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NBC Internet Announces Cost Reduction Initiatives
SAN FRANCISCO, Jan. 18 /PRNewswire/ -- NBC Internet, Inc. (Nasdaq: NBCI) today announced cost reduction initiatives aimed at allowing the company to attain profitability amid a slowing online advertising market. As previously stated, NBC Internet (NBCi) anticipates becoming profitable before non-cash charges and NBC promotion in the fourth quarter of 2001 or the first quarter of 2002.
(Photo: newscom.com )
As part of the cost reductions, NBCi is reducing its operating costs in line with new revenue projections for 2001. The cost reductions will be realized primarily from the elimination of approximately 150 staff positions, or approximately 30 percent of NBCi's work force. Staff positions are being eliminated within all areas of the company.
The cost reductions will offset a revenue shortfall NBCi is anticipating as a result of the slowdown in the online advertising market. NBCi is resetting its revenue projections for 2001 to approximate $100 million. The company's previous projection for 2001 revenues was $150 million.
"We are determined to reach profitability within the same time frame we reported at the end of the third quarter 2000," said Will Lansing, NBC Internet CEO. "But to reach this goal, we needed to make difficult decisions on the operational side of our business to account for the challenges within the online advertising market."
More details on the cost reductions and revenue projections will be disclosed on February 7, 2001, when NBCi will report its financial results for the fourth quarter and fiscal year ending December 31, 2000.
About NBC Internet, Inc.
NBC Internet, Inc. (NBCi) is a leading Internet company that helps consumers access Internet resources, leveraging user data to broker information, commercial, and entertainment transactions between consumers and marketing partners. NBCi's flagship consumer Internet portal, NBCi.com, provides Internet search and directory, information, community, personal file storage, e-commerce, and entertainment services for both narrowband and broadband users.
NBCi was launched in November 1999 through the combination of NBC and CNET's Snap.com, Xoom.com, NBC.com, NBC Interactive Neighborhood, VideoSeeker, and a 10 percent equity stake in CNBC.com. NBC Internet publicly trades under the ticker NBCI on The Nasdaq Stock Market(R). NBC, a subsidiary of General Electric Company (GE), holds a 39.2 percent ownership stake in NBCi. NBCi is headquartered in San Francisco and has offices in New York City, Los Angeles, and Chicago.
This press release contains statements that are forward-looking, including statements related to its operating costs and revenues. These statements are based on NBCi's expectations of its future results as of the date of this press release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those listed from time to time in NBC Internet Inc.'s SEC reports, including but not limited to NBCi's Quarterly Reports on Form 10-Q for the periods ended March 31, 2000, June 30, 2000, and September 30, 2000 and the Registration Statements on Form S-4 and Form S-1 filed by NBC Internet, Inc., as amended. Important factors that could cause the results to differ materially from those in any such forward-looking statements include: NBCi's limited operating history; unpredictability of its quarter-to-quarter results; its unproven business model and dependence on members; risks associated with its international operations; its reliance on a network infrastructure; its dependence on vendors and suppliers; management of its growth and expansion; risks associated with brand development; its reliance on advertising revenue; intense competition with other Web communities and businesses; the risks of infringement of intellectual property rights; risks associated with acquisitions; and reliance on strategic relationships.
SOURCE NBC Internet, Inc.
CO: NBC Internet, Inc.; General Electric Company
ST: California
IN: CPR MLM
SU: RCN
01/18/2001 08:41 EST prnewswire.com |
