Infospace posts healthy financial results
Q4, 2005 fiscal year shows continued growth
Mobile games and content publisher, Infospace, has posted the financial results for its Q4 and full fiscal year 2005 revenues, strong positive year-on-year growth and a positive outlook for 2006.
2005 fourth quarter revenues were posted at USD 86.5 million, reflecting an increase of nine per cent (USD 6.9 million) increase compared the same period in 2004. Net income for the period was USD 37.9 million, including a USD 25 million tax benefit from realising a deferred tax asset. Excluding this benefit, Q4 net income was USD 12.9 million.
Infospace posted full year 2005 revenues of USD 340.0 million, a thirty-six per cent (USD 90.6 million) increase over the full year 2004. Net income for 2005 was USD 159.4 million, compared to USD 82.4 million the previous year.
The full year net income results for 2005 included the benefit from the deferred tax asset, and an aggregate gain of USD 102.3 (net of relevant legal fees and taxes) from the settlement of various litigation matters. 2004 full year results included a gain of USD 31.4 million from the sale of a discontinued operation. Excluding these items, total net income for 2005 was USD 57.0 million, a USD 6 million increase over 2004.
InfoSpace chairman and CEO, Jim Voelker, commented: "InfoSpace delivered another year of significant growth and profitability. We enter 2006 well positioned to seize the tremendous opportunities in mobile media."
As of December 31st, 2005, Infospace's cash, cash equivalents and marketable investments totalled USD 375.4 million - a net increase of USD 53.6 million from the end of the same period a year earlier.
Looking forward, Infospace expects first quarter, 2006 revenues of USD 85-87 million, and a net income of between USD 1-2 million. This figure includes the impact of approximately USD 4 million of stock compensation expense.
Included in the financial statement was an announcement that current CFO, David Rostov, is due to resign from his position to pursue other interests. No successor has been named so far.
"David has been an important part of InfoSpace's growth over the last three years and has helped position InfoSpace for continued success," Voelker stated. David will remain actively involved in the management of the company until his successor is appointed."
A global provider and publisher of mobile content, products and services, Infospace distributes its applications through a growing selection of mobile operators, including Cingular Wireless, T-Mobile, Sprint Nextel, Vodafone, Orange and O2. The company also uses its unique metasearch technology to power a portfolio of branded Web sites and provide private-label search and online directory services.