Todays Earnings are ???????????????????????? and the winner is
InfoSpace Reports Fourth Quarter and Year End 2000 Financial Results
InfoSpace Reports a Pro-Forma Profit of $0.04 Per Diluted Share and Revenues Of $66.1 Million
BELLEVUE, Wash., Jan. 29 -- InfoSpace, Inc. (Nasdaq: INSP), a leading global provider of cross-platform merchant and consumer infrastructure services on wireless, broadband and narrowband platforms, today announced that fourth quarter revenues grew to $66.1 million. This is a 125% increase compared to the $29.4 million reported in the comparable quarter of 1999. InfoSpace earned a pro forma net profit of $12.6 million, or $0.04 per diluted share compared to a pro forma net loss of $7.8 million, or a loss of $0.03 per basic share reported in the same period last year. InfoSpace also reported pro forma operating income of $6.1 million for the quarter and $19.9 million for the full year.
InfoSpace also announced that more than 1.5 million wireless subscribers have registered to use InfoSpace powered services. Wireless subscribers reached record levels as consumers worldwide continued to sign up and use wireless Internet services through leading wireless carriers including Verizon, Cingular, AT&T and others.
Revenues for 2000 were $214.6 million, an increase of 197% from the $72.3 million reported for 1999. Pro forma net profit for the year was $46.2 million, or $0.14 per diluted share compared to a pro forma net loss of $9.9 million, or a loss of $0.03 per basic share reported for 1999.
"InfoSpace continues to expand its relationships and deliver value to wireless carriers proven by the significant revenue growth in our wireless business and the more than 1.5 million wireless subscribers," said Naveen Jain, chairman and CEO, InfoSpace. "InfoSpace will continue to relentlessly execute and rapidly innovate to consistently provide wireless carriers worldwide with exceptional service and unique products needed to be successful in this space."
InfoSpace announced additional strong partnerships in the wireless space demonstrating its leadership in providing the platform that is used by leading wireless carriers, wireless hardware providers and other mobile device manufacturers and service providers. These relationships include new wireless carrier relationships with Powertel and Cincinnati Bell. These wireless carriers join a distinguished list of partners that already use InfoSpace's platform including Verizon, Cingular, AT&T, ALLTEL, Qwest and VoiceStream.
InfoSpace continues to demonstrate its ability to OEM its products directly with leading hardware manufacturers such as Intel, and leading network infrastructure providers such as Nortel. During the quarter, InfoSpace announced that Lucent will integrate InfoSpace's platform and suite of services with its products and offer it to wireless carriers worldwide. Lucent will also use InfoSpace's location-based technology and services that will make use of the Lucent Mobile Internet Gateway.
In addition, InfoSpace announced that Compaq will be using its platform and suite of services on the Compaq iPAQ PocketPC and Blackberry devices.
InfoSpace continues to expand its platform delivering innovative services to the Company's wireless carrier partners. InfoSpace recently announced that it plans to add multi-lingual speech recognition technologies to its platform that will deliver speech-based applications to the wireless carriers. InfoSpace plans to release a beta version of its speech-enabled applications and services in the first quarter of 2001. These services will enable cellular phone and desktop users to use InfoSpace powered-services to take advantage of wireless Internet data and applications.
Mobile commerce continues to gain traction as more wireless carriers look to expand their service offerings sooner than expected. InfoSpace announced that Cingular, the second largest wireless carrier in the U.S., launched its mobile commerce services powered by InfoSpace's platform and network of merchants. In addition, Cingular added InfoSpace's messaging applications to the suite of services already launched with InfoSpace last fall.
InfoSpace also announced an expanded relationship with Intel to provide the wireless promotions technology for its hardware. InfoSpace currently provides Intel with its wireless platform and suite of services for its new Web appliance.
InfoSpace's broadband business continues to heat up as new partnerships were announced with Microsoft, OpenTV, Winfire and Liberate. InfoSpace also announced it will be launching its first broadband application with Bloomberg TV coming soon. Note: InfoSpace has scheduled a conference call for 2:00 p.m. PST to discuss fourth quarter and full year 2000 financial results as well as financial guidance for 2001. Interested parties may access the conference call over the Internet through the Company's Web site at www.infospace.com in the Investor Relations section. Or, callers may telephone at 888-324-3612 using the passcode 'Earnings.'
A replay will be available approximately one hour after the call until Monday, February 5 at 6:00 p.m. PST on the website or by dialing 800-283-4984, no passcode is necessary.
About InfoSpace, Inc.
InfoSpace is a leading global provider of cross-platform merchant and consumer infrastructure services on wireless, broadband and narrowband platforms. The company provides commerce, information and communication infrastructure services to wireless devices, merchants, and Web sites. InfoSpace's affiliates encompass a global network of wireless, PC, and non-PC devices, including cellular phones, pagers, screen telephones, television set-top boxes, online kiosks and personal digital assistants. These include relationships with AT&T Wireless, Intel, Ericsson, Nokia, Mitsui, Acer America, Hasbro, National Discount Brokers, and Bloomberg LLC. InfoSpace's affiliate network also consists of more 3,200 Web sites that include AOL, Microsoft, Disney's GO Network, NBC's Snap, Lycos, DoubleClick and ABC LocalNet, among others. InfoSpace is also positioned to tap the market for broadband wired (DSL and cable) and broadband wireless (2.5G and 3G) services, such as interactive gaming, television and other entertainment services. In addition, the company recently added full back end payment processing to InfoSpace's existing commerce services, allowing InfoSpace to offer everything a merchant needs to conduct the entire lifecycle of a transaction, one of the key drivers of mobile commerce adoption.
This release contains forward-looking statements relating to the development of the company's products and services and future 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. 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 the Company's actual results include the progress and costs of the development of our products and services, the timing of market acceptance of those products and services, the performance of our systems, the effectiveness of the development and implementation of our strategy, the ability to retain key personnel, and general economic conditions. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in InfoSpace's Annual Report on Form 10-K, in the section entitled "Factors Affecting InfoSpace's Operating Results, Business Prospects and Market Price of Stock 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.
InfoSpace, Inc.
Pro Forma Consolidated Statements of Operations (A)
(unaudited)
Three months ended Twelve months ended
Dec. 31 Dec. 31
2000 1999 2000 1999
Revenues $66,053,738 $29,373,693 $214,562,973 $72,339,490
Cost of revenues 11,087,048 4,573,096 35,580,480 13,336,550
Gross profit 54,966,690 24,800,597 178,982,493 59,002,940
83% 84% 83% 82%
Operating expenses:
Product development 13,021,176 4,735,570 37,068,309 15,161,740
Sales, general and
administrative 35,856,179 35,542,438(B) 122,022,799 76,102,793(B)
Total operating
expenses 48,877,355 40,278,008 159,091,108 91,264,533
Profit (loss)
from operations 6,089,335 (15,477,411) 19,891,385 (32,261,593)
Other income, net 6,493,804 7,667,124 28,412,618 22,342,368
Cumulative effect
of change in
accounting principle -- (2,055,537) --
Pro forma income
(loss) $12,583,139 $(7,810,287) $46,248,466 $(9,919,225)
Pro forma basic
income (loss)
per share $0.04 $(0.03) $0.15 $(0.03)
Pro forma diluted
income (loss)
per share $0.04 $(0.03) $0.14 $(0.03)
Shares used in
computing pro forma
basic income (loss)
per share 315,300,708 276,874,815 304,479,973 283,411,552
Shares used in
computing pro forma
diluted income
(loss) per share 339,025,905 276,874,815 340,733,975 283,411,552
(A) Pro forma results exclude non-cash charges, non-recurring charges and items unrelated to the Company's core operations. This financial statement excludes amortization of intangibles, acquisition-related expenses, other non-recurring charges, restructuring charges, preferred stock dividend, realized gains/losses on investments, income tax benefit and minority interest in the VC fund, which are summarized in the following table. This financial statement also excludes employer payroll taxes assessed on stock option gains realized by employees from non-qualified stock option exercises which are recorded in cost of revenue, product development and sales, general and administrative expenses. They do not purport to be financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP). The following table reconciles the pro forma net income in accordance with GAAP for the periods presented.
(B) Q4 1999 and Year-Ended 1999 include $16.8 million and $17.6 million, respectively, in warrant expense which InfoSpace assumed in the acquisition of Prio.
InfoSpace, Inc.
Reconciliation of Pro Forma Net Income
(unaudited)
Three months ended Twelve months ended
Dec. 31 Dec. 31
2000 1999 2000 1999
Pro forma
net loss $12,583,139 $(7,810,287) $46,248,466 $(9,919,225)
Employer
payroll taxes
on stock
option exercises (35,316) (985,068) (4,660,524) (2,434,999)
Amortization of
intangibles (58,291,617) (21,371,350) (174,404,392) (3,223,031)
Acquisition &
other related
charges (29,626,938) (7,454,495) (123,835,126) (13,573,537)
Other -
non-recurring
charges (25,724,813) (10,500,000) (28,612,422) (50,897,232)
Restructuring
charges (202,995) -- (2,374,458) --
Preferred stock
dividend -- -- -- (159,930,733)
Realized gain
(loss) on
investments (846,862) -- 7,538,198 --
Income tax
benefit 2,952,240 -- 2,866,419 --
Minority interest
in VC Fund 2,236,458 -- (2,007,520) --
Net loss $(96,956,704) $(48,121,200) $(279,241,359) $(239,978,757)
InfoSpace, Inc.
