Ask Jeeves Posts Third Quarter Revenues of $75.7 Million
Third Quarter Pro Forma Income of $0.25 Per Share Third Quarter
GAAP Net Income of $0.15 Per Share
Online Stock Market Trading EMERYVILLE, Calif., Oct 27, 2004 -- Ask Jeeves, Inc. (ASKJ) "the
Company" today reported results for the third quarter, which ended
September 30, 2004. This is the first full financial quarter since
the Company's May 6, 2004 acquisition of Interactive Search
Holdings ("ISH").
Revenues for the quarter ended September 30, 2004 were $75.7
million. These third quarter results represent 178% percent growth
over revenues of $27.2 million for the comparable year-ago
quarter.
Stamps.com Reports Third Quarter 2003 Financial Results Revenue Up 32% Year over Year; Customer Acquisition Momentum Builds SANTA MONICA, October 29, Stamps.com™ ( STMP) today announced financial results for the third fiscal quarter ended September 30, 2003. Third quarter revenue was up 32% versus the same quarter last year, and up 7% versus the second fiscal quarter of 2003. In addition, the company reported an increase in customer acquisition during the third quarter, particularly with higher value Power Plan customers.
Stock Investing Course "This marks another strong quarter of earnings and revenue
growth," said Steve Berkowitz, CEO of Ask Jeeves. "We continue to
execute well. We accelerated our product roadmap, launching more
new features than in any prior quarter. In the process we went
beyond the basics of good search to pioneering exciting new
features. Customer satisfaction on our flagship Ask Jeeves site is
at an all-time high. With the development of great user experiences
and world-class technologies as our foundation, our goal as we look
to the fourth quarter and 2005 is to continue to execute as we've
done in the past. We expect to do this while expanding
internationally and growing our relationships with advertisers
through our newly formed business unit, AJinteractive."
Stamps. End 2000 Financial Results Company reports 26 percent growth in revenue over third quarter, with positive gross margin and continued focus on achieving profitability SANTA MONICA, Calif. February 22, Stamps.com™ ( STMP), today announced that revenue in the fourth quarter of year 2000 was $5.3 million, an increase of 26 percent over the third quarter of year 2000, while total revenue for fiscal year 2000 was $15.2 million.
Stock Market Game Pro forma income from continuing operations for the third
quarter was $17.6 million, or $0.25 per share. For the comparable
year-ago quarter, Ask Jeeves' pro forma income from continuing
operations was $5.1 million, or $0.09 per share. These pro forma
results should be evaluated in light of the Company's financial
results prepared in accordance with GAAP. Under GAAP, Ask Jeeves'
income from continuing operations for the third quarter of 2004 was
$10.7 million, or $0.15 per share. This compares to income from
continuing operations on a GAAP basis of $3.8 million, or $0.07 per
share, for the comparable year-ago quarter. Cash, cash equivalents
and marketable securities totaled $89.5 million on September 30,
2004.
- ScanSoft, Inc. ( SSFT), a global leader of speech and imaging solutions, month fiscal year ended September 30, 2004. ScanSoft reported third quarter 2004 revenue of $42.3 million, a 29 percent increase over third quarter 2003 revenue of $32.9 million. On a GAAP basis, ScanSoft recognized a third quarter 2004 net loss of $5.9 million, or $0.06 per basic share, compared with a net loss of $3.7 million, or $0.04 per basic share, in the third quarter of 2003.
Stock Investing Game A table reconciling the Company's pro forma income from
continuing operations to GAAP income from continuing operations is
included in the condensed consolidated financial statements in this
release. Ask Jeeves' pro forma results are calculated by adjusting
GAAP income from continuing operations to exclude the effects of
amortization of other assets and the other items detailed in the
accompanying table. Unless otherwise indicated, all financial, pro
forma and other metrics in this release are based on Ask Jeeves'
continuing operations. Ask Jeeves completed the sale of its Jeeves
Solutions division on July 1, 2003.
