CNet Sticks With Guidance

The company meets first-quarter estimates.

Author:: George Mannes
Publish date:: Apr 30, 2002 5:30 PM EDT

CNet Networks (CNET) - Get Report just missed revenue expectations for the first quarter, but beat Wall Street's bottom-line forecast.

After the market's close Tuesday, the operator of the advertising-supported technology news Web site reported revenue of $55.7 million for the first quarter ended March 31, shy of the $56.4 million consensus estimate of analysts surveyed by Thomson Financial/First Call and well below the $75.2 million revenue reported in the first quarter of 2001.

Fully loaded, CNet lost $31.1 million in the quarter, or 22 cents per share, compared to a $316.6 million loss, or $2.33 per share, in the corresponding period one year earlier.

Excluding certain items such as amortization of goodwill and realized losses from private investments, CNet reported a quarterly loss of $20.1 million, or 14 cents a share, compared to analysts' expectations of a 16 cent per-share loss, and a loss of $18.2 million, or 13 cents per share, one year ago.

CNet, which has been hit hard by weak markets both for technology and interactive advertising, says it hopes to achieve positive operating income, excluding depreciation and amortization, during the second half of the year.

The company, which was noncommittal about improvement in the technology advertising business over the year, says its full-year guidance is based on the belief that the market won't worsen, but that CNet will continue to gain market share from other media.

Earlier this month, CNet President Dan Rosensweig announced he was leaving the company to take the post of president and chief operating officer at

Yahoo!

(YHOO)

The company reiterated its guidance of revenue ranging from $265 million to $285 million for the year, and an operating bottom line, before depreciation and amortization, between a $23 million loss and a $5 million profit.

The company says it doesn't plan to replace Rosensweig in the foreseeable future.

CNet's shares, which rose 2 cents to close at $4.10 during normal trading Tuesday, fell 29 cents in after-hours trading.