INTERNET.COM REPORTS CASH EARNINGS AND RECORD REVENUES FOR THE QUARTER ENDED MARCH 31, 2000; REVENUES INCREASE BY NEARLY 500%
(New York, NY -April, 24, 2000) -- internet.com Corporation (Nasdaq: INTM), The Internet Industry Portal, today reported results for the quarter ended March 31, 2000. Revenues for the first quarter of 2000 increased to $9.6 million, a nearly 500% increase over revenues of $1.6 million for the same period last year. Net income for the first quarter, excluding amortization of intangibles, was $85,000, or $0.00 per share, compared to a net loss of $1.3 million, or $0.08 per share, for the same period last year. Including amortization of intangibles, net loss for the first quarter ended March 31, 2000 was $4.2 million, or $0.17 per share.
"This has been a strong quarter for internet.com. We successfully completed our follow-on offering on February 1, 2000, which raised net proceeds of nearly $100 million and added favorable research coverage by two leading underwriters: Chase H&Q; and Robertson Stephens. Net proceeds will be used primarily for potential strategic acquisitions, venture capital investments and general corporate purposes," stated internet.com Chairman and CEO Alan M. Meckler. "Through a successful combination of acquisitions, organic growth, partnerships and joint ventures, internet.com has built a leading, global network of vertical business-to-business (B2B) Web sites and online media properties. By focusing purely on the Internet industry, more than 2.2 million Internet professionals worldwide now depend on our content, community, and commerce services for news and information resources to assist them in their professional work and purchasing decisions."
"We are very pleased with our continued top-line growth that has been fueled by our multiple revenue streams. It is important to note that we have achieved this growth in an efficient and fiscally responsible manner, as we recorded cash net income of $85,000 in our first quarter. Our robust treasury, with over $100 million in cash as of March 31, 2000, coupled with our efficient operating model, leaves us well positioned to continue our growth and to maximize shareholder value," added Meckler.
internet.com continued to pursue strategic acquisitions to strengthen its content offerings and services. During the first quarter, internet.com completed 14 acquisitions including: Alert-IPO.com, ASPNews.com, ChannelSeven.com, ExtremeFlash.com, FlashKit.com, FlashPlanet.com, JustLinux.com, LinuxApps.com, LinuxNewbie.org, LinuxProgramming.com, PHPBuilder.com and ThinPlanet.com (including ASPIsland.com). In April, internet.com announced the acquisitions of DomainBook.com and UnclaimedDomains.com, which when combined with DomainNotes.com, makes internet.com a leading online marketplace for information and commerce for the Internet domain sector.
New Content Areas and Services
internet.com continued to expand and strengthen its world-class proprietary content offerings and services with the launch of the following internally developed properties: DomainNotes.com (a central resource for the Internet Domain name industry), and InternetVCLinx.com and InternetVCWatch.com, both to track the explosive growth in the venture capital investments in Internet companies. In January 2000, internet.com announced the addition of three new Internet content channels, bringing the total number of channels to 12. The most notable addition is the Linux/Open Source Channel, which was created as a result of internet.com's expanding coverage of Linux and Open Source technology. This channel integrates internet.com's LinuxToday.com, LinuxCentral.com, LinuxPlanet.com, LinuxStart.com, JustLinux.com LinuxApps.com, LinuxNewbie.org, LinuxProgramming.com and PHPBuilder.com Web sites. Other new channels include the Windows Internet Technology Channel, a robust collection of Windows resources, and the Internet Lists Channel, a starting point for online directories relevant to the Internet industry. In April, siliconvalley.internet.com was created to cover Internet and Internet venture capital activities in Silicon Valley and San Francisco.
