Answers.com (ANSW)

[beigledog]

Answers Corporation Reports Q1 2007 Financial Results
Monday May 7, 4:05 pm ET
Achieves Net Income on a Non-GAAP Basis


NEW YORK, May 7 /PRNewswire-FirstCall/ -- Answers Corporation (NASDAQ: ANSW - News), creators of Answers.com(TM), today reported unaudited financial results for its first quarter ended March 31, 2007.

"We are pleased that we met our Q1 milestones of revenue growth and reaching non-GAAP profitability. This is further proof of the traction that Answers.com is achieving," said Bob Rosenschein, Chairman and CEO. "However, direct ad sales are taking longer to ramp up than we anticipated. We will continue to invest in direct ad sales and fully expect to see the fruits of our labor in Q3 and especially Q4."

"We are extremely pleased with the dramatic growth of WikiAnswers, our newly acquired community-generated Question & Answer platform," added Bruce Smith, VP Strategic Development. "Its current revenue run rate and critical metrics are significantly higher than when we acquired it, and we look forward to discussing details on our conference call."

Q1 2007 Financial Results

- Revenues, excluding subscription revenue of US$425 thousand, were US$2,961 thousand in Q1 2007, an increase of 157% compared to the same period in 2006, and an increase of 18% compared to the US$2,506 thousand reported for Q4 2006.

- Revenues, including subscription revenue of US$425 thousand, were US$3,386 thousand in Q1 2007. The subscription revenue resulted from the recognition, in Q1 2007, of revenue from lifetime subscriptions to an information service that we sold in 2003. This revenue is a one-time event and is not reflective of the Company's core business. This service was shut down in February 2007.

- GAAP operating loss in Q1 2007 was US$388 thousand, an improvement of US$3,221 thousand or 89%, compared to the same period in 2006 and an improvement of US$696 thousand or 64% compared to the US$1,084 thousand reported for Q4 2006.

- Non-GAAP operating income in Q1 2007 was US$18 thousand, an improvement of US$904 thousand or 102%, compared to the non-GAAP operating loss in the same period in 2006 and an improvement of US$329 thousand or 106% compared to the non-GAAP operating loss of US$311 thousand reported for Q4 2006.

- GAAP net loss in Q1 2007 was US$303 thousand, an improvement of US$3,170 thousand or 91%, compared to the same period in 2006, and an improvement of US$673 thousand or 69%, compared to the US$976 thousand reported for Q4 2006. GAAP net loss per share in Q1 2007 was US$0.04, compared to US$0.47 in the same period in 2006, and US$0.13 in Q4 2006.

- Non-GAAP net income in Q1 2007 was US$103 thousand, an improvement of US$853 thousand compared to the non-GAAP net loss of US$750 thousand reported for the same period in 2006 and an improvement of US$306 compared to the non-GAAP net loss of US$203 thousand reported for Q4 2006. Non-GAAP net income per share in Q1 2007 was US$0.01, compared to a non-GAAP net loss per share of US$0.10 in the same period in 2006, and a non-GAAP net loss per share of US$0.03 in Q4 2006.