Lycos Surpasses Estimates by 4 Cents a Share
thestreet.com
Lycos Surpasses Estimates by 4 Cents a Share
By Jamie Paton
TheStreet.com/NYTimes.com Staff reporter
8/15/00 6:05 PM ET
Internet media company Lycos (LCOS:NASDAQ - news) handily surpassed Wall Street's expectations Tuesday, reporting an operating profit of $13 million for its fourth fiscal quarter, compared with a loss a year earlier, as revenue rose 89%.
But the company did report a wider net loss for the quarter, reflecting one-time items including merger-related costs.
Lycos, based in Waltham, Mass., said that excluding one-time items, it earned 12 cents a share in the quarter ended July 31, in contrast to a loss of $3 million, or 4 cents a share, in the fourth quarter last year. The consensus among Wall Street analysts was for earnings of 8 cents a share in the latest quarter, according to First Call/Thomson Financial.
Lycos, which is preparing to be acquired by Terra Networks (TRRA:NASDAQ ADR - news) of Spain, said revenue in the quarter increased to $88 million, an 89% rise from the corresponding quarter of 1999. Operating margins, the company said, improved to 13% while page views were up by 36%.
Including such one-time items as amortization of goodwill and merger-related costs from its acquisition of Gamesville, Lycos posted a net loss of $39.5 million, or 36 cents a diluted share, in the latest quarter, compared with a loss of $21.4 million, or 24 cents a share, in the fourth fiscal quarter of last year.
Bob Davis, president and chief executive of Lycos, said in a statement that the quarter marked the 18th consecutive time the company met or exceeded consensus estimates. And the latest figures, he said, are "evidence of the strong momentum" that is building as the company prepares to join Terra Networks.
The deal -- valued at $12.5 billion when the deal was announced in mid-May -- should be completed in October, the companies said.
Lycos posted its results after the stock market closed. The company's shares ended regular trading down 9/16, or 1%, at 57 15/16. They were little changed at 57 1/2 in after-hours trading, according to Instinet.
Lycos said it started additional services in China, Taiwan, Hong Kong and India in the last quarter. It added that it now offers services on 79 sites in 28 countries around the world.
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