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InfoSpace, Inc. (NASDAQ: INSP) today announced financial results for the third quarter ended September 30, 2011.
“InfoSpace had a great third quarter,” said Bill Ruckelshaus, President and Chief Executive Officer of InfoSpace. “We continue to execute on our business goals while also generating consistent cash flow from operations. We are pleased with revenue growth, both when compared to the prior quarter and the prior year. Additionally, we remain focused on acquisition opportunities to enhance long-term value for InfoSpace shareholders.”
Revenues for the third quarter of 2011 were $56.3 million, compared to revenues of $50.5 million for the third quarter of 2010.
Net income for the third quarter of 2011 was $2.7 million, or $0.07 per diluted share, compared to net loss of $0.1 million, or $0.00 per share, for the third quarter of 2010.
Adjusted EBITDA, as defined below, was $8.5 million for the third quarter of 2011, compared to $6.6 million for the third quarter of 2010.
Non-GAAP net income, as defined below, which excludes non-cash income taxes, was $3.8 million, or $0.10 per diluted share for the third quarter of 2011 compared to $1.7 million, or $0.05 per diluted share, for the third quarter of 2010.
Cash, cash equivalents, and marketable securities as of September 30, 2011 totaled $279.3 million. At the end of the quarter, the Company had no debt obligations.
Fourth Quarter Outlook
For the fourth quarter of 2011, the Company expects revenues to be between $58 million and $61 million, Adjusted EBITDA to be between $7.5 million and $8.5 million, and net income to be between $3.5 million and $4.5 million, or $0.09 to $0.11 per diluted share.
The Company has been informed by its independent registered public accounting firm, Deloitte & Touche LLP, that the Public Company Accounting Oversight Board (“PCAOB”) conducted an inspection of the audit that Deloitte & Touche LLP performed relating to the Company’s financial statements as of and for the year ended December 31, 2010. Deloitte & Touche has also informed the Company that in connection with this inspection the PCAOB has raised certain questions regarding the Company’s accounting treatment of goodwill of $12.7 million relating to its acquisition of Make the Web Better in the second quarter of 2010. As a result, the Company is currently evaluating these questions and considering whether any change to the Company’s accounting for this transaction would be necessary. If the Company were to determine that a change in the accounting for this transaction is necessary, the Company expects to be required to restate its financial statements for the second quarter of 2010 and all subsequent periods, including its audited financial statements for the year ended December 31, 2010. Any change in the accounting would likely result in a non-cash charge, and the resulting restatement would not affect the Company’s previously reported revenue or Adjusted EBITDA. The Company believes that any such restatement would primarily impact 2010, and that it would not have a material effect on the quarter ended September 30, 2011.