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InfoSpace (Nasdaq: INSP) gained 11/64 to 11 43/64 Wednesday after the company, which provides Internet infrastructure services, reiterated its fourth-quarter forecast calling for revenue of US$66 million and pro forma net income of $4.9 million.
"InfoSpace continues to experience momentum across all of our areas of focus, and we remain very confident with the financial guidance we have previously provided," said chief executive officer Arun Sarin.
Bellevue, Washington-based InfoSpace provides merchant and consumer Internet services on wireless, broadband, and narrowband platforms. The company's affiliate network covers more than 3,200 Web sites, including America Online, Microsoft (Nasdaq: MSFT), Disney's Go network and Lycos.
During the past two months, Sarin said, InfoSpace has established partnerships or launched service offerings with Cingular Wireless, ALLTEL, Cincinnati Bell, Powertel, OmniSky, Lucent Technologies, Compaq and Microsoft.
InfoSpace's confidence in its fourth-quarter results comes as other Internet and technology-related companies warn of shortfalls in revenue and earnings. Compaq Computer Corp. on Tuesday warned that its results would fall below previous expectations because of slow sales of personal computers in the United States.
The company's bullish forecast comes two days after Merrill Lynch analyst Henry Blodget downgraded InfoSpace's near-term rating to accumulate from buy.
In the third quarter, InfoSpace saw revenue rise 189 percent from a year earlier to $57.7 million, as pro forma net income totaled $9.5 million. The results included the operations of Go2Net, which the company acquired in October.
The company said it had $425 million in cash and short-term securities on
hand at the end of the quarter, with no short- or long-term debt.
