Web portal company Lycos Inc said Friday it expects to report strong revenue growth and improved operating results for the third quarter ending April 30, with earnings per share in line with consensus analyst estimates of a loss of $0.03 per share. The company added that with the strong third quarter, it now expects revenue growth in excess of 100% for the full fiscal year ended July 31 as both advertising and commerce sales continue to post solid gains.
It also said it expects to close the Wired Ventures Inc acquisition in early June. There had been widespread speculation that the deal might not come to fruition due to disputed compensation issues for holders of Wired’s various classes of stock.
In what amounted to a three-pronged announcement from the company, it said that after a review of its accounting treatment for in-process research and development in four 1998 acquisitions it is restating past charges. The restatements have resulted in a reduction in the amount of charges for in-process R&D to $17.3m from $106.6m and an increase in amounts allocated to intangible assets to $245.5m from $156.1m.
Lycos says the restatements involved only non-cash charges and do not affect previously-reported revenues, EBITDA or cash flows for any of the periods. The four acquisitions in question were those of Tripod, Wisewire, Guestworld, and WhoWhere.
