Here is more info why it tanked on earnings a few days ago:
LOCM Local.com: In-line Q3 results; about to enter a critical stage of its evolution - Merriman (5.08 )
Merriman notes CUTR reported in-line 3Q07 including $5.6 mln in rev, ($2.0 mln) in adjusted EBITDA and ($0.14) in adjusted EPS. After building out its infrastructure, search technology and site traffic to about 30 mln monthly visitors, firm believes LOCM is about to enter a critical stage of its evolution - the building of direct advertiser acquisition channels. The co will embark on a rapid ramp of telesales, likely outsourced, to acquire tens of thousands of local advertisers who will be listed in LOCM's search results. Based on the results of some of its peers, they believe that Local.com's strategy is very plausible, and even with very conservative assumptions, they arrive at very attractive growth and profitability projections exiting 2008.
Financial Guidance and Balance Sheet:
The company expects fourth quarter 2007 revenue of between $5.7 million and $5.9 million, the mid-range of which is a 3% increase over the third quarter 2007. We expect the mid-range of local search revenue to be approximately $5.4 million, an increase of 8% over the third quarter 2007. The company expects net loss for the fourth quarter 2007 to be between $2.4 million and $2.6 million, or $0.17 - $0.18 per share, which includes non-cash expenses of $0.9 million or $0.06 per share. The loss per share forecast assumes 14.2 million weighted average shares outstanding.
The non-cash expenses of $0.9 million consist of stock based expense of $328,000; and depreciation and amortization of $588,000.
On September 30, 2007, the Company had $18.1 million in cash and marketable securities and no debt.
