Press Releases

2008 Press

JUPITERMEDIA CORPORATION REPORTS RESULTS FOR ITS SECOND QUARTER ENDED JUNE 30, 2008

(New York, NY - August 7, 2008) - Jupitermedia Corporation (Nasdaq: JUPM) today reported results for the quarter ended June 30, 2008.

Highlights for the second quarter of 2008 include:

  • Revenues for the second quarter of 2008 were $35.0 million compared to revenues of $34.7 million for the same period last year.

  • Loss per diluted share was $0.09 and included non-cash stock-based compensation expense of $0.07 per diluted share. Excluding this non-cash expense, loss per diluted share was $0.02 and EBITDA was $5.3 million for the second quarter of 2008.

Revenues from our JupiterimagesUnlimited high level royalty-free subscription offering grew over 90% from the first half of 2007 to the first half of 2008. We also continue to experience significant growth from our Stockxpert.com microstock offering, both with single images and subscriptions. Our backlog for both JupiterimagesUnlimited and our Stockxpert.com microstock subscription offerings continue to increase which bodes well for future revenues," stated Jupitermedia's Chairman and CEO Alan M. Meckler. "We have also made additional investments in our Online Media business, with the launch of our Graphics.com/Learning.com online education offering, new editorial Web sites and new events

Jupitermedia Corporation 2nd Quarter 2008 Financial Results Conference Call Alert

Jupitermedia Corporation invites you to participate in its conference call reviewing 2008 second quarter results on Thursday, August 7, 2008 at 5:00 pm EST.

The conference call number is (888) 726-2459 for domestic participants and (913) 312-0686 for international participants; confirmation code "844 0097." Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Thursday, August 21, 2008. Replay call numbers are (888) 203-1112 for domestic participants and (719) 457-0820 for international participants: confirmation code: "844 0097."

New Online Images Offerings
Jupitermedia continued to expand and strengthen its world-class proprietary Jupiterimages offerings with the addition of the following:

In April 2008, Jupitermedia announced the launch of ClipartConnection.com (www.clipartconnection.com), a new subscription service that provides access to a library of over 1 million clipart images, Web graphics and illustrations. Subscriptions are available for one week, one month and one year, and allow subscribers to download up to 250 images per day with a weekly subscription starting at only $4.95. ClipartConnection.com subscribers can use the extensive library for presentations, brochures, scrapbooking, business and personal Web sites, school and community projects and many other purposes. ClipartConnection.com serves as an affordable entry alternative to Jupiterimages' Clipart.com (www.clipart.com), which is the largest image subscription service world-wide, with more than 10.0 million clipart images, stock photos, Web graphics, illustrations, vinyl ready graphics, fonts and sound files.

New Online Media Offerings
Jupitermedia continued to expand and strengthen its world-class proprietary content and advertising opportunities with the addition of the following:

In May 2008, Jupitermedia announced the launch of Graphics.com/Learning (www.graphics.com/learning), a series of new online courses and on demand training for creative professionals, taught by expert instructors, covering a range of topics from everyday project management and business issues to design tips, tutorials, software and typography-for all areas of graphic design. Creative professionals can choose to learn on their own through on demand training videos or multi-week interactive courses. Class sizes are limited for multi-week courses to ensure that instructors will be able to provide individual attention to all participants.


Jupitermedia Corporation

Unaudited Consolidated Condensed Statements of Operations

For the Three and Six Months Ended June 30, 2007 and 2008

(in thousands, except per share amounts)

 
Three Months Ended
June 30,
Six Months Ended
June 30,
2007 Restated  2008  2007 Restated  2008 
Revenues $ 34,669  $ 35,000  $ 69,440  $ 69,546 
Cost of revenues (exclusive of items shown separately below) 14,499  16,145  29,301  31,017 
Advertising, promotion and selling 7,266  7,896  14,366  15,351 
General and administrative 6,320  8,111  14,710  15,674 
Depreciation 1,163  1,231  2,225  2,482 
Amortization 3,184  3,994  6,288  7,945 
Total operating expenses   34,432  37,377  66,890  72,469 
Operating income (loss) 2,237  (2,377)  2,550  (2,923) 
 
Other income (loss), net (308)  (36)  (333)  795 
Interest income 38  30  78  106 
Interest expense   (1,431)  (1,847)  (2,904)  (3,573) 
Income (loss) before income taxes and minority interests 536  (4,230)  (609)  (5,595) 
Provision (benefit) for income taxes 112  (965)  (346)  (1,224) 
Minority interests (38)  (21)  (79)  (25) 
Net income (loss)   386  (3,286)  (342)  (4,396) 
Earnings (loss) per share
Basic net income (loss) 0.01  (0.09)  (0.01)  (0.12) 
Diluted net income (loss) 0.01  (0.09)  (0.01)  (0.12) 
Shares used in computing earnings (loss) per share:
Basic $ 35,968  36,032  35,886  36,032 
Diluted $ 36,358  36,032  35,886  36,032 



Segment Information

The following tables summarize the results of the segments of Jupitermedia for the three and six months ended June 30, 2007 and 2008. Online images consists of the Jupiterimages business that includes: BananaStock, Workbook Stock, Brand X Pictures, FoodPix, Botanica, Nonstock, The Beauty Archive, IFA Bilderteam, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Bigshot Media, Goodshoot, Polka Dot Images, Stock Image, Pixland, Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com, JupiterGreetings.com, AnimationFactory.com, RoyaltyFree-Music.com, StudioCutz.com, eStockMusic.com and Stockxpert.com. Online media includes the internet.com, EarthWeb.com, DevX.com, Mediabistro.com and Graphics.com Networks. Other includes corporate overhead, depreciation and amortization.

(unaudited)
Three Months Ended

June 30,
(unaudited)
Six Months Ended

June 30,
2007  2008  2007  2008 
(unaudited in thousands)
Revenues:
Online images $ 27,383  $ 26,090  $ 55,297  $ 52,232 
Online media 7,286  8,910  14,143  17,314 
  34,669    35,000    69,440    69,546 
Cost of revenues and operating expenses:(A)
Online images 18,161  18,883  37,453  37,042 
Online media 5,664  7,870  10,405  14,425 
Depreciation and amortization 4,347  5,225  8,513  10,427 
Other (B)   4,260    5,399    10,519    10,575 
  32,432    37,377    66,890    72,469 
Operating income (loss):
Online images 9,222  7,207  17,844  15,190 
Online media 1,622  1,040  3,738  2,889 
Other (B) (C)   (8,607)   (10,624)   (19,032)   (21,002)
$ 2,237  $ (2,377)  $ 2,550  $ (2,923) 

(A) Cost of revenues and operating expenses include non-cash, stock-based compensation expense of $866,000 and $1.7 million, respectively, for the three and six months ended June 30, 2007, and $2.4 million and $3.1 million, respectively, for the three and six months ended June 30, 2008.

(B) The six months ended June 30, 2007 include $1.9 million in legal and other fees associated with discussions with Getty Images, Inc. regarding a potential transaction which were terminated on March 7, 2007. The six months ended June 30, 2008 include approximately $700,000 of one-time expenses for accounting and other professional fees related to the non-cash impairment charge and restatement in the fourth quarter of 2007.

(C) Includes depreciation and amortization expense.

Jupitermedia Corporation

Unaudited Consolidated Condensed Balance Sheets

December 31, 2007 and June 30, 2008

(in thousands, except share and per share amounts)

 
December 31,
2007
June 30,

2008

ASSETS
Current assets:
Cash and cash equivalents $ 7,301  $ 5,852 
Accounts receivable, net of allowances of $2,026 and $1,791, respectively 25,689  23,974 
Prepaid expenses and other current assets 5,797  5,181 
Deferred income taxes 1,441  1,558 
Total current assets 40,228  36,565 
Property and equipment, net of accumulated depreciation of
$17,364 and $20,135, respectively
13,022  14,833 
Intangible assets, net 74,002  71,158 
Goodwill 139,813  139,871 
Deferred income taxes 13,049  15,350 
Investments and other assets   2,575    2,391 
Total assets $ 282,689  $ 280,168 
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable $ 7,153  $ 9,435 
Accrued payroll and related expenses 3,383  3,403 
Accrued expenses and other 11,822  11,833 
Current portion of long-term debt 750  750 
Deferred revenues 15,121  15,538 
Total current liabilities 38,229  40,959 
Long-term debt 83,375  79,000 
Deferred revenues   507    418 
Other long-term liabilities   3,586    3,326 
Total liabilities   125,697    123,703 
Commitments and contingencies (see note 11):
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, 36,029,651 and 36,032,152 shares issued respectively 360  360 
Additional paid-in capital 266,858  269,981 
Accumulated deficit (117,798) (122,194)
Treasury stock, 65,000 shares at cost (106) (106)
Accumulated other comprehensive income   7,678   8,424 
Total stockholders equity   156,992    156,465 
Total liabilities and stockholders equity $ 282,689  $ 280,168 


Jupitermedia Corporation

Unaudited Consolidated Condensed Statements of Cash Flows

Six Months Ended June 30, 2007 and 2008

(in thousands)

 
Six Months Ended

June 30,

2007
Restated
 
2008 
Cash flows from operating activities:
Net loss $ (342)  $ (4,396) 
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 8,513  10,427 
Stock-based compensation 1,711  3,116 
Provision (benefit) for losses on accounts receivable 50 (465) 
Minority interests 79  25 
Other (income) loss, net (132) 35
Amortization of debt issuance costs - 157
Deferred income taxes (521) (2,005) 
Excess tax benefit from stock-based compensation (356) 
Changes in operating assets and liabilities (net of businesses acquired):
Accounts receivable (1,186)  2,496
Prepaid expenses and other assets (1,143) 944
Accounts payable and accrued expenses and other liabilities 754 (975)
Deferred revenues 764  265 
Net cash provided by operating activities   8,191    9,624 
Cash flows from investing activities:
Purchases of property and equipment (2,353) (3,930)
Acquisitions of businesses, images and other (8,419) (2,027)
Proceeds from sales of assets and other 132  40 
Net cash used in investing activities (10,640)  (5,917) 
Cash flows from financing activities:
Borrowings under credit facilities 5,900  — 
Debt issuance costs (15)
Repayment of borrowings under credit facilities (9,000) (4,375)
Proceeds from exercise of stock options 1,038 
Excess tax benefit from stock-based compensation 356  — 
Net cash provided by (used in) financing activities   (1,706)    (4,383) 
Effects of exchange rates on cash and cash equivalents   67   (773) 
Net change in cash and cash equivalents (4,088) (1,449)
Cash and cash equivalents, beginning of period   8,891    7,301 
Cash and cash equivalents, end of period $ 4,803  $ 5,852 
Supplemental disclosures of cash flow:
Cash paid for income taxes 1,853  (39) 
Cash paid for interest 2,575 2,938
Non-cash investing activities:
Acquisitions of long-lived assets —  393 
Purchase obligation 900

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 paid by Jupitermedia in connection with its recent acquisitions and are subject to change pending a final allocation of these amounts. The following forward looking-statements reflect Jupitermedia's expectations as of August 7, 2008. 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

(In millions except for earnings per diluted share) Q3 2008 (A)
Revenues $33.5-34.5 
Cost of revenues, advertising, promotion & selling, and general & administrative expenses $27.4-28.4 
EBITDA (Earnings before interest, taxes, depreciation and amortization) $5.8-6.4 
Depreciation and amortization $5.1 
Interest expense, net $1.6 
Provision (benefit) for income taxes ($0.2) 
Net income (loss) $0.4 
Diluted share count 36.1 
Earnings (loss) per diluted share ($0.01) 

Notes:

(A) This financial guidance does not include estimated non-cash stock-based compensation expense relating to employee stock options in the amount of $0.02 per share for Q3 2008.



About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com), headquartered in Darien, CT, is a leading global provider of images, news and original information, career Web sites and events for information technology, business, media and creative professionals. Jupitermedia includes Jupiterimages, one of the leading images companies in the world with over 10.0 million images online serving creative professionals with brands like BananaStock, Workbook Stock, Brand X Pictures, FoodPix, Botanica, Nonstock, The Beauty Archive, IFA Bilderteam, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Bigshot Media, Goodshoot, Polka Dot Images, Stock Image, Pixland, Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com, JupiterGreetings.com, AnimationFactory.com, RoyaltyFreeMusic.com, StudioCutz.com, eStockMusic.com and Stockxpert.com. The JupiterOnlineMedia division of Jupitermedia consists of five distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Mediabistro.com and Graphics.com for media and creative professionals. These networks include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 15 million users monthly. JupiterOnlineMedia also includes specialized career Web sites for select professional communities which can be found on Mediabistro.com and JustTechJobs.com. In addition, JupiterOnlineMedia includes JupiterEvents and Mediabistros media-related events, which produce offline conferences and trade shows focused on IT and business-specific topics including ISPCON, Mediabistro Circus, Web 3.0 Conference & Expo and Mobile Content & Marketing Expo.

"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 ability to protect its intellectual property; and Jupitermedia's dependence on a limited number of advertisers. 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 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:
Michael DeMilt
VP of Marketing
Jupitermedia Corporation
203-662-2989
[email protected]