Narrower-than-expected loss for NetZero
Sales surge over 2,000 percent
By Cecily Fraser, CBS MarketWatch
Last Update: 5:24 PM ET Apr 27, 2000 NewsWatch
WESTLAKE VILLAGE, Calif. (CBS.MW) -- Free Internet access provider NetZero reported better-than-expected third-quarter results Thursday, benefiting from a meteoric rise in sales and growth in its user base.
"March was another tremendous quarter for NetZero," said Mark Goldston, chief executive officer. "We passed the 4 million registered-user mark and, importantly, we continued to demonstrate our unique ability to turn user traffic into multiple revenue streams and deliver improved financial results."
Revenue totaled $16.9 million, skyrocketing 2,059 percent from $781,000 last year. The company said it added more than 1 million registered users during the third quarter, bringing its total registered-user base to more than 4 million.
The third-quarter loss totaled $24.9 million, or 27 cents a share. Excluding stock-based compensation charges and amortization, the company said it lost 24 cents a share. A survey of analysts compiled by First Call, predicted a deficit of 30 cents a share.
Last year, the company posted a loss of $4.9 million, or 50 cents.
Shares of Netzero (NZRO: news, msgs) could get a lift in morning trading due to the company's better-than-expected financial results.
The stock closed down 3/4 to 12 1/16 ahead of the news, which was released after the market closed. At current levels, the stock is up 45 percent for the week, enjoying gains after telecom equipment maker Qualcomm (QCOM: news, msgs) announced Monday that purchased a 10 percent stake in the Internet service provider for $144 million. See full story.
Cecily Fraser is an online reporter for CBS MarketWatch.
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