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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (13478)	10/29/1999 11:30:00 AM
From: Susan G	Read Replies (1) \| Respond to of 28311

Another news story.... Infoseek, two other Web firms beat expectations ====================================================================== By Martin Wolk SEATTLE, Oct 28 (Reuters) - Internet content providers Go2Net Inc. (NASDAQ:GNET), Infoseek Corp. (NASDAQ:SEEK) and InfoSpace.com (NASDAQ:INSP) posted results that exceeded Wall Street expectations Thursday, with all three benefiting from rising interest rates. The three companies reported after the close of Nasdaq trading, but Go2Net and InfoSpace traded sharply higher in after-hours activity, traders said. Go2Net, a rapidly growing Seattle-based Web site network, reported "pro forma" net income of $5.3 million or 12 cents per share for its fiscal fourth quarter vs. nil a year earlier. Revenues rose to $9.8 million from $2.5 million. Analysts had been expecting pro forma net income of about 6 cents a share, according to First Call. Much of the profits were generated by interest from the company's huge cash stockpile amassed when billionaire Paul Allen acquired a major stake this year. However Go2Net executives pointed out that the company generated $1.7 million in operating profits and predicted operating margins would rise significantly. "To see expanding margins on larger and larger revenue numbers can lead to pretty substantial cash flow," Go2Net Chief Executive Russell Horowitz said. "That's what we love about our business." Including merger-related costs, Go2Net suffered a net loss of $10.7 million or 37 cents per share, compared with a loss of $390,000 or 2 cents a share a year earlier. Go2Net rose 1-9/16 to close at 59-1/8 on Nasdaq Thursday and traded later at 63, traders said. InfoSpace.com, another Seattle-area company, said revenues quadrupled to $10.1 million in the quarter from $2.5 million a year earlier. Excluding acquisition costs, the company posted net income of $3.1 million, or 6 cents per diluted share, compared with a loss of $600,000 or 2 cents a share a year earlier. Analysts had projected a pro forma loss of 3 cents. "We had a totally awesome quarter," said Chief Executive Naveen Jain, who said the company's fastest growing area was services for wireless phones and appliances. Including all expenses, InfoSpace.com earned a net profit of $1.3 million or 2 cents per diluted share, compared with a loss of $893,000 or 3 cents a share a year earlier. The company had an operating loss of $1.8 million but "other income" of $3.2 million including interest on its cash horde of $159 million. InfoSpace, which gained 2-1/4 to close at 50 before the report was issued, rose to 56 after hours, traders said. Infoseek Corp., the Internet portal allied with Walt Disney Co., (NYSE:DIS) said revenues more than doubled to $41.3 million in its fiscal fourth quarter from $19.2 million a year earlier. The company's pro forma net loss fell slightly to $21.5 million or 34 cents per share from $22.3 million, or 36 cents per share. Analysts had been expecting a loss of 42 cents per share. Overall the company suffered a net loss of $53 million or 85 cents a share, compared with a loss of $2.6 million or 8 cents a share a year earlier. Interest on a cash balance of $76 million helped boost the bottom line. Disney owns 43 percent of Infoseek and is in the process of acquiring the rest, with shareholders for both companies expected to vote on the transaction Nov. 17. Infoseek, which rose 13/16 to close at 28-7/8, was little changed after hours. Copyright 1999, Reuters News Service