LookSmart Reports Third Quarter 2010 Results
Non-GAAP net income (net income before discontinued operations and excluding stock based compensation) for the third quarter of 2010 was $0.9 million compared to a non-GAAP net loss of $1.7 million in the third quarter of 2009. Non-GAAP net income for the second quarter of 2010 was $0.7 million.
An explanation of LookSmart's use of non-GAAP financial measures, including the limitations of such measures relative to GAAP measures and reconciliation between GAAP and non-GAAP measures where appropriate, is included later in this release.
Capital expenditures, including capitalization of internally developed software, in the third quarter of 2010 were $0.2 million, compared to $0.6 million in the third quarter of 2009, and $0.3 million in the second quarter of 2010. Depreciation and amortization from continuing operations in the third quarter of 2010 was $0.7 million, compared to $0.7 million in the third quarter of 2009 and $0.8 million in the second quarter 2010.
The Company ended the quarter with $26.8 million in cash, cash equivalents, and investments, a decrease of $0.9 million from $27.7 million at December 31, 2009 and an increase of $1.3 million from $25.5 million at June 30, 2010. This sequential increase is primarily related to our positive operating results for the quarter. Net cash provided by operating activities for the three months ended September 30, 2010 was approximately $1.8 million.Q3 2010 Key Metrics Performance
- Total paid clicks for the third quarter of 2010 were 175 million, compared to 219 million for the third quarter of 2009 and 190 million for the second quarter of 2010.
- Average Advertising Network revenue per click (RPC) for the third quarter of 2010 was $0.059, an increase from $0.054 in the third quarter of 2009 and a decrease from $0.064 in the second quarter of 2010.
- Traffic acquisition costs (TAC) for LookSmart's Ad Network decreased to 56.9% from 68.8% in the third quarter of 2009 and 58.1% in the second quarter of 2010.
|Three Months Ended|
|(000's)||September 30, 2010 (unaudited)||June 30, 2010 (unaudited)||September 30, 2009 (unaudited)|
|GAAP net income (loss)||$ 718||$ 652||$ (1,941)|
|Add: Stock based compensation from continuing operations||222||163||359|
|Subtract: Income from discontinued operations||(89)||(85)||(132)|
|Non-GAAP net income (loss)||$ 851||$ 730||$ (1,714)|
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