[0] Internet.com Reports Increased Cash Earnings and Record Revenues for the Quarter Ended June 30, 2000; Revenues Increase by 323%.
Business Editors
NEW YORK--(BUSINESS WIRE)--July 31, 2000--internet.com Corporation
(Nasdaq: INTM), the Internet Industry Portal, today reported results
for the quarter ended June 30, 2000. Revenues for the second quarter
of 2000 increased to $12.2 million, a 323% increase over revenues of
$2.9 million for the same period last year. Net income for the second
quarter, excluding amortization of intangibles and realized gain on
investments, was $829,000, or $0.03 per share, compared to a net loss
of $1.5 million, or $0.08 per share, for the same period last year.
Including amortization of intangibles and realized gain on
investments, net loss for the second quarter ended June 30, 2000 was
$4.4 million, or $0.18 per share.
"It was another outstanding quarter for internet.com," stated
internet.com chairman and CEO Alan M. Meckler. "We continued to expand
our world-class proprietary content, both through acquisitions and
internal Web site development, further solidifying our position as
`The Internet Industry Portal'. Our Internet-focused content attracts
an audience of over 2.1 million business users that is important to
our advertisers and also creates a number of other revenue
opportunities for internet.com as is apparent from our rapid revenue
growth. We continue to achieve this revenue growth in an efficient
manner, as we generated cash earnings of $829,000 for the second
quarter. In addition, our balance sheet continues to be rock-solid
with over $85 million in cash as of June 30, 2000, leaving us poised
to capitalize on new opportunities."
Acquisitions
internet.com continued to pursue strategic acquisitions to
strengthen its content offerings and services. During the second
quarter, internet.com acquired DomainBook.com and
UnclaimedDomains.com, which when combined with DomainNotes.com, makes
internet.com a leading online marketplace for information and commerce
for the Internet domain sector. In addition, the acquisition of
PDAStreet.com (its network of sites includes WinCecity.com,
PalmBlvd.com, PsionPlace.com and VisorVillage.com) and Thinkmobile.com
helped launch the new Wireless Internet Channel
(http://www.wirelessinternetresources.com). These Web sites provide
comprehensive coverage of the Wireless Internet marketplace serving
the mobile community of PDA (Personal Digital Assistant) and mobile
phone users. When combined with AllNetDevices.com and CEWire.com, they
make internet.com a force in Wireless Internet information.
New Content Areas and Services
During the second quarter, internet.com continued to expand and
strengthen its world class proprietary content offerings and services
with the launch of the following internally developed sites:
BSDToday.com (serves the BSD user community and is the daily source
for BSD news and information), ApacheToday.com (developed to serve the
community of Apache open source software users), InternetIPOLinx.com
(provides the latest Internet-related IPO news), InternetLawLinx.com
(provides the latest Internet-related legal news and developments),
GIF.com (provides tools, tips, and techniques for creative
professionals), SQLCourse2.com (provides users with advanced
easy-to-follow SQL instruction) and The List of Web Hosts
(http://www.WebHosts.TheList.com, helps users find business Web hosts,
personal Web hosts and co-location facilities). In June 2000,
internet.com announced the addition of two new Internet content
channels, bringing the total number of channels to 14. The Wireless
Internet Resources Channel, (http://www.wirelessinternetresources.com)
was created to provide Internet professionals with information
resources necessary for mobile computing. The ASP Resources Channel
(http://www.ASPResourceschannel.com) serves the Application Service
Provider industry. In addition, internet.com launched three new
bureaus to cover the thriving Internet market and community in the
greater Seattle area, the greater Los Angeles area and Silicon Valley
- San Francisco. The availability of internet.com's regional Internet
news content in Los Angeles, Seattle and Silicon Valley is the latest
in a series of regional expansion initiatives which includes recent
launches in Boston, Washington D.C. and internet.com's pre-existing
atNewYork.com site serving the Internet scene in New York's Silicon
Alley. internet.com also announced plans to roll out several other
bureaus in coming months.
E-Commerce Agreements and Offerings
internet.com continued to expand its e-commerce relationships,
adding new agreements with many of the Internet's well-known brands.
Additional partners added during the second quarter included:
Media1st.com, Pagoo.com, TopHosts.com and Web2PCS.com. internet.com
also extended its relationship with CompuBank.com, the original
Internet National Bank. In July, internet.com announced additional
agreements with Acadio.com, eJigsaw.com, InsightExpress.com and
Everyone.net. Also announced were licensing deals with Mercer
Partners, Inc., Needbandwidth.com, AudioBasket.com and Espial.
International Expansion
We continued to expand our strong global presence with the
development of English and non-English language Internet media
properties. During the quarter we unveiled four new international
Internet industry portals: Espanol.internet.com, serving Spain and
Latin America, Belgium.internet.com, Netherlands.internet.com,
NewZealand.internet.com and Taiwan.internet.com. Espanol.internet.com,
Belgium.internet.com and Netherlands.internet.com are part of a joint
venture between internet.com Corporation and VNU Business Publishing
Europe, and are offered in the Spanish, Dutch and French, and Dutch
languages, respectively. Taiwan.internet.com is a joint venture
between internet.com Corporation and InteLink Taiwan Corporation and
is offered in the Chinese language. NewZealand.internet.com is
wholly-owned by internet.com. During the quarter, internet.com also
announced a joint venture with Intervizyon, Inc. for a future launch
of Turkey.internet.com.
Similar to other global internet.com properties, each
international property delivers Internet industry content and coverage
in the primary local language by "on the ground" local journalists in
their respective regions, as well as relevant content from the North
American edition. Each property follows internet.com's vertical
channel approach, with content-specific channels covering the entire
Internet industry. internet.com's global network of Web sites now
consists of 17 international properties in Arabia, Asia, Australia,
Belgium, Canada, China, Espanol, France, Germany, India, Israel,
Japan, The Netherlands, New Zealand, South Africa, Taiwan and the
United Kingdom.
Venture Fund Investments
internet.com Corporation announced the formation of internet.com
Venture Partners III LLC, dedicated to early stage investments in
content Web sites. internet.com Venture Partners III, a $75 million
fund, which received substantial institutional backing, closed on June
5, 2000. During the second quarter, internet.com Venture Partners III
announced the closing of investments in AnywhereYouGo.com,
HowStuffWorks.com, Offices2Share.com, StockCharts.com and Workz.com.
In July, internet.com Venture Partners III announced investments in
BuildCentral.com, Validea.com and Recommend-It.com.
internet.com Corporation is also the portfolio manager of
internet.com Venture Fund I LLC (April '99) and internet.com Venture
Fund II LLC (November '99), which have made 34 investments to date.
During the second quarter, internet.com Venture Fund II continued to
expand its portfolio with the following investments: BuyerTouch.com,
Caregiver.com, ImproveNow.com, NetRead.com, Purchasenet.com (formerly
Cynaptec) and Xianzai.com. Venture Fund I portfolio company
AuctionRover.com was acquired by GoTo.com (Nasdaq: GOTO) for 3,471,000
shares of GoTo.com common stock. During the second quarter several of
the portfolio companies secured additional rounds of funding at
increased valuations. MDLinx.com received $3.0 million in additional
funding, HowStuffWorks.com received $4.5 million in additional funding
and Tutor.com received $11.0 million in additional funding. In other
portfolio company activity, DirectStuff.com announced the sale of two
of its Web sites, MyCoupons.com and DirectCoupons.com, to Save.com for
a two-year cash and marketing alliance valued at approximately $23
million.
internet.com also announced it will provide advertising across the
internet.com network properties in exchange for equity interests in
Offices2Share.com, StockCharts.com, Workz.com and Recommend-It.com.
internet.com Venture Funds I and II and internet.com Venture
Partners III were formed to invest in early-stage online content
providers serving targeted business-to-business markets that follow
the strategy of, but are not competitive with, internet.com.
internet.com is an investor in all three funds. internet.com continues
to hold the added benefit of being a public company operating in the
Internet space that also extends value to its stockholders by having
an Internet venture capital arm.
About internet.com
internet.com Corporation (Nasdaq: INTM; http://www.internet.com),
based in Darien, CT, is a leading provider of global real-time news
and information resources for Internet industry and Internet
technology professionals, Web developers and experienced Internet
users. internet.com operates a network of 126 Web sites, 177 e-mail
newsletters, 136 online discussion forums and 79 moderated e-mail
discussion lists with over 2.1 million unique visitors that generate
140 million page views monthly. Total "views", which include Web site
page views, e-mail newsletter views and e-mail discussion list views,
are nearly 200 million per month. internet.com's global presence
includes editions in Arabia, Asia, Australia, Belgium, Canada, China,
Espanol, France, Germany, India, Israel, Japan, The Netherlands, New
Zealand, South Africa, Taiwan and the United Kingdom. In addition,
internet.com with its related internet.com Venture Funds I, II, and
Venture Partners III is an investor in a growing number of
business-to-business content sites and related Internet media
properties.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
internet.com Corporation's business which are not historical facts are
"forward-looking statements" that involve risks and uncertainties. For
a discussion of such risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see internet.com's reports filed with the Securities and
Exchange Commission pursuant to the Securities Act of 1933 and the
Securities Exchange Act of 1934. The forward-looking statements
included herein are made as of the date of this press release, and
internet.com assumes no obligation to update the forward-looking
statements after the date hereof.
-0-
*T
internet.com Corporation
Consolidated Balance Sheets
December 31, 1999 and June 30, 2000
(in thousands, except share and per share amounts)
December 31, June 30,
1999(1) 2000
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $17,943 $ 85,878
Accounts receivable, net of
allowances of $712 and $1,473,
respectively 5,568 10,529
Prepaid expenses and other 347 1,107
---------- -------------
Total current assets 23,858 97,514
Property and equipment, net of
accumulated depreciation
of $688 and $1,557,
respectively 3,221 4,752
Intangible assets, net of accumulated
amortization of $10,428 and $20,098,
respectively 39,086 52,394
Investments in internet.com venture
funds and other 1,855 4,794
Other assets 370 457
---------- -------------
Total assets $68,390 $159,911
========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,635 $ 2,634
Accrued payroll and
related expenses 1,441 1,926
Accrued expenses and other 2,096 4,071
Accrued Web site acquisition
payments 6,462 4,539
Deferred revenues 403 747
Total current liabilities 12,037 13,917
Accrued Web site acquisition payments 338 240
----------- --------------
Total liabilities 12,375 14,157
Commitments and contingencies - -
Stockholders' equity:
Preferred stock, $.01 par value,
4,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $.01 par value,
75,000,000 shares
authorized, 23,334,520 and
25,090,770 shares
issued and outstanding at
December 31, 1999 and
June 30, 2000, respectively
233 251
Additional paid-in capital 70,917 169,315
Accumulated deficit (15,135) 23,819)
Accumulated other comprehensive
income - 7
------------ -------------
Total stockholders' equity 56,015 145,754
------------ -------------
Total liabilities and
stockholders' equity $68,390 $159,911
============ =============
(1) Represents the combined financial data of predecessor business and
internet.com.
