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

To: EenieMeenie who wrote (944)	1/20/1999 5:12:00 PM
From: MangoBoy	Respond to of 28311

[GNET 1Q results - table] Go2Net, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended December 31, 1998 December 31, 1997 Revenue $3,179,744 $1,109,889 Cost of revenue 754,462 348,604 Gross Profit 2,425,282 761,285 Operating expenses: Sales and marketing 933,057 444,995 Product development 400,526 302,239 General and administrative 901,616 376,205 Merger related costs 650,257 -- Stock compensation expense 70,947 35,474 Total operating expenses 2,956,403 1,158,913 Loss from operations (531,121) (397,628) Interest income, net 115,772 124,905 Net loss $(415,349) $(272,723) Basic and diluted net loss per share $(0.07) $(0.04) Shares used in computing basic and diluted net loss per share 6,312,577 6,070,702 Diluted pro forma income/ (loss) per share before nonrecurring and non cash charges $0.04 $(0.04) Shares used in computing diluted pro forma income/(loss) per share 7,259,476 6,109,245 Note: The balances as of September 30, 1998 have been restated to reflect the merger of Go2Net Inc. and Web21, Inc. which was completed on December 31, 1998 and has been accounted for as a pooling of interests. Go2Net, Inc. Reconciliation of Pro Forma Income to Net Loss (Unaudited) Three Months Ended December 31, 1998 December 31, 1997 Pro forma income/(loss), excluding merger and other related charges $305,855 $(237,250) Merger related charges 650,257 -- Stock compensation expenses 70,947 35,474 Net loss $(415,349) $(272,723) Go2Net, Inc. Condensed Consolidated Balance Sheets December 31, 1998 September 30, 1998 Assets Current assets: Cash and cash equivalents $1,181,029 $941,351 Marketable securities 7,794,248 7,944,249 Receivables, net 1,801,812 1,402,341 Prepaid expenses and other assets 487,710 493,916 Total current assets 11,264,799 10,781,857 Property and equipment, net 1,231,256 1,315,168 Other assets 222,954 135,164 Long-term investments 249,983 - Deposits 253,017 303,017 Total assets $13,222,009 $12,535,206 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses $1,355,583 $770,387 Accrued compensation and benefits 340,610 269,240 Short term debt 52,344 90,616 Deferred revenue 683,868 503,798 Total current liabilities 2,432,405 1,634,041 Commitments -- -- Stockholders' equity: Common stock 15,696,195 15,369,323 Accumulated deficit (4,906,591) (4,468,158) Total stockholders' equity 10,789,604 10,901,165 Total liabilities and stockholders' equity $ 13,222,009 $ 12,535,206

To: EenieMeenie who wrote (944)	1/20/1999 5:13:00 PM
From: MangoBoy	Respond to of 28311

