America Online Inc Q4 profit vs loss
DULLES, Va., Sept. 28 (Reuters) -
(Amounts in thousands, except per share data)
Three months ended
June 30,
1998 1997
Revenues:
Online service revenues $667,505 $ 385,607
Advertising, commerce and other
revenues 124,763 90,136
Total revenues 792,268 475,743
Costs and expenses:
Cost of revenues 507,602 302,623
Marketing 95,116 98,079
Product development 28,635 19,340
General and administrative 65,293 44,602
Amortization of goodwill 5,941 1,642
Contract termination charge -- 24,506
Acquired research and development 70,532 --
Settlement charges 17,650 --
Total costs and expenses 790,769 490,792
Income (loss) from operations 1,499 (15,049)
Other income, net 5,592 3,230
Income (loss) before provision for
income taxes 7,091 (11,819)
Provision for income taxes -- --
Net income (loss) 7,091 (11,819)
Income (loss) per share-diluted 0.03 (0.06)
Income (loss) per share-basic 0.03 (0.06)
Weighted average shares outstanding-
diluted 266,033 197,482
Weighted average shares outstanding-
basic 217,525 197,482
Year ended
June 30,
1998 1997
Revenues:
Online service revenues $2,160,529 $ 1,429,445
Advertising, commerce and other
revenues 439,013 255,783
Total revenues 2,599,542 1,685,228
Costs and expenses:
Cost of revenues 1,678,344 1,074,051
Marketing
Marketing 373,926 421,866
Write-off of deferred subscriber
acquisition costs -- 385,221
Product development 95,386 79,145
General and administrative 229,802 126,705
Amortization of goodwill 14,005 6,549
Restructuring charges 33,796 48,627
Contract termination charge -- 24,506
Acquired research and development 80,232 --
Settlement charges 16,641 24,204
Total costs and expenses 2,522,132 2,190,874
Income (loss) from operations 77,410 (505,646)
Other income, net 14,424 6,299
Income (loss) before provision for
income taxes 91,834 (499,347)
Provision for income taxes -- --
Net income (loss) 91,834 (499,347)
Income (loss) per share-diluted 0.35 (2.61)
Income (loss) per share-basic 0.44 (2.61)
Weighted average shares outstanding-
diluted 259,375 191,214
Weighted average shares outstanding-
basic 209,662 191,214
Supplemental Information
(Amounts in thousands, except per share data)
Three mos Year ended
ended 6/30/98 6/30/98
Net income:
As reported $ 7,091 $ 91,834
Add:
Acquired research and development 70,532 80,232
Settlement charges 17,650 16,641
Restructuring charges -- 33,796
Deduct:
Assumed tax provision (37,940) (88,531)
Before acquired research and development,
settlement charges and restructuring --------- ---------
charges, net of assumed tax provision 57,333 133,972
Diluted earnings per share:
As reported (1) 0.03 0.35
Add:
Acquired research and development 0.28 0.38
Settlement charges 0.07 0.08
Restructuring charges -- 0.16
Deduct:
Assumed tax provision (0.15) (0.42)
Before acquired research and development,
settlement charges and restructuring --------- --------
charges, net of assumed tax provision (2) 0.23 0.55
NOTES:
(1) Based on diluted shares including
common stock equivalents 266,033 259,375
(2) Based on fully taxed diluted share
calculation including common stock
equivalents 250,737 243,876
The fourth quarter and fiscal 1998 net income results
reported differ from the operating results issued Aug. 4
because of the inclusion of several charges against earnings.
Those include: $60.5 million for the write off of acquired
research and development in connection with the purchase of
Mirabilis Ltd. assets; $10 million for the write off of
acquired research and development in connection with the
purchase of NetChannel Inc.; and $17.7 million for a previously
announced legal settlement.
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