Stamps.com Reports First Quarter 66% Year over Year Revenue Growth, and Increased Guidance for 2004 Company Now Anticipates Approximately 55% Fiscal Year 2004 Revenue Growth and Profitability in the Fourth Quarter of 2004 SANTA MONICA, Calif. April 21, Stamps.com™ ( STMP) today announced financial results for the first quarter of 2004. First quarter revenue was an all time quarterly high of $7.6 million, up 66% versus the first quarter of 2003 and up 19% versus the fourth quarter of 2003. In addition, Stamps.com announced that it has adjusted its guidance for fiscal 2004 total revenue to be up approximately 55% versus fiscal year 2003; previously the company guided to an overall increase of 35%. Further, the company now anticipates profitability in the fourth quarter of 2004, a quarter earlier than previously expected.
Journal Prime Rate Street Wall Business Outlook
( - October 28, 2004) WebSideStory, Inc. ( WSSI), demand Web analytics, today announced its results for the third quarter ended September 30, 2004. Revenue was $5.7 million for the third quarter of 2004, compared to $4.1 million for the same period of 2003. Net income was $614 thousand for the third quarter of 2004 compared to a loss of $561 thousand for the same period of 2003.
Stock Market News The following business outlook contains forward-looking
statements describing management's current expectations for the
future. The matters discussed in these forward-looking statements
are subject to numerous assumptions, risks and uncertainties, some
of which are listed or referred to in the cautionary note below.
The pro forma guidance below has been calculated in a manner
consistent with the pro forma historical data provided above and
the pro forma tables attached to this earnings release.
Stock Investing Basics Fourth Quarter and 2004 Business Outlook
Stock Investing Software Commenting on Ask Jeeves' 2004 business outlook, the Company's
CFO, Steve Sordello, said "This year is shaping up to be another
great year for Ask Jeeves. We continued to grow revenue and
earnings while investing in our business and building innovative
products. At this time last year, we provided guidance for revenue
growth of 30 percent and earnings per share of 38 percent for 2004.
Today, as a result of strong organic growth and acquisitions, we
are expecting to deliver revenue growth of nearly 145 percent and
earnings per share growth of 160 percent for this year."
Stock Market Trading For the fourth quarter, Ask Jeeves anticipates revenues of $86
million and pro forma income of approximately $22.4 million, or
$0.32 per share. Ask Jeeves anticipates that GAAP net income will
be $0.22 per share. The anticipated difference between fourth
quarter GAAP-basis net income and pro forma income results
primarily from amortization of intangible assets associated with
the ISH acquisition. The earnings per share forecast assumes a
share count of 70 million shares.
Stock Investing For Dummy For the full year, Ask Jeeves anticipates revenues of
approximately $261 million and pro forma income of approximately
$1.04 per share for 2004. GAAP net income is expected to be $0.78
per share. The anticipated difference between GAAP-basis net income
and pro forma income results is primarily related to the non-cash
amortization of intangibles.
Stock Market Crash 2005 Business Outlook
Stock Investing Tip Commenting on the 2005 business outlook, Sordello stated "As we
look to 2005, we anticipate our revenue growth will come primarily
from search, which continues to be one of the best growth areas on
the Internet. In addition, we plan to increase investment in
international expansion, portals, technology development and
marketing, while continuing to
grow the business."
Stock Market Chart For the year ahead, Ask Jeeves currently anticipates revenues of
approximately $365 to $395 million and pro forma income of
approximately $1.30 to $1.45 per share for 2005. GAAP net income is
expected to be $0.90 to $1.05 per share. The anticipated difference
between GAAP-basis net income and pro forma income results
primarily from non-cash amortization of intangibles. This guidance
should be considered in light of the risks referred to in the
cautionary note below.
Online Stock Investing Conference Call Scheduled for 5 p.m. Eastern time on October 27,
2004
Stock Market Crash Of Ask Jeeves will hold a conference call to discuss its third
quarter 2004 results, its business outlook for the fourth quarter
and the year 2004, and its preliminary outlook for the year 2005 at
5 p.m. Eastern time on October 27, 2004. A more-detailed outlook
will be presented on the call than is contained in this release.
