FOSTER CITY, Calif., Jan. 29, 2013 (GLOBE NEWSWIRE) -- QuinStreet, Inc. (Nasdaq:QNST), a leader in vertical marketing and media online, today announced its financial results for its second quarter of fiscal 2013.
The Company reported total revenue of $71.8 million. Adjusted EBITDA was $11.2 million, or 16% of revenue.
The Company reported GAAP net income of $0.4 million, or $0.01 per diluted share. GAAP net income and GAAP EPS results are preliminary and subject to change based upon the conclusion of goodwill impairment testing triggered by the Company's recent stock price decline.Adjusted net income for the quarter was $5.6 million, or $0.13 per diluted share. Adjusted net income excludes stock-based compensation expense and amortization of intangible assets, net of estimated tax. Revenue for the Education client vertical was $32.7 million. Revenue for the Financial Services client vertical was $26.5 million. Revenue for Other client verticals was $12.6 million. The Company generated $11.3 million of operating cash flow and $12.8 million of normalized free cash flow. The Company paid down its debt by $3 million and closed the quarter with $108 million in cash and marketable securities. Reconciliations of adjusted net income to net income, adjusted EBITDA to net income, and normalized free cash flow to net cash provided by operating activities are included in the accompanying tables. "We are making good progress on key initiatives that we believe position us for a return to growth," commented Doug Valenti, QuinStreet CEO. "We also continue to manage the Company with characteristic financial discipline, generating attractive EBITDA and free cash flow margins, with minimal demands for capital." "Visibility remains limited due to continued product and market transitions in our core Financial Services and Education verticals. Our current expectation for revenue in the March quarter is in the $75 to $80 million range. Adjusted EBITDA margin will likely be in the mid-teens for the quarter, as we will continue to invest in key initiatives for the long term," concluded Valenti.