Internet Capital Group Announces First Quarter Results
Thursday May 4, 8:30 am ET
WAYNE, Pa.--(BUSINESS WIRE)--May 4, 2006--Internet Capital Group, Inc. (Nasdaq:ICGE - News) today reported its results for the first quarter ended March 31, 2006.
First Quarter Highlights:
* ICG's Core companies saw momentum in new customer acquisitions, driving aggregate revenue growth in the first quarter of 2006 versus the first quarter of 2005.
* ICG Commerce and StarCite showed impressive revenue growth and reported positive net income.
* ICG acquired a 36% ownership interest in Vcommerce, an e-commerce company that provides on-demand commerce and fulfillment solutions for multi-channel retailers and direct-to-consumer companies.
"In the first quarter of 2006, ICG saw the results of executing against its strategy," said Walter Buckley, ICG's Chairman and Chief Executive Officer. "We are excited about our progress in a number of areas including the recent acquisition of Vcommerce - a company that closely fits with our acquisition thesis. Coupled with our WhiteFence acquisition, this demonstrates our ability to capitalize on the growing opportunity within the on-demand software market, and recognizes the value of our expertise in helping build these types of companies."
ICG Financial Results
ICG reported consolidated revenue of $15.9 million for the first quarter of 2006 versus $11.9 million for the 2005 period. ICG reported a net loss of $(4.9) million, or $(0.13) per share, for the first quarter of 2006 versus a net loss of $(3.1) million, or $(0.08) per share, for the 2005 period. Results for the first quarter of 2006 include $2.1 million of stock-based compensation versus $0.4 million in the prior year's period. Additionally, results for the first quarter of 2006 include $0.5 million in net gains primarily from an income tax benefit versus $4.6 million in net gains in 2005 primarily from sales of marketable securities.
ICG's corporate cash and short-term investment balance at March 31, 2006 was $123.0 million and the value of its public securities, including Blackboard, GoIndustry and Traffic.com, was $93.8 million.
ICG Core Partner Company Information
In the first quarter of 2006 ICG acquired a 36% ownership stake on a primary basis in Vcommerce for $13 million. To aid in the comparability of the ICG Core partner company information, ICG is presenting pro forma financial information assuming this event occurred on January 1, 2005. Set forth below is pro forma information relating to ICG's current nine private Core companies: CreditTrade, Freeborders, ICG Commerce, Investor Force, Marketron, Metastorm, StarCite, Vcommerce and WhiteFence. ICG's weighted average ownership position in these nine companies is 45%.
Aggregate pro forma revenue of ICG's nine private Core companies grew 14% year over year, to $52.7 million in the first quarter of 2006 from $46.1 million in the first quarter of 2005. CreditTrade had a down quarter from a very strong 2005 quarter. Excluding CreditTrade, revenue growth for the other eight companies was 29%. Aggregate pro forma EBITDA (loss) for the Core companies was $(3.2) million in the first quarter of 2006 from $(3.3) million in the first quarter of 2005. Please refer to the supplemental financial data at the end of this release for a reconciliation of such amounts to the nearest comparable GAAP measures.
"This group of companies continues to gain broader and deeper traction with new and existing customers, and we believe they are well positioned to achieve at least 20% revenue growth for the year," said Buckley. "We're optimistic that our Core companies can benefit from the significant opportunity presented by the rising corporate trend to adopt on-demand software and services as a means to achieve efficiencies and increase productivity."
ICG will host a webcast at 10:00 am ET today to discuss results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to internetcapital.com and click on the link for the first quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode at 877-407-8035. The international dial in number is 201-689-8035.
For those unable to participate in the conference call, a replay will be available beginning May 4, 2006 at 11:00 am until May 11, 2006 at 11:59p.m. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter the account code, 286, followed by the conference ID number 148944. The replay and slide presentation can also be accessed on the Internet Capital Group web site at internetcapital.com.
About Internet Capital Group
Internet Capital Group (www.internetcapital.com) owns and builds Internet software companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies that are delivering on-demand software and service applications to customers worldwide. |
