Infoseek Reports Record Revenues for its First
Fiscal Quarter of 1999; Company Launches New
Internet Portal, GO Network, on January 12,
1999; Revenues Up 57 Percent Over Prior
Quarter
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 28,
1999--Infoseek Corporation (Nasdaq:SEEK) today announced
record revenues totaling $30.2 million for the first fiscal
quarter of 1999, an increase of 138 and 57 percent over the
same three-month period one year ago and prior quarter,
respectively. On November 18, 1998, Infoseek and The Walt
Disney Company (NYSE:DIS) entered into a strategic
relationship (the "Disney Transaction") which included the
creation of GO Network (go.com) and the acquisition of
Starwave Corporation by Infoseek from The Walt Disney
Company.
Infoseek also announced today that the company changed its
accounting year to a 52/53-week fiscal year ending on the
Saturday closest to September 30 of each year. The first
fiscal quarter of 1999 included revenue from Starwave for
that period of time after the closing of the Starwave
acquisition.
Pro forma net loss for the first fiscal quarter of 1999 was
$18.2 million, or $0.39 per share based on 46.1 million shares
outstanding, excluding $13.3 million for the effects of
amortization of intangible assets and $72.6 million for charges
related to in-process research and development. Including the
charges related to amortization of intangible assets and
in-process research and development, the net loss for the first
fiscal quarter of 1999 was $104.0 million, or $2.26 per share.
In comparison, the company reported a net loss of $4.6 million,
or $0.17 per share based on 27.3 million shares outstanding for
the last three calendar months of 1997. Total shares
outstanding as of January 2, 1999 were approximately $61
million. GO Network Launched
During the last several months, Infoseek made significant
strides in building a stronger, more competitive company. As a
result of Disney Transaction, the company entered into a
strategic off-line marketing relationship with Disney, launched
GO Network, and gained access to millions of new users and
original interactive programming content through
award-winning online services, such as ABCNEWS.com,
ESPN.com, Mr. Showbiz, and the official league sites of the
NFL, NBA, NASCAR and the WNBA.
"The launch of GO Network earlier this month demonstrates
the power of our strategy to combine integrated internet
services with leading consumer bands, such as Disney.com,
ABCNEWS.com and ESPN.com. At the time of the launch,
the GO Network had more than eight million registered users,
21 million viewers and a 36% reach. With over 750
employees, Infoseek now has the critical mass of engineering
and marketing talent to build GO Network and challenge
today's largest industry players," said Harry Motro, Infoseek
Corporation's president and CEO.
"We believe that GO Network is uniquely positioned to expand
Infoseek's market share over time through the collective
strengths of Infoseek and Disney. Together our organizations
are singularly positioned to offer customers trusted, well
known brands, original content programming, and leverage the
programming between Disney's broad-band franchises and
Infoseek's narrow-band properties. Looking ahead, we are
very excited about working closely with our partners as we
implement integrated highly focused marketing and
promotional activities with ABC-TV, the four ESPN-TV
channels, Disney theme parks, and Disney movie studios," said
Motro.
GO Network represents a new model for Internet portals. GO
Network is the first portal designed from the ground up based
on consumer input and is centered on three |
