Internet portal Lycos Inc reported a slim fourth-quarter profit before one-time expenses as revenue rose 137% year-over-year and 29% sequentially. The Waltham, Massachusetts-based company posted an actual net loss of $21.4m on revenue of $45.1m, compared to a loss of $6.8m in the year-ago quarter on revenue of $19m. Excluding acquisition-related and restructuring charges, as well as $2.5m in expenses related to the terminated merger agreement with USA Networks Inc, pro forma net income for the quarter was $605,000, or $0.01 per share. Analysts surveyed by First Call were looking for break-even earnings on a per-share basis. Advertising revenue rose 124% to $31.6m and e-commerce and licensing revenue rose 173% to $13.5m
Lycos says average daily page views for the quarter rose 17% sequentially and 192% year-over-year to more than 70 million, while registered users reached 32.4 million, up 20% from last quarter and over 500% from 5.3 million a year ago. The company also said it increased audience reach roughly 95% year-over-year from 24.5% to 47.8%. Total staff at the company grew 155% in the full year from 346 to 883 employees. During the quarter, the company signed several major deals, including a $135m e-commerce agreement with WingspanBank.com. It also established Lycos Ventures, a $70m internet venture capital fund, and acquired Internet Music Distribution Inc for $49m in stock.
For the full year, Lycos reported an actual net loss of $52m on revenue up 142% year-over-year at $135.5m, against a loss of $28.4m last year. Advertising revenues for the year were $93.4m, up from $41.8m, while e-commerce and licensing revenues were $42.1m, up from $14.3m. Excluding one-time items, pro forma net loss was $4.5m, or $0.05 per share, up from $3.5m a year ago. The company finished the year with $153m in cash and equivalents, roughly flat with the year-ago mark, although up about $20m from the preceding quarter. Total assets rose to $843.5m from $317.2m a year ago.
