| Earnings Scorecard |
| Actual | Estimated* | Year-Ago |
| $0.09 | $0.09 | ($0.21) |
| *By First Call/Thomson Financial |
CNet Networks (CNET Quote - Cramer on CNET - Stock Picks) matched earnings estimates for its fourth quarter, but the company narrowly missed revenue forecasts and announced a whopping charge related to its holdings in
NBC Internet (NBCI Quote - Cramer on NBCI - Stock Picks) stock.
The technology news and information company also predicted a major slide in revenue from the fourth quarter of 2000 to the first quarter of 2001.
CNet reported revenue of $120 million for the fourth quarter ended Dec. 31, shy of the $122.9 million consensus of analysts surveyed by
First Call/Thomson Financial. Income, excluding goodwill amortization, merger expenses, realized gains or losses on investments, and income taxes, amounted to $13.2 million, or 9 cents per share, matching the analysts consensus and reversing the year-ago loss of $25.7 million, or 21 cents per share.
All figures are on a pro forma basis, as if the company's acquisition of
ZDNet, which closed last October, had taken place on Jan. 1, 1999.
CNet's actual loss for the fourth quarter of 2000 was $392.1 million, or $3.12 per share, on revenue of $111 million. The loss includes a $378 noncash writedown of the company's investment in NBCi, which CNet received in 1999 in exchange for noncash assets.
First-quarter revenue will be in the range of $86 million to $92 million, a 23% to 28% slide from fourth quarter pro forma figures. Revenue growth for 2001 should be between $450 million and $480 million, representing 5% to 12% growth from 2000 pro forma revenue.
Ahead of the earnings release, CNet's shares fell 25 cents to $15.88. After hours, the stock fell to $14.63 on
Island.
George Mannes
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