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Anticipates Positive Net Income for the Second Quarter of 2010
SAN FRANCISCO, July 8, 2010 (GLOBE NEWSWIRE) -- LookSmart, Ltd. (Nasdaq:LOOK), an online search advertising network solutions company, today announced preliminary financial results for the second quarter ended June 30, 2010.
On a preliminary basis, the Company expects revenues for the second quarter of 2010 to be in the range of $12.8 million to $13.0 million, compared to revenues of $13.2 million for second quarter of 2009 and revenues of $13.3 million for the first quarter of 2010. Net income for the second quarter of 2010 is expected to be in the range of $0.4 million to $0.6 million, or $0.02 to $0.04 per diluted share. This compares to a net loss of $1.3 million in the second quarter of 2009 or ($0.08) per diluted share. Net loss for the first quarter of 2010 was $0.5 million or ($0.03) per diluted share.
Commenting on the preliminary results, Dr. Jean-Yves Dexmier, Executive Chairman and Chief Executive Officer said, "We are pleased with our preliminary results, which indicate that the Company has returned to profitability in the second quarter. We attribute this result to several of our recently implemented key strategic initiatives. As planned, our increased focus on higher traffic quality and lower TAC is expected to result in flat revenues but generate much higher gross margins for the second quarter of 2010."
Gross margins from continuing operations are expected to rise above 40% in the second quarter of 2010, compared to 40% in the second quarter of 2009 and 32% in the first quarter of 2010. The expected improvement in gross margins reflects lower traffic acquisition costs (TAC) as compared to the first quarter of 2010. The lower TAC is primarily due to improving data analytic techniques to optimize the bid price source by source, keyword by keyword, which the Company began implementing in March of this year.