internet.com Corporation
Consolidated Statements of Operations
For the Six Months Ended June 30, 1999 and 2000
(unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ------------------------
1999(1) 2000 1999(1) 2000
------------ ------------ ------------ ---------
Revenues $ 2,872 $ 12,161 $ 4,484 $21,806
Cost of revenues 1,786 5,499 2,903 9,724
------------ ------------ ------------ ----------
Gross profit 1,086 6,662 1,581 12,082
------------ ------------ ------------ ----------
Operating expenses:
Advertising,
promotion
and selling 1,614 4,549 2,542 8,580
General and
administrative 846 2,218 1,619 4,139
Depreciation 107 487 189 869
Amortization 2,090 5,332 4,028 9,670
Non-cash
compensation
charge 7,975 - 7,975 -
------------ ------------ ------------ ----------
Total operating
expenses 12,632 12,586 16,353 23,258
------------ ------------ ------------ ----------
Operating loss (11,546) (5,924) (14,772) (11,176)
Minority interest - 96 - 142
Equity loss - (8) - (99)
Realized gain on
investments - 72 - 72
Interest income
(expense), net (52) 1,387 (84) 2,476
------------ ------------ ------------ ----------
Loss before
income taxes (11,598) (4,377) (14,856) (8,585)
Provision for
income taxes - 54 - 99
------------ ------------ ------------ ----------
Net loss $(11,598) $ (4,431) $(14,856) $ (8,684)
============ ============ ============ ==========
Net income (loss),
excluding
amortization,
non-cash
compensation
charge and
realized
gain on
investments $ (1,533) $ 829 $ (2,853) $ 914
============ ============ ============ ==========
Basic and diluted
earnings (loss)
per share,
excluding
amortization,
non-cash
compensation
charge
and realized
gain on
investments $ (0.08) $ 0.03 $ (0.16) $ 0.04
============ ============ ============ ==========
Basic and
diluted net
loss per share $ (0.63) $ (0.18) $ (0.86) $ (0.35)
============ ============ ============ ==========
Weighted average
number of
common shares
used in diluted
earnings per
share, excluding
amortization,
non-cash
compensation
charge
and realized gain
on investments 18,270 25,656 17,293 25,485
============ =========== ============ ==========
Weighted average
number of common
shares 18,270 25,089 17,293 24,789
============ =========== ============ ==========
(1) Represents the combined financial data of predecessor business and
internet.com.
internet.com Corporation
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1999 and 2000
(unaudited)
(in thousands)
Six Months Ended
June 30,
-------------------------
1999(1) 2000
-------------------------
Cash flows from operating activities:
Net loss $(14,856) $(8,684)
Adjustments to reconcile net
cash used in operating activities-
Depreciation and amortization 4,217 10,539
Provision for losses
on accounts receivable 165 761
Minority interest - (142)
Equity loss - 99
Non-cash compensation charge 7,975 -
Changes in assets and liabilities -
Accounts receivable (783) (5,595)
Prepaid expenses and other (80) (847)
Accounts payable and accrued expenses 2,268 3,584
Deferred revenues 402 292
-------------------------
Net (cash used in) provided
by operating activities (692) 7
-------------------------
Cash flows from investing activities:
Additions to property and equipment (836) (2,385)
Acquisitions of Web sites, related
Internet media properties and other (3,233) (25,071)
Investments in internet.com
venture funds and other (90) (3,038)
-------------------------
Net cash used in
investing activities (4,159) (30,494)
-------------------------
Cash flows from financing activities:
Proceeds from issuance of
common stock, net 45,932 98,330
Proceeds from exercise of stock options - 86
Proceeds from exercise of warrant 3,000 -
Borrowings under line of credit 4,670 -
Payments for line of credit (6,566) -
-------------------------
Net cash provided by
financing activities 47,046 98,416
-------------------------
Effect of exchange rates on cash - 6
-------------------------
Net increase in cash and cash equivalents 42,195 67,935
Cash and cash equivalents,
beginning of period 129 17,943
-------------------------
Cash and cash equivalents, end of period $ 42,324 $ 85,878
=========================
Supplemental disclosures of cash flow:
Cash paid for interest $ 92 $ -
=========================
Cash paid for income taxes $ - $ 25
=========================
(1) Represents the combined financial data of predecessor business and
internet.com.
--30--cl/ny* bk
CONTACT: internet.com Corporation
Eileen Smith, 203/662-2961
or esmith@internet.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: INTERNET E-COMMERCE EARNINGS
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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