Overture Raises Forecasts to Incorporate Strong First Quarter Performance and New Long-Term Yahoo! Relationship
U.S. AOL Relationship Ends
PASADENA, Calif.--(BUSINESS WIRE)--April 30, 2002--Overture Services, Inc. (Nasdaq:OVER - news), the world's leading provider of Pay-For-Performance search to Web sites across the Internet, today issued increased financial guidance due to its strong first quarter 2002 results and its recently announced three-year extension of its Pay-For-Performance search agreement with Yahoo!.
The company also said that its U.S. search distribution relationship with America Online has ended, including AOL, AOL.com, Compuserve and Netscape (which is scheduled to phase out by August). Per the companies' previously announced multi-year pan-European agreement announced in January, Overture will continue to provide its Pay-For-Performance search results to AOL Europe's Internet properties in the UK, Germany and France.
Overture will be holding a conference call to discuss today's press release at 10:00 a.m. Eastern/7:00 a.m. Pacific tomorrow, May 1, 2002. Interested parties will have an opportunity to listen to the conference call live by dialing 888/982-4490 and referencing Pass Code: OVER. The call will also be broadcast live over the Internet at Overture's investor relations Web site or at www.companyboardroom.com. Please go to either site 15 minutes prior to the start of the call to download any necessary software. For those who cannot listen to a live broadcast of the call, a replay will be available shortly after the live call ends.
The following forecasts contain forward-looking information intended solely to provide management's current expectations for the second quarter of 2002, full year 2002 and full year 2003. These expectations are subject to risks and uncertainties and may prove to be inaccurate. Even though the forecasts provided herein might change after the date of this press release, Overture undertakes no obligation to revise or update this information and may not provide this type of information in the future. All numbers are approximate.
Overture's prior second quarter 2002 guidance, as announced on April 25, 2002, remains the same except for an increase of approximately $2 million in tax provision estimates for the quarter as a result of the company's increased net income projections for the full year 2002. Accordingly, second quarter 2002 net income and earnings per share projections are now projected to be $14 million and $0.23, respectively.
Full Year 2002 Forecast
Revenue:
$530 - $570 million
Traffic Acquisition Costs as a Percentage of Revenue:
56% - 57%
Income Before Income Tax:
$75 - $85 million
Net Income:
$60 - $65 million
Net Income Per Share:
$0.97 - $1.05
EBITDA(a):
$90 - $100 million
Full Year 2003 Forecast
Revenue:
$640 - $690 million
Income Before Income Tax:
$65 - $100 million
Net Income:
$35 - $55 million
Net Income Per Share:
$0.53 - $0.83
EBITDA(a):
$85 - $120 million
(a) EBITDA should be considered in addition to, not as a
substitute for or superior to, income from operations, net income, net
income per share, cash flows, or other measures of financial
performance prepared in accordance with generally accepted accounting
principles.
Conference Call Details
Overture will be holding a conference call to discuss today's press release at 10:00 a.m. Eastern/7:00 a.m. Pacific tomorrow, May 1, 2002. Interested parties will have an opportunity to listen to the conference call live by dialing 888/982-4490 and referencing Pass Code: OVER. The call will also be broadcast live over the Internet at Overture's investor relations Web site or at www.companyboardroom.com. Please go to either site 15 minutes prior to the start of the call to download any necessary software. For those who cannot listen to a live broadcast of the call, a replay will be available shortly after the live call ends. |
