Not just levy..Remember this: From Reuters in Oct 2000, then Jan 2001, and now....Who is doing the math?????? Also, note the comment about advertising...! And what's the deal with March 9th article...that says: The first two quarters of 2000, when Go2Net was being integrated into the company, caused InfoSpace to miss profitability in the fourth quarter, he said. GNET wasn't being integrated into INSP in the first 2 quarters of 2000.....The deal wasn't finalized until Oct 12, 2000.....
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InfoSpace profit rises, lifted by Go2Net purchase
October 25, 2000 5:21 pm
(Updates thelion.com details, CEO comment, background)
SEATTLE, Oct 25 (Reuters) - InfoSpace Inc. <INSP>, which syndicates content to Internet and wireless companies, on Wednesday posted a quarterly profit that more than tripled as the benefits of its purchase of Go2Net and its portfolio of Web sites kicked in.
Seattle-based InfoSpace, which supplies Yellow and White Pages directories, maps, news and stock quotes, said its pro forma profit for its third quarter came in at $9.5 million, or 3 cents a share, up from $2.9 million a year ago.
InfoSpace had been expected to break even in the quarter, according to consensus analyst estimates compiled by First Call/Thomson Financial.
Investors cheered the results, sending InfoSpace stock up $2-3/8, or more than 10 percent, to $22-11/16 in after-hours trading. The company fell 7 percent in regular trading and is far below its year high of $138-1/2.
The pro forma results include the Go2Net acquisition but exclude non-cash charges and other items not related to its core operations, the company said.
Revenues rose to $57.7 million in the three months, compared to $19.9 million a year earlier.
"The big number here is that our wireless revenue is approximately 10 percent of the total," Chief Executive Arun Sarin said in an interview. "Our wireless business is doing stunningly well."
The purchase in July of Go2Net for $4 billion in stock had given InfoSpace an entrance into Internet search services, financial information and online payments, and brought a long list of smaller merchant customers.
"With Go2Net we've added some great technology and are really putting new products and services into place," Sarin said.
Go2Net's properties included payment processing service Authorise.Net and the Dogpile search service. It also licensed the technology behind those sites to other companies.
Sarin said InfoSpace had not been affected by a slowdown in online advertising because less than 25 percent of the company's revenues came from advertising. That would shrink to 10 percent in a year, he said.
InfoSpace also said it had a committed backlog of orders totalling $130 million for the next four quarters, and that it had $425 million in cash.
Sarin gave no specific guidance for future profits but said he expected fourth-quarter revenues to total $66 million, with revenues for all of next year coming in at $360 million.
"Every part of the business is growing," he said.
InfoSpace would also soon roll out voice recognition and a unified messaging service, which would integrate e-mail and voice mail so people could access it through a mobile phone, Sarin said.
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AFTER THE BELL - Infospace surges
October 25, 2000 7:08 pm
thelion.com
NEW YORK, Oct 25 (Reuters) - Shares of InfoSpace Inc.<INSP>, which syndicates content to Internet and wireless companies, rose nearly 20 percent in after-hours trading on Wednesday, after it posted a quarterly profit that more than tripled.
Seattle-based InfoSpace, which supplies Yellow and White pages directories, maps, news and stock quotes, jumped to $24-23/64 on the Instinet electronic brokerage system after the bell. This was up from a regular session close of $20-5/16.
**********************
The March 9th, 2000 article said:
InfoSpace looking to rebound from stumble blamed on merger
Mar 09, 2001 (FWN Financial via COMTEX) -- By Kelley O. Beaucar
New York, March 9 (BridgeNews) - Naveen Jain, the chairman and chief executive officer of InfoSpace Inc., told an audience at the Merrill Lynch Internet conference here Friday that he was "humbled" by what he called a failed experience with last year's acquisition of Go2Net Inc., which resulted in a financial "speed bump" and a drop in revenue for the Bellevue, Wash.-based Internet infrastructure company.
* * *
"It looked like a good business," he said. "I underestimated the challenge of integrating the two models. That's what caused us to have a bump."
Jain said InfoSpace had believed that Go2Net could provide the direct consumer business that the company was lacking. He said Friday that InfoSpace shouldn't have dabbled in the business and said InfoSpace has returned to its role as a provider of cross-platform Internet software for merchants and the enterprise sector.
Jain, a former Microsoft Corp. employee, founded InfoSpace and returned as CEO earlier this year, replacing Arun Sarin in that role. He immediately refocused the company on wireless software, a more profitable part of business model. The first two quarters of 2000, when Go2Net was being integrated into the company, caused InfoSpace to miss profitability in the fourth quarter, he said.
InfoSpace reported revenues of $214 million in the fourth quarter of 2000, compared with $72 million the year before. It ended the year with $525 million in cash and investments.
Jain did not issue any fresh guidance on the company's prospects in 2001 or beyond. He said InfoSpace expects to report revenues of $300 million to $310 million in 2001. A consensus estimate by First Call/Thomson Financial calls for revenues of $214.7 million this year.
The company predicted earlier that it would lose 4 cents per share in the current quarter, which is also what the First Call analysts are expecting, while in the year-ago quarter it had a profit of 2 cents per share.
For the current year, InfoSpace is expecting a loss of 5 cents a share, as are the First Call analysts.
In early activity Friday, shares of InfoSpace were last reported trading at 3 3/8, off 1/8 from the previous day's regular-session close. |
