Lycos 3Q Results Beat Wall Street Expectations
Page 1 of 1
Lycos, Inc. today reported financial results for its third quarter ended April 30, 1998, generating $15.1 million in revenues and a loss of $2.4 million or $0.15 per share not including merger expenses.
Analysts reportedly expected the Waltham, MA-based portal player to post a $0.17 per share loss. As of 11:06AM EST, Lycos (NASDAQ--LCOS) was down 6 15/64 trading at 62 49/64.
Revenues represent a 20% gain compared to the previous quarter and a surge of 158% from the third quarter last year. The quarter's net losses per share after amortization and onetime charges equaled $5.90 or approximately $91.5 million. The third quarter loss last year was 9 cents per share or $127 million.
The company signed a portal agreement with AT&T Corp. to form "Lycos Online Powered by AT&T WorldNet Service." In addition, the company joined with Sumitomo Corp. and Internet Initiative Japan (IIJ) to create Lycos Japan, adding to an overseas presence that includes 11 European sites co-developed with Germany's Bertelsmann.
Lycos reported that electronic commerce initiatives with e-tailers such as CD Now resulted in over $50 million in agreements. Deals were also struck with Preview Travel, Test Drive, E-loan, Homeshark, GetSmart, and Realtor.com.
Lycos also acquired an equity interest in contact management technology provider PlanetAll, as well as a minority ownership position in GlobeComm, Inc., the firm that delivers Lycos' free e-mail service.
"This quarter was highlighted by several significant events which reaffirm our core business model. We experienced a 22% increase in advertising revenues driven by strong growth in traffic," said Edward M. Philip, Lycos' CFO.
"Additionally, we announced several major electronic commerce agreements during the quarter, resulting in growth in deferred revenues to over $56 million. Equally impressive are the strategic alliances formed during this quarter, through both investment and acquisition."