Looksmart Limited (LKST)

[aimforsimon]

2Q03 Preview

First Albany Corporation
Institutional Equity Research Flash

7/21/2003

Ask Jeeves, Inc. (ASKJ)
Primary Analyst
Youssef Squali - [phone]
Rating
Buy

FY DEC
Price $14.60
52-Wk Range 18.20 - 0.91
Shares Out. 43.4 mil.
Avg.Dly. Vol. 2524242
Market Cap. $633.6 mil.
Debt/Capital 0%
Div. Yield 0%
3-Yr EPS Gr 46%

Earnings per Share P/E Rev
Q1($) Q2($) Q3($) Q4($) Yr($) Prev(4) Ratio
2001A -.4 -.27 -.19 -.09 -.94 N/M 67
2002A -.22 -.16 -.08 0.08 -.37 N/M 74
2003E 0.07 0.06 0.07 0.08 0.28 52.1x 105
2004E 0.41 35.6x 146
EPS numbers may not add up due to rounding.

Specific disclosures with regard to the companies mentioned in this publication
can be found at the end of this report. Investors should assume that First
Albany Corporation is seeking or will seek investment banking business or other
business from any of the companies mentioned in this report.

2Q03 Preview

--We expect AskJeeves to report solid 2Q03 results on Tuesday, July 22, meeting
our high-end estimates. A conference call will be held at 6pm EST; the dial-in
number is 800-240-2430.

--We estimate revenues of $23.6M and pro forma EPS of $0.07 versus $15.3M and
($0.17) in 2Q02, largely in line with consensus estimates of $23.7M and $0.07,
and guidance of $23.5M and $0.07, respectively. We note that our $0.07 EPS
estimate reflects the sale of Jeeves Solutions and the issuance of $115M convert
offering during the quarter.

--For the quarter, we expect total page views to be 2.1B (1.54B on ASKJ property
and 603M from affiliates) and RPC at $0.34, virtually in line with the previous
quarter. Page view metrics reported by third-party sources, such as Nielsen
and ComScore, show a sequential decline for ask.com. We note, however, that
management's internal data for prior quarters showed dramatically different
numbers and trends.

--At $14.60, the stock is trading at 32.5x FY04 P/E and 0.72x P/E/G, which
represents a slight discount to its peers (assuming 45% compound annual growth
between 2003 and 2008).