CNet Inc recorded its first quarter of operating profitability and in doing so took Wall Street completely by surprise, which is sure to trigger a sharp rise in its stock price today. The shares were suspended about half an hour after the market closed, but no reason was given. The consensus estimate for the company’s second quarter numbers, published after the close yesterday was for losses per share of 25 cents, at least according to Zacks Investment Research. Instead the company came in with a two cents per share profit. The company removed the results of its Snap! online service (a $5m loss this quarter) to its other income line, as from April 1 it has been accounted for using the equity method as CNet has handed over the assets of Snap to the joint venture with NBC, Snap LLC. The other income line still came to $116,000 despite the Snap loss, according to the company last night. In the first quarter, Snap recorded operating losses of $3.7m on revenues of $906,000. The San Francisco-based company recorded net profits of $254,000, down from profits of $5.0m the previous year, on revenues that rose 57.2% to $13.1m. At the six month level, net losses were $5.4m, down from $7.9m previously on revenues that rose 62.2% to $23.7nm. Cash at the half-way stage was $42.9m.
