GNET reports an increase in revenues. A very significant increase, I might add.
>>>>GO2NET INC files 09/30/99 10-K. Reports $22.4 mil tot rev, $-10.8 mil NI
IFN Smart Edgar News - December 29, 1999 19:38
Excerpted from 10-K filed on 12/29 by GO2NET INC:
GO2NET INC files 09/30/99 10-K. Reports $22.4 mil tot rev, $-10.8 mil NI
RESULTS OF OPERATIONS
REVENUES
Total revenues increased from $1,627,964 in 1997 to $7,109,432 in 1998.
Revenue increased to $22,435,035 in 1999. These increases were primarily the
result of increases both in the number of advertisers on Go2Net's Web sites and
in the size of advertising contracts. Go2Net expects to continue to derive a
significant portion of its revenue from selling advertisements on the Go2Net
Network. Given the competitive nature of Web based advertising, advertising
rates are subject to intensive price pressure. A reduction in Go2Net's
advertising rates, the number of advertisers or the value of advertising
contracts as a result of competition or otherwise, could adversely affect
revenues in the future.
Advertising revenues increased $10,651,548, or 183%, to $16,456,463 for the
year ended September 30, 1999, representing 73% of total revenues. For the
previous year ended September 30, 1998, advertising revenues were $5,804,915
representing 82% of total revenues. For the year ended September 30, 1997
advertising revenues were $1,353,758 representing 83% of total revenues. The
increase in advertising revenue year over year was attributable primarily to an
increase in the number of advertisers as well as growth in the average contract
size and value.
Go2Net derives a substantial portion of its revenues from the sale of
advertisements on its Web sites, primarily through banner advertisements and
sponsorships. Advertising contracts are primarily sold as: (1) a "run of site"
contract under which a customer is often guaranteed a number of impressions;
(2) a "key word" contract in which a customer purchases the right to advertise
in connection with specified word searches; or (3) a "targeted" contract where
the customer purchases a specified number of impressions in one of the sites or
on a specified page or network.
Electronic commerce, subscription, license and other revenues increased
$4,674,055 or 358%, to $5,978,572 for the year ended September 30, 1999,
representing 27% of total revenues. For the previous year ended September 30,
1998, electronic commerce, subscription, license and other revenues were
$1,304,517, representing 18% of total revenues. For the year ended
September 30, 1997, electronic commerce, subscription, license and other
revenues were $274,206, representing 17% of total revenues. The increase in
electronic commerce, subscription, license and other revenues for 1999 relative
to 1998 is primarily attributable to ecommerce fees from Authorize.Net. The
increase was also the result of increases in subscription fees from Silicon
Investor, IQC and HyperMart. The remaining increase is due to the addition of
several new strategic relationships during the year, including, among others,
Fleet, FreeShop and LookSmart. The increase in electronic commerce,
subscription, license and other revenues for the 1998 relative to 1997 is due to
increases in subscription fees for Silicon Investor and HyperMart.
Electronic commerce revenues are derived principally from setup and gateway
licensing fees paid for Authorize.Net's suite of ecommerce products as well as
from royalties from the sale of goods and services from the Company's Web sites.
The Company's license revenues are derived principally from product licensing
fees and fees from maintenance and support of its products. Electronic commerce,
license and product revenues are generally recognized upon delivery provided
that no significant Company obligations remain and collection of the receivable
is probable. In cases where there are significant remaining obligations, the
Company defers such revenue until those obligations are satisfied. Fees from
maintenance and support of the Company's products, including revenues bundled
with the initial licensing fees, are deferred and recognized ratably over the
service period.<<<<<<<<<<<<<<<<<<
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