WebMediaBrands Inc. (Nasdaq: WEBM) today reported financial
results for the quarter ended March 31, 2012.
Highlights for the first quarter of 2012 include:
•
Revenues for the first quarter of 2012 were $3.7 million
compared to revenues of $2.2 million for the same period in 2011,
an increase of 64%, and included $1.1 million from Inside Network,
which we acquired in May 2011. Revenues from advertising and
education, excluding the impact of the Inside Network acquisition,
increased 25% and 18%, respectively, compared to the same period
last year. Inside Network’s market research and data services
business, which includes AppData, contributed $438,000 in revenues
during the first quarter of 2012.
•
Net loss for the first quarter of 2012 was $617,000, compared to a
net loss of $1.3 million for the same period last year. Non-GAAP
loss, excluding interest, taxes, depreciation, amortization and
stock option-related expense, or EBITDA, was $188,000 during the
first quarter of 2012, compared to a loss of $903,000 for the same
period last year. We track this metric and present it here because
we believe it helps in the analysis of the performance of our core
operations. Non-cash stock option-related expense was $130,000
during the first quarter of 2012 compared to $84,000 during the
first quarter of 2011.
“Our first quarter demonstrated continued progress towards being
cash flow positive, with significant year-over-year and sequential
quarterly revenue growth,” stated Alan M. Meckler, Chairman and CEO
of WebMediaBrands, Inc. “The acquisition of Inside Network has
expanded our product offerings, and revenues from Inside Network’s
research and advertising businesses have continued to grow. The
Inside Social Apps trade show took place in February and it was
critically and financially successful. We anticipate continued
growth in 2012 led by our in-depth strength in covering Facebook,
social media, apps and the Semantic Web,” added Meckler.
WebMediaBrands Inc. First Quarter 2012 Financial Results
Conference Call Alert
WebMediaBrands Inc. invites you to participate in its conference
call reviewing 2012 first quarter results on Wednesday, May 2, 2012
at 5:00 pm ET.
The conference call number is 888-510-1783 for domestic
participants and 719-325-2499 for international participants;
confirmation code “2904548.” Please call five minutes in advance to
ensure that you are connected prior to the presentation. The
conference call replay will be available until Monday, May 7,
2012. Replay call numbers are 888-203-1112 for domestic
participants and 719-457-0820 for international participants;
confirmation code “2904548.”
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Operations
For the Three Months Ended March 31,
2012 and 2011
(in thousands, except per share
amounts)
Three Months Ended
March 31,
2012 2011 Revenues $ 3,685 $ 2,246 Cost
of revenues 2,043 1,448 Advertising, promotion and selling 641 432
General and administrative 1,319 1,355 Depreciation 80 84
Amortization 136 118 Total operating expenses
4,219 3,437 Operating loss (534 ) (1,191 ) Other
loss, net — (4
)
Interest income 1 35 Interest expense (73 ) (179 )
Loss before income taxes (606 ) (1,339 ) Provision for
income taxes 11 10 Net loss $ (617 ) $ (1,349
) Loss per share: Basic net loss $ (0.01 ) $ (0.04 ) Diluted
net loss $ (0.01 ) $ (0.04 ) Weighted average shares used in
computing loss per share: Basic 41,693 37,977 Diluted
41,693 37,977
WebMediaBrands Inc.
Consolidated Condensed Balance
Sheets
March 31, 2012 and December 31,
2011
(in thousands, except share and per
share amounts)
March 31,
2012
December 31,
2011
(unaudited) ASSETS Current assets: Cash and cash
equivalents $ 3,291 $ 3,438 Accounts receivable, net of allowances
of $21 and $11, respectively 618 489 Prepaid expenses and other
current assets 566 575 Total current assets 4,475
4,502 Property and equipment, net of accumulated
depreciation of $1,426 and $1,350, respectively 438 477 Intangible
assets, net of accumulated amortization of $845 and $722,
respectively 2,525 2,626 Goodwill 15,116 15,116 Investments and
other assets 1,139 1,146 Total assets $ 23,693 $
23,867
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 370 $ 367 Accrued payroll and
related expenses 344 391 Accrued expenses and other current
liabilities 656 662 Deferred revenues 1,595 1,288
Total current liabilities 2,965 2,708 Loan from related
party 7,647 7,647 Deferred revenues 22 22 Deferred income taxes 454
444 Other long-term liabilities 61 60 Total
liabilities 11,149 10,881 Commitments and
contingencies Stockholders’ equity: Preferred stock, $.01
par value, 4,000,000 shares authorized, no shares issued and
outstanding — — Common stock, $.01 par value, 75,000,000 shares
authorized, 42,595,099 and 42,545,702 shares issued and 41,760,099
and 41,710,702 shares outstanding at March 31, 2012 and December
31, 2011, respectively 426 425 Additional paid-in capital 288,846
288,672 Accumulated deficit (276,232 ) (275,615 ) Treasury stock,
835,000 shares, at cost (496 ) (496 ) Total
stockholders’ equity 12,544 12,986 Total liabilities
and stockholders’ equity $ 23,693 $ 23,867
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Cash Flows
For the Three Months Ended March 31,
2012 and 2011 (in thousands)
Three Months Ended
March 31,
2012 2011 Cash flows from operating
activities: Net loss $ (617 ) $ (1,349 ) Adjustments to reconcile
net loss to net cash used in operating activities: Depreciation and
amortization 216 202 Stock-based compensation 122 84 Provision for
losses on accounts receivable 9 — Other, net 8 (4 ) Amortization of
debt issuance costs 9 8 Deferred income taxes 9 8 Changes in
current assets and liabilities (net of businesses acquired):
Accounts receivable, net (139 ) (145 ) Prepaid expenses and other
assets 7 132 Accounts payable, accrued expenses and other
liabilities (55 ) (688 ) Deferred revenues 307 569
Net cash used in operating activities (124 ) (1,183 )
Cash flows from investing activities: Purchases of property and
equipment (32 ) (24 ) Acquisitions of businesses, assets and other
(35 ) (652 ) Net cash used in investing activities
(67 ) (676 ) Cash flows from financing activities:
Repayment of borrowings from related party — (50 ) Proceeds from
exercise of stock options 44 39 Net cash provided by
(used in) financing activities 44 (11 ) Net decrease
in cash and cash equivalents (147 ) (1,870 ) Cash and cash
equivalents, beginning of period 3,438 12,970 Cash
and cash equivalents, end of period $ 3,291 $ 11,100
About WebMediaBrands Inc.
WebMediaBrands Inc. (http://www.webmediabrands.com) is a leading
Internet media company that provides content, education, and career
services to social media, traditional media, and creative
professionals through a portfolio of vertical online properties,
communities, and trade shows. The Company's online business
includes: (i) mediabistro.com, a leading blog network providing
content, education, community, and career resources (including the
industry's leading online job board) about major media industry
verticals including new media, social media, Facebook, TV news,
advertising, public relations, publishing, design, and mobile; (ii)
InsideNetwork.com, a leading network of online properties providing
original market research, data services, news, and job listings on
the Facebook platform, on social gaming, and on mobile applications
ecosystems; and (iii SemanticWeb.com, a leading blog providing
content, education, community resources and career resources on the
commercialization and application of Semantic Technologies, Linked
Data and Big Data. The Company's online business also includes
community, membership and e-commerce offerings including a
freelance listing service, a marketplace for designing and
purchasing logos (stocklogos.com) and premium membership services.
The Company's trade show and educational offerings include
conferences, online and in-person courses, and video subscription
libraries on topics covered by the Company's online business.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this press release
that are not historical facts are "forward-looking statements"
under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The potential risks and uncertainties address a variety
of subjects including, for example: general economic conditions;
the competitive environment in which WebMediaBrands competes; and
the unpredictability of WebMediaBrands’s future revenues, expenses,
cash flows and stock prices. For a more detailed discussion
of such risks and uncertainties, refer to WebMediaBrands’s reports
filed with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934. The forward-looking statements
included herein are made as of the date of this press release, and
WebMediaBrands assumes no obligation to update the forward-looking
statements after the date hereof, except as required by
law.
All current WebMediaBrands press releases can be found online
at www.webmediabrands.com/corporate/press.html
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