Baidu 2008,Q1 earnings call: Play Now | Play in Popup

Press Release here:

 
Baidu Announces First Quarter 2008 Results
BEIJING, April 24 /Xinhua-PRNewswire/ — Baidu.com, Inc. (Nasdaq: BIDU), the leading Chinese language Internet search provider, today announced its unaudited financial results for the first quarter ended March 31, 2008

First Quarter 2008 Highlights
— Total revenues in the first quarter of 2008 increased to RMB574.4
million (US$81.9 million), representing a 108.4% increase from the
corresponding period in 2007.
– Operating profit in the first quarter of 2008 increased to RMB147.4
million (US$21.0 million), representing a 99.6% increase from the
corresponding period in 2007.
– Net income in the first quarter of 2008 increased to RMB146.6 million
(US$20.9 million), representing a 71.5% increase from the corresponding
period in 2007.
– Diluted earnings per share ("EPS") for the first quarter of 2008 were
RMB4.22 (US$0.60); diluted EPS excluding share-based compensation
expenses (non-GAAP) for the first quarter of 2008 were RMB4.68
(US$0.67).
Costs and expenses related to Baidu's Japan operations in the first
quarter of 2008 were RMB30.1 million (US$4.3 million), which reduced
diluted EPS by RMB0.87 (US$0.12).
– The number of active online marketing customers during the first
quarter grew to approximately 161,000, an increase of 3.9% from the
previous quarter.

"This was another excellent quarter for Baidu," said Robin Li, Baidu's chairman and CEO. "Our revenue growth remained strong and is an indication of our ability to execute our strategy of providing the best possible user experience and service to our customers. Instrumental to our growth were the ceaseless efforts of our sales force and customer service teams who continued to deliver strong results despite a long Chinese New Year holiday and severe snow storms across large parts of China. In addition, a larger customer base contributed to strong organic and Baidu Union growth."

During the first quarter Baidu launched the public testing of Baidu Hi, an instant messaging platform complementing Baidu's suite of other already popular products such as Baidu Knows, Baidu Post Bar and Baidu Space. Initial results indicate a positive response to the new product. Baidu also recently signed an agreement with China Netcom (CNC). Under the agreement, Baidu and CNC created a jointly designed Baidu search page that CNC users are redirected to if they attempt to visit an incorrect or nonexistent URL. This arrangement allows CNC Internet users to find information they need more efficiently while increasing Baidu user traffic in a revenue sharing model.

First Quarter 2008 Results

Baidu reported total revenues of RMB574.4 million (US$81.9 million) for the first quarter ended March 31, 2008, representing a 108.4% increase from the corresponding period in 2007.

Online marketing revenues for the first quarter were RMB572.7 million (US$81.7 million), representing a 108.5% increase from the first quarter of 2007. The growth was mainly driven by increases in the number of active online marketing customers as well as revenue per customer. Baidu had nearly 161,000 active online marketing customers in the first quarter of 2008, representing a sequential increase of 3.9% and an increase of 43.8% from the corresponding period in 2007. Revenue per online marketing customer for the first quarter remained stable sequentially at approximately RMB3,600 (US$513), and increased approximately 44.0% from the corresponding period in 2007.

Traffic acquisition costs (TAC) as a component of cost of revenues were RMB76.6 million (US$10.9 million), representing 13.3% of total revenues, compared to 10.3% in the corresponding period in 2007. The increase in TAC as a percentage of total revenues primarily reflects the continued growth of revenue contribution from Baidu Union members.

Bandwidth costs as a component of cost of revenues were RMB38.4 million (US$5.5 million), representing 6.7% of total revenues, compared to 7.8% in the corresponding period in 2007. Depreciation costs as a component of cost of revenues were RMB53.2 million (US$7.6 million), representing 9.3% of total revenues, compared to 9.4% in the corresponding period in 2007.

Selling, general and administrative expenses were RMB147.0 million (US$21.0 million), representing an increase of 96.3% from the corresponding period in 2007, primarily due to expansion of the direct sales force.

Research and development expenses were RMB51.4 million (US$7.3 million), representing a 105.9% increase from the corresponding period in 2007, primarily due to an increase in research and development staff.

Share-based compensation expenses, which were allocated to related operating cost and expense line items, increased in aggregate by 32.5% to RMB16.2 million (US$2.3 million) in the first quarter of 2008 from RMB12.2 million in the corresponding period in 2007.

Operating profit was RMB147.4 million (US$21.0 million), representing a 99.6% increase from the corresponding period in 2007. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB163.5 million (US$23.3 million) for the first quarter of 2008, a 90.1% increase from the corresponding period in 2007.

