Welcome | Sign In
ECommerceTimes.com
News

LookSmart Falls on Bleak Outlook, Job Cuts

Print Version
E-Mail Article
Reprints
LookSmart Falls on Bleak Outlook, Job Cuts

Web directory firm LookSmart joined online advertising firm DoubleClick and others in cutting dot-com jobs in recent weeks.


How Much is 'Free' Costing You?
Learn how DaveRamsey.com saw a 567% uplift in ROI with Omniture. This complimentary guide and webinar cover the most important factors in selecting an analytics solution. Download Now.

LookSmart (Nasdaq: LOOK) fell 0.781 to 2.312 early Friday after the Internet directory company warned that fourth-quarter results will be hurt by a slowdown in the online advertising market.

The company also said it cut 172 jobs, or 31 percent of its workforce, as part of restructuring aimed at focusing on its more profitable operations. The restructuring will result in a charge to first-quarter earnings, LookSmart said.

Revenue for the fourth quarter will likely be US$30 million to $31 million, below the $33 million to $36 million previously projected, while the loss before extraordinary items will total 14 to 15 cents per share. Analysts had expected San Francisco-based LookSmart to lose 12 cents per share.

"Untargeted advertising is declining, while highly targeted online direct marketing is growing rapidly," said chairman and chief executive officer Evan Thornley. "However, in the fourth quarter, the parts of our business that were weakening did so faster and to a greater degree than expected."

Thornley also said the company's targeted listings businesses grew more than 40 percent during the quarter "despite very negative industry trends." The company's subsite listings, he said, are being used by Amazon and eBay, among others. Overall, the listing businesses generated $10 million over the three quarters they have been in existence, he said.

In addition to the job cuts, the company said it will cut other expenses in order to save about $44 million per year.

"We believe that at this time of industry transition, it is critical that we are completely focused on the large emerging listings opportunity," said Thornley.

The company plans to report results January 25th.


Print Version E-Mail Article Reprints More by Nora Macaluso


More by Nora Macaluso

One Year Ago: Should E-tailers Drop Nasdaq Before Nasdaq Drops Them?
January 30, 2002
Once a company is kicked off the Nasdaq, its stock is listed on the over-the-counter 'pink sheets' for thinly traded issues.
Study: Europeans Ignore Potential of TV-Based Commerce
January 18, 2002
Interactive TV also provides retailers with the opportunity to draw attention to themselves using interactive ads, Gartner said.
The Amazon Earnings Speculation Story
January 21, 2002
For Amazon to break out of the box created by the competing objectives of boosting sales and controlling costs, a pro-forma profit in the fourth quarter will be critical, a Goldman Sachs analyst wrote.
Don't miss a story -- sign up for our FREE e-mail newsletters and view the latest headlines at a glance.
Tech News Flash [ View Sample ]
E-Commerce Minute [ View Sample ]
ECT News Network Weekly Newsletter [ View Sample ]
Shortcuts
ECT News Network Information
Reader Services
Corporate
ECT News Network