Interested persons can listen to a live broadcast of the conference
call on the Internet at www.irconnect.com/askjinc/index.html. To
listen to the live call, go to the web site at least fifteen
minutes prior to the start time to download and install the
necessary audio software. For those unable to listen to the live
broadcast, a replay will be available one hour after the conclusion
of the call at www.irconnect.com/askjinc/pages/overview.html for a
period of three months. The financial and statistical information
to be discussed during the conference call will be posted on Ask
Jeeves Web site at the above address.
Stock Investing For Beginner Cautionary Note Regarding Forward-looking
Statements
Finance Journal Personal This press release contains forward-looking statements. All
statements regarding the future are forward-looking statements,
including those statements regarding the Company's potential for
future growth, the Company's anticipated increase in investment in
its business, the Company's plans to continue to innovate and
improve and all expectations regarding financial forecasts
including revenue and productivity metrics, cash flow, net income,
pro forma income, revenue growth and pro forma earnings per share
of the Company in the future. The forward-looking guidance provided
in this press release is subject to numerous assumptions, risks and
other uncertainties and is based on limited information available
to Ask Jeeves at this time, which is subject to change. As a result
of these uncertainties and information limits, Ask Jeeves' actual
results in the future may differ materially from management's
current expectations. Although management's expectations may change
after the date of this release, Ask Jeeves undertakes no obligation
to revise or update the guidance above. The lack of any revision or
update is not meant to imply continued affirmation of the
guidance.
Stock Market Report Factors that might cause or contribute to such differences
include, but are not limited to: Ask Jeeves' dependence on a
third-party paid placement provider; the risk that acquisitions
might not be integrated successfully; the risk of further vertical
consolidation in the Internet search and keyword
advertising markets; risks
associated with rapid technological change; risks that innovations
by competitors might cause Ask Jeeves' user base to migrate to
other search
engines, or that Ask Jeeves
search volume might otherwise decline; risks associated with
relying on third parties for search toolbar distribution; the
risk that companies' Internet advertising budgets might
contract or grow at a slower pace; Ask Jeeves' dependence on
third parties for some types of content, distribution and
advertising delivery; potential lack of market acceptance of Ask
Jeeves' advertising products; introduction of new advertising
products or search technologies by competitors; declines in the
average selling price of Ask Jeeves' advertising products; and
adverse economic conditions in any of the major countries or
markets in which Ask Jeeves does business or to which its web
content is targeted. As a relatively short announcement, this
press release cannot present a full discussion of such risks.
Further information on risk factors that could affect Ask
Jeeves' financial results is included in its most recent Annual
Report on Form 10-K and subsequent quarterly reports on Form
10-Q filed with the Securities and Exchange Commission. Ask
Jeeves encourages investors to read all of the disclosures in
its SEC filings for a broader discussion of important factors
that may be material to investors and may affect Ask Jeeves'
business, financial condition and results of operations.
Finance Investing Stock Market About Ask Jeeves, Inc.
Wall Street Journal Com Ask Jeeves, Inc. provides consumers and advertisers with
information retrieval products across a diverse portfolio of Web
sites, portals and desktop search applications. Ask Jeeves' search
and search-based portal brands include: Ask Jeeves (Ask.com and
Ask.co.uk); Ask Jeeves Japan (Ask.jp, a joint venture); Ask Jeeves
for Kids (AJKids.com); Excite (excite.com); iWon (iwon.com); My
Search (mysearch.com); My Way (myway.com); My Web Search
(mywebsearch.com) and Teoma (teoma.com). Ask Jeeves also owns the
search technology Teoma, proprietary natural language processing
technology, as well as portal and ad serving technologies. In
addition to powering several of the Ask Jeeves brands, the Company
syndicates its technologies to help companies increase revenue
through powerful search. Ask Jeeves' advertising division,
AJinteractive, provides advertisers with targeted tools to reach a
broad base of valuable customers. Ask Jeeves, Inc. is headquartered
in Emeryville, California, with offices throughout the United
States, as well as in London, England and Dublin, Ireland. For more
information, visit http://www.Ask.com or call 510-985-7400.
Stock Market Investing Advice NOTE: Ask Jeeves, AJinteractive, Ask.com, Teoma, My Way, My
Search, My Web Search, iWon and Excite are trademarks or registered
trademarks of Ask Jeeves, Inc.
ASK JEEVES, INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) Three Months Ended (unaudited) Sept. 30, 2004 Sept. 30, 2003 Revenues $75,654 100.0% $27,176 100.0% Cost of revenues 21,487 28.4% 4,734 17.4% Gross profit 54,167 71.6% 22,442 82.6% Operating expenses: Product development 6,666 8.8% 4,207 15.5% Sales and marketing 20,050 26.5% 8,235 30.3% General and administrative 8,234 10.9% 4,838 17.8% Total pro forma operating expenses 34,950 46.2% 17,280 63.6% Pro forma operating income 19,217 25.4% 5,162 19.0% Interest and other income, net 175 0.2% 654 2.4% Pro forma income before income tax provision 19,392 25.6% 5,816 21.4% Income tax provision 1,786 2.4% 738 2.7% Pro forma income from continuing operations $17,606 23.2% $5,078 18.7% Basic pro forma income from continuing operations per share $0.31 $0.11 Weighted average shares outstanding used in computing basic pro forma income from continuing operations per share 57,655,846 44,692,016 Diluted pro forma income from continuing operations per share $0.25 $0.09 Weighted average shares outstanding used in computing diluted pro forma income from continuing operations per share 69,350,140 57,921,361 Revenues from related parties $477 $1,131 Nine Months Ended (unaudited) Sept. 30, 2004 Sept. 30, 2003 Revenues $175,224 100.0% $75,458 100.0% Cost of revenues 43,225 24.7% 14,692 19.5% Gross profit 131,999 75.3% 60,766 80.5% Operating expenses: Product development 16,624 9.5% 11,004 14.6% Sales and marketing 45,860 26.2% 22,262 29.5% General and administrative 19,871 11.3% 13,387 17.7% Total pro forma operating expenses 82,355 47.0% 46,653 61.8% Pro forma operating income 49,644 28.3% 14,113 18.7% Interest and other income, net 807 0.5% 1,035 1.4% Pro forma income before income tax provision 50,451 28.8% 15,148 20.1% Income tax provision 3,586 2.0% 1,408 1.9% Pro forma income from continuing operations $46,865 26.8% $13,740 18.2% Basic pro forma income from continuing operations per share $0.89 $0.32 Weighted average shares outstanding used in computing basic pro forma income from continuing operations per share 52,643,594 43,422,327 Diluted pro forma income from continuing operations per share $0.72 $0.26 Weighted average shares outstanding used in computing diluted pro forma income from continuing operations per share 64,772,913 53,424,494 Revenues from related parties $2,740 $3,394 RECONCILIATION OF PRO FORMA INCOME FROM CONTINUING OPERATIONS TO GAAP INCOME FROM CONTINUING OPERATIONS Sept. Sept. Sept. Sept. 30, 30, 30, 30, 2004 2003 2004 2003 Pro forma income from continuing operations $17,606 $5,078 $46,865 $13,740 Cost of revenues (126) -- (165) (1) Amortization of intangible assets (3,401) (522) (5,771) (1,566) (3,527) (522) (5,936) (1,567) Product Development (75) -- (98) (2) Sales and marketing (214) -- (280) (1) General and administrative (59) -- (77) (2) Amortization of intangible assets (7) (7) (22) (22) Transaction costs -- -- -- (625) (66) (7) (99) (649) Impairment and write off of long-lived assets -- (702) -- (702) Amortization of intangible assets (3,329) -- (5,334) -- Gain on acquisition and dissolution of joint ventures -- -- -- 6,356 Interest and other income, net (53) (8) 164 (28) Income from continuing operations $10,342 $3,839 $35,282 $17,147
Street Trader Wall Notes:
Indian Stock Market Adjustments to cost of revenues, product development, sales and
marketing, and general and administrative costs relate to
amortization of stock based compensation.