Adjusted EBITDA (non-GAAP), which is defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non- operating income and share-based compensation expenses, were RMB228.4 million (US$32.6 million) for the first quarter of 2008, representing a 93.5% increase from the corresponding period in 2007.

Income tax expense was RMB10.9 million (US$1.5 million), compared to an income tax expense of RMB1.4 million in the first quarter of 2007. The increase in tax over previous quarters is due to expected increases in tax rates applied to two PRC-based subsidiaries as their tax holidays either expired or partially elapsed.

Net income was RMB146.6 million (US$20.9 million), representing a 71.5% increase from the corresponding period in 2007. Basic and diluted EPS for the first quarter of 2008 amounted to RMB4.29 (US$0.61) and RMB4.22 (US$0.60), respectively.

Net income excluding share-based compensation expenses (non-GAAP) was RMB162.8 million (US$23.2 million), a 66.6% increase from the corresponding period in 2007. Basic and diluted EPS excluding share-based compensation expenses (non-GAAP) for the first quarter of 2008 were RMB4.77 (US$0.68) and RMB4.68 (US$0.67), respectively.

As of March 31, 2008, Baidu's cash, cash equivalents and short-term investments amounted to RMB1.7 billion (US$237.6 million). Net operating cash inflow and capital expenditures for the first quarter of 2008 were RMB248.9 million (US$35.5 million) and RMB158.5 million (US$22.6 million), respectively. A portion of the capital expenditure was associated with the construction of Baidu's new campus facility.

Outlook for Second Quarter 2008

Baidu currently expects to generate total revenues in an amount ranging from RMB780 million (US$111 million) to RMB800 million (US$114 million) for the second quarter of 2008, representing a 94.4% to 99.4% increase from the corresponding period in 2007 and a 35.8% to 39.3% increase from the first quarter of 2008. This forecast reflects Baidu's current and preliminary view, which is subject to change.
 

Podcast Here:

 

 Google 2008,Q1 earnings call - Part 1: Play Now | Play in Popup

 

 Google Q1 2008 Earnings Call, Part 2: Play Now | Play in Popup

Slides Here:

| View | Upload your own

Press Release:

GOOGLE ANNOUNCES FIRST QUARTER 2008 RESULTS

MOUNTAIN VIEW, Calif. – April 17, 2008 - Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter ended March 31, 2008.

"Our ongoing innovation in search, ads, and apps helped drive healthy growth globally across our product lines, yielding another strong quarter for Google," said Eric Schmidt, CEO of Google.  "As we integrate DoubleClick into our advertising platform, we see exciting new ways to improve the user experience and increase value for our advertisers and partners.  Also, while exercising operational discipline, we continue to explore opportunities that add value to users everywhere and to Google in the long term."

Q1 Financial Summary

Google's results for the quarter ended March 31, 2008, include the operations of DoubleClick Inc. from the date of acquisition, March 11, 2008, through the end of the quarter, and are compared to pre-acquisition results of prior periods. The overall impact of DoubleClick in the first quarter of 2008 was immaterial to revenue and only slightly dilutive to both GAAP and non-GAAP operating income, net income and earnings per share.

Google reported revenues of $5.19 billion for the quarter ended March 31, 2008, an increase of 42% compared to the first quarter of 2007 and an increase of 7% compared to the fourth quarter of 2007.  Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC.  In the first quarter of 2008, TAC totaled $1.49 billion, or 29% of advertising revenues.

Google reports operating income, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis.  The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.

• GAAP operating income for the first quarter of 2008 was $1.55 billion, or 30% of revenues.  This compares to GAAP operating income of $1.44 billion, or 30% of revenues, in the fourth quarter of 2007.  Non-GAAP operating income in the first quarter of 2008 was $1.83 billion, or 35% of revenues. This compares to non-GAAP operating income of $1.69 billion, or 35% of revenues, in the fourth quarter of 2007.

• GAAP net income for the first quarter of 2008 was $1.31 billion as compared to $1.21 billion in the fourth quarter of 2007.  Non-GAAP net income in the first quarter of 2008 was $1.54 billion, compared to $1.41 billion in the fourth quarter of 2007.

• GAAP EPS for the first quarter of 2008 was $4.12 on 317 million diluted shares outstanding, compared to $3.79 for the fourth quarter of 2007 on 318 million diluted shares outstanding.  Non-GAAP EPS in the first quarter of 2008 was $4.84, compared to $4.43 in the fourth quarter of 2007.

• Non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP EPS are computed net of stock-based compensation (SBC).  In the first quarter of 2008, the charge related to SBC was $281 million as compared to $245 million in the fourth quarter of 2007.  Tax benefits related to SBC have also been excluded from these non-GAAP measures.  The tax benefit related to SBC was $51 million in the first quarter of 2008 and $42 million in the fourth quarter of 2007.  Reconciliations of non-GAAP measures to GAAP operating income, operating margin, net income, and EPS are included at the end of this release.

Q1 Financial Highlights

Revenues – Google reported revenues of $5.19 billion for the quarter ended March 31, 2008, representing a 42% increase over first quarter 2007 revenues of $3.66 billion and a 7% increase over fourth quarter 2007 revenues of $4.83 billion.  Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.

Google Sites Revenues - Google-owned sites generated revenues of $3.40 billion, or 66% of total revenues, in the first quarter of 2008.  This represents a 49% increase over first quarter 2007 revenues of $2.28 billion and a 9% increase over fourth quarter 2007 revenues of $3.12 billion.

Google Network Revenues - Google’s partner sites generated revenues, through AdSense programs, of $1.69 billion, or 33% of total revenues, in the first quarter of 2008.  This represents a 25% increase over network revenues of $1.35 billion generated in the first quarter of 2007 and a 3% increase over fourth quarter 2007 revenues of $1.64 billion.

International Revenues - Revenues from outside of the United States totaled $2.65 billion, representing 51% of total revenues in the first quarter of 2008, compared to 47% in the first quarter of 2007 and 48% in the fourth quarter of 2007.  Had foreign exchange rates remained constant from the fourth quarter of 2007 through the first quarter of 2008, our revenues in the first quarter of 2008 would have been $18 million lower. Had foreign exchange rates remained constant from the first quarter of 2007 through the first quarter of 2008, our revenues in the first quarter of 2008 would have been $202 million lower.

Revenues from the United Kingdom totaled $803 million, representing 15% of revenue in the first quarter of 2008, compared to 16% in the first quarter of 2007 and 14% in the fourth quarter of 2007.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 20% over the first quarter of 2007 and approximately 4% over the fourth quarter of 2007.

TAC - Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $1.49 billion in the first quarter of 2008.  This compares to TAC of $1.44 billion in the fourth quarter of 2007.  TAC as a percentage of advertising revenues was 29% in the first quarter, compared to 30% in the fourth quarter of 2007.

The majority of TAC expense is related to amounts ultimately paid to our AdSense partners, which totaled $1.34 billion in the first quarter of 2008.  TAC is also related to amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $143 million in the first quarter of 2008.

Other Cost of Revenues - Other cost of revenues, which is comprised primarily of data center operational expenses, credit card processing charges as well as content acquisition costs, increased to $624 million, or 12% of revenues, in the first quarter of 2008, compared to $516 million, or 11% of revenues, in the fourth quarter of 2007.

Pursuant to our acquisition of DoubleClick, we allocated $862 million to identified intangible assets, which have a weighted average useful life of 6.3 years.

Operating Expenses - Operating expenses, other than cost of revenues, were $1.53 billion in the first quarter of 2008, or 30% of revenues, compared to $1.43 billion in the fourth quarter of 2007, or 30% of revenues.  The operating expenses in the first quarter of 2008 included $809 million in payroll-related and facilities expenses, compared to $756 million in the fourth quarter of 2007.

Stock-Based Compensation (SBC) – In the first quarter of 2008, the total charge related to SBC was $281 million as compared to $245 million in the fourth quarter of 2007.

We currently estimate stock-based compensation charges for grants to employees prior to April 1, 2008 to be approximately $1.1 billion for 2008.  This does not include expenses to be recognized related to employee stock awards that are granted after April 1, 2008 or non-employee stock awards that have been or may be granted.  We currently anticipate that dilution related to all equity grants to employees will be at or below 2% this year.

Operating Income - GAAP operating income in the first quarter of 2008 was $1.55 billion, or 30% of revenues.  This compares to GAAP operating income of $1.44 billion, or 30% of revenues, in the fourth quarter of 2007.  Non-GAAP operating income in the first quarter of 2008 was $1.83 billion, or 35% of revenues.  This compares to non-GAAP operating income of $1.69 billion, or 35% of revenues, in the fourth quarter of 2007.

Net Income – GAAP net income for the first quarter of 2008 was $1.31 billion as compared to $1.21 billion in the fourth quarter of 2007.  Non-GAAP net income was $1.54 billion in the first quarter of 2008, compared to $1.41 billion in the fourth quarter of 2007.  GAAP EPS for the first quarter of 2008 was $4.12 on 317 million diluted shares outstanding, compared to $3.79 for the fourth quarter of 2007, on 318 million diluted shares outstanding.  Non-GAAP EPS for the first quarter of 2008 was $4.84, compared to $4.43 in the fourth quarter of 2007.

Income Taxes – Our effective tax rate was 24% for the first quarter of 2008.

Cash Flow and Capital Expenditures – Net cash provided by operating activities for the first quarter of 2008 totaled $1.78 billion as compared to $1.69 billion for the fourth quarter of 2007.  In the first quarter of 2008, capital expenditures were $842 million, the majority of which was related to IT infrastructure investments, including data centers, servers, and networking equipment.  Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures.  In the first quarter of 2008, free cash flow was $938 million.

We expect to continue to make significant capital expenditures.

A reconciliation of free cash flow to net cash provided by operating activities, the GAAP measure of liquidity, is included at the end of this release.

Cash – As of March 31, 2008, cash, cash equivalents, and marketable securities were $12.1 billion.

On a worldwide basis, Google employed 19,156 full-time employees as of March 31, 2008, up from 16,805 full-time employees as of December 31, 2007. Of the 2,351 employees added in the first quarter of 2008, approximately 1,500 were associated with DoubleClick. Since the close of the acquisition, Google has conducted a review of its ongoing headcount requirements and approximately 10% of the DoubleClick workforce was laid off in the U.S. in early April.

Podcast here:

 

 Yahoo 2008, Q1 earnings call - Part 1: Play Now | Play in Popup

 

 Yahoo 2008, Q1 earnings call - Part 2: Play Now | Play in Popup

“The heart of Yahoo!'s strategy to win is the simple proposition that if we are the starting point for the most users and provide the most comprehensive, easiest-to-use, ‘must-buy’ platform for advertisers, we can drive the growth in volume and the improvement in yield we need to accelerate growth in revenues and operating cash flow. That, in turn, we believe will deliver attractive value to our stockholders,” said Sue Decker, president, Yahoo! Inc. “This past quarter’s financial results, important acquisitions, and, most importantly, the string of successful product rollouts demonstrate our enhanced execution against our longer-range goals. As we look forward, we are particularly excited by the potential capability of AMP! from Yahoo!, our revolutionary new ad management platform to help us further extend our lead in display advertising, which more than any other area of online advertising we believe has great potential for growth.”

Slides Here:

| View | Upload your own

Press Release:
SUNNYVALE, Calif. – April 22, 2008 - Yahoo! Inc. (Nasdaq: YHOO) today reported results for the first quarter ended March 31, 2008

“As outlined in our investor presentation, we believe we can significantly accelerate our revenue growth, return to our historically high margins, and double our operating cash flow by 2010. This quarter’s solid performance underscores the fact that we are executing on that plan. Yahoo! is beginning to realize the benefits of the very substantial and deliberate long-term investments we’ve made to capitalize on the opportunities ahead in display and to recapture momentum in search,” said Jerry Yang, co-founder and chief executive officer, Yahoo! Inc.

“Not only does Yahoo! have a unique franchise, it increasingly has industry-leading tools, technology and, most importantly, people. It is the hard work, dedication and professionalism of our people that is our greatest asset—and this quarter’s performance demonstrates how well they can perform under unusually challenging circumstances.”

First Quarter 2008 Financial Results

• Revenues were $1,818 million for the first quarter of 2008, a 9 percent increase compared to $1,672 million for the same period of 2007.
• Marketing services revenues were $1,572 million for the first quarter of 2008, a 7 percent increase compared to $1,469 million for the same period of 2007.
o Marketing services revenues from Owned and Operated sites were $966 million for the first quarter of 2008, an 18 percent increase compared to $820 million for the same period of 2007.
o Marketing services revenues from Affiliate sites were $606 million for the first quarter of 2008, a 7 percent decrease compared to $649 million for the same period of 2007.
• Fees revenues were $245 million for the first quarter of 2008, a 21 percent increase compared to $203 million for the same period of 2007.
• Revenues excluding traffic acquisition costs (“TAC”) were $1,352 million for the first quarter of 2008, a 14 percent increase compared to $1,183 million for the same period of 2007.
• Gross profit for the first quarter of 2008 was $1,063 million, an 11 percent increase compared to $958 million for the same period of 2007.
• Operating income for the first quarter of 2008 was $121 million, a 28 percent decrease compared to $169 million for the same period of 2007.
o Operating income for the first quarter of 2008 includes a pre-tax cash charge of $29 million for severance pay expenses and related cash expenditures related to a strategic workforce realignment the Company implemented during the quarter. Offsetting this cash charge was a $12 million credit related to stock-based compensation expense reversals, resulting in a net total
strategic workforce realignment charge of $17 million.

o Operating income for the first quarter of 2008 includes incremental costs of $14 million incurred for outside advisors related to Microsoft’s unsolicited proposal, other strategic alternatives, and