• by Staff Writers , April 29, 2004

Three Internet industry players reported first-quarter earnings late Thursday amid hoopla over search giant Google's announcement of its long-anticipated Initial Public Offering.

iVillage Online women's portal iVillage reported $15.5 million in first-quarter revenues, for 23 percent growth in the quarter compared to the year-ago period. The company also reported a net loss during the first quarter of $0.9 million, representing an 86 percent improvement compared to a net loss of $6.1 million for the year-ago period. The company reported $16.4 million in cash and cash equivalents as of the first quarter, with no debt.

For the second quarter, iVillage expects to report earnings before interest taxes, depreciation, and amortization (EBITDA) of between $1.1 and $1.3 million dollars. The company raised its outlook for fiscal 2004 from 20 percent revenue growth to 25 percent revenue growth. It also raised its EBITDA outlook for the full year to between $7.5 million and $7.8 million.

"For the second consecutive quarter, iVillage posted positive operating cash flow and year-over-year revenue increases. Advertisers continue to shift dollars to the Internet and to make iVillage a staple of their online spend, all of which sets us up for what we expect to be a strong 2004 and beyond," commented Doug McCormick, chairman-CEO, iVillage, in a statement. McCormick indicated that iVillage will upgrade its site with new technology to improve navigation and enable more broadband opportunities over the next few quarters.

iVillage also reported signing new advertising clients during the first quarter that include Novartis, Pfizer, Snapple, Target Corp., Volvo Cars of North America, and Yoplait Light. The Volvo deal represents a 12-month sponsorship agreement. The site has more than 15.3 million unique visitors per month, according to comScore Networks' Media Metrix.

Modem Media Modem Media reported first-quarter revenues of $15.3 million, up just a bit from $14.5 million for the same period a year ago. The company posted $1.2 million in operating income for the first quarter compared to $0.9 million for the year-ago period.

Net income came in at $0.7 million, or $0.03 per diluted share, for the first quarter, compared with $0.6 million, or $0.02 per diluted share, for the year-ago period. Modem reported $57 million in cash, cash equivalents, and marketable securities.

Modem projects a charge in the second quarter due to the closing of its Brazil office, which will be included in discontinued operations, net of tax, of approximately $0.6 million or $0.02 per diluted share. Modem also projects second-quarter revenue from continuing operations, excluding Brazil, to fall between $15 million and $17 million. Modem's full-year outlook ranges from $65 million to $70 million. New agency clients include British United Provident Association, Charles Schwab, PricewaterhouseCoopers, and Spiegel.

LookSmart LTD LookSmart LTD posted a first-quarter loss of $7.1 million, or 7 cents a share, and revenue of $27.6 million compared to $29.4 million for the same period a year ago. The company expects full-year revenues of $76 million to $81 million, up from $45 million to $50 million. LookSmart also announced the acquisition of Net Nanny, an online filter, for $5 million.