10/23 16:56 Infoseek Announces 1997 Third Quarter Results
Revenue More Than Doubles Over the Third Quarter of 1996
SUNNYVALE, Calif., Oct. 23 /PRNewswire/ -- Infoseek Corporation (Nasdaq: SEEK) today reported financial results for the 1997 third quarter ended September 30, 1997. Revenues for the 1997 third quarter were $8.3 million, a 106 percent increase over revenues of $4.0 million for the third quarter of 1996.
The Company reported a net loss for the third quarter of 1997 of $4.5 million, or $0.17 per share, compared to a net loss of $3.7 million, or $0.14 per share, for the third quarter of 1996.
Revenues for the nine months ended September 30, 1997 were $22.1 million, compared to $9.0 million for the corresponding nine-month period of 1996. Net loss for the nine months ended September 30, 1997 was $20.5 million (including a $7.4 million restructuring charge taken in the second quarter), or $0.78 per share, compared to a net loss of $12.0 million, or $0.59 per share, for the corresponding period of 1996.
Operating Highlights
Harry Motro, President and Chief Executive Officer of Infoseek, said, "With the launch of our new service we have firmly established ourselves as a connected media company. The combination of our experienced management team which has both media and software backgrounds and our new service, should enable us to aggressively pursue the mass market. I am also pleased that during the quarter we continued to achieve record levels of revenue and traffic."
Traffic Growth
Infoseek's traffic continued to increase in the third quarter, with total traffic growing 32 percent from the previous quarter. In the September quarter, Infoseek delivered an average of approximately 10.1 million page views per day. According to newly released figures from independent web management company, Media Metrix (formerly PC Meter), Infoseek is one of the top two search and navigation sites among users accessing the Internet from work.
Infoseek Launches New Service
"Earlier this week we unveiled a new version of our award-winning search and navigation service. This new version adds 'intelligent web channels' that completely integrate superior search results with relevant content, products, services and communities," said Infoseek's Motro.
"Our new service represents a significant step forward," Motro continued. "It should accelerate our participation in the growth of the online media market, provide targeted reach for our advertisers and enable us to form valuable partnerships that benefit our users."
New Advertisers
In the fourth quarter Infoseek has begun to build on the potential of its channel-based business model by signing new sponsorship and transaction relationships with Auto-By-Tel and Microsoft's CarPoint. In addition, Infoseek has established a strategic partnership with CMP Media that provides not only content on the computer and internet channels, but also provides for a significant amount of promotion of the Infoseek site. Infoseek has also signed agreements for LiveWorld's Talk City and with PeopleLink.
Infoseek added a variety of new advertisers during the third quarter including consumer and technology brands such as ABC, Allstate, Better Business Bureau, Borland, Cirrus Logic, Eddie Bauer, KPMG, L.L. Bean, Nasdaq, Polygram and Seagate Software.
Software license sales
Licensing of Infoseek's Ultraseek Server software accounted for approximately 10% of total revenue in the third quarter. During the quarter, Infoseek licensed its software to a number of large organizations including Sony, U.S Department of Education, 3Com and Swedish Travel & Tourism. According to a newly released report card from Network Computing, Infoseek's Ultraseek Server software beat out 9 other internal search engines as the "Editor's Choice."
Risks Associated with Forward Looking Statements
This press release contains forward looking statements that involve risks and uncertainties, including those relating to the Company's ability to continue to increase its levels of traffic and revenue, to successfully implement branding and promotional efforts, to accelerate it's participation in the growth of the online media market, to provide targeted reach for advertisers and to form valuable partnerships to benefit users. The failure to achieve any of the forgoing initiatives could materially adversely affect the Company's business, financial condition and results of operations. Actual results could differ materially from the results predicted. The potential risks and uncertainties include, among others, the company's limited operating history, the increasingly competitive environment for the company's services, and dependence on advertising revenues and third parties for sales, technology, content and distribution.
About Infoseek
Based in Sunnyvale Calif., Infoseek Corporation is a connected media company, which provides a leading, free Internet navigation service. Infoseek is one of the most frequently visited sites on the Internet because its easy-to-use product allows new, as well as experienced users, to find efficiently the information they need on the Web. Infoseek also offers intelligent channels and the world's largest directory of Web sites organized by topic.
Infoseek's navigation service has won numerous industry awards for its precise, relevant responses. Awards include "Number One Rated Search Engine" (PC Computing), "Best of the Test" (Internet World), "MVP Internet Tools" (PC Computing), "Top 100: Editors Choice" (Home PC) and "Top Search Rated Search Engine" (Family PCP). PC Week called Infoseek "the most fully equipped search site PC Week Labs has seen." The Company's World Wide Web site and Internet navigation services can be accessed at infoseek.com.
NOTE: Infoseek, Ultraseek and the Infoseek logos are trademarks of Infoseek Corporation, which may be registered in certain jurisdictions. Other trademarks shown are trademarks of their respective owners.
INFOSEEK CORPORATION,
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
Total revenues $ 8,255 $ 4,007 $ 22,090 $ 9,025
Cost of revenues 1,468 827 4,242 2,211
Gross profit 6,787 3,180 17,848 6,814
Operating expenses
Research and development 1,637 1,218 5,432 2,795
Sales and marketing 8,129 5,219 21,876 14,003
General and administrative 1,809 1,091 4,807 2,751
Restructure and other charges -- -- 7,349 --
Total operating expenses 11,575 7,528 39,464 19,549
Operating loss (4,788) (4,348) (21,616) (12,735)
Interest income, net 295 652 1,083 749
Net loss $ (4,493) $ (3,696) $ (20,533) $ (11,986)
Net loss per share $ (0.17) $ (0.14) $ (0.78) $ (0.59)
Shares used in computing
net loss per share 26,777 25,931 26,452 20,337
INFOSEEK CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
Sept. 30, Dec. 31,
1997 1996
(Unaudited)
ASSETS
Cash, cash equivalents
and short-term investments $ 30,574 $ 46,653
Accounts receivable, net 4,248 2,428
Other current assets 555 371
Property and equipment, net 11,496 7,587
Deposits and other assets 2,196 1,293
Total assets $ 49,069 $ 58,332
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable $ 2,106 $ 3,269
Accrued expenses and other
current liabilities 11,087 4,186
Long-term obligations 5,128 1,892
Total liabilities 18,321 9,347
Shareholders' equity:
Common stock 72,968 73,754
Accumulated deficit (41,304) (20,771)
Deferred compensation (766) (3,546)
Notes receivable from shareholders (150) (452)
Total liabilities and shareholders' equity $ 49,069 $ 58,332
SOURCE Infoseek Corporation
-0- 10/23/97
/CONTACT: Dan Visnick of Edelman Worldwide, 415-433-5381, or InvestorRelations@edelman.com, for Infoseek Corp.; or Les Wright, VP Finance & CFO of Infoseek Corporation, 408-543-6000, or lwright@infoseek.com/
(SEEK)
CO: Infoseek Corporation ST: California IN: MLM ADV SU: ERN
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