Webcast company Broadcast.com
posted a better-than-expected third quarter loss today and its
shares got a boost after the company announced a credit card deal with First USA
National Internet service provider EarthLink also reported
better-than-expected financial results today.
Broadcast.com reported a third quarter net loss of $3.9 million, or 23
cents a share, bigger when compared with a net loss of $1.9 million, or 16
cents a share, for the like quarter a year ago. But Wall Street expected the
company to lose 26 cents a share, according to investment research firm First Call.
Quarterly revenue rose to $4.5 million from $1.9 million a year ago. The
company attributed much of the growth to its business services unit, which
accounted for nearly 44 percent of total revenue during the third quarter.
Earlier today Broadcast.com announced a multi-year deal making First USA
the exclusive credit card issuer on the site and said it would broadcast
10 Forbes business conferences in the
"Broadcast.com is clearly positioned as the leading Internet portal and
destination for video and audio broadcasts for both consumers and
businesses," said chief executive Todd Wagner.
Today's release marks only the second time the company has reported its
financial results since its stellar initial public
offering in July.
Stock in the company closed more than 10 percent higher today, up 3.9375 at
41.9375, ahead of the news. The financial results were released after the
markets closed. Shares have traded as high as 74 and as low as 32.75 in the
past 52 weeks.
Meanwhile, executives said site traffic grew to a daily average of more
than 520,000 unique visitors.
Broadcast.com, formerly Audio Net, provides the Webcast technology for many
Internet sites. The company helped several news sites deliver video of
President Clinton's grand jury testimony which helped boost traffic
reported, Broadcast.com and ESPN.com
partnered during the quarter to deliver audio of college football games.
Mary Meeker, an Internet analyst at Morgan
Stanley Dean Witter, expects the ESPN deal to add new users.
"With the fall sports season getting under way, we expect to see a
significant increase in traffic on Broadcast.com," she wrote in a report
During the second quarter the company reported a net
loss of $3.9 million, or 27 cents a share, on revenue of $3.7 million.
EarthLink Network also beat expectations and trimmed its year-over-year losses.
The company posted a net loss of $18.8 million, or 78 cents a share, for
the quarter ended September 30. Excluding a charge related to its relationship
with Sprint, EarthLink posted a loss of
$1.1 million, or 4 cents a share, compared with a loss of $7.2 million, or
36 cents a share, for the like quarter a year ago.
Financial analysts predicted the company would loss 12 cents per share,
according to First Call.
Quarterly revenue rose to $49.8 million from $21 million a year ago.
Executives said EarthLink added 105,000 new users during the quarter,
bringing its subscriber total to 815,000. The ISP, with a strong Macintosh
user base, is the default Net access provider on Apple's successful new
iMac consumer desktop computer. Last week the company inked content deals with 20
news and search sites.
Stock in the company finished the day nearly 2 percent higher at 39.125
ahead of the news. Shares have traded as high as 46.25 and as low as 7.5625
in the past 52 weeks.
In other earnings news, Apex PC Solutions, one of the leading makers of the beige plastic cabinets that house servers and workstations, reported better-than-expected third quarter profits.
Apex posted net income of $4 million, or 29 cents a share, for the quarter ended September 25, compared with net income of $3 million, or 22 cents a share, for the like quarter a year ago.
Wall Street expected the company to earn 27 cents a share, according to First Call. Quarterly revenue rose to $18.1 million from $15.3 million for the like quarter a year ago.