LookSmart Reports Second Quarter 2012 Results
Progressive Release of New Product Suite Targets Significant Market Opportunity
Revenues for the second quarter of 2012 were
Net loss for the second quarter of 2012 was
Commenting on the results, Dr.
Gross margin decreased to 34% in the second quarter of 2012 from 48% in the second quarter of 2011, and 45% in the first quarter of 2012.
Total operating expenses in the second quarter of 2012 were
Non-GAAP net loss for the second quarter of 2012 was
An explanation of
Capital expenditures, including capitalization of internally developed software, in the second quarter of 2012 were
The Company ended the quarter with
Q2 2012 Key Metrics Performance
- Total paid clicks for the second quarter of 2012 were 52 million, compared to 146 million for the second quarter of 2011 and 101 million for the first quarter of 2012.
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Average Advertising Network RPC for the second quarter of 2012 was
$0.063 compared to$0.043 in the second quarter of 2011 and$0.036 in the first quarter of 2012. -
Traffic acquisition costs (TAC) for
LookSmart's Ad Networks increased to 61% in the second quarter of 2012 from 48% in second quarter of 2011 and 51% in the first quarter of 2012.
Conference Call
About
The
GAAP to Non-GAAP Reconciliation
We provide a reconciliation of GAAP net loss to non-GAAP net income (loss) below:
| Three Months Ended | |||
| (000's) |
June 30, 2012 (unaudited) |
March 31, 2012 (unaudited) |
June 30, 2011 (unaudited) |
| GAAP net income (loss) | $ (2,359) | $ (2,150) | $ 354 |
| Add: Share-based compensation from continuing operations | 54 | 67 | 90 |
| Non-GAAP net income (loss) | $ (2,305) | $ (2,083) | $ 444 |
Use of Non-GAAP Measures
Regulation G, "Conditions for Use of Non-GAAP Financial Measures," and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information.
The Company believes this non-GAAP financial measure provides important supplemental information to management and investors. This non-GAAP financial measure reflects an additional way of viewing aspects of the Company's operations that the Company believes, when viewed with the GAAP results and the accompanying reconciliation to corresponding GAAP financial measures, provides useful information regarding factors and trends affecting the Company's business and results of operations.
For the non-GAAP financial measure non-GAAP net income (loss), the adjustment provides management with information about
This non-GAAP financial measure is used in addition to, and in conjunction with, results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, in particular share-based compensation expense, and exclusion of these items from the Company's non-GAAP measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
Forward-Looking Statements
This press release contains forward-looking statements, such as references to our business prospects. These statements, including their underlying assumptions, are subject to risks and uncertainties and are not guarantees of future performance. Results may differ due to various factors such as the possibility that the technology projects on which we are working or our anticipated releases are delayed for any reason. Additional risks that could cause actual results to differ materially from those projected are discussed in our Annual Report on Form 10-K for the year ended
NOTE: "LookSmart" is a trademark of
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| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except per share data) | ||
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| ASSETS | (Unaudited) | |
| Current assets: | ||
| Cash and cash equivalents | $ 11,506 | $ 17,950 |
| Short-term investments | 8,694 | 6,809 |
| Total cash, cash equivalents and short-term investments | 20,200 | 24,759 |
| Trade accounts receivable, net | 1,496 | 1,588 |
| Prepaid expenses and other current assets | 556 | 604 |
| Total current assets | 22,252 | 26,951 |
| Property and equipment, net | 1,574 | 1,941 |
| Capitalized software and other assets, net | 1,474 | 1,220 |
| Total assets | $ 25,300 | $ 30,112 |
| LIABILITIES & STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Trade accounts payable | $ 1,368 | $ 1,682 |
| Accrued liabilities | 1,109 | 895 |
| Deferred revenue and customer deposits | 1,159 | 1,143 |
| Current portion of capital lease obligations | 313 | 515 |
| Total current liabilities | 3,949 | 4,235 |
| Capital lease and other obligations, net of current portion | 140 | 296 |
| Total liabilities | 4,089 | 4,531 |
| Commitment and contingencies | ||
| Stockholders' equity: | ||
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Convertible preferred stock, |
-- | -- |
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Common stock, |
17 | 17 |
| Additional paid-in capital | 262,335 | 262,201 |
| Accumulated other comprehensive loss | (19) | (24) |
| Accumulated deficit | (241,122) | (236,613) |
| Total stockholders' equity | 21,211 | 25,581 |
| Total liabilities and stockholders' equity | $ 25,300 | $ 30,112 |
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
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Three Months Ended |
Six Months Ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Revenue | $ 3,574 | $ 6,605 | $ 7,587 | $ 14,994 |
| Cost of revenue | 2,370 | 3,439 | 4,585 | 8,094 |
| Gross profit | 1,204 | 3,166 | 3,002 | 6,900 |
| Operating expenses: | ||||
| Sales and marketing | 753 | 558 | 1,459 | 1,167 |
| Product development and technical operations | 1,555 | 1,550 | 3,343 | 3,144 |
| General and administrative | 1,264 | 1,037 | 2,725 | 2,462 |
| Restructuring charge | -- | -- | -- | 889 |
| Total operating expenses | 3,572 | 3,145 | 7,527 | 7,662 |
| Income (loss) from operations | (2,368) | 21 | (4,525) | (762) |
| Non-operating income (expense), net | ||||
| Interest income | 21 | 24 | 41 | 47 |
| Interest expense | (9) | (24) | (21) | (53) |
| Other income (expense), net | (3) | 333 | (4) | 326 |
| Income (loss) from operations before income taxes | (2,359) | 354 | (4,509) | (442) |
| Income tax benefit | -- | -- | -- | 1 |
| Net income (loss) | $ (2,359) | $ 354 | $ (4,509) | $ (441) |
| Net income (loss) per share - Basic and Diluted | $ (0.14) | $ 0.02 | $ (0.26) | $ (0.03) |
| Weighted average shares outstanding used in computing basic net income (loss) per share | 17,293 | 17,274 | 17,293 | 17,255 |
| Weighted average shares outstanding used in computing diluted net income (loss) per share | 17,293 | 17,368 | 17,293 | 17,255 |
CONTACT:Bill O'Kelly Senior Vice President Operations and Chief Financial Officer (415) 348-7208 bo'kelly@looksmart.netICR, Inc. John Mills , Senior Managing Director (310) 954-1100 john.mills@icrinc.com
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