Consolidated Statements of Operations
(unaudited)
Three months ended Twelve months ended
Dec. 31 Dec. 31
2000 1999 2000 1999
Revenues $66,053,738 $29,373,693 $214,562,973 $72,339,490
Cost of
revenues 11,088,424 4,644,273 35,623,853 13,540,239
Gross Profit 54,965,314 24,729,420 178,939,120 58,799,251
83% 84% 83% 81%
Operating expenses:
Product
development 13,025,437 5,111,578 39,320,017 15,580,166
Sales, general
and
administrative 35,885,858 36,080,321 124,388,242 77,915,677
Amortization of
intangibles 58,291,617 21,371,350 174,404,392 3,223,031
Acquisition &
other related
charges 29,626,938 7,454,495 123,835,126 13,573,537
Other -
non-recurring
charges 25,724,813 10,500,000 28,612,422 50,897,232
Total
operating
expenses 162,554,663 80,517,744 490,560,199 161,189,643
Loss from
operations (107,589,349) (55,788,324) (311,621,079) (102,390,392)
Realized gain
(loss) on
investments (846,862) -- 7,538,198 --
Minority interest
in VC Fund 2,236,458 -- (2,007,520) --
Restructuring
charges (202,995) -- (2,374,458) --
Other income,
net 6,493,804 7,667,124 28,412,618 22,342,368
Loss from
operations
before income
tax expense,
preferred stock
dividend and
cumulative effect
of change in
accounting
principle (99,908,944) (48,121,200) (280,052,241) (80,048,024)
Preferred stock
dividend -- -- -- 159,930,733
Income tax
expense
(benefit) (2,952,240) -- (2,866,419) --
Loss from
operations
before
cumulative
effect
of change in
accounting
principle (96,956,704) (48,121,200) (277,185,822) (239,978,757)
Cumulative effect
of change in
accounting
principle -- -- (2,055,537) --
Net loss $(96,956,704) (48,121,200) $(279,241,359) $(239,978,757)
Basic loss
per share $(0.31) $(0.17) $(0.92) $(0.85)
Shares used
in computing
basic net loss
per share 315,300,708 276,874,815 304,479,973 283,411,552
InfoSpace, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
Dec. 31, Dec. 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $67,223,693 $104,349,564
Short-term investments 302,946,592 295,311,142
Accounts receivable, net 34,782,766 13,551,478
Notes and other receivables 25,285,842 18,523,758
Prepaid expenses and other current assets 14,540,877 10,970,372
Total current assets 444,779,770 442,706,314
Property and equipment, net 52,621,938 11,878,406
Long-term investments 32,451,342 116,076,568
Other investments 122,399,203 117,588,539
Intangibles, net 645,659,183 276,210,232
Other long-term assets 5,062,870 2,046,405
Total assets $1,302,974,306 $966,506,464
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,555,167 $3,688,756
Accrued expenses and other current
liabilities 39,742,476 23,471,335
Deferred revenue 31,846,832 14,265,953
Total current liabilities 76,144,475 41,426,044
Long-term liabilities and minority interest:
Long-term debt -- 685,762
Deferred revenue 8,038,104 4,947,241
Deferred tax liability 26,205,912 14,395,847
Minority interest - VC Fund 20,436,182 --
Total long-term liabilities and
minority interest 54,680,198 20,028,850
Stockholders' equity:
Common stock 31,667 28,341
Additional paid-in capital 1,595,595,858 959,491,801
Accumulated deficit (405,347,660) (126,106,301)
Comprehensive income (15,134,308) 75,467,032
Deferred compensation (2,995,924) (3,829,303)
Total stockholders' equity 1,172,149,633 905,051,570
Total liabilities and stockholders'
equity $1,302,974,306 $966,506,464
CONTACT: investors, Joni Hanson, Senior Vice President of Investor
Relations and Communications, 425-201-6100, or jhanson@infospace.com, or
Nicole Knowles, Director, Investor Relations, 425-201-6100, or
nknowles@infospace.com, both of InfoSpace, Inc.; or press, Minou Nguyen of
Text 100 Public Relations, 206-381-3791, ext. 138, or minoun@text100.com,
for InfoSpace, Inc.
SOURCE InfoSpace, Inc.
/CONTACT: investors, Joni Hanson, Senior Vice President of Investor
Relations and Communications, 425-201-6100, or jhanson@infospace.com, or
Nicole Knowles, Director, Investor Relations, 425-201-6100, or
nknowles@infospace.com, both of InfoSpace, Inc.; or press, Minou Nguyen of
Text 100 Public Relations, 206-381-3791, ext. 138, or minoun@text100.com, for
InfoSpace, Inc./
PRN Photo Desk, 888-776-6555 or 201-369-3467/
/Web site: infospace.com
(INSP) |
