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LookSmart Posts Gain, Acquires NetNanny
April 30, 2004
LookSmart Ltd. swung to a loss for
the first quarter but managed to beat analyst estimates,
the company said Thursday.
LookSmart reported a net loss of
$7.1 million, or 7 cents a share, for the quarter ended
March 31. A year ago, the company reported net income
of $1.1 million, or a penny a share. Revenue for the
San Francisco-based Web search company was $27.6 million
vs. $29.4 million for the year-ago period.
The company's results beat the consensus
estimate of a loss of 9 cents per share for the period.
LookSmart announced earlier Thursday
that it had acquired Net Nanny, an online filter, for
$5 million. The company also raised its expectations
on revenue and earnings for the year.
LookSmart officials said they expect
to report revenue for the year of $76 million to $81
million, up from $45 million to $50 million. Its net
loss, previously forecast to be in the $26 million to
$30 million range, was narrowed to $20 million to $22
The company's shares closed Thursday
at $2.44, up 8 cents.Net Nanny's filtering software
is designed to let parents restrict access to certain
forms of content, such as pornography, on family computers.
The acquisition was a strategic one,
LookSmart chief executive Damien Smith said. "Strategic,
because integrating our search technology into Net Nanny
provides a stronger product for their users while also
providing LookSmart with a desktop platform from which
to launch high margin and paid listing applications,"
"Net Nanny is expected to produce
a positive margin contribution for LookSmart in 2004,"
Mr Smith said. LookSmart said its own web search technology
had filtered out pornographic content and adult advertising