Stock Investing Advice Amortization of intangible assets in cost of revenues and
general and administrative costs consists of the pro-rata expensing
of intangible assets from acquisitions, certain licensing fees, and
trademarks.
Free Journal Street Wall Transaction costs in 2003 related to certain merger and
acquisition activities that did not come to fruition.
Stock Market Information Impairment and write off of long-lived assets consists primarily
of the write-off of obsolete equipment.
Penny Stock Investing Amortization of intangible assets consists of the amortization
of intangible assets from the acquisition of ISH in 2004.
Stock Market Stock Gain on acquisition and dissolution of joint ventures in 2003
consists of a gain from the acquisition of our UK joint venture and
a gain from the dissolution of our Ask Jeeves en Espanol joint
venture.
Stock Market Investing Basics The adjustments to interest and other income, net consist of
realized gains and losses on investments, losses on disposals of
assets, foreign exchange gains and losses, and miscellaneous
income.
ASK JEEVES, INC. PRO FORMA INCOME FROM CONTINUING OPERATIONS TO PRO FORMA EBITDA FROM CONTINUING OPERATIONS AND GAAP INCOME FROM CONTINUING OPERATIONS (In thousands, except share and per share data) Three Months Ended (unaudited) Sept. 30, 2004 Sept. 30, 2003 Per Per Amount Share Amount Share Pro forma income from continuing operations $17,606 $0.25 $5,078 $0.09 Depreciation 2,532 0.04 1,633 0.03 Interest and other income, net (175) -- (654) (0.01) Income tax provision 1,786 0.02 738 0.01 Pro forma EBITDA from continuing operations 21,749 0.31 6,795 0.12 Adjustments: Depreciation (2,532) (0.04) (1,633) (0.03) Interest and other income, net 175 -- 654 0.01 Income tax provision (1,786) (0.02) (738) (0.01) Cost of revenues (126) -- -- -- Amortization of intangible assets (3,401) (0.05) (522) (0.01) (3,527) (0.05) (522) (0.01) Product development (75) -- -- -- Sales and marketing (214) -- -- -- General and administrative (59) -- -- -- Amortization of intangible assets (7) -- (7) -- Transaction costs -- -- -- -- (66) -- (7) -- Impairment and write off of long-lived assets -- -- (702) (0.01) Amortization of intangible assets (3,329) (0.05) -- -- Gain on acquisition and dissolution of joint ventures -- -- -- -- Interest and other income, net (53) -- (8) -- Income from continuing operations $10,342 $3,839 Weighted average shares outstanding used in computing diluted income from continuing operations per share 69,350,140 $0.15 57,921,361 $0.07 Nine Months Ended (unaudited) Sept. 30, 2004 Sept. 30, 2003 Per Per Amount Share Amount Share Pro forma income from continuing operations $46,865 $0.72 $13,740 $0.26 Depreciation 6,706 0.10 5,336 0.10 Interest and other income, net (807) (0.01) (1,035) (0.02) Income tax provision 3,586 0.06 1,408 0.02 Pro forma EBITDA from continuing operations 56,350 0.87 19,449 0.36 Adjustments: Depreciation (6,706) (0.10) (5,336) (0.10) Interest and other income, net 807 0.01 1,035 0.02 Income tax provision (3,586) (0.06) (1,408) (0.02) Cost of revenues (165) -- (1) -- Amortization of intangible assets (5,771) (0.10) (1,566) (0.03) (5,936) (0.10) (1,567) (0.03) Product development (98) -- (2) -- Sales and marketing (280) -- (1) -- General and administrative (77) -- (2) -- Amortization of intangible assets (22) -- (22) -- Transaction costs -- -- (625) (0.01) (99) -- (649) (0.01) Impairment and write off of long-lived assets -- -- (702) (0.01) Amortization of intangible assets (5,334) (0.08) -- -- Gain on acquisition and dissolution of joint ventures -- -- 6,356 0.11 Interest and other income, net 164 -- (28) -- Income from continuing operations $35,282 $17,147 Weighted average shares outstanding used in computing diluted income from continuing operations per share 64,772,913 $0.54 53,424,494 $0.32
Black Hoodies Street Wall Note: Pro forma EBITDA from continuing operations is defined as
pro forma income from continuing operations excluding depreciation,
interest and other income, and income tax provision.
