Go2Net, Inc. (Nasdaq: GNET) surged 13 percent Friday after a shining earnings report and a deal with Net2Phone (Nasdaq: NTOP).
Go2Net said Thursday that fourth quarter net income was $5.3 million, or 12 cents a share. The results doubled First Call's expected profit of 6 cents a share. Gains were driven by a surge in revenue, which was $9.8 million, up 71 percent from the previous quarter. Sales almost tripled the revenue in 1998's fourth quarter.
Shares in the network of branded, technology- and community-driven Web sites were up 7 11/16 to 66 13/16, or 13 percent. They haven't been doing much despite some attentionfrom analysts.
Go2Net's deal to offer Net2Phone's online telephone and other communications services through Go2Net's site also boosted Net2Phone's shares, up 3 1/2 to 56, or 6 percent.
Under the three-year deal, the two companies will create a messaging and communications center on Go2Net's site where users can send and receive voice mail, faxes, e-mail and telephone calls. The deal gives Net2Phone access to Go2Net's users, which totaled 10 million in September, according to Media Metrix data.
Net2Phone has committed around $5 million a year in marketing throughout the Go2Net network, and the companies will share the revenue derived from Net2Phone's services after Net2Phone has achieved a predetermined minimum amount, which the companies declined to specify.
Reuters contributed to this report.