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INTERNET.COM REPORTS RECORD REVENUES FOR THIRD QUARTER WITH REVENUES INCREASING BY 323% OVER PRIOR YEAR
(Westport, CT--October 19, 1999) -- internet.com Corporation, the E-business and Internet Technology Network (Nasdaq: INTM), today reported results for the third quarter ended September 30, 1999. Revenues for the third quarter of 1999 increased to a record $4.1 million, a 323% increase over revenues of $973,000 for the same period last year. Net loss for the third quarter, excluding amortization of intangibles, was $910,000, or $0.04 per share, compared to $537,000, or $0.03 per share, for the same period last year. Including amortization of intangibles, net loss for the third quarter ended September 30, 1999 was $3.3 million, or $0.14 per share.For the nine months ended September 30, 1999, revenues were approximately $8.6 million, a 210% increase over revenues of $2.8 million for the comparable period in 1998. Net loss for the nine months ended September 30, 1999, excluding amortization of intangibles and a non-cash compensation charge, was $3.8 million, or $0.19 per share, compared to $1.6 million, or $0.10 per share, for the same period in the prior year. Including amortization of intangibles and the non-cash compensation charge, net loss for the nine months ended September 30, 1999 was $18.1 million, or $0.94 per share.
"We continue to see tremendous growth across all of our revenue lines. Our sales of advertising and e-commerce offerings have been particularly strong due to our dedicated sales force--we now have a team of over 65 sales and marketing employees," stated internet.com Chairman and CEO Alan M. Meckler. "During the third quarter, we continued to expand our various revenue streams by adding the highly successful launch of our first seminar�Affiliate Solutions. We have since announced plans for a number of additional Internet focused seminars. Furthermore, the acquisition of Internet News Bureau, which provides online press distribution services, was completed in early October, and adds yet another significant revenue opportunity for internet.com as we expand our e-business service offerings. Our strategic acquisition of LinuxToday.com, announced earlier today, marks our commitment to the needs of the important Linux and Open Source communities."
Acquisitions and International Expansion
During the third quarter, internet.com completed the acquisitions of TheCounter.com, TheGuestbook.com, Web Developer�s Journal, Wall Street Research Net, BHS.com, Softwareblast.com, SQLcourse.com and Javascript.com. In addition, the Company launched international versions of internet.com for Japan and China and announced plans for a German site to be launched in November, bringing the total number of international editions to 10. In October, internet.com continued to expand its content and e-business service offerings with the acquisitions of LinuxToday.com, Solarisguide.com, devWire.com and Internet News Bureau. These acquisitions, international expansion and continued organic growth have increased total monthly views for internet.com�s network of Web sites and related Internet media properties to over 130 million.
Venture Fund Investments
internet.com Venture Fund I LLC continued to expand its portfolio of early stage vertical content Internet companies with the following investments during the third quarter: MDLinx.com, which will offer current medical news in specific practice areas where physicians can quickly access the Web for medical information in one location; Tutor.com, which seeks to become the leading community and vertical portal for tutoring and instruction services helping parents, students, and learners of all ages find and connect with an experienced and trusted tutor or expert for instruction in any subject or skill; NetEquipment.com, which seeks to become the leading online exchange for commercial equipment where businesses can select, compare, purchase and sell equipment, select lease financing and arrange for shipping and transportation; and MLX.com which maintains Manhattan's largest consumer-accessible database of apartment listings and provides services for consumers who want to buy, sell or rent apartments and for residential real estate brokers who want to distribute their exclusives or access a listing service database of properties. Yesterday, internet.com Venture Fund I LLC announced investments in GoPDA.com, a network of sites dedicated to the expanding handheld device community; BuyBuddy.com, a comparison shopping Web site and search engine for hardware and software products; and workz.com, a portal dedicated to providing small businesses with information and services. internet.com continues to follow the path of CMGI (Nasdaq: CMGI) and Internet Capital Group (Nasdaq: ICGE) with the benefit of being a public operating company in the Internet space that also extends value to its stockholders by having a successful Internet venture capital arm.
New Content Areas and Services
During the third quarter, internet.com further expanded its world-class proprietary content with the launch of a new internally developed property: ASPWatch.com, an information resource and portal serving the Active Server Pages (ASP) developer community. In addition, InternetEmailList.com, which features a comprehensive directory of free E-mail service providers, with over 3,000 free E-mail domain names provided by over 290 companies, was launched in October.
In July, internet.com entered into an agreement with Investec Guinness Flight Global Asset Management to establish a mutual fund which tracks the ISDEX� Internet Stock Index (http://www.isdex.com). To date, over $12.0 million has been invested in the new Guinness Flight internet.com Index Fund (GFINX).
About internet.com
internet.com Corporation (http://www.internet.com), based in Westport, Connecticut, 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 77 Web sites, 70 e-mail newsletters, 101 online discussion forums and 73 moderated e-mail discussion lists with over 1.8 million unique visitors that generate more than 75 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 130 million per month. internet.com's global presence includes editions in Canada, China, the United Kingdom, Arabia, Australia, Asia, France, Japan and Israel. In addition, internet.com with its related internet.com Venture Fund I has become a significant 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 "Risk Factors" in the Company's Prospectus dated June 25, 1999, Annual Report or Form 10-K for the most recently ended fiscal year, when available.
internet.com Corporation Consolidated Balance Sheets December 31, 1998 and September 30, 1999 (in thousands, except share and per share amounts)
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December 31, 1998 |
September 30, 1999 (unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 129 |
$30,211 |
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Accounts receivable, net of allowances of $42 and $393, respectively |
1,723 |
3,671 |
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Prepaid expenses and other |
120 |
202 |
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Total current assets |
1,972 |
34,084 |
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Property and equipment, net of accumulated depreciation of $15 and $425, respectively |
1,380 |
2,241 |
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Intangible assets, net of accumulated amortization of $632 and $7,004, respectively |
22,332 |
28,140 |
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Investment in internet.com Venture Fund I LLC |
- |
600 |
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Other assets |
192 |
377 |
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Total assets |
$25,876 |
$ 65,442 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
$ 482 |
$ 755 |
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Accrued payroll and related expenses |
296 |
1,259 |
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Accrued expenses and other |
462 |
1,701 |
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Accrued Web site acquisition payments |
775 |
816 |
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Deferred revenues |
122 |
650 |
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Borrowings under line of credit |
1,886 |
- |
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Total current liabilities |
4,023 |
5,181 |
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Accrued Web site acquisition payments |
- |
394 |
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Total liabilities |
4,023 |
5,575 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued and outstanding |
- |
- |
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Common stock, $.01 par value, 75,000,000 shares authorized, 16,215,891 and 23,325,000 shares issued and outstanding at December 31, 1998 and September 30, 1999, respectively |
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162 |
233 |
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Additional paid-in capital |
22,665 |
78,718 |
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Accumulated deficit |
(974) |
(19,084) |
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Total stockholders’ equity |
21,853 |
59,867 |
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Total liabilities and stockholders’ equity |
$25,876 |
$65,442 |
internet.com Corporation
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 1998 and 1999
(unaudited)
(in thousands, except per share amounts)
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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(Predecessor Business) |
(Predecessor Business) |
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1998 |
1999 |
1998 |
1999 |
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Revenues |
$ 973 |
$ 4,114 |
$ 2,775 |
$ 8,598 |
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Cost of revenues |
684 |
2,035 |
1,828 |
4,938 |
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Gross profit |
289 |
2,079 |
947 |
3,660 |
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Operating expenses: |
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Advertising, promotion and selling |
307 |
2,107 |
1,081 |
4,650 |
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General and administrative |
402 |
1,127 |
1,113 |
2,744 |
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Depreciation |
117 |
224 |
328 712 |
410 |
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Amortization |
252 |
2,344 |
6,372 |
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Non-cash compensation charge |
- |
- |
- |
7,975 |
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Total operating expenses |
1,078 |
5,802 |
3,234 |
22,151 |
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Operating loss |
(789) |
(3,723) |
(2,287) |
(18,491) |
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Interest income (expense), net |
- |
469 |
- |
381 |
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Net loss |
$ (789) |
$ (3,254) |
$(2,287) |
$(18,110) |
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Basic and diluted loss per share |
$ (0.05) |
$ (0.14) |
$ (0.14) |
$ (0.94) |
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Weighted average number of common shares |
16,216 |
23,325 |
16,216 |
19,326 |
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Contact:
internet.com Corporation
Christopher Baudouin, (203) 226-6967 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.