Investors flock to GO2NET
Profit surges, Theglobe.com debut helps stock's rise
By Steve Gelsi, CBS MarketWatch
Last Update: 4:50 PM ET Nov 13, 1998 NewsWatch
SEATTLE (CBS.MW) -- Shares of Go2Net jumped 33 percent Friday after the company posted better-than-expected earnings and was swept up by the Theglobe.com's meteoric debut.
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Updated:
11/13/98 6:07:58 PM ET
Theglobe.com's initial public offering helped fuel Go2Net's stock higher. Theglobe.com (TGLO), a Web community specialist, spun to dizzying heights Friday, rising about seven times its $9 offering price. See related story. Go2Net is a network of technology- and community-driven Web sites.
Go2Net (GNET) earned $130,545 or 2 cents a share in the fiscal fourth quarter, excluding one-time charges vs. a loss of 10 cents expected by Wall Street analysts in a survey by First Call.
Shares of Go2Net rose 9 3/4 to 39 1/4 Friday.
The company incurred a loss of $400,746 or 9 cents in the year-ago period.
Revenue was $2 million up 46.9 percent from the previous quarter and 530 percent more than the year-ago period.
The non-recurring merger and acquisition-related charges associated with the company's acquisition of Hypermart totaled $319,512. Net loss for the quarter after these non-recurring charges was $188,967, or 3 cents per share.
"While Go2Net is still in the very early stages of accomplishing its goals, we are pleased with the strong revenue and traffic growth this quarter and particularly pleased with achieving profitability," Go2Net CEO Russell C. Horowitz said in a press release. "Expanding recognition of the Go2Net brand is one of our primary goals for fiscal 1999."
The company said it will increase its marketing spending and pursue acquisitions.
Go2Net Network traffic increased 22 percent to 6.7 million average page views per day in September vs. 5.5 million average page views per day in June.
Go2Net had 227 advertisers in the fourth quarter of 1998, up from 138 advertisers in the previous quarter.
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