HOOV 8:27 P.M. news release (!) --
Hoover's Updates Guidance for
Quarter Ending September 30, 2001,
and Opens Trading Window for
Share Repurchases
September 17, 2001 8:27pm
AUSTIN, Texas, Sept. 17 /PRNewswire/ -- Hoover's, Inc. (Nasdaq: HOOV), a
leading provider of online business information and operator of Hoover's
Online (www.hoovers.com ), updated its guidance for the quarter ending
September 30, 2001, in order to open a trading window for the company and
insiders to purchase shares of Hoover's stock. While the SEC has relaxed
volume and timing restrictions governing share buyback programs,
regulations restricting share repurchases based on material non-public
information remain in force.
At current prices, we believe our company is undervalued. Accordingly, we
are taking the actions necessary to enable our company, our employees and
other insiders to purchase our company's stock at this time, said Jeffrey R.
Tarr, Hoover's president and CEO.
Hoover's will provide further details on its September quarter performance
and strategy during the company's next public quarterly earnings conference
call.
Updated Guidance on Results for the Quarter Ending September 30, 2001
Revenues -- approximately $7.6 million. Declines in the company's
advertising revenues have contributed to the 6% revenue decline from the
quarter ended June 30, 2001.
During the current quarter, the company expects to record losses related to
its investments in various privately held companies, its capitalized costs
associated with the development of an e-commerce system that will not be
implemented, and severance charges related to changes in executive
management. These non-cash charges, along with other one-time costs,
have significantly increased expenses for the quarter, but in the company's
view have better positioned the business for future net income profitability.
Net loss is expected to be ($0.30) per share, compared to ($0.48) per share
for the quarter ended June 30, 2001.
EBITDA losses adjusted for the one-time charges mentioned above are
expected to be approximately ($0.02) per share.
Excluding the effects of stock buybacks for the remainder of the quarter, the
company expects its cash balance to be approximately $29 million at the
end of the current quarter, or just under $2 per share.
About Hoover's, Inc.
Hoover's, Inc. provides online business information and tools to help
businesspeople get their jobs done. Hoover's information is available
through its destination site Hoover's Online (http://www.hoovers.com ) and
the company's other sites in France, Germany, Italy, Spain and the U.K.;
through co-branding agreements with other online services; and through
customized applications developed for enterprise information portals,
corporate intranets and business-to-business vertical and content
sites. Hoover's investors include AOL Time Warner (NYSE: AOL), Media
General (Amex: MEG.A), and Knowledge Universe, through its Knowledge
Net Holdings and Nextera Enterprises (Nasdaq: NXRA) units. Hoover's is headquartered in
Austin, TX, and has offices in London, New York City, and San Francisco.
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