InfoSpace posts loss, expects revenue to decline

By siliconindia   |   Friday, 02 May 2003, 19:30 IST
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BELLEVUE: InfoSpace Inc. (Nasdaq:INSP) Friday announced first quarter revenues of $36.6 million, reflecting a $3.5 million (or 10%) increase over the first quarter of 2002. In accordance with Generally Accepted Accounting Principles (GAAP), net loss for the first quarter of 2003 was $1.3 million, or $0.04 per basic share, versus a net loss of $240.5 million, or $7.88 per basic share, in the first quarter of 2002. GAAP net loss in the first quarter of 2003 included a $4.0 million charge for an IRS tax settlement. GAAP net loss for the first quarter of 2002 included a $206.6 million non-cash charge for the cumulative effect of a change in accounting principle. Cash, cash equivalents, and marketable securities (excluding cash held on behalf of Authorize.Net merchants) at the end of the first quarter of 2003 totaled $283.9 million, reflecting an increase of $10.2 million from the fourth quarter of 2002. The increase in cash, cash equivalents and marketable securities is due to the sale of certain equity investments in the aggregate amount of $7.8 million and cash generated from operations. The Company had no debt obligations as of the end of the quarter. "We are pleased with our quarterly results," said Jim Voelker, chairman and chief executive officer of InfoSpace. "We are focused on our customers and improving product and service quality to maximize our long term growth and profitability." The company also announced thnat it expected a sequential decline in revenue because of the price erosion in the wireless segment, the exiting of certain businesses outside of the Company's three core businesses, seasonality in Internet usage and weak general economic trends. For the second quarter of 2003, the company expects revenue to be between $32 million and $34 million. These trends will also negatively affect net income for the second quarter of 2003.