P R E S S   R E L E A S E S
Corporate Information
Corporate
Home
Events
Online Education
Jobs and Marketplaces
News and Information
Investor Relations
Press Releases
Careers


JUPITERMEDIA CORPORATION REPORTS RESULTS FOR ITS FIRST QUARTER ENDED MARCH 31, 2004

(New York, NY - April 29, 2004) - -- Jupitermedia Corporation (Nasdaq: JUPM) today reported results for the quarter ended March 31, 2004. Revenues for the first quarter of 2004 were $14.4 million compared to revenues of $8.2 million for the same period last year, an increase of 74%. Net income for the first quarter was $1.6 million, or $0.06 per diluted share, compared to a net loss of $1.3 million, or $0.05 per diluted share, for the same period last year.

"We are pleased with our results for this quarter, with significant year over year growth in revenues and improvement in net income," stated Jupitermedia's Chairman and CEO Alan M. Meckler. "Our acquisition of the assets of Comstock Images on April 1, 2004 further expands our growing JupiterImages business which sells commercial stock images by single download or online subscription. This acquisition adds over 500,000 wholly owned images to our library. We anticipate significant marketing and business synergies between Comstock Images and our JupiterImages division as well as our other Jupitermedia divisions. We expect that this acquisition will immediately be accretive to our earnings and cash flows," added Meckler.

Registration Statement for Follow-on Public Offering of Common Stock
In March 2004, Jupitermedia announced that it had filed a registration statement with the Securities and Exchange Commission relating to a proposed follow-on public offering of common stock. Of the 4,200,000 shares to be sold in the offering, 3,200,000 shares will be sold by Jupitermedia and 1,000,000 shares will be sold by certain stockholders of Jupitermedia. The underwriters will be granted an option for a period of 30 days to purchase up to 630,000 additional shares of common stock from Jupitermedia to cover over-allotments, if any. The registration statement has not yet been declared effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

Due to the proposed follow-on offering of its common stock, Jupitermedia will not hold a conference call to discuss its first quarter 2004 financial results.

Acquisitions

  • In March, Jupitermedia announced the acquisition of the Inside ID Conference & Expo, an industry-leading event focused on the rapidly evolving areas of identity management and identification technologies, and the related Inside ID Web site (www.insideid.com). Noted industry expert Benjamin Miller, who founded the Inside ID event and Web site, will continue as conference chair. Terms of the acquisition were not disclosed.
  • In April, Jupitermedia announced that it acquired substantially all of the assets of Comstock Images (www.comstock.com) for $20.85 million in cash and the assumption of certain liabilities. Comstock Images is based in Mountainside, NJ with operations in Toronto, Canada and Steinsel, Luxembourg. Comstock Images has been in the stock imagery business since 1976 and possesses an extensive archive of wholly owned commercial stock images. Jupitermedia also announced that it has obtained a credit facilities with HSBC Bank USA that provide for borrowings of up to $23 million to help finance this and other potential acquisitions. A total of $13 million has been borrowed to help finance the acquisition of Comstock Images.

New Online Media and Online Image Offerings
Jupitermedia continued to expand and strengthen its proprietary content offerings with the addition of the following:

  • In February, Jupitermedia announced the launch of the ClickZ.com Network (www.clickz.com), which provides original news, information, analysis and opinion about interactive marketing. The ClickZ.com Network consolidates eight existing Jupitermedia interactive marketing Web sites and associated e-mail newsletters under the ClickZ.com Network brand. The ClickZ.com Network will continue publishing expert opinion columns by interactive marketing leaders, while adding sections focused on breaking news; search engine marketing; research and statistics; feature stories and case studies; and an interactive marketing resources section.
  • In February, Jupitermedia announced the launch of ITSMWatch.com (www.itsmwatch.com), an internally developed Web site focused on IT Service Management which is now part of the company's EarthWeb.com Network. ITSMWatch.com analyzes the latest developments in the emerging field of Information Technology Service Management ("ITSM"). ITSMWatch.com was designed to help IT executives and managers make decisions, collaborate with their peers and draw upon the experiences of others to continue to meet their objectives of providing world class products and services in the most efficient and effective manner. The site provides daily news, articles, case studies and white papers from practitioners and vendors, ITSM resources and technologies, and a free e-mail newsletter.

New Research Services

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

  • In March, JupiterResearch launched its Digital Rights Management ("DRM") research service to help media companies evaluate content distribution models and technology platforms to manage and monetize their assets in a controlled manner. The Digital Rights Management research service also helps consumer device vendors to prioritize feature development, and helps software vendors identify the enterprise applications and vertical markets that present the greatest opportunities for digital rights management technology. Using consumer surveys, forecast models and high-level executive interviews, the DRM research service provides strategic guidance to all companies with an interest in digital media consumption and usage constraints.

Conferences and Trade Shows

JupiterEvents, 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. JupiterEvents held five paid conferences and trade shows in the first quarter, each focusing on a different issue pertaining to information technology and the Internet industry. Events included: IT Service Management Forum Government Conference & Expo; Jupiter Content Management Conference & Expo; Search Engine Strategies Conference & Expo 2004; Instant Messaging Planet Conference & Expo Spring 2004 and Wi-Fi Planet Conference & Expo Canada 2004.

JupiterEvents has announced the following conferences and trade shows for the remainder of 2004:

  • 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 (September. 27-Oct. 2, Long Beach, CA)
  • Digital Rights Management Strategies (October 25 - 27, Los Angeles, CA)
  • Search Engine Strategies Conference & Expo 2004 (October 27 28, Stockholm)
  • ISPCON Fall (November 2 - 5, Santa Clara, CA)
  • Inside ID Conference & Expo (November 15 - 17, Washington, D.C.)
  • 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)
  • Search Engine Strategies Conference & Expo 2004 (December 13 - 16, Chicago, IL)

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. internet.com Venture Fund II LLC and internet.com Venture Partners III LLC are in the process of liquidating and distributing their assets to investors and are expected to be dissolved during the second half of 2004. Jupitermedia no longer has any outstanding capital commitments related to any of its venture funds.

Metrics

  • March 2004 page views were over 320 million
  • Over 5.9 million e-mail newsletter subscribers as of March 31, 2004
  • Over 6.5 million total opt-in e-mail rental list subscribers as of March 31, 2004
  • Over 830,000 unique opt-in e-mail rental list subscribers as of March 31, 2004
  • March 2004 unique users were over 19 million
  • 272 employees as of March 31, 2004

Segment Information

The following tables summarize the results of the segments of Jupitermedia for the three months ended March 31, 2003 and 2004. Online media consists of the JupiterWeb business that includes the internet.com, EarthWeb.com, DevX.com and ClickZ.com Networks. Online images consists of the JupiterImages business. Research represents the JupiterResearch business. Events represents the JupiterEvents business. Other includes corporate overhead, depreciation, amortization and venture fund related activities. The following amounts are presented in thousands.

 

Three Months Ended
March 31,

 

2003

2004

Revenues:
Online Media

$4,645

$7,219

Online Images

-

$2,457

Research

$2,276

$2,342

Events

$1,177

$2,322

Other

$147

$13

 

$8,245

$14,353

Cost of revenues and operating expenses:
Online Media

$4,092

$5,007

Online Images

$ -

$1,208

Research

$2,587

$2,151

Events

$1,313

$2,144

Other

$1,598

$2,228

 

$9,590

$12,738

Operating income (loss):
Online Media

$553

$2,212

Online Images

-

$1,249

Research

($311)

$191

Events

$(136)

$178

Other

$(1,451)

$(2,215)

 

($1,345)

$1,615

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 ArtToday, Inc., DevX and Comstock Images and are subject to change pending a final allocation of these amounts. The following forward looking-statements reflect Jupitermedia's expectations as of April 28, 2004 and assume the completion of its proposed follow-on public offering of common stock during the second quarter of 2004 on the terms set forth in the registration statement filed with the SEC relating to such public offering, but do not assume the exercise of the underwriters' over-allotment option. 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

$14.4

$16.6-17.6

$17.6-18.6

$18.4-19.4

$67.0-70.0

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

$42.8

$12.2

$13.3-14.3

$13.4-14.4

$13.3-14.3

$52.2-55.2

Depreciation and amortization

$2.8

$0.6

$1.2

$1.2

$1.2

$4.2

Interest Income, net

$0.2

-

-

-

-

-

Equity losses

$0.2

-

-

-

-

-

Net income

$1.4

$1.6

$2.1

$3.0

$3.9

$10.6

Diluted Share Count

26.9

29.5

31.0

33.5

33.5

31.9

Earnings per diluted share

$0.05

$0.06

$0.07

$0.09

$0.12

$0.33

About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com) headquartered in Darien, CT, is a global provider of original online information, images, research and events for information technology, business and creative professionals. JupiterWeb, the online division of Jupitermedia, operates four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and ClickZ.com for interactive marketers. JupiterWeb properties include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 20 million users and generate over 300 million page views monthly. Jupitermedia also includes: JupiterImages, a Web-based image resource with over 3.5 million images online serving creative professionals with products like Comstock Images, Photos.com and ClipArt.com; JupiterResearch, an international research advisory business specializing in business and technology market research in 18 business areas and 14 vertical markets; and JupiterEvents, which 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 competes; the unpredictability of Jupitermedia's future revenues, expenses, cash flows and stock price; Jupitermedia's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia's dependence on a limited number of advertisers; and Jupitermedia's ability to protect its intellectual property. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia'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 assumes no obligation to update the forward-looking statements after the date hereof.

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

CONTACT:
Lisa DiGiacomo
Marketing & Public Relations Associate
Jupitermedia Corporation
203-662-2870
[email protected]

Jupitermedia Corporation

Consolidated Balance Sheets

December 31, 2003 and March 31, 2004

(in thousands, except share and per share amounts)

   

December 31, 2003

 

March 31, 2004

         

ASSETS

       
         

Current assets:

       
          Cash and cash equivalents  

$9,567

 

$12,703

          Accounts receivable, net of allowances of $948 and $1,165, respectively  

10,281

 

10,723

          Unbilled accounts receivable  

1,012

 

1,022

          Prepaid expenses and other  

2,124

 

1,951

          Total current assets

 

22,984

 

26,399

         
Property and equipment, net of accumulated depreciation of $8,674 and $8,696, respectively  

1,488

 

1,233

Intangible assets, net of accumulated amortization of $3,204 and $3,600, respectively  

8,130

 

7,944

Goodwill  

21,760

 

22,076

Investments and other assets  

1,676

 

1,516

          Total current assets

 

$56,038

 

$59,168

         

LIABILITIES AND STOCKHOLDERS' EQUITY

       
         

Current liabilities:

       
Accounts payable  

$1,494

 

$1,487

Accrued payroll and related expenses  

2,482

 

1,992

Accrued expenses and other  

4,151

 

2,833

Deferred revenues  

9,211

 

11,449

          Total current liabilities

 

17,338

 

17,761

         

Long Term Liabilities

 

341

 

330

          Total liabilities

 

17,679

 

18,091

         

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, 25,984,130 and 26,192,741 shares issued at December 31, 2003 and March 31, 2004, respectively

 

260

 

263

Additional paid-in capital

 

177,629

 

178,706

Accumulated deficit

 

(139,427)

 

(137,790)

Treasury stock, 65,000 shares at cost

 

(106)

 

(106)

Accumulated other comprehensive income (loss)

 

3

 

4

          Total stockholders' equity

 

38,359

 

41,077

          Total liabilities and stockholders' equity

 

$56,038

 

$59,168

Jupitermedia Corporation

Consolidated Statements of Operations

For the Three Months Ended March 31, 2002 and 2003

(unaudited)

(in thousands, except per share amounts)

 

 

Three Months Ended

March 31,

 

2003

 

2004

Revenues

$8,245

 

$14,353

Cost of revenues

4,672

 

6,020

       

Gross profit

3,573

 

8,333

       

Operating expenses:

     

          Advertising, promotion and selling

2,722

 

3,575

          General and administrative

1,593

 

2,525

          Depreciation

363

 

223

          Amortization

240

 

395

Total operating expenses

4,918

 

6,718

       

Operating income (loss)

(1,345)

 

1,615

       

Income loss on investments and other, net

(55)

 

14

Interest income

89

 

18

Interest expense

-

 

(6)

       

Income (loss) before minority interests and equity loss
from venture fund investments and other, net

(1,311)

 

1,641

Minority Interests

4

 

(11)

Equity Income (loss) from venture fund
investments and other, net

(23)

 

7

Net income (loss)

$(1,330)

 

$1,637

       

Basic net income (loss) per share

 

($0.05)

 

 

$0.06

       

Basic weighted average number of
common shares outstanding

 

 

25,283

 

 

 

26,026

       

Diluted net income (loss) per share

 

 

$(0.05)

 

 

 

$0.06

       

Diluted weighted average number of
common shares outstanding

$25,283

 

$29,544

       

Jupitermedia Corporation

Consolidated Statements of Cash Flows

Three Months Ended March 31,2003 and 2004

(unaudited)

(in thousands)

 

Three Months Ended

March 31,

 

2003

 

2004

Cash flows from operating activities:

     

          Net income (loss)

$(1,330)

 

$1,637

          Adjustments to reconcile net Income (loss) to net cash provided by
          operating activities:

     

                    Depreciation and amortization

603

618

          Barter transactions, net

(228)

-

          Provision for losses on accounts receivable

6

217

          Minority interests

(4)

11

          Equity (income) loss from venture fund investments
          and other, net

23

(7)

          Income (loss) on investments and other, net

55

 

(14)

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

     

          Accounts receivable

1,478

 

(645)

          Unbilled accounts receivable

351

 

(10)

          Prepaid expenses and other

(318)

 

196

          Accounts payable and accrued expenses

(1400)

(965)

          Deferred revenues

943

2203

          Net cash provided by operating activities

179

 

3,241

       

Cash flows from investing activities:

          Additions to property and equipment

(91)

(61)

          Acquisitions of businesses and other

(393)

 

(1,273)

          Distribution from internet.com venture funds

-

144

          Proceeds from sales of assets and other

50

5

          Net cash used in investing activities

(434)

(1,185)

       

Cash flows from financing activities:

     

          Proceeds from exercise of stock options

23

 

1,080

          Net cash provided by financing activities

23

 

1,080

       

Net increase (decrease) in cash and cash equivalents

(232)

 

3,136

       

Cash and cash equivalents, beginning of period

25,451

 

9,567

       

Cash and cash equivalents, end of period

$25,219

 

$12,703

       

Supplemental disclosures of cash flow:

     

          Cash paid for income taxes

$3

 

-

          Cash paid for interest

-

 

$6

All current Jupiter Research press releases can be found online at www.jupitermedia.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.