Lycos edges out estimates
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November 19, 1998: 4:38 p.m. ET
Portal posts narrower-than-expected 1Q loss as revenue jumps 166%
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NEW YORK (CNNfn) - Lycos Inc. Thursday edged out Wall Street estimates with a smaller-than-expected fiscal first-quarter loss, bolstered by a 166-percent increase in revenue and a 51-percent sequential growth in quarterly traffic.
The Waltham, Mass.-based Internet guide posted a loss of $2.6 million, or 6 cents a share. Analysts expected the company to report a loss of 7 cents a share, according to First Call.
Lycos reported a profit of $107,480, or a penny a share, in the year-ago quarter.
Despite the loss in net operating earnings, Lycos reported a huge revenue jump, logging $24.8 million in revenue, 166 percent better than last year's $9.3 million figure.
Analysts and investors will likely take note of Lycos' advertising revenue, which is generally regarded as a leading indicator of an Internet company's financial health. Lycos' ad revenue climbed to $17.3 million from $6.4 million in the year-ago quarter.
Lycos' operating earnings excluded acquisition-related charges. Including those items, the company posted a loss of $14.7 million, or 35 cents a share.
During the quarter, Lycos acquired WhoWhere? and Wired Digital.
The company said traffic of its Lycos Network Web portal grew 51 percent to 36 million daily page views in October, up from 24 million page views per day in July.
"We are extremely pleased with the progress we made this quarter toward our mission of becoming the world's most-visited online destination," said Robert Davis, Lycos president and chief executive.
Lycos (LCOS) shares closed at 62, down 2-3/8.
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Lycos
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