Revenue Grows to $6 Million in Fourth Quarter
Inc. released its fourth-quarter and year-end 2000 financial results earlier
this month. Revenue growth was flat compared to previous quarters and
the company continued to lose money throughout 2000. Nonetheless, the
company's long-term outlook is quite good. The key reason is Switchboard's
movement away from merchant aggregation to an emphasis on its directory
technology and merchant services.
Switchboard's revenue for the fourth quarter
grew to approximately $6 million, an increase of 98 percent over the fourth
quarter of 1999. For the 2000 fiscal year, Switchboard's revenue rose
to $20.3 million, up 145 percent from the $8.3 million in revenue earned
the previous year. Of the $6.0 million in revenue raised during the fourth
quarter, 58 percent came from advertising, 24 percent from merchant services
and 18 percent from syndication and licensing.
The company posted a fourth-quarter net loss
of approximately $4.7 million or $0.19 per share pro forma. A sizable
portion of that was from a non-cash equity investment loss and non-cash
advertising and promotion expenditures to CBS. If those charges are removed,
Switchboard's net loss was $0.07 per share pro forma. The company's net
loss for the fourth quarter of 1999 was $5.8 million or $0.32 per share
The company ended the year with more than
$70 million in cash and marketable securities stashed in its war chest.
"We are a healthy company on a clear path
to profitability," Switchboard Chief Executive Officer Douglas Greenlaw
told analysts after the company's earnings were released. He said the
company expects to achieve positive cash flow by midyear and profitability
by the end of 2001. "And we expect to have a low burn rate on the way
to profits," Greenlaw added.