[Go2Net Reports First Quarter Results First Quarter Pro Forma Income of $.04 Per Share] SEATTLE, Jan. 20 /PRNewswire/ -- Go2Net, Inc., a network of branded, technology and community-driven Web sites (http://www.go2net.com), today announced operating results for the first quarter ended December 31, 1998. Revenue for the three months ended December 31, 1998 was $3,179,744 representing an increase of 186% from the comparable period of the previous fiscal year. For the quarter, the Company reported pro forma income before non-recurring merger-related and other charges of $305,855, or $.04 per share diluted. This compares to a loss of $237,250, or $.04 per share diluted, for the comparable period during the previous fiscal year, before non-recurring, non-cash charges related to stock compensation expenses. The non-recurring merger and other related charges associated with the Company's merger with Web21 totaled $721,204. Net loss for the quarter after non-recurring merger and other charges was $415,349 or $0.07 per share basic and diluted, as compared to $272,723 or $0.04 per share basic and diluted for the three months ended December 31, 1997. The number of shares used in the computation of basic and diluted net loss per share at December 31, 1998 and 1997 were 6,312,577 and 6,070,702, respectively. Gross profit as a percentage of net sales increased to 76.3% for the three months ended December 31, 1998, as compared to 68.6% for the three months ended December 31, 1997. ''These results are reflective of Go2Net's emphasis on building a profitable, sustainable business with diversified and growing revenue streams in the areas of online advertising, ecommerce, subscriptions and technology licensing. We've established the Go2Net Network with unique properties that are leaders in their respective categories. Each has the characteristics to operate effectively on its own, while adding significant value to the network,'' said Russell C. Horowitz, Go2Net Chief Executive Officer. ''In the coming months, we'll continue to selectively add strong properties and technologies to the Go2Net Network and build our revenue base. We'll also intensify our efforts to build national recognition of Go2Net and the Go2Net Network.'' The company also announced that traffic on the Go2Net Network grew to an average 8.1 million page views per day during the month of December 1998, compared to an average of 6.7 million page views per day in September 1998. Go2Net's reach continues to grow across its Network. The Go2Net Network of properties is currently ranked as the 25th most visited Internet destination (Media Metrix, December 1998). Additionally, the company's HyperMart business hosting service is growing at the rate of more than 15,000 businesses per month. In exchange for providing free Web hosting to HyperMart members businesses, Go2Net has exclusive rights to advertise on the member sites. Currently, there are more than 130,000 member businesses on HyperMart. Go2Net's advertising clients totaled 290 for the first quarter of 1999, up from 142 advertisers for the comparable period during the previous fiscal year. The company also realized revenues from online subscriptions, ecommerce and technology licensing. In a separate announcement today, Go2Net announced that its Board of Directors has approved a 2-for-1 common stock split. Acquisition During the quarter, the company merged with of Web21, ( hot100.com ), the first online service to establish a category-by-category ranking of Internet sites. Founded in May 1995, Web21 adds a profitable business to the Go2Net Network with its 100hot.com index, which identifies and ranks the top 100 Web sites in such categories as technology, entertainment, business, shopping, lifestyle, games, sports and news. National Branding Campaign In March 1999, Go2Net will launch an ongoing, highly-targeted national advertising campaign, with strong emphasis on the Go2Net Network and the Go2Net brand. Elements will include strategic national business, trade and consumer media buys, market-specific focuses in major U.S. cities and a variety of online advertising programs. Addition to Executive Team In October, Go2Net named Michael J. Riccio as chief operating officer. Riccio guides the company's organizational dynamics and internal expansion and plays a major role in its strategic direction. Riccio comes to Go2Net from Hutchins, Wheeler & Dittmar, a Boston-based corporate law firm, where he represented Go2Net in its strategic initiatives, in addition to acting as lead outside counsel for Lycos, CMG@Ventures and other high-profile technology companies and venture capital firms. In conjunction with Riccio's appointment, former chief operating officer and Go2Net co-founder John Keister assumed the position of president.

To: EenieMeenie who wrote (944)	1/20/1999 5:24:00 PM
From: Dale Baker	Read Replies (2) \| Respond to of 28311

Theoretically, splits are meaningless. In practice, GNET is trading at 120 after hours and should gap further than that Thursday morning. Investors love splits and (small) institutions can think about getting in now with twice the float.

To: EenieMeenie who wrote (944)	1/20/1999 6:08:00 PM
From: EenieMeenie	Read Replies (2) \| Respond to of 28311

IMHO: I think what is happening with GNET right now is a speculative bubble that will end soon. Stock split hype, positive earnings, and the like. Internet stocks sold off very severely at the end of the day. I wouldn't be suprised to see more downward movement all around the board for the next couple of days. I suspect that GNET will trade lower before it trades higher in the near-term. I was right on 4 cents and right on the negative earnings. As we all know, #25 is not bad, but I am not so sure it is worth more than 700 million. Needless to say, we will have an excellent chance to follow the growth on this company. They are building this business slowly, so unless they are bought-out really soon, there will be plently of entry points along the way. So don't feel like you missed out on this one if you are not holding GNET at the present time. What I do like, is the way their income and balance sheet reads. For the first time, I could look at an internet company's balance sheet and visualize what was actually going on behind the scenes. Next quarter, I want to see massive losses with new and exciting acquisitions and new products. GNET is going the right way, stockholders need to give them some time. I would like to thank Steve Harmon for pointing this one out to me. Those of you out there that follow Steve, I think you'll agree that the fellow has a good eye and probably some big help behind the scenes In the near term, provided GNET can set up a strong credit facility, GNET should buy everything in sight that might improve their internet offering using stock and cash. This of course will dillute shareholder equity and earnings but it will be for the best. Good luck to everyone. Chris Did everyone see the internet sell-off at the end of the day. This is going to continue on into tomorrow folks. This stock will see 105 again.