Autobytel Inc. Announces First Quarter 2007 Financial Results.-- MyRide.com Launch Set for June -- IRVINE, Calif. -- Autobytel Inc. (Nasdaq:ABTL ABTL Association Belge des Technologues de Laboratoire ), a leading Internet automotive marketing services company, today announced financial results for the first quarter ended March 31, 2007. "We are off to a solid start for the year," said Autobytel president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jim Riesenbach. "After spending much of 2006 laying a solid foundation for the future, we now are focused on our transformation to a more media-centric business model. By offering consumers an unrivaled online experience and further establishing our role as a premier online marketing partner for auto dealers and manufacturers, we believe Autobytel will be well positioned for long-term, sustainable growth and profitability." First-Quarter 2007 Financial Results Revenues for the first quarter of 2007 totaled $28.4 million, compared with $28.3 million in the prior-year period and up 6% from $26.8 million in the fourth quarter of 2006. Autobytel generated 61% of total revenues from lead fees, 17% from advertising and 22% from customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) services and other in the first quarter of 2007, compared with 64% of total revenues from lead fees, 13% from advertising and 23% from CRM services and other in the first quarter of 2006. The change in revenue mix was largely the result of a 25% increase in ad revenues from the first quarter of last year consistent with the company's more media-centric focus. This increase was offset by a 4% decline in lead referral fees. Lead referral fees in the first quarter of 2007 included approximately $1.1 million of previously deferred revenue under a multiple element arrangement with an OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customer. Autobytel reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the 2007 first quarter of $3.1 million, which included a $9.9 million gain related to the recent settlement with Dealix Corporation in connection with a patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. lawsuit. This compares to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $9.1 million in the first quarter of 2006 and an operating loss of $8.0 million in the 2006 fourth quarter. The improvement compared to the first quarter of 2006 is also due to the reduction in patent infringement litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expenses and other professional fees and the recognition of deferred revenue, partially offset by a $1.0 million accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for the tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. settlement of a previously disclosed litigation matter and increases in share based compensation and other general and administrative expenses. Non-cash share based compensation was $1.5 million and $1.3 million in the first quarters of 2007 and 2006, respectively. Autobytel posted net income of $5.6 million, or $0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the first quarter of 2007, including the $9.9 million gain related to the settlement with Dealix Corporation and a $2.3 million gain from the January 2007 sale of the company's Automotive Information Center (AIC AIC Association des Infermières Canadiennes. ) business. This compares with a net loss of $8.5 million, or $0.20 per share, in the first quarter of 2006 and a net loss of $7.3 million, or $0.17 per share, in the fourth quarter of 2006. Domestic and restricted international cash and equivalents, and short-term investments totaled $28.1 million at March 31, 2007, versus $26.1 million at December 31, 2006. Autobytel said it plans to unveil its innovative consumer Internet site, MyRide.com, in June 2007. The company said it expects MyRide.com to provide consumers with the first-of-its-kind integrated vertical search experience built around the entire automotive purchase and ownership lifecycle. The site is expected to provide extensive editorial and multi-media content; the Internet's largest base of used car listings; access to more than one million automotive parts and accessories through a relationship with a leading Internet retailer; and social networking See social networking site. social networking - social network capabilities. "We are excited about MyRide.com and its potential to transform the automotive Internet," Riesenbach said. "The power and robust content of MyRide.com should help us achieve our vision of becoming the leading online destination and brand that assists consumers in researching, buying and owning an automobile. The large consumer following we expect to attract to MyRide.com also should facilitate our journey toward becoming the online marketer of choice for auto dealers and manufacturers." "The auto industry continues to account for a large and growing percentage of marketing dollars spent online, and we are confident in our ability to capture a growing share of this opportunity," Riesenbach continued. "With positive industry trends, a renewed focus on our core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects for the future." Recent Highlights/Metrics [TABLE OMITTED] Conference Call Autobytel management will host a conference call today at 5 p.m. ET to discuss its first quarter 2007 financial results. The conference call will be available to all interested parties through a live webcast at www.autobytel.com. Please visit the Web site at least 15 minutes prior to the start of the call to register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. any necessary software. For those unable to listen to the live broadcast, the call will be archived for a year on Autobytel's Web site. A telephone replay of the call will also be available for approximately one week by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international) and entering conference ID: 7325276. About Autobytel Inc. Autobytel is one of the largest online automotive marketplaces, empowering consumers to make smart vehicle choices using objective automotive data and insightful interactive editorial content. The result is a convenient car-buying process backed by a nationwide network of dealers who are committed to providing a positive consumer experience. Every day consumers choose Autobytel-owned and operated websites - Autobytel.com, Autoweb.com, CarSmart.com, Car.com, and CarTV.com - to facilitate their car-shopping decisions. Autobytel's ability to attract millions of highly qualified, in-market car buyers and connect them with retailers has made it a leader in facilitating the entire customer car-buying lifecycle. The company's innovative marketing, advertising and CRM products, including its Web Control[R] customer management system, Retention Performance Marketing (RPM (1) (Revolutions Per Minute) With electric and electronics devices, RPM measures the rotational speed of the motor's spindle. Floppy disks rotate at 300 RPM, while hard disks rotate from 3,000 to 15,000 RPM. [R]) service reminder program, and Special Finance Leads, are designed to enable dealers to offer a premium consumer experience. Since pioneering pro-consumer online automotive content and purchasing in 1995, Autobytel has helped more than 27 million car buyers, generating billions of dollars in car sales for dealers. Forward-Looking Statement 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. Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws, including, but not limited to the goal of reaching profitability before the end of 2008 remaining on track. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. Autobytel undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements are changes in general economic conditions, the economic impact of terrorist attacks or military actions, increased dealer attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: , pressure on dealer fees, increased or unexpected competition, the failure to successfully launch new products and services, the failure to realize anticipated synergies from acquired entities, costs related to acquisitions, failure to retain key employees or attract and integrate new employees, difficulties in successfully integrating the businesses and technologies of acquired entities and Autobytel, that actual costs and expenses exceed the charges taken by Autobytel, changes in laws and regulations, costs of defending lawsuits and undertaking investigations and related matters and other matters disclosed in Autobytel's filings with the Securities and Exchange Commission. Investors are strongly encouraged to review our annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2006, and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of our stock. (Financial tables follow) [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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