Skip to main content

CNet Networks

(CNET) - Get ChinaNet Online Holdings, Inc. Report

hit Wall Street's revenue target for the quarter Monday but failed to report its earnings results because of its ongoing options investigation.

Investors sent the stock up 6%, or 51 cents, to $8.95 in after-hours trading.

For the third quarter, San Francisco-based CNet reported revenue of $92.8 million, matching analysts forecasts. Sales rose 13%, from $81.9 million in the same quarter of 2005.

Both years exclude revenue related to the company's

Computer Shopper

magazine, which was sold in the first quarter of 2006 and is included in the company's discontinued operations listed in the financial results.

Analysts polled by Thomson First Call expected CNet to earn 3 cents a share.

Looking ahead to the fourth quarter, the technology media company said it expects revenue between $108 million and $115 million, in the midrange of analysts' projections of $111.3 million. The company did not give an EPS estimate; analysts forecast earnings of 14 cents a share.

For the full year, CNet said sales would be between $376 million and $386 million, in the range of the $379.8 million that analysts expect. Consensus EPS is 18 cents for the full year.

TheStreet Recommends

A special committee reviewed CNet's stock options practices and has found that actual and recorded dates of certain options were different. In July, the online media company said it would need to

restate some of its financials to account for such errors. The company said it is unable to report full results until it completes the restatement process.

Earlier this month, CNet Chairman and CEO Shelby Bonnie

resigned, along with the company's general counsel and human resources head, after the company found evidence of manipulated grants. Bonnie will

keep his seat on the board of directors.

Also on Monday, Standard & Poor's ratings services slashed its corporate credit rating on the company to junk status and put it on "creditwatch," according to an



Holders of CNet's .75 convertible notes due 2024 refused to suspend the company's requirement to file its quarterly reports with the

Securities and Exchange Commission

, which caused S & P to lower CNet's rating from "B" to "CCC+."

CNet's total outstanding debt is $143.3 million as of the previous quarter. If the company repays $125 million in accelerated maturity, S & P may raise the rating back to "B," the AP said. Otherwise, it's likely the agency will lower CNet's rating further to "D."