E-Commerce Agreements and Offerings
internet.com continued to expand its e-commerce relationships, adding new agreements with many of the Internet's well-known brands. Additional partners added during the quarter included: B2BExplorer.com, FreeDiskSpace.com, Mondus.com, NetSanity, NoWonder, Qwest, Red Gorilla, ScreamingMedia, Searchbutton.com, TelekomNet, Verza and WorkExchange.com. In April, internet.com announced additional agreements with Media1st.com, Pagoo, TopHosts.com and Web2PCs.com.
internet.com continued to expand its global presence with the development of English and non-English language Internet media properties. During the first quarter, internet.com launched India.internet.com and further expanded China.internet.com. LinuxStart.com continued its international expansion with a new Chinese version and the addition of a French news feed, Actulinux.com, to its existing French site. Alliances were announced with: NineMSN.com.au, Australia's leading Internet portal (NineMSN, is a joint venture between Microsoft and ecorp), Yahoo! France, Microsoft's MSN French Web portal, French online publication Liberation and intranet portal Mediapps' France edition. As part of the agreements, internet.com is providing daily Internet technology and industry news from its France edition -- france.internet.com. internet.com also announced the launch of German Tech Stock Weekly, a new English language e-mail newsletter providing up-to-date information on Internet and technology stocks in the Neuer Market, Germany's rapidly growing High-Tech stock exchange.
internet.com's global network of Web sites now consists of international properties in Arabia, Asia, Australia, Canada, China, France, Germany, India, Israel, Japan, South Africa and the United Kingdom.
Venture Fund Investments
internet.com Venture Fund II LLC continued to expand its portfolio of early stage business-to-business content Internet companies. During the first quarter, Venture Fund II made the following investments: ExamWeb.com, MadeForChina.com, NetMechanic.com, PatentCafe.com, Searchbutton.com, SpotTrader.com, ImproveNow.com, Caregiver.com, Xianzai.com, BuyerTouch.com and PurchaseNet.com. internet.com Venture Fund I LLC announced the pending acquisition of one of its portfolio companies, AuctionRover.com by GoTo.com (Nasdaq: GOTO), which will bring internet.com Venture Fund I an estimated $3.0 million in GoTo.com common stock. AuctionRover.com is one of the nine internet.com Venture Fund I portfolio companies. Venture Fund I investment, Handango.com (formerly the GoPDA network) secured $15 million in additional equity funding from Hicks, Muse, Tate & Furst Incorporated and Q Ventures. This funding will enable Handango.com to accelerate the execution of its wireless and business-to-business strategies. Another Venture Fund I investment, MDLinx.com, secured $3 million in additional equity funding from SpaceVest and Northstar Capital. "The additional funding received by these companies demonstrates that our strategy of investing in early stage vertical content sites continues to be on target," stated Meckler.
internet.com Venture Fund I and Fund II have invested in 33 Internet properties to date. Both funds were formed to invest in early-stage online content providers serving targeted markets that follow the strategy of, but are not competitive to, internet.com. internet.com is the portfolio manager of internet.com Venture Fund I and Fund II and is an investor in both funds. internet.com continues to hold the added benefit of being a public operating company in the Internet space that also extends value to its stockholders by having an Internet venture capital arm.
internet.com Corporation (Nasdaq: INTM; http://www.internet.com) based in New York, NY, is a leading provider of global real-time news and information resources for Internet industry and Internet technology professionals, Web developers and experienced Internet users. internet.com operates a network of 107 Web sites, 155 e-mail newsletters, 117 online discussion forums and 78 moderated e-mail discussion lists with over 2.2 million unique visitors that generate more than 130 million page views monthly. Total "views", which include Web site page views, e-mail newsletter views and e-mail discussion list views, are now over 185 million per month. internet.com's global presence includes editions in Arabia, Asia, Australia, Canada, China, France, Germany, India, Israel, Japan, South Africa and the United Kingdom. In addition, internet.com with its related internet.com Venture Fund I and Venture Fund II is an investor in a growing number of business-to-business content sites and related Internet media properties.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding internet.com Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see internet.com's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and internet.com assumes no obligation to update the forward-looking statements after the date hereof.
Consolidated Balance Sheets
December 31, 1999 and March 31, 2000
(in thousands, except share and per share amounts)
Consolidated Statements of Operations
(1) Represents the combined financial data of predecessor business and internet.com.
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 1999 and 2000
(1) Represents the combined financial data of predecessor business and internet.com
Eileen Smith, (203) 662-2961 or [email protected]
All current internet.com Corp. press releases can be found on the World Wide Web at (http://www.internet.com/corporate/press.html)
internet.com Corp., 23 Old Kings Highway South, Darien, CT 06820; (203)662-2800; fax: (203) 655-4686; [email protected]