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JUPITERMEDIA CORPORATION REPORTS RESULTS FOR ITS FOURTH QUARTER ENDED DECEMBER 31, 2003

(New York, NY - February 3, 2004) - Jupitermedia Corporation (Nasdaq: JUPM) today reported results for the quarter ended December 31, 2003. Revenues for the fourth quarter of 2003 were $15.2 million compared to revenues of $11.7 million for the same period last year, an increase of 30%. Net income for the fourth quarter was $2.2 million, or $0.08 per diluted share, compared to net income of $458,000, or $0.02 per diluted share, for the same period last year.

For the year ended December 31, 2003, revenues were $47.0 million compared to $40.7 million for 2002. Net income for the year ended December 31, 2003 was $1.4 million, or $0.05 per diluted share, compared to a net loss of $511,000, or $0.02 per diluted share for the prior year.

"We are pleased with our continued financial progress and our results for this year. We experienced an overall increase over the prior year, as well as sequential increases in both revenues and net income for each of our quarters this year," stated Jupitermedia's Chairman and CEO Alan M. Meckler. "Our acquisitions of the ArtToday.com Network and its graphics-oriented readership, one of the leading paid subscription resources on the Web, and DevX.com and its leading developer-oriented readership, have expanded and diversified our revenue sources. Our company now consists of four complementary business segments: Online Media, Online Images, Research, and Events, all of which are focused on serving information technology, Internet industry and graphics professionals. We are experiencing significant marketing and business synergies among these recent acquisitions and our internet.com, EarthWeb.com and ClickZ.com Networks, as well as with our trade shows and Jupiter Research," added Meckler.

Jupitermedia Corporation 4th Quarter 2003 Financial Results Conference Call Alert

Jupitermedia Corporation invites you to participate in its conference call reviewing 2003 fourth quarter results, scheduled for Wednesday, February 4, 2004 at 11:00 am EST.

The conference call number is (800) 946-0712 for domestic participants and (719) 457-2641 for international participants; pass code "Jupitermedia Fourth Quarter." Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Wednesday, February 18, 2004. Replay call numbers are (888) 203-1112 for domestic participants and (719) 457-0820 for international participants: pass code: 136216.

Acquisitions

  • In October, Jupitermedia announced that it acquired over one million photos, clipart and other graphic images from a variety of leading companies in the field in several transactions. The addition of this new content to the ArtToday.com Network furthers Jupitermedia's position as a leading provider of royalty-free digital images. Terms of these acquisitions were not disclosed.
  • In October, Jupitermedia announced its move into Digital Rights Management (DRM) coverage with the acquisition of the Web site and e-mail newsletter assets associated with DRMwatch.com (www.drmwatch.com), a leading resource for information about Digital Rights Management (DRM), from GiantSteps Media Technology Strategies and its principal Bill Rosenblatt. Terms of the acquisition were not disclosed.
  • In December, Jupitermedia announced that it acquired PPCforHosts.com, a business offering bid-for-position marketing services for the Web hosting industry. The acquisition provides Jupitermedia with bid-for position technology that it plans to use on its own network of Web sites and for ongoing business relationships with a number of marketers who have been using the service. Terms of the acquisition were not disclosed.

New Online Media and Online Image Offerings

Jupitermedia continued to expand and strengthen its world-class proprietary content offerings with the addition of the following:

  • In October, Jupitermedia released Wi-FiHotSpotList.com (formerly HotSpotList.com) (www.wifihotspotlist.com), an enhanced directory of publicly available wireless enabled locations, featuring listings of thousands of wireless locations in 26 countries. In addition to an ever-growing directory of hotspot listings, Wi-FiHotSpotList.com enhancements include simplified search and improved navigation to make it even faster and easier to find a hotspot.
  • In October, Jupitermedia launched Animations.com (www.animations.com), a collection of over 250,000 animated GIFs for use in e-mail messages, Web pages and presentations. The addition of this new paid online subscription site to its ArtToday.com Network furthers Jupitermedia's position as a leading provider of royalty-free digital images.
  • In December, Jupitermedia announced the launch of SmartPhoneToday.com (www.smartphonetoday.com), an internally developed Web site that is now part of the company's internet.com network. In addition to news, reviews, features and current events for users of all classes of smartphones - including Palm, Windows Mobile and Symbian-based models - SmartPhoneToday.com supplies downloadable software and provides forums where new users and experts alike can discuss and debate industry developments, as well as ask and answer questions about the everyday use of their smartphones.

New Research Services

Jupitermedia continued to expand and strengthen its world-class proprietary research offerings with the addition of the following:

  • In October, Jupiter Research launched its European Country Focus research service to provide companies with a unique source of essential in-depth market intelligence, backed by deep proprietary data, for the United Kingdom, France, Germany, Spain, Italy and Sweden. European Country Focus reports deepen Jupiter Research's longstanding coverage of the European market by providing detailed market forecasts and consumer survey data, along with country-by-country analysis, covering all aspects of the digital economy including broadband access, online advertising, paid content, wireless, digital television and consumer behavior. In addition, this service initiates Jupiter Research's basic coverage of Central & Eastern European markets, comprising analysis, baseline population and Internet access forecasts for Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia.

Conferences and Trade Shows

Jupiter Events, a division of Jupitermedia, produces paid conferences and trade shows on IT and business-specific topics worldwide that are aligned with the content on our Web sites and our research offerings. Jupiter Events held seven paid conferences and trade shows in the fourth quarter, each focusing on a different issue pertaining to information technology and the Internet industry. Events included: Wi-Fi Planet Conference & Expo Europe 2003; Instant Messaging Planet Conference & Expo Fall 2003; Enterprise Linux Forum Conference & Expo Fall 2003; Search Engine Strategies Conference & Expo Munich 2003; Enterprise IT Week at Computer Digital Expo; Wi-Fi Planet Conference & Expo Fall 2003; and Search Engine Strategies Conference & Expo Fall 2003.

In October, Jupitermedia announced the launch of Digital Rights Management Strategies Conference & Expo, a trade show focusing on Digital Rights Management, to be held April 13-14, 2004 at the Crowne Plaza Hotel in New York City.

In December, Jupitermedia announced the launch of a new series of trade shows called Internet Planet to serve the thriving online business sector (www.internetplanet.com). Internet Planet Conference & Expo Spring 2004 will be run June 15-16 in New York City at the Hilton New York, and the Fall 2004 event will be held November 17-18 at the San Jose Convention Center in San Jose, California.

Jupiter Events has announced the following conferences and trade shows for 2004:

  • IT Service Management Forum Government Conference & Expo (February 2-7, Washington, D.C.)
  • Jupiter Content Management Conference & Expo (February 3-4, San Jose, CA)
  • Search Engine Strategies Conference & Expo 2004 (March 1-4, New York, NY)
  • Instant Messaging Planet Conference & Expo 2004 (March 3-4, Boston, MA)
  • Wi-Fi Planet Conference & Expo Canada 2004 (March 16-18, Toronto, Canada)
  • Digital Rights Management Strategies Conference & Expo (April 12-14, New York, NY)
  • ISPCON Conference & Expo Spring 2004 (April 14-16, Washington, DC)
  • Wi-Fi Planet Conference & Expo Japan 2004 (April 20-21, Tokyo, Japan)
  • Search Engine Strategies Conference & Expo 2004 (April 20-21, Tokyo, Japan)
  • Search Engine Strategies Conference & Expo 2004 (May 11-12, Toronto, Canada)
  • Search Engine Strategies Conference & Expo 2004 (June 2-3, London, U.K.)
  • Wi-Fi Planet Conference & Expo Spring 2004 (June 8-10, Baltimore, MD)
  • Internet Planet Conference & Expo Spring 2004 (June 15-16, New York, NY)
  • Jupiter Plug.IN Conference & Expo (July 26-27, New York, NY)
  • Jupiter/ClickZ Advertising Forum Conference & Expo (July 28-29, New York, NY)
  • Search Engine Strategies Conference & Expo 2004 (August 2-5, San Jose, CA)
  • IT Service Management Forum Conference & Expo (Sept. 27-Oct. 2, Long Beach, CA)
  • Wi-Fi Planet Conference & Expo U.K. 2004 (October 27-29, London, U.K.)
  • Internet Planet Conference & Expo Fall 2004 (November 17-18, San Jose, CA)
  • Wi-Fi Planet Conference & Expo Fall 2004 (November 30 December 2, San Jose, CA)

Venture Fund Investments

Jupitermedia is the portfolio manager of internet.com Venture Fund I LLC (April '99), internet.com Venture Fund II LLC (November '99) and internet.com Venture Partners III LLC (June '00). internet.com Venture Funds I and II and internet.com Venture Partners III were formed to invest in early-stage online content providers serving targeted business-to-business markets that follow the strategy of, but are not competitive with, Jupitermedia. Jupitermedia is an investor in all three funds. In February 2003, the operating agreement of internet.com Venture Fund II LLC was amended to provide for dissolution of the fund and distribution of the fund assets by December 31, 2003. In October 2002, the operating agreement of internet.com Venture Partners III was amended to provide for dissolution of the fund and distribution of the fund assets by December 31, 2003. Both funds are in the process of dissolution and final distributions are expected to be made following such dissolutions. Jupitermedia no longer has any outstanding capital commitments related to any of its venture funds.

Stock Repurchase Program

In October 2001, Jupitermedia announced that its Board of Directors had authorized the expenditure of up to $1.0 million to repurchase the Company's outstanding common stock. Any purchases under Jupitermedia's stock repurchase program may be made, from time-to-time, in the open market, through block trades or otherwise, at the discretion of Company management. Depending on market conditions and other factors, these purchases may be commenced or suspended at any time or from time-to-time without prior notice. There were no repurchases during the year ended December 31, 2003.

Metrics

  • December 2003 page views were over 275 million
  • 5.7 million e-mail newsletter subscribers as of December 31, 2003
  • Over 6.3 million total opt-in e-mail rental list subscribers as of December 31, 2003
  • Over 800,000 unique opt-in e-mail rental list subscribers as of December 31, 2003
  • December 2003 unique users were over 20 million
  • 279 employees as of December 31, 2003

Segment Information

The following tables summarize the results of the segments of Jupitermedia for the three months and the years ended December 31, 2002 and 2003. Online media consists of the internet.com, EarthWeb.com, DevX.com and ClickZ.com Networks. Online images consists of the ArtToday.com Network. Research represents the Jupiter Research division. Events represents the Jupiter Events division. Other includes corporate overhead, depreciation, amortization and venture fund related activities. The following amounts are presented in thousands.

 

Three Months Ended
December 31,

Year Ended
December 31,

 

2002

2003

2002

2003

Revenues:
Online Media

$6,731

$7,242

$28,219

$24,991

Online Images

-

$2,181

-

$4,018

Research

$2,960

$2,534

$5,139

$9,101

Events

$1,812

$3,092

$6,221

$8,279

Other

$154

$149

$1,118

$602

 

$11,657

$15,198

$40,697

$46,991

Cost of revenues and operating expenses:
Online Media

$4,716

$4,777

$21,339

$17,379

Online Images

$ -

$1,013

$ -

$2,092

Research

$2,595

$2,252

$4,344

$9,112

Events

$1,913

$3,073

$6,283

$9,603

Other

$1,946

$1,958

$8,736

$7,490

 

$11,170

$13,073

$40,702

$45,676

Operating income (loss):
Online Media

$2,015

$2,465

$6,880

$7,612

Online Images

-

$1,168

-

$1,926

Research

$365

$282

$795

($11)

Events

$(101)

$19

$(62)

$(1,324)

Other

$(1,792)

$(1,809)

$(7,618)

$(6,888)

 

$487

$2,125

$(5)

$1,315

Business Outlook

Jupitermedia's financial guidance is prepared in accordance with accounting principles generally accepted in the United States of America. Historical results below have been adjusted to conform to this presentation. The amounts below reflect the preliminary allocation of the purchase prices of both ArtToday, Inc. and DevX and are subject to change pending a final allocation of these amounts. The following forward looking-statements reflect Jupitermedia's expectations as of February 3, 2004. Due to potential changes in general economic conditions and the various other risk factors discussed below and in Jupitermedia's reports filed with the Securities and Exchange Commission from time to time, actual results may differ materially. Jupitermedia intends to continue its practice of not updating forward-looking statements until its next quarterly results announcement, other than in publicly available statements.

Future Expectations
 

Actual Total 2003

Q1 2004

Q2 2004

Q3 2004

Q4 2004

Total 2004

(in millions, except per share amounts)

Revenues ($M)

$47.0

$13.0-14.0

$14.2-15.2

$14.8-15.8

$16.0-17.0

$58.0-62.0

Cost of revenues, advertising, promotion & selling, and general & administrative expenses ($M)

$42.8

$11.3-12.3

$11.8-12.8

$11.8-12.8

$12.1-13.1

$47.0-51.0

Depreciation and amortization

$2.8

$0.6

$0.7

$0.7

$0.7

$2.7

Interest Income, net

$0.2

-

-

-

-

-

Equity losses

$0.2

-

-

-

-

-

Net income

$1.4

$1.1

$1.7

$2.3

$3.2

$8.3

Diluted Share Count

26.9

29.0

29.0

29.0

29.0

29.0

Earnings per diluted share

$0.05

$0.04

$0.06

$0.08

$0.11

$0.29

About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com) headquartered in Darien, CT, is a leading provider of global real-time news, information, research and media resources for information technology, Internet industry and graphics professionals. Jupiterweb, the online division of Jupitermedia, operates five distinct online networks: internet.com and EarthWeb.com for IT professionals; DevX.com for developers; ClickZ.com for interactive marketers; and ArtToday.com for graphics professionals. Jupiterweb properties include more than 150 Web sites and 150 e-mail newsletters that are viewed by over 20 million users and generate over 275 million page views monthly. Jupitermedia also includes Jupiter Research, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets. In addition, Jupiter Events produces offline conferences and trade shows focused on IT and business-specific topics, including Wi-Fi Planet, Search Engine Strategies and Internet Planet.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which Jupitermedia Corporation competes; the unpredictability of Jupitermedia Corporation's future revenues, expenses, cash flows and stock price; Jupitermedia Corporation's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia Corporation's international and venture fund investments; any material change in Jupitermedia Corporation's intellectual property rights and continued growth and acceptance of information technology and the Internet. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia Corporation'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 Jupitermedia Corporation assumes no obligation to update the forward-looking statements after the date hereof.

CONTACT:
Mary Ann Boland
Marketing & Public Relations Associate
Jupitermedia Corporation
(212) 547-7939
[email protected]

Jupitermedia Corporation

Consolidated Balance Sheets

December 31, 2002 and 2003

(in thousands, except share and per share amounts)

   

December 31, 2002

 

December 31, 2003

         

ASSETS

       
         

Current assets:

       

Cash and cash equivalents

 

$25,451

 

$9,567

Accounts receivable, net of allowances of $1,056 and $948, respectively

 

7,521

 

10,281

Unbilled accounts receivable

 

1,077

 

1,012

Prepaid expenses and other

 

794

 

2,124

Total current assets

 

34,843

 

22,984

         

Property and equipment, net of accumulated depreciation

of $7,656 and $8,674, respectively

 

1,924

 

1,488

Intangible assets, net of accumulated amortization

of $1,833 and $3,204, respectively

 

1,473

 

8,130

Goodwill

 

8,377

 

21,760

Investments and other assets

 

1,768

 

1,676

Total assets

 

$48,385

 

$56,038

         

LIABILITIES AND STOCKHOLDERS' EQUITY

       
         

Current liabilities:

       

Accounts payable

 

$1,386

 

$1,494

Accrued payroll and related expenses

 

2,014

 

2,482

Accrued expenses and other

 

3,823

 

4,151

Deferred revenues

 

6,308

 

9,211

Total current liabilities

 

13,531

 

17,338

         

Long Term Liabilities

 

-

 

341

Total liabilities

 

13,531

 

17,679

         

Stockholders' equity:

       

Preferred stock, $.01 par value, 4,000,000 shares authorized,

no shares issued

 

-

 

-

Common stock, $.01 par value, 75,000,000 shares authorized,


25,342,017 and 25,984,130 shares issued
at December 31, 2002 and December 31, 2003, respectively

253

260

Additional paid-in capital

 

175,487

 

177,629

Accumulated deficit

 

(140,809)

 

(139,427)

Treasury stock, 65,000 shares at cost

 

(106)

 

(106)

Accumulated other comprehensive income (loss)

 

29

 

3

Total stockholders' equity

 

34,854

 

38,359

Total liabilities and stockholders' equity

 

$48,385

 

$56,038

Jupitermedia Corporation

Consolidated Statements of Operations

For the Three Months and Years Ended December 31, 2002 and 2003

(unaudited)

(in thousands, except per share amounts)

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2002

 

2003

 

2002

 

2003

Revenues

$11,657

 

$15,198

 

$40,697

 

$46,991

Cost of revenues

5,072

 

6,209

 

16,757

 

21,511

               

Gross profit

6,585

 

8,989

 

23,940

 

25,480

               

Operating expenses:

             

Advertising, promotion and selling

3,705

 

4,062

 

14,116

 

14,369

General and administrative

1,683

 

2,130

 

6,787

 

7,003

Depreciation

496

 

314

 

2,235

 

1,422

Amortization

214

 

358

 

807

 

1,371

Total operating expenses

6,098

 

6,864

 

23,945

 

24,165

               

Operating income (loss)

487

 

2,125

 

(5)

 

1,315

               

Income loss on investments and other, net

(35)

 

92

 

(205)

 

(121)

Interest expense

-

 

(16)

 

-

 

(26)

Interest income

91

 

16

 

383

 

190

               

Income before income taxes,
minority interests and equity losses
venture fund investments and other, net

543

 

2,217

 

173

 

1,600

Provision for income taxes

(25)

 

-

 

-

 

-

Minority interests

(29)

 

4

 

(40)

 

26

Equity loss from venture fund
investments and other, net

(81)

 

(51)

 

(644)

 

(244)

Net income (loss)

$458

 

$2,170

 

$(511)

 

$1,382

               

Basic net income (loss) per share

 

$0.2

 

 

$0.08

 

$(0.0)

 

$(0.0)

               

Basic weighted average number of
common shares outstanding

 

 

25,276

 

 

 

25,903

 

25,318

 

25,574

               

Diluted net income (loss) per share

 

 

$0.2

 

 

 

$0.08

 

$(0.0)

 

$0.05

               

Diluted weighted average number of
common shares outstanding

$25,489

 

$28,085

 

$25,318

 

$26,917

               

Jupitermedia Corporation

Consolidated Statements of Cash Flows

For the Years Ended December 31,2002 and 2003

(unaudited)

(in thousands)

 

Years Ended

December 31,

 

2002

 

2003

Cash flows from operating activities:

     

Net income (loss)

$(511)

 

$1,382

Adjustments to reconcile net cash provided by operating activities:

     

Depreciation and amortization

3,042

2,793

Barter transactions, net

(1,176)

(912)

Provision for losses on accounts receivable

(162)

205

Minority interests

40

(26)

Equity losses from venture fund investments
and other, net

644

244

(Income) loss on investments and other, net

205

 

(121)

Changes in current assets and liabilities,
net of businesses acquired:

     

Accounts receivable

212

 

(1,845)

Unbilled accounts receivable

275

 

106

Prepaid expenses and other

368

 

(1,075)

Accounts payable and accrued expenses

580

(691)

Deferred revenues

(1,451)

1,361

Net cash provided by operating activities

2,066

 

1,421

       

Cash flows from investing activities:

Additions to property and equipment

(166)

(227)

Acquisitions of businesses and other

(1,979)

 

(17,562)

Distribution from internet.com venture funds

227

-

Proceeds from sales of assets and other

301

106

Net cash used in investing activities

(1,617)

(17,683)

       

Cash flows from financing activities:

     

Purchase of treasury stock

(106)

 

-

Proceeds from exercise of stock options

8

 

378

Net cash provided by (used in) financing activities

(98)

 

378

       

Net increase (decrease) in cash and cash equivalents

351

 

(15,884)

       

Cash and cash equivalents, beginning of year

25,100

 

25,451

       

Cash and cash equivalents, end of year

$25,451

 

$9,567

       

Supplemental disclosures of cash flow:

     

Cash paid for income taxes

-

 

-

Cash paid for interest

-

 

$26

All current Jupiter Research press releases can be found online at www.internet.com/corporate/press.html.

All current Jupitermedia Corporation press releases can be found on the World Wide Web at http://www.internet.com/corporate/press.html.