CMP Media Inc. Comments On Expected Second Quarter 1998 Results.MANHASSET, N.Y.--(BUSINESS WIRE)--June 23, 1998--CMP Media Inc. (Nasdaq: CMPX CMPX Complex ) today announced that based on currently available information, it expects to report revenues for the quarter ending June 30, 1998, in the range of $122 million to $125 million compared to $125 million reported in the second quarter of last year. 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 second quarter is expected to be in the range of $4 million to $5 million, and net income in the range of $2.5 million to $3.5 million, or $0.10 to $0.14 per share. This compares to 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 net income of $6.5 million, or $0.29 per share reported in the same period last year. The company attributes expected second-quarter results to a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in information technology advertising caused primarily by delays in new product introductions, continued instability in the Asian marketplace, and earnings weakness in the technology sector. CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information 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. Michael Leeds said, "The instability in the Asian markets, which is impacting businesses in the technology sector and beyond, has persisted longer and with greater severity than we anticipated. The impact of the Asian economies is further compounded by the concurrent delay of new product introductions, particularly Windows 98, and the earnings weakness shown by the technology sector in general. "While we are disappointed by current softness in our business, it is reminiscent of the occasional weakness in advertising our industry has experienced in the past," Leeds said. "CMP continues to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the industry, gaining share in a difficult market, and we believe the company is strategically positioned to benefit from the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. long-term prospects for the technology publishing sector." CMP reported revenues of $109.2 million in the first quarter of 1998 compared to $101.9 million in the first quarter of 1997 and net income of $1.2 million, or $0.05 per share, in 1998's first quarter versus pro forma net loss of $2.3 million, or $0.10 per share, in 1997 s first quarter. For the year ended December 31, 1997, the Company reported revenues of $473.9 million and pro forma net income of $19.9 million, or $0.86 per share (exclusive of a $4.4 million stock gift to company employees). In connection with its initial public offering of 5,485,000 shares of Class A Common Stock on July 25, 1997, the company terminated its S corporation election and converted to C corporation status. Pro forma net income for 1997 is presented as if the company had been a C corporation prior to January 1, 1997. CMP Media Inc. (Nasdaq: CMPX) is a leading high-tech media company providing essential information and marketing services to the broad technology spectrum--the builders, sellers and users of technology worldwide. With its portfolio of newspapers, magazines, custom publishing, Internet products and conferences, CMP is uniquely positioned to offer marketers comprehensive, integrated solutions tailored to meet their individual needs. Online editions of the company's print publications, which include EE Times, InformationWeek, Computer Reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. News and Windows Magazine, along with products and services created exclusively for the Internet, can be found on CMPnet at http://www.CMPnet.com. This release contains 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. that are subject to risks and uncertainties. CMP's actual results could differ materially from those discussed in such forward-looking statements, due to various factors which are outside CMP's control. Factors that could affect performance include decreased demand for technology advertising, delays in new product introductions by advertisers, the failure of advertisers to adopt new products and services offered by CMP, economic instability in Asian and other foreign markets, and costs of integrating newly acquired products and services into CMP operations. For a more detailed discussion of these factors and others, see CMP's Securities and Exchange Commission filings. CONTACT: Investor Contact Naomi Rosenfeld or Andrea Kaimowitz Morgen-Walke Assoc. (212) 850-5600 or Media Contact Stan Froelich Morgen-Walke Assoc. (212) 850-5600 or Company Contact Joseph E. Sichler, Chief Financial Officer Barbara Kerbel, VP IR/Corp. Comm See comms. (516) 562-5000 |
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