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

To: trouthead who wrote (14067)	11/16/1999 5:40:00 PM
From: Susan G	Read Replies (6) \| Respond to of 28311

Go2Net CEO Says Company Will Focus On High Margins, Key Online Areas ====================================================================== LONGVIEW, Wash. -(Dow Jones)- It's getting crowded for business-to-business service providers online, but Go2Net Inc. will stick to its focus on four key areas with high profit margins, said Russell C. Horowitz, president and chief executive officer. Horowitz said when Go2Net went public last year, it focused not on the consumer but on providing services to businesses so they could benefit from the power of the Internet. Go2Net (GNET), based in Seattle, set up a network of Web sites focused on personal finance, search and directory, commerce and business services and multi-player games. Leading site brands representing the four areas include include Silicon Investor, MetaCrawler, HyperMart and PlaySite. As the result of an investment in the company by Microsoft Corp. (MSFT) co-founder Paul Allen, Go2Net will also be the broadband portal and content source for customers of Allen's newly public cable company, Charter Communications (CHTR), as well as RCN Corp. (RCNC). "Ultimately, we can create a destination where businesses can go for all their online experiences," Horowitz said. The strategy appears to be working so far as Go2Net continues to show strong growth in network traffic, as well as in the number of businesses that sign up for its services. In September, traffic on Go2Net's network rose to an average of 25.8 million page views per day, a sequential growth rate of about 40% from the end of the third fiscal quarter in June. Horowitz said the company only releases page-view numbers at the end of each quarter, but he said "we continue to see significant growth rates in that range," despite the fact that high percentage increases are harder to come by off the larger base. In the last month, Go2Net was No. 12 on the list of Internet portal sites, according to Media Metrix, compared with No. 77 in early 1998. Horowitz noted the company is now working with 750,000 businesses on its HyperMart and Virtual Avenue business sites, which provide such services as credit card processing, Web hosting services and unified messaging platforms. As for the future, Horowitz said acquisitions and partnerships will continue to be a big part of Go2Net's growth strategy. Recent deals include a marketing agreement with Net2Phone Inc. (NTOP), an Internet phone-service provider, and the purchase of FreeYellow.com, a Web-hosting service that lets small businesses build Web sites. "The profile of deals we're doing is evolving," Horowitz said. "We're looking at making acquisitions to add depth to areas we're already in." While many Internet-related companies get most of their revenue from advertising, Go2Net wants to diversify its revenue so half comes from advertising and half comes from e-commerce, licensing, subscription and transmission fees. In the fiscal fourth quarter ended Sept. 30, 38% of the company's revenue was non-ad related, compared with 20% in the year-ago period. Because Paul Allen invested $426 million in the company in the last fiscal year for a total ownership of nearly 34%, Go2Net doesn't need to raise cash to support its dealmaking. Go2Net is also one of the few Internet companies that is reporting positive operating income, Horowitz said. He noted he's "very comfortable" with analyst estimates the company will earn eight cents a share on an operating basis in the 2000 first quarter ending Dec. 31. That compares with a penny in the year-ago period. Horowitz also said he's comfortable with analysts' consensus estimates the company will earn 34 cents on an operating basis in fiscal 2000. Horowitz said Go2Net's stock price, which was 78 1/8 recently, offers some upside opportunity. The stock reached as high as 99 1/2 on April 22. He said the company's small-business transaction operations and its broadband activity aren't yet contributing to the business. "The greatest value in this industry will be created ahead of us, not behind us," said Horowitz, "and we think we will be major participants in it." Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved. Now THATS a great pr announcement...Russ, you are the best