WebMediaBrands Inc. Reports Results For Its Second Quarter Ended June 30, 2011; Revenues Increase 55%
Date : 08/10/2011 @ 4:05PM
Source : Business Wire
Stock : WebMediaBrands Inc. (WEBM)
Quote : 0.9 -0.12 (-11.76%) @ 4:44PM
WebMediaBrands Inc. Reports Results For Its Second Quarter Ended June 30, 2011; Revenues Increase 55%
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Webmethods (NASDAQ:WEBM)
Intraday Stock Chart
Today : Wednesday 10 August 2011
WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the quarter ended June 30, 2011.
Highlights for the second quarter of 2011 include:
Revenues for the second quarter of 2011 were $3.8 million compared to revenues of $2.5 million for the same period in 2010, an increase of 55%, and included $319,000 from Inside Network, which we acquired in May 2011. Revenues from online job board postings, education and advertising, excluding the impact of the Inside Network acquisition, were up 21%, 19% and 16%, respectively, compared to the same period last year. In addition, trade show revenues increased by 142% compared to the second quarter of 2010.
Net loss for the second quarter of 2011 was $1.0 million and included one-time acquisition related charges of $474,000 and stock-based compensation of $114,000, compared to net loss of $968,000 for the same period last year. Net loss, excluding interest, taxes, depreciation, amortization, stock-based compensation and one-time acquisition related charges was $62,000, compared to $769,000 for the same period last year. We track this metric and present it here because we believe it helps in the analysis of the performance of our core operations. One-time charges of $474,000 consisted of professional fees paid in connection with the acquisition of Inside Network and for contingent acquisition consideration related to the final earn-out payments made in connection with the December 2009 acquisitions of Social Times Inc. and 3rd Power LLC. Stock-based compensation expense was $114,000 during the second quarter of 2011 compared to $36,000 during the second quarter of 2010.
“Our second quarter demonstrated continued progress toward profitability with significant year-over-year and sequential quarterly revenue growth,” stated Alan M. Meckler, Chairman and CEO of WebMediaBrands, Inc. “All of our business units, including our online job board, trade show, advertising sales and education operations had positive results during the second quarter. Integration of the recently acquired Inside Network was smooth and revenues from Inside Network’s research business have continued to grow. We anticipate continued growth this year and into 2012 led by our strength in covering social media and the Semantic Web and this growth should lead to a profitable 2012 on an EBITDA basis”, added Meckler.
WebMediaBrands Inc. 2nd Quarter 2011 Financial Results Conference Call Alert
WebMediaBrands Inc. invites you to participate in its conference call reviewing 2011 second quarter results on Thursday, August 11, 2011 at 11:00 am EDT.
The conference call number is 888-211-4495 for domestic participants and 913-981-5535 for international participants; confirmation code “3455287”. Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Tuesday, August 16, 2011. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code “3455287”.
Acquisition
In May 2011, WebMediaBrands acquired Inside Network, Inc. for an aggregate purchase price comprised of $7.5 million in cash plus an aggregate of 4,183,130 newly issued shares of our common stock. Inside Network is the industry’s leading research and media organization dedicated to providing original market research, critical analysis, data services and news on the Facebook platform, social gaming, and mobile applications ecosystems.
Based in Palo Alto, California, Inside Network produces expert-level information for analysts, investors, and entrepreneurs.
WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Operations
For the Three and Six Months Ended June 30, 2010 and 2011
(in thousands, except per share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2010 2011 2010 2011
Revenues $ 2,453 $ 3,800 $ 4,357 $ 6,046
Cost of revenues 1,400 2,123 2,698 3,571
Advertising, promotion and selling 495 633 1,024 1,065
General and administrative 1,371 1,366 3,013 2,721
Depreciation 118 81 246 165
Amortization 21 93 32 211
Contingent acquisition consideration — 329 — 329
Total operating expenses 3,405 4,625 7,013 8,062
Operating loss from continuing operations (952 ) (825 ) (2,656 ) (2,016 )
Other income (loss), net 31 1 39 (3 )
Interest income 196 5 213 40
Interest expense (203 ) (178 ) (433 ) (357 )
Loss from continuing operations before income taxes (928 ) (997 ) (2,837 ) (2,336 )
Provision for income taxes 17 10 20 20
Loss from continuing operations (945 ) (1,007 ) (2,857 ) (2,356 )
Loss on sale of discontinued operations (23 ) — (29 ) —
Net loss $ (968 ) $ (1,007 ) $ (2,886 ) $ (2,356 )
Loss per share:
Basic
Loss from continuing operations $ (0.03 ) $ (0.02 ) $ (0.08 ) $ (0.06 )
Loss from discontinued operations — — — —
Net loss $ (0.03 ) $ (0.02 ) $ (0.08 ) $ (0.06 )
Diluted
Loss from continuing operations $ (0.03 ) $ (0.02 ) $ (0.08 ) $ (0.06 )
Loss from discontinued operations — — — —
Net loss $ (0.03 ) $ (0.02 ) $ (0.08 ) $ (0.06 )
Shares used in computing loss per share:
Basic 37,493 40,463 37,340 39,277
Diluted 37,493 40,463 37,340 39,277
