Lycos Losses Less Than Expected
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Lycos, Inc. announced fourth quarter and fiscal year-end results late Wednesday, posting a smaller than projected loss of $1.6 million or $0.09 per share for the quarter, and revenues of $19 million.
The $19 million in revenue represents a gain of 26% from the previous quarter and a 145% surge from the same quarter last year.
The $0.09 per share loss is less than the previous quarter ended April 30, 1998 for which the company reported a loss of $2.4 million or $0.15 per share.
Results for the fiscal year ending July, 1998 included revenues of $56 million, up over last year's $22 million, representing an increase of 152%. Before amortization and one-time merger expenses, Lycos' net loss for the year amounted to $3.6 million or $0.23 per share, down from 1997 losses of $6.6 million or $0.48 per share.
Lycos has been on a community-focused shopping spree recently with the purchase of sites such as WhoWhere?, angelfire.com, mailcity.com and Guestworld. In the latest Media Metrix results for July, three of the top ten sites are Lycos-owned, with Lycos.com, Tripod.com and angelfire.com all featuring. The company now claims over 4 million registered users.
As reported in InternetNews.com's Internet Stock Report today, stock analyst Steve Harmon believes Wall Street hasn't fully appreciated the value of these acquisitions yet. Their combined reach now takes Lycos past rivals such as Excite, Netscape and GeoCities.
Other company highlights included the April acquisition of Internet directory provider WiseWire Corp., and agreements with AT&T to launch the Lycos Powered By AT&T WorldNet Service. The company also expanded its European presence, joining with Bertelsmann to provide localized content in eleven European countries.
Significant electronic commerce initiatives were secured with companies such as barnesandnoble.com, CDnow, Preview Travel, E-loan, Homeshark, GetSmart and Realtor.com. The company said it signed over $100 million in e-commerce deals for fiscal year 1998.
"Lycos reshaped the Internet landscape in fiscal year 1998, establishing itself as a premiere new media company further advancing our portal positioning by adding the Web's largest community and its associated loyalty," said Robert J. Davis, President and CEO of Lycos, in a statement.
"Lycos is the world's fastest-growing, most diverse, full-service hub on the Web, combining search, directory, community, personalization and shopping. We are extremely well-positioned to achieve our mission of becoming the world's most visited online destination."
Shares of Lycos rose in after-hours trading Wednesday on news of the smaller than expected loss.