ASK JEEVES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, (unaudited) (unaudited) 2004 2003 2004 2003 Revenues $75,654 $27,176 $175,224 $75,458 Cost of revenues 25,014 5,256 49,160 16,259 Gross profit 50,640 21,920 126,064 59,199 Operating expenses: Product development 6,741 4,207 16,723 11,006 Sales and marketing 20,265 8,235 46,140 22,263 General and administrative 8,300 4,845 19,970 14,036 Amortization of intangible assets 3,329 -- 5,334 -- Impairment and write-off of long-lived assets -- 702 -- 702 Total operating expenses 38,635 17,989 88,167 48,007 Operating income 12,005 3,931 37,897 11,192 Gain on acquisition and dissolution of joint ventures -- -- -- 6,356 Interest income, net 193 354 851 899 Interest expense (115) -- (142) (164) Other income, net 45 292 262 272 Income before income tax provision 12,128 4,577 38,868 18,555 Income tax provision 1,786 738 3,586 1,408 Income from continuing operations 10,342 3,839 35,282 17,147 Discontinued operations: Loss from discontinued operations -- -- -- (1,218) Gain on sale of discontinued operations 380 2,482 380 2,482 Income from discontinued operations 380 2,482 380 1,264 Net income $10,722 $6,321 $35,662 $18,411 Earnings per Share- Basic: Income from continuing operations $0.18 $0.09 $0.67 $0.39 Loss from discontinued operations $0.01 $0.05 $0.01 $0.03 Net income per share $0.19 $0.14 $0.68 $0.42 Weighted average shares outstanding used in computing basic net income per share 57,655,846 44,692,016 52,643,594 43,422,327 Earnings per Share-Diluted: Income from continuing operations $0.15 $0.07 $0.54 $0.32 Loss from discontinued operations $0.00 $0.04 $0.01 $0.02 Net income per share $0.15 $0.11 $0.55 $0.34 Weighted average shares outstanding used in computing diluted net income per share 69,350,140 57,921,361 64,772,913 53,424,494 Revenues from related parties $477 $1,131 $2,740 $3,394 ASK JEEVES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Sept. 30, Dec. 31, 2004 2003 (unaudited) ASSETS Current assets: Cash and cash equivalents $64,779 $36,673 Marketable securities 24,735 143,975 Total cash, cash equivalents and marketable securities 89,514 180,648 Accounts receivable, net 37,653 12,062 Prepaid expenses and other current assets 7,042 3,299 Total current assets 134,209 196,009 Property and equipment, net 23,984 10,933 Goodwill 262,249 -- Intangible assets, net 94,433 831 Other long-term assets, net 5,599 4,482 Total assets $520,474 $212,255 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued liabilities $36,727 $12,050 Accrued compensation and related expenses 7,499 5,137 Accrued restructuring costs 604 1,167 Deferred revenue 2,759 5,367 Current portion of capital lease obligation 751 -- Total current liabilities 48,340 23,721 Convertible subordinated notes 115,000 115,000 Capital lease obligations, less current portion 592 -- Other liabilities 326 326 Total liabilities 164,258 139,047 Commitments and contingencies Stockholders' equity 356,216 73,208 Total liabilities and stockholders' equity $520,474 $212,255
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