New York, New York – (The Hosting News) – January 19, 2009 – Search engine portal firm, Answers, creators of the engine offering Answers.com and WikiAnswers, has reported financial results for its third quarter ending December 31, 2008.
For the three months ended December 31, 2008, the Company expects revenues to approximate $4.6 million, exceeding the high end of its guidance included in its earnings release dated November 6, 2008 of $4.5 million. The Company also said it expects Adjusted EBITDA to be above the high end of such previous guidance of $1.3 million.
Adjusted EBITDA represents net earnings before interest, Loss Resulting from Fair Value Adjustment of Warrant to Purchase Units of Series B Preferred Stock and Warrants, taxes, depreciation, amortization, stock-based compensation and foreign currency exchange rate differences. The company uses Adjusted EBITDA as an additional measure of overall performance for purposes of business decision-making, developing budgets and managing expenditures. It is useful because it removes the impact of the company’s capital structure (interest expense and Loss Resulting from Fair Value Adjustment of Warrant to Purchase Units of Series B Preferred Stock and Warrants), asset base (amortization and depreciation), stock-based compensation expenses, taxes and foreign currency exchange rate differences. The company believes that the presentation of Adjusted EBITDA provides useful information to investors in their analysis of the company’s results of operations for reasons similar to the reasons why company management finds it useful and because these measures enhance their overall understanding of the financial performance and prospects of the company’s ongoing business operations. By reporting Adjusted EBITDA, the company provides a basis for comparison of its business operations between current, past and future periods, and peer companies in the same industry. It is not possible to provide a reconciliation of the company’s 2008 fourth fiscal quarter estimated Adjusted EBITDA to the most directly comparable GAAP measure, operating income, because Adjusted EBITDA and GAAP operating income cannot be reasonably estimated at this time.
Answers Corporation operates Answers.com information portal, delivering comprehensive content on four million topics spanning health, finance, entertainment, business and more. Content includes over 180 licensed titles from leading publishers such as Houghton Mifflin Riverdeep Group PLC, Barron’s, Encyclopedia Britannica, All Media Guide and others; original articles written by Answers.com’s editorial team; community-contributed articles from Wikipedia; and user-generated questions and answers from Answers.com’s industry-leading WikiAnswers (wiki.answers.com). Founded in 1999 by CEO Bob Rosenschein, Answers.com can be launched directly from within Internet Explorer 7, Firefox and Opera browsers, and its service is integrated into sites like Amazon.com’s A9.com, The New York Public Libraries’ homeworkNYC.org, The New York Times, CBSNews.com and others. Answers.com is also available for mobile devices at mobile.answers.com. For investment information, visit ir.answers.com. (answ-p).
To learn more, please visit: www.answers.com.