The firm's WikiAnswers website accounts for an increasing share of revenue.
Jerusalem-based Answers Corporation (Nasdaq:ANSW) today published its unaudited financial report for the first quarter of 2008. The company posted a GAAP-based net loss of $3.7 million ($0.47 per share) on $3 million revenue. $2.5 million of the loss was due to termination fees and write-off of costs relating to its cancelled Lexico Publishing Inc. acquisition. The share fell nearly 13% at the opening on Nasdaq to $4.10, giving a market cap of $32 million.
Answers.com first quarter revenue was $1.8 million, down 19% from the preceding quarter, while the revenue of WikiAnswers.com revenue rose 68% to $1.2 million. Answers chairman and CEO Bob Rosenschein said, “Answers.com reference traffic dropped 7% sequentially, but WikiAnswers jumped 64% in the same period, continuing to set monthly traffic records and capture market share. Beginning in May, WikiAnswers will already overtake reference Answers.com as the primary driver of corporate revenue. We are implementing concrete plans to drive greater traffic between both properties and exploit on their natural synergies."
The company predicts an operating loss of $650,000-750,000 on $2.7-2.8 million revenue for the second quarter and an operating loss of $6.3-7.1 million on $13-14 million for the year as a whole.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2008
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