Atlanta, Georgia – (The Hosting News) – March 14, 2007 – Website and Internet services company, Web.com, Inc., has reported results for its fourth quarter and fiscal year ending December 31, 2006, including record annual organic subscriber growth.
A summary of the fourth quarter 2006 features: * Total revenues for the quarter were $12.5 million, up from $12.3 million in the third quarter of 2006. * Net loss for the quarter was $2.0 million, or $(0.13) per share, versus a loss of $0.6 million, or $(0.04) per share, in the quarter ended September 2006. The decline quarter over quarter includes $1.0 million in legal expenses and $0.6 million in bonus accrual. * Adjusted net income from continuing operations (1) was negative $0.8 million, down from $0.1 million in the third quarter of 2006. The decline quarter over quarter includes $1.0 million in legal expenses and $0.6 million in bonus accrual. * Net subscribers totaled approximately 155,000 at December 31, 2006, up approximately 3,000 from approximately 152,000 at September 30, 2006.
Jeff Stibel, President and CEO of Web.com remarked,“Web.com spent 2006 stabilizing the business, implementing cost controls and developing a highly-scalable growth engine. This quarter represents another period of strong organic revenue and subscriber growth. I am particularly excited to announce that average revenue per user also grew this quarter and look forward to leveraging our business model further.”
Gonzalo Troncoso, Executive Vice President and Chief Financial Officer added, “Our net loss increased as a result of annual bonuses and higher legal expenses as we move toward closure of our legacy case load. The fundamental cost structure of the Company has not changed and it is expected to improve as we move forward with server consolidation and implement future operating efficiencies. Organic revenue and subscriber growth are ramping and we believe the Company is positioned to drive growth and increase shareholder value.”
On March 7, 2007, Web.com’s Board of Directors approved an amendment to its Shareholder Rights Plan to accelerate its expiration date from July 23, 2007 to today, March 13, 2007. The Company had adopted the Shareholder Rights Plan in July 2006 to protect its approximately $320 million in net operating loss carry-forwards (NOLs). Since that date, the composition of the Company’s shareholders has changed so that there is less of a risk of a change in ownership that could jeopardize the NOLs under applicable tax laws.
Highlights of Full-Year 2006 Results: * Total revenues for the year were $49.1 million. * Net subscribers totaled approximately 155,000 at December 31, 2006, up over 18,000 or 13% from approximately 137,000 at the beginning of the year. * Net loss for the year was $13.8 million, or $(0.84) per share. * Adjusted net income from continuing operations(a) was negative $4.2 million. This includes the second quarter WebSource Media impairment of $3.5 million.
Web.com, formerly Interland, Inc., offers do-it-yourself and professional website design, website hosting, ecommerce, web marketing, developer hosting, and e-mail resources, since 1995.More than 4 million websites have been built using Web.com’s proprietary tools, services and patented technology. As one of the longest-standing leaders in the website hosting industry, Web.com offers proprietary, point-and-click technologies and expert support professionals to ensure simplicity and ease-of-use at every step of the process. Distribution Partners include: Yellow Pages directories, broadband services, telecommunications, retail, and others. Strategic distribution partners include: R.H. Donnelley, Dex Media, EarthLink, British Telecom, Terra Lycos, Thomas Publishing, Ambassador Yellow Pages, Hawaiian Telcom, Encore Software, Office Depot, CompUSA, Amazon.com, and Monster Worldwide. Technology Partners include: Cisco, Compaq, Foundry Networks, Google, Hewlett-Packard, Lycos, Macromedia, Miva, Microsoft, Network Associates, Openwave, PayPal, RealNetworks, Red Hat, Staples, Sun Microsystems, VeriSign, Verizon, VERITAS, Yahoo, and WebTrends.
Web.com has been honored with the following accolades:
- Deloitte, Technology Fast 50 Winner, 2005 and 2006
- Excellence in Technology 2005 Awards â€“ Ecommerce, SmallBusinessComputing.com
- # 12 on Deloitteâ€™s 2004 Technology Fast 500
- #1 Web Design, Development and Services Company 2005, Atlanta Business Chronicle
- Frost and Sullivan Market Leadership Award 2003
- Who’s Who in Technology 2003 and 2004, Atlanta Business Chronicle
For more information about Web.com, please visit: www.web.com.