InfoSpace Announces Profitability for Merchant and Wireline Business Units
Merchant and Wireline Together Accounted for Approximately 80% of First Quarter Revenue
BELLEVUE, Wash.--(BUSINESS WIRE)--May 16, 2002--InfoSpace, Inc. (Nasdaq:INSP - News), a provider of wireless and Internet software and application services, reported in its quarterly Form 10-Q filed May 15, 2002 with the Securities and Exchange Commission that the Company's Merchant and Wireline Business Units were profitable for the first quarter on a pro forma basis.
Pro forma excludes certain items as detailed in the footnotes in the following financial tables.
"One of our unique strengths as a company is that each of our three lines of business represents a sector at a different stage of maturity," said Naveen Jain, chairman and chief executive officer of InfoSpace. "Our wireline business is today a significant revenue generator and will continue to be a solid business for us in the future. Merchant also generates significant revenue and is currently showing strong growth in all areas, particularly in the number of transactions and total dollars processed. Finally, wireless represents what we believe will be a significant growth opportunity in the future and we will continue to invest in this area."
For the first quarter, InfoSpace's Merchant Business Unit accounted for approximately 36% of total revenue. This business was pro forma profitable for the first quarter and is expected to continue to be profitable on a pro forma basis for the remainder of this year. During the first quarter, InfoSpace Merchant services processed more than $1.3 billion in transactions, up from $1 billion reported in the fourth quarter of last year.
InfoSpace's Wireline Business Unit accounted for approximately 44% of revenue for the first quarter. This business was pro forma profitable for the first quarter and is expected to continue to be profitable on a pro forma basis for the remainder of this year. During the first quarter, the Wireline business processed over 3.7 billion queries, an increase of 100 million queries from the fourth quarter of last year.
The Wireless Business Unit accounted for approximately 20% of total revenue for the first quarter. Wireless continues to represent an area of strong potential growth and the Company expects to continue to invest in this area. During the first quarter, the Wireless business added 70,000 active monthly subscribers and announced four new wireless carrier agreements.
"We continue to pursue markets that are either pro forma profitable for us or that offer high growth potential," said Ed Belsheim, president and chief operating officer of InfoSpace. "InfoSpace is well positioned for the future with a strong balance sheet, blue chip customers and an exceptional group of talented employees."
The Company also announced in its Form 10-Q filing the immediate termination (effective May 13, 2002) of all program sales by InfoSpace Chairman and Chief Executive Officer Naveen Jain, instituted under a plan adopted last year pursuant to rule 10b5-1 under the Securities and Exchange Act. The program was instituted by Mr. Jain to provide a way to diversify his investment portfolio by allowing him to sell a small portion of shares on a regular basis without control over the timing or price once the program commenced.
In addition, the Company announced the termination of program sales by other senior executives instituted under plans adopted last year pursuant to rule 10b5-1 under the Securities and Exchange Act. These programs were instituted in connection with the grant of restricted stock in part to cover the tax liabilities accrued due to the vesting of these restricted shares. |
