LookSmart Rises After Earnings Report - TheStreet

LookSmart Rises After Earnings Report

The stock rises in postclose trading following a hard-to-figure outlook boost.
Publish date:

Updated from Oct. 28

Just three weeks after it suffered a devastating blow, Internet search engine



struck back Tuesday by rolling out an improved, if unexplained, profit outlook.

The company's shares surged 36% Wednesday following that news and LookSmart's third-quarter earnings report, posted Tuesday evening.

For the third quarter ended Sept. 30, the San Francisco company posted net income of $1.9 million, or 2 cents a share, reversing the year-ago loss of $469,000, or less than a penny a share. Revenue rose 70% from a year ago to $40 million. The results were slightly ahead of Wall Street's consensus estimate, which called for earnings of a penny a share on revenue of $39 million.

The company also boosted 2003 earnings guidance, forecasting that profits excluding restructuring charges would rise to $8 million to $9 million from the previous range of $4 million to $5 million. LookSmart also said fourth-quarter revenue would come in at $38 million to $39 million, which is below the $42 million Wall Street estimate.

The company didn't explain the rise in its so-called adjusted net income forecast, but it attributed the coming revenue shortfall to the pending departure of


(MSFT) - Get Report

from LookSmart's partnership stable. In early October, Microsoft

sent LookSmart plunging 58% in a single day by saying it wouldn't renew their relationship.

LookSmart shares, which traded north of $3 earlier this month, added 51 cents Wednesday to $1.91.