LookSmart Reports Preliminary Second Quarter 2010 Results
Gross Margin Anticipated to Increase to Over 40%
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV