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InterSearch Announces Third Quarter 2006 Results.


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  -- InterSearch Group, Inc. (AMEX AMEX

See: American Stock Exchange
:IGO IGO Inter-Governmental Organization
IGO Inspector General's Office
IGO In Good Order (verifying documents)
IGO Inside Gamer Online (video game website)
IGO Industrial Gas Oil
), a leading provider of Internet search services and operator of industry specific destination portals such as: www.irs.com, www.banks.com and www.camps.com, today reported financial results for the third quarter ended September 30, 2006.

Third Quarter 2006 Consolidated Financial Results:

* Third quarter revenue was $4.8 million, a 2% increase relative to the $4.7 million reported in the third quarter of 2005;

* Gross margins were 48%, in line with the third quarter a year ago;

* 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.
 was $0.4 million as compared to $0.7 million for the same quarter of fiscal 2005;

* GAAP GAAP

See: Generally Accepted Accounting Principles


GAAP

See generally accepted accounting principles (GAAP).
(1) earnings available to common stockholders were $0.1 million or $.00 per diluted share as compared to net earnings of $0.4 million or $.01 per diluted share in the third quarter of 2005;

* Cash flows from operations were $0.8 million for the three months ended September 30, 2006;

* Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
:EBITDA = Operating Revenue – Operating Expenses + Other Revenue
 (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) was $0.7 million.(2)

(1) Generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records.

Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting
 in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, .

(2) EBITDA is a non-GAAP financial measure. This measure may be different from non-GAAP financial measures used by other companies. We encourage investors to review the section below entitled "Non-GAAP Financial Measures" and to review the reconciling adjustments between the GAAP and non-GAAP measures attached to this press release.

"As we anticipated, the third quarter results as compared to our second quarter results were negatively impacted by seasonal trends inherent in our business. Recent acquisitions, including travel-related domains, will start impacting our revenues in 2007 and are expected to gradually alleviate the pronounced seasonality that we saw this quarter," said InterSearch CFO See Chief Financial Officer. , Gary Bogatay.

"We believe our performance in the fourth quarter of 2006 will reflect seasonally stronger online traffic and better traffic conversion rates, which are typical for the holiday season," continued Gary Bogatay.

Gross margins declined sequentially from 63% in the second quarter of 2006. The decline in gross margins during the third quarter was primarily attributable to lower revenue contribution from www.irs.com, and higher contribution from the domain parking business, Parking Dots.

During the quarter the Company saw an increase in sales, general and administrative expense of approximately $434,000. This was driven by costs associated with the process of listing the Company's common stock on the American Stock Exchange American Stock Exchange (AMEX)

Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921.
, higher amortization expense due to recent acquisitions, and necessary investments in infrastructure to accommodate the anticipated revenue growth.

Third Quarter Business Highlights

* Commenced trading on the American Stock Exchange under the ticker symbol Ticker Symbol

An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors
 IGO.

* Completed the acquisition of a premium finance-related domain, www.banks.com.

* Closed a $7 million non-convertible debt financing Debt Financing

When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay
.

* Generated approximately 21 million paid clicks as compared to 18 million in the third quarter of 2005.

"This quarter we achieved significant progress in streamlining our balance sheet and capital structure, and providing enhanced liquidity to our shareholders," said InterSearch Chairman 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. , Dan O'Donnell. "In July, InterSearch completed a $7 million non-convertible debt financing and used part of the proceeds to buy back common stock which was subject to mandatory redemption by August 12, 2006. In October, our common stock was approved for listing and began trading on the American Stock Exchange."

Added Dan O'Donnell, "We continued expanding our portfolio of category-level domains by acquiring www.banks.com. This property is a great fit for our initiatives in the finance vertical and is already generating interest from advertisers and our network partners."

Business Outlook

InterSearch is currently observing a quiet period. During the quiet period, InterSearch representatives will not provide further comment on InterSearch's business outlook or financial expectations in InterSearch's earnings releases nor will InterSearch hold conference calls to discuss its quarterly results.

About InterSearch Group, Inc.

InterSearch is a leading provider of Internet search services through a combination of traffic aggregation and proprietary websites, such as www.irs.com, www.banks.com and www.camps.com. The Company operates in the fastest growing segments of Internet commerce including paid search, direct navigation and online marketing driving high quality traffic to advertisers and providing users with quick access to pertinent products and services. Through its InterSearch Corporate Services Activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners.  division, the Company also provides Internet related technology Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products.  to large corporations, predominantly to the Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 industry. InterSearch is headquartered in San Francisco, California “San Francisco” redirects here. For other uses, see San Francisco (disambiguation).

The City and County of San Francisco (EN IPA: [sænfrənˈsɪskoʊ] 
 at 222 Kearny Street Kearny Street in San Francisco, California runs from Market Street on the south to The Embarcadero on the north. Along its southern end, the street serves as the border separating the Financial District from the city's Union Square and Chinatown districts. , Suite 550, and can be reached via telephone at 415-962-9700. More information about InterSearch Group, Inc. can be found at: www.InterSearch.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995 that involve substantial risks and uncertainties, including statements regarding our expected financial results for the fourth quarter of 2006. Forward-looking statements, which are based on management's current expectations, are generally identifiable by the use of terms, such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "possible," "potential," "predicts," "projects," "should," "would" and similar expressions. The forward-looking statements in this press release are contained principally in the section entitled "Business Outlook." The potential risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein include, among others, the Company's relationships with its current and future advertising and distribution network partners, the Company's ability to achieve anticipated results from acquisitions, and market development of Internet advertising and paid search services. Further information on the factors that could affect the Company's financial results is included in the Company's SEC filings, including the most recent registration statement filed with the SEC under the heading "Risk Factors." Except as required by law, InterSearch Group assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.

Non-GAAP Financial Measures

This press release includes the following financial measure defined as non-GAAP financial measure by the Securities and Exchange Commission: EBITDA (earnings before interest, tax, depreciation and amortization. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. See "Reconciliation of GAAP Net Earnings to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)" table included in this press release for further information regarding these non-GAAP financial measures.

InterSearch's management evaluates and monitors performance for InterSearch primarily through earnings before interest, income taxes, depreciation and amortization ("EBITDA"). In addition, EBITDA is presented because management believes it is frequently used by securities analysts, investors and others in the evaluation of companies. EBITDA is calculated by adding income taxes, interest expense, depreciation and amortization to net earnings. EBITDA is not defined under GAAP and should not be considered in isolation or as a substitute for net earnings and other consolidated earnings data prepared in accordance with GAAP or as a measure of InterSearch's profitability.
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COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Nov 9, 2006
Words:1150
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