If you're new to Cheap Hosting Directory, you may want to subscribe to our RSS feed. Thanks for visiting!

New York, New York - (Cheap Web Hosting Directory) - August 15, 2006 - Performance marketing network, MIVA, has reported revenue of $41.4 million, estimated non-cash impairment charge in the amount of $63.7 million, and a GAAP net loss of $(2.29) per diluted share or $73.0 million, for the second quarter ending June 30, 2006.

Second Quarter 2006 Financial Results Summary includes:
— Adjusted EBITDA(1) loss of $3.6 million;
— Adjusted net loss(1) of $(0.27) per diluted share; and
– Cash, cash equivalents and short-term investments at June 30, 2006, of approximately $36.9 million, compared to $39.7 million at March 31, 2006.

Peter Corrao, Chief Executive Officer of MIVA explained, ”As previously reported, revenue in the second quarter was below our expectations due primarily to lower than anticipated click-through revenue from MIVA Media Europe. The lower European revenue was the result of an overall decrease in traffic volume and a decline in revenue per click. In the near-term, we expect challenges regarding consistency on the revenue front; however, we have made progress in our plan to reduce our expense structure. By managing our costs, we believe we will be better positioned to drive margin expansion in the longer-term.”

Recent Business Highlights includes:

— Initiated a global restructuring and integration plan, which is expected to reduce annualized cash expenses by approximately $6 million.
— Signed new partnerships in the U.S. with a number of properties including: WorldNews, a global online news resource; Magic Yellow, a local and national Yellow Pages Directory; YAIA Comunicaciones, a Hispanic multi-category entertainment destination; Quintura, a provider of next generation web search applications; and Funmobile, a mobile entertainment developer and messaging service provider.
— Signed an exclusive partnership in the U.K. with Emap Automotive’s leading online brand.
— Increased capacity and reduced latency across the U.S. and European networks.
— Introduced an additional data center in the U.S. to facilitate load balancing.
— Launched MIVA Merchant Fast Track, an e-commerce solution that enables small web businesses to develop and manage their online stores.
— Announced the appointment of S. Brian Mukherjee as Senior Vice President, North America.
— Announced new nominees to the MIVA board including Peter A. Corrao, MIVA’s chief executive officer, Mark W. Opzoomer, Dr. Adele Goldberg and Joseph P. Durrett.

The Company recorded an estimated non-cash impairment charge related to goodwill and other intangible assets for MIVA Media Europe in the amount of $63.7 million, or $(2.00) per diluted share. The final measurement of the impairment has yet to be completed; therefore as permitted by SFAS 142, the estimated impairment charge represents management’s current best estimate as to the actual impairment, which may be higher or lower than the estimated charge. Upon finalization of the actual impairment charge in the third quarter of 2006, the Company will record any resulting increase or decrease to the estimated charge. After recording the estimated impairment charge, MIVA Media Europe’s other intangible assets were eliminated, with the balance of goodwill being approximately $13.6 million.

Revenue was $41.4 million in Q2 2006, compared to revenue of $44.4 million in Q1 2006. GAAP net loss was $73.0 million, or $(2.29) per diluted share in Q2 2006, which includes the estimated $63.7 million non-cash impairment charge. This compares to GAAP net loss of $3.8 million, or $(0.12) per diluted share in Q1 2006. Adjusted EBITDA, excluding the estimated non-cash impairment charge, was a loss of $3.6 million in Q2 2006, compared to Adjusted EBITDA of $0.5 million in Q1 2006. Adjusted net loss, excluding the estimated non-cash impairment charge, was $(0.27) per diluted share in Q2 2006, compared to Adjusted net loss of $(0.03) per diluted share in Q1 2006.

Operating expenses reflect the impact of non-cash stock compensation expense of $3.3 million in Q2 2006, which includes $2.1 million from accelerated vesting of restricted stock units in connection with severance for certain former executives. Additionally, Q2 2006 operating expenses reflect $2.5 million in cash severance charges including $1.9 million related to executive severance and $0.6 million related to the Company’s global restructuring and integration plan. Operating expenses, excluding the non-cash stock compensation charge and the estimated non-cash impairment charge, were $27.3 million in Q2 2006, compared to $25.1 million, excluding the non-cash stock compensation charge, for Q1 2006.

Amortization expense in Q2 2006 was $2.3 million, compared to $2.2 million for Q1 2006. Amortization expense in Q2 2006 included $1.5 million for acquired intangible assets and $0.8 million for capitalized and purchased software. MIVA believes that ”Adjusted EBITDA” and ”Adjusted net income/loss” provide meaningful measures for comparison of the Company’s current and projected operating performance with its historical results due to the significant increase in non-cash amortization that began in 2004 primarily due to certain intangible assets resulting from mergers and acquisitions, and the commencement in the first quarter of 2006 of expensing stock options granted to employees. MIVA defines Adjusted EBITDA as EBITDA (earnings before interest, income taxes, depreciation, and amortization) plus non-cash compensation expense and plus or minus certain identified revenues or expenses that are not expected to recur or be representative of future ongoing operation of the business. MIVA uses Adjusted EBITDA as an internal measure of its business and believes it is utilized as an important measure of performance by the investment community. MIVA sets goals and awards bonuses in part based on performance relative to Adjusted EBITDA. MIVA defines Adjusted net income/loss as net income/loss plus amortization, plus non-cash compensation expense and plus or minus certain identified revenues or expenses that are not expected to recur or be representative of future ongoing operation of the business, in each case including the tax effects (if any) of the adjustment. MIVA believes the use of these measures does not lessen the importance of GAAP measures.

The Company’s goal is to drive margin expansion, in part by reducing expenses. During the second quarter the Company initiated its global restructuring and integration plan which is expected to result in an annualized cash savings of approximately $6 million. By managing its expense structure, the Company believes it will be better positioned to drive margin expansion in the longer-term. The estimated Q3 2006 revenue range is $38 to $40 million.

To learn more about the replay of the conference call with management, please visit: http://ir.miva.com/medialist.cfm.

For more information about MIVA, please visit: www.miva.com.

Related posts brought to you by Yet Another Related Posts Plugin.