|
Infoseek loss beats Street
|
 |
January 28, 1999: 5:11 p.m. ET
Web portal reports 138% jump in revenue; changes accounting year
|
NEW YORK (CNNfn) - Infoseek Corp. Thursday reported a narrower-than-expected first-quarter loss as the Web portal boosted its revenue 138 percent from the year-ago period.
The Sunnyvale, Calif.-based Web portal posted a pro-forma loss, excluding charges, of $18.2 million, or 39 cents a share, on $30.2 million in revenue. Analysts polled by First Call expected Infoseek Corp. (SEEK) to lose 44 cents a share in the quarter.
Infoseek extended its losses from the same period last year, when it lost $4.6 million - 17 cents a share - on $12.7 million in revenue.
This year's first-quarter operating results exclude research and development and other charges. Including those items, Infoseek posted a net loss of $104 million, or $2.26 a share.
Infoseek was expected to report fourth-quarter earnings, but the company noted in a statement that it had changed its accounting year to a 52/53-week fiscal year ending the last Saturday in September.
Infoseek's board made the change to align its fiscal year with its Starwave subsidiary, which the company acquired as part of a deal last June when Walt Disney Co. (DIS) took a 43-percent stake in Infoseek.
The Disney deal kicked off a wave of consolidation among Internet companies. Earlier this month, the companies launched their joint GO Network portal, which replaced the Infoseek brand as the Web destination site.
"We believe that GO Network is uniquely positioned to expand Infoseek's market share over time through the collective strengths of Infoseek and Disney," said Harry Motro, Infoseek president and chief executive officer.
But Infoseek will have its work cut out itself. Since striking the deal with Disney, more Internet players have joined forces, most notably America Online Inc. (AOL) and Netscape Communications Corp. (NSCP); @Home Corp. (ATHM) and Excite Inc. (XCIT); and Yahoo! Inc. (YHOO) and GeoCities (GCTY), which was announced earlier Thursday.
Infoseek shares jumped 12-1/2 to close at 83-15/16 in Thursday trade.
|
|
|
|
|
 |
|
