast and
comprehensive search results on InfoSpace sites including Dogpile (www.dogpile.com)
and WebFetch (www.webfetch.com).
For the second consecutive year, JD Power and Associates ranked Dogpile
highest in customer satisfaction among search engines. InfoSpace’s
metasearch technology is also available on more than 100 partner sites,
including content, community and connectivity sites. More information
can be found at www.infospaceinc.com.
This release contains forward-looking statements relating to
InfoSpace, Inc.’s operating results that are subject to certain risks
and uncertainties that could cause actual results to differ materially
from those projected. The words “believe,” “expect,” “intend,”
“anticipate,” variations of such words, and similar expressions identify
forward-looking statements, but their absence does not mean that the
statement is not forward looking. Forward-looking statements
include, without limitation, statements regarding optimism for strong
growth and profitability to continue and our financial performance for
the third quarter and full year 2008. These statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict. Factors
that could affect InfoSpace’s actual results include general economic,
industry and market sector conditions, the progress and costs of the
development of our products and services, the timing and extent of
market acceptance of those products and services, our dependence on
companies to distribute our products and services, the ability to
successfully integrate acquired businesses, the successful execution of
the Company’s strategic initiatives and
restructuring plans, and the condition of our cash investments. A
more detailed description of certain factors that could affect actual
results include, but are not limited to, those discussed in InfoSpace’s
most recent Annual Report on Form 10-K and our Quarterly Reports on Form
10-Q as filed from time to time, in the section entitled “Risk Factors.”
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. InfoSpace undertakes no obligation to update publicly
any forward-looking statements to reflect new information, events or
circumstances after the date of this release or to reflect the
occurrence of unanticipated events.
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InfoSpace, Inc. |
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Preliminary Condensed Consolidated Statements of Operations(1) |
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(Unaudited) |
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(Amounts in thousands, except per share data) |
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Three months ended |
Six months ended |
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June 30, |
June 30, |
June 30, |
June 30, |
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|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
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|
Revenues |
$ |
38,328 |
$ |
31,763 |
$ |
80,510 |
$ |
67,627 |
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|
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Operating expenses: (2) |
||||||||||||||||||
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|
||||||||||||||||||
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Content and distribution |
18,062 |
12,597 |
39,854 |
27,545 |
||||||||||||||
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Systems and network operations |
2,774 |
2,406 |
5,216 |
4,685 |
||||||||||||||
|
Product development |
2,929 |
2,484 |
5,138 |
4,763 |
||||||||||||||
|
Sales and marketing |
6,041 |
6,665 |
9,830 |
11,490 |
||||||||||||||
|
General and administrative |
4,960 |
29,557 |
12,682 |
39,199 |
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Depreciation |
1,731 |
1,273 |
3,218 |
2,656 |
||||||||||||||
|
Restructuring and other, net(3) |
|
(2,011 |
) |
|
(1,669 |
) |
|
(1,871 |
) |
|
(2,502 |
) |
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|
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Total operating expenses |
|
34,486 |
|
|
53,313 |
|
|
74,067 |
|
|
87,836 |
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Operating income (loss) |
3,842 |
(21,550 |
) |
6,443 |
(20,209 |
) |
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|
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Gain (loss) on investments, net |
(4,362 |
) |
65 |
(11,069 |
) |
65 |
||||||||||||
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Other income, net |
|
2,654 |
|
|
4,360 |
|
|
4,897 |
|
|
9,685 |
|
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Income (loss) from continuing operations before income taxes |
2,134 |
(17,125 |
) |
271 |
(10,459 |
) |
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Income tax benefit (expense) |
|
577 |
|
|
(3,894 |
) |
|
395 |
|
|
(6,969 |
) |
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Income (loss) from continuing operations |
|
2,711 |
|
|
(21,019 |
) |
|
666 |
|
|
(17,428 |
) |
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Discontinued operations:(1) |
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Loss from discontinued operations, net of taxes |
(821 |
) |
(7,111 |
) |
(1,311 |
) |
(11,242 |
) |
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Gain (loss) on sale of discontinued operations, net of taxes |
|
43 |
|
|
– |
|
|
(195 |
) |
|
– |
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Net income (loss) |
$ |
1,933 |
|
$ |
(28,130 |
) |
$ |
(840 |
) |
$ |
(28,670 |
) |
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Earnings (loss) per share – Basic |
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Income (loss) from continuing operations |
$ |
0.08 |
$ |
(0.64 |
) |
$ |
0.02 |
$ |
(0.54 |
) |
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Loss from discontinued operations |
(0.02 |
) |
(0.22 |
) |
(0.04 |
) |
(0.35 |
) |
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Gain (loss) on sale of discontinued operations |
|
0.00 |
|
|
– |
|
|
(0.00 |
) |
|
– |
|
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|
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Net income (loss) per share – Basic |
$ |
0.06 |
|
$ |
(0.86 |
) |
$ |
(0.02 |
) |
$ |
(0.89 |
) |
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Weighted average shares outstanding used in
computing basic income (loss) per share |
|
34,334 |
|
|
32,626 |
|
|
34,316 |
|
|
32,047 |
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Earnings (loss) per share – Diluted |
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Income (loss) from continuing operations |
$ |
0.08 |
$ |
(0.64 |
) |
$ |
0.02 |
$
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