Just found this on another board, maybe we should ask QAWire.com to ask HRCT some questions......I guess the free press wouldn't hurt.
InfoSpace.com, Inc. answers investor's question on QAWire.com
Ask any publicly traded company an investing question at QAWire.com
Tuesday, April 24, 2001 02:51:33 PM - The Wall Street Transcript
New York City, New York, Apr 24, 2001 (The Wall Street Transcript via COMTEX)
-- Today, on the free QAWire service at www.qawire.com , InfoSpace.com, Inc.
(Nasdaq:INSP) has joined the ranks of hundreds of leading firms and answered an
investor's question.
Today on QAWire, we've published the answer to an investor's questions in
regards to
InfoSpace.com, Inc. (Nasdaq:INSP)
InfoSpace.com, Inc. answered the following investor's question:
What is the outlook for Infospace in the next 12 months?
The Answer is:
On Monday, February 12, InfoSpace held a conference call to report its business
outlook for 2001 including improved financial guidance and new guidance for
2002. The conference call was also broadcast live from InfoSpace's Web site.
This document reviews the improved 2001 guidance and new guidance for 2002 that
InfoSpace provided on that date.
Over the past month InfoSpace has brought a
renewed focus back on its core infrastructure business. InfoSpace has already
proven its business model of being an infrastructure company as demonstrated by
the Company's pro forma profitability in every quarter of last year.
InfoSpace has worked to align costs and resources along strong growth areas. In
the last two weeks not only has InfoSpace identified cost savings, but is
already executing on them. Having done that gives InfoSpace the confidence to
once again return to pro forma profitability by the third quarter of this year.
As part of the improved business outlook for 2001, InfoSpace reiterated some
guidance principles as first stated in the earnings call held on January 29,
2001
· InfoSpace has made a conscious decision to move away from low
· growth, non-recurring and non-scalable revenue streams and has decided to
· de-emphasize the direct-to-consumer part of its business.
· InfoSpace will
· focus on its core infrastructure business which gives the Company recurring,
· higher growth, highly scalable revenue streams, such as wireless, that provide
· greater visibility into the business.
· InfoSpace continues to be very
· cautious in its guidance because it is unclear at this time how long the
· economic slowdown will last and how deep it will be.
It is InfoSpace's
strategy to make changes now so it is best positioned to execute effectively
throughout the year.
The company also provided improved financial guidance
for 2001 as follows:
· InfoSpace expects strong growth in its core
· infrastructure businesses.
· InfoSpace expects wireless revenues to represent
· approximately 20-25% of revenues for 2001.
· InfoSpace expects revenues from
· commerce to grow 20-25% for the year.
· InfoSpace expects to continue to gain
· traction in the broadband space and expects revenues to impact the business in
· 2002 and beyond.
InfoSpace expects revenues for 2001 of $215 million and a
loss of ($0.05) per share for the full year, an improvement from the loss of
($0.14) per share previously reported.
· InfoSpace expects first quarter
· revenues of $45 million and a pro forma loss of ($0.04) per share, an
· improvement of $0.01 per share from previous guidance.
· InfoSpace expects
· second quarter revenues of $50 million and a pro forma loss of ($0.02) per
· share, an improvement of $0.02 per share from previous guidance.
· InfoSpace
· expects third quarter revenues of $56.3 million and a pro forma profit rounding
· down to breakeven on an EPS basis, an improvement of $0.03 per share from
· previous guidance.
· InfoSpace expects fourth quarter revenues of $63.7
· million and a pro forma profit of $0.01 per share.
· For 2001, InfoSpace
· expects gross margins to improve throughout the year exiting the year with 80%
· gross margins in the fourth quarter, and full year of approximately 77%. This is
· an improvement of previous guidance of gross margins in the range of 72-75%.
·
· InfoSpace expects to exit the year with cash and investments in the range of
· $490 to $500 million.
Financial guidance for the year 2002:
· InfoSpace expects revenues in the range of $300 to $310 million for the full
· year.
· InfoSpace expects to earn a pro forma net profit in the range of
· $0.09-$0.10 cents per share for the full year, and expects to be profitable
· every quarter.
This release contains forward-looking statements
relating to the development of the company's products and services and future
operating results that are subject to certain risks and uncertainties that could
cause actual results to differ materially from those projected. The words
"believe," "expect," "intend," "anticipate," variations of such words, and
similar expressions identify forward-looking statements, but their absence does
not mean that the statement is not forward-looking. These statements are not
guarantees of future performance and are subject to certain risks, uncertainties
and assumptions that are difficult to predict. Factors that could affect the
Company's actual results include the progress and costs of the development of
our products and services, the timing of market acceptance of those products and
services, the performance of our systems, the effectiveness of the development
and implementation of our strategy, the ability to retain key personnel, and
general economic conditions. A more detailed description of certain factors that
could affect actual results include, but are not limited to, those discussed in
InfoSpace's Annual Report on Form 10-K, in the section entitled "Factors
Affecting InfoSpace's Operating Results, Business Prospects and Market Price of
Stock Risk Factors." Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this release.
InfoSpace undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events or circumstances after the date of
this release or to reflect the occurrence of unanticipated events