Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Netflix (NFLX) and the Streaming Wars -- Ignore unavailable to you. Want to Upgrade?

To: Rock_nj who wrote (49)	7/18/2003 5:50:05 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 2280

Netflix reports first quarterly net profit biz.yahoo.com Thursday July 17, 7:10 pm ET By Bob Tourtellotte LOS ANGELES, July 17 (Reuters) - Online DVD renter Netflix Inc. (NasdaqNM:NFLX - News) on Thursday reported its first quarterly net profit by cutting costs and boosting subscribers even as it faced competition from retail heavyweights like Wal-Mart Stores Inc. (NYSE:WMT - News). Netflix said it earned net income of $3.3 million, or 11 cents a share, on the basis of generally accepted accounting principles, or GAAP. That compared to a net loss of $13.1 million, or $1.28 cents a share, which included stock-based compensation, one year ago. On a non-GAAP basis, which excludes stock compensation costs, second quarter net income was $5 million, or 16 cents a share, compared with $12,000, or nil per share, last year. Quarterly revenues for the Los Gatos, California-based company rose to $63.2 million from $36.4 million last year. The results fell in line with guidance issued in June when Netflix said it expected a net profit between $3 million and $4 million and revenues between $62 million and $64 million. "They had given the guidance, so there wasn't a lot of surprise," said U.S. Bancorp Piper Jaffray analyst Safa Rashtchy. Netflix shares ended down 20 cents, or less than 1 percent, at $25.28 cents on the Nasdaq. The earnings release was issued after trading ended, and in after-market trading on the Instinet system, the stock was little changed. Analysts' consensus estimate called for a non-GAAP number of 12 cents a share, according to Reuters Research, a unit of Reuters Group Plc. The numbers for the online DVD renter generally moved in a positive direction. It added 327,000 new subscribers in the quarter, boosted its client base to just under 1.15 million. The turnover, or "churn," in its customers narrowed to 5.6 percent from 6.7 percent last year. Netflix's marketing cost to new subscribers, which the company calls "subscriber acquisition costs," fell to $30.45 per subscriber from $34.13 one year ago and $31.67 in the first quarter. Company executives said SAC, or subscriber acquisition costs, would increase in the third quarter to a range of $31 to $34 and in the fourth quarter to a range of $32 to $35. Still, those estimates are well within the range of $32 to $36 Netflix projected as recently as April. "We have benefited enormously from the rapid growth in word of mouth (publicity) ... It has taken us to (SAC) levels that we thought we would not soon see," said Chief Financial Officer Barry McCarthy. In addition to the earnings, Netflix said it expects to generate revenues of $67 million to $71 million in the third quarter and a net GAAP loss of $2 million to a net profit of $1 million.