CNet Warns Revenue Will Plunge in First Quarter
CNet Networks
(CNET)
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
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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
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. 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
.
