Go2Net Reports Fourth Quarter and Fiscal Year-End Financial Results
PR Newswire - October 28, 1999 16:31
Fourth Quarter Pro Forma Income of $.12 Per Share, 293% Revenue Growth over Comparable Period of Previous Fiscal Year
SEATTLE, Oct. 28 /PRNewswire/ -- Go2Net, Inc. (Nasdaq: GNET), a network of branded, technology- and community-driven Web sites (http://www.go2net.com/), today announced operating results for the fourth quarter and fiscal year ended September 30, 1999. Revenue for the three months ended September 30, 1999 was $9,783,748, representing an increase of 71% from the previous quarter ended June 30, 1999 and a 293% increase from the comparable period for the previous fiscal year.
For the quarter, the company reported pro forma net income of $5,319,537, or $0.12 per share, before federal income tax benefit and excluding amortization of intangibles and non-recurring merger and acquisition-related charges. This compares to pro forma net income of $2,156, or $.00 per share, for the comparable period during the previous fiscal year. The federal income tax (benefit)/provision, amortization of intangibles and non-recurring merger and acquisition-related charges totaled $15,993,856 during the quarter. Net loss for the quarter including the federal income tax benefit and non- recurring and non-cash charges was $10,674,319 or $0.37 per share.
For the fiscal year ended September 30, 1999, revenue was $22,435,035 as compared to $7,109,432 for the previous fiscal year, representing a 216% increase. Before federal income tax (benefit)/provision and excluding amortization of intangibles, non-recurring merger and acquisition-related charges and non-cash charges, net income for the fiscal year ended September 30, 1999 was $9,521,311 or $ 0.24 per share as compared to a net loss of $550,177 or $0.02 per share for the fiscal year ended September 30, 1998.
Gross profit as a percentage of net sales increased to 81.9% and 79.5% for the three months and fiscal year ended September 30, 1999, as compared to 72.0% and 67.7% for the three months and fiscal year ended September 30, 1998.
Basic net loss to common shareholders per share including amortization of intangibles, non-recurring merger and acquisition-related charges, non-cash charges and federal income tax (benefit)/provision for the three months and fiscal year ended September 30, 1999 was $0.37 and $6.44, respectively, as compared to a basic net loss to common shareholders per share of $0.02 and $0.09 for the three months and fiscal year ended September 30, 1998, respectively. The non-cash charges included a one-time, non-cash dividend related to the purchase of preferred stock from the company by Vulcan Ventures during the fiscal year. The number of shares used in the computation of basic net loss per share for the three months and fiscal year ended September 30, 1999 were 29,062,706 and 26,524,025, respectively. The number of shares used in the computation of the basic net loss per share for the three months and fiscal year ended September 30, 1998 was 24,822,636 and 24,817,560, respectively.
"During the recently completed quarter and fiscal year, Go2Net continued to make significant progress throughout its business. This included progress in our operating metrics, in the development of new revenue streams, and in the overall growth of the Go2Net Network," said Russell C. Horowitz, Go2Net Chief Executive Officer. "In addition, we are experiencing record levels of usage across the Go2Net Network and believe that our company overall and each of the properties individually are well positioned for continued progress in the coming year."
Horowitz continued: "Our strong financial results reflect the substantial operating leverage inherent in our business model. In moving forward, Go2Net will continue to focus on building market share and maximizing the revenue opportunities of each of our businesses. We will also continue to expand the depth of our current product offerings while reviewing opportunities to enter complementary categories. In addition, we will be engaging in aggressive, targeted marketing and branding campaigns to increase the profile of the company, the Go2Net Network and our individually branded properties." |
