24/7 Media, Inc. Announces Second Quarter Financial Results.NEW YORK--(BUSINESS WIRE)--Sept. 1, 1998--24/7 Media, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : TFSM), a leading Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. and direct marketing firm, today announced its financial results for the second quarter ended June June: see month. 30, 1998. The Company reported Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenues for the second quarter of 1998 of $4.1 million, a 70 percent increase compared with pro forma revenues of $2.4 million during the first quarter of 1998. The pro forma net loss for the second quarter of 1998 was $5.2 million compared to a pro forma net loss of $4.5 million during the first quarter of 1998. Pro forma data give effect to the acquisitions of Petry Interactive, Advercomm, Intelligent Interactions and CLIQNOW! as if they had occurred on January January: see month. 1, 1997 (or inception, if later) by consolidating the results of operations of the acquired entities with the results of operations of 24/7 Media for the periods presented. The Company reported pro forma revenues of $6.6 million for the six months ended June 30, 1998, a 168 percent increase over pro forma revenues of $2.5 million for the six months ended June 30, 1997. The pro forma net loss for the six months ended June 30, 1998 was $9.7 million, compared to a pro forma net loss of $7.6 million, during the six months ended June 30, 1997. On an actual basis, the Company reported revenues of $3.7 million and $4.7 million for the three month and six month periods ended June 30, 1998, as compared to $1.0 million and $2.1 million for the three month and six month periods ended June 30, 1997. The Company's net loss was $10.3 million and $12.6 million for the three month and six month periods ended June 30, 1998, as compared to $1.4 million and $2.2 million for the three and six month periods ended June 30, 1997. Actual results for the periods ended June 30, 1998 included a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of approximately $5.5 million related to acquired in-process technology in connection with its acquisition of Intelligent Interactions, which was not included in the pro forma results for such periods. 24/7 Media delivered an aggregate of 440 million ad impressions during the month of June 1998, compared to 325 million ad impressions during the month of March 1998, an increase of 35 percent. The company added a number of marquee Web sites during the second quarter, including MapQuest Noun 1. MapQuest - a free, widely-used Web Map Server trademark - a formally registered symbol identifying the manufacturer or distributor of a product Verb 1. , The Mining Company, Talk City, World Pages and Delphi Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Results of the Company's Web site recruitment efforts have accelerated in the Company's third quarter with the addition of many marquee Web sites, including SportsNetwork.com, Reuter's Health and Server.com, and the Company expects ad impression levels for its third quarter ending September September: see month. 30, 1998 to reflect an accelerated rate of growth. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Media Metrix, the three 24/7 Media networks reached 36.6%, or more than one third, of all Internet users Internet user n → internauta m/f Internet user Internet n → internaute m/f in June 1998. The Company believes that this reach figure is among the highest in the Internet advertising industry. On August 19, 1998, 24/7 Media completed an initial public offering of 3,550,000 shares of its common stock, raising net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $45 million. "During the second quarter, we laid the foundation for the Company's continued growth," said David J David J. Haskins (b. April 24, 1957, in Northampton, England) is a British alternative rock musician. He was the bassist for the seminal gothic rock band Bauhaus. Life and work . Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. , President and Chief Executive Officer of 24/7 Media. "We solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our management team and made two key acquisitions, which contributed our core Adfinity technology and added a third network of Web sites to our line-up. With the completion of our recent initial public offering, we now have the resources and focus necessary to further expand our sales force and networks, maximize the value of our advertising inventory and execute our acquisition strategy." About 24/7 Media 24/7 Media provides Internet advertising solutions for advertisers and Web publishers. The company operates The 24/7 Network of over 85 high-profile Web sites, the CLIQNOW! Network of over 75 medium to large-sized Web sites, and the ContentZone network of over 2,000 small to medium-sized Web sites. Based in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 24/7 Media has offices in Chicago, Dallas, Detroit, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Seattle, and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . The Company's main Web site address is www.247media.com. The CLIQNOW! Web site address is www.cliqnow.com. This news release contains statements of a forward-looking nature relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events or the future financial results of 24/7 Media. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. In evaluating such statements, investors should specifically consider the various factors which could cause actual events or results to differ materially from those indicated from forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including the matters set forth in 24/7 Media's reports and documents filed from time to time with the Securities and Exchange Commission. -0-
24/7 MEDIA, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Six months ended
June 30, June 30,
1997 1998 1997 1998
(unaudited) (unaudited)
Revenues:
Advertising $ 591,722 $4,126,498 $1,006,705 $6,473,805
Consulting and
license fees 639,588 39,178 1,444,833 127,540
------------ ------------ ------------ -----------
Total revenues 1,231,310 4,165,676 2,451,538 6,601,345
Cost of revenues 604,715 3,349,641 1,083,680 5,242,372
------------ ------------ ------------ -----------
Gross profit 626,595 816,035 1,367,858 1,358,973
Total operating
expenses 5,058,393 6,009,963 8,947,693 10,964,970
------------ ------------ ------------ -----------
Loss from
operations (4,431,798) (5,193,928) (7,579,835) (9,605,997)
Net interest
income (expense) (1,300) 36,111 12,842 (142,581)
------------ ------------ ------------ -----------
Net loss $(4,433,098) $(5,157,817) $(7,566,993) $(9,748,578)
============ ============ ============ ===========
24/7 MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Six months ended
June 30, June 30,
1997 1998 1997 1998
(unaudited) (unaudited)
Revenues:
Advertising $ 355,346 $3,661,110 $ 744,238 $4,736,944
Consulting and
license fees 630,588 39,178 1,435,833 39,178
---------- ---------- ---------- ----------
Total revenues 985,934 3,700,288 2,180,071 4,776,121
Cost of revenues 434,640 3,097,947 894,227 4,027,950
---------- ---------- ---------- ----------
Gross profit 551,294 602,341 1,285,844 748,171
---------- ---------- ---------- ----------
Operating expenses:
Sales and marketing 574,023 1,628,966 1,024,528 2,282,426
General and
administrative 829,763 1,801,077 1,512,344 3,088,755
Product
development 447,200 515,699 846,723 515,699
Legal costs in
connection with
claim 123,843 - 123,843 -
Write-off of
acquired
in-process
technology - 5,477,281 - 5,477,281
Amortization of
goodwill - 1,471,291 - 1,806,646
--------- ----------- --------- ----------
Total operating
expenses 1,974,829 10,894,314 3,507,438 13,170,807
--------- ----------- --------- ----------
Loss from
operations (1,423,535) (10,291,973) (2,221,594) (12,422,636)
Interest income 2,893 50,379 16,575 75,883
Interest expense,
including
amortization of debt
discount (6,952) (15,198) (6,952) (207,960)
--------- ----------- ---------- ----------
Net loss (1,427,594) (10,256,792) (2,211,971) (12,554,712)
Cumulative dividends
on preferred stock - (151,689) - (185,126)
--------- ----------- ---------- -----------
Net loss attributable
to common
stockholders $(1,427,594) $(10,408,481)$(2,211,971)$(12,739,838)
===================================================
Net loss per share
basic and diluted $ (1.32) $ (1.32) $(2.05) $(2.32)
=========== ============ ========== ==========
Weighted average
shares used in
basic and diluted
net loss per share
calculation 1,079,116 7,892,251 1,079,116 5,501,383
24/7 Media, CLIQNOW!, Adfinity, dbCOMMERCE, and ContentZone are
trademarks of 24/7 Media, Inc.
CONTACT: 24/7 Media, Inc., New York C. Andrew Johns Leslie A. Howard Chief Financial Officer Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. 212/231-7108 212/231-7104 ajohns@247media.com lhoward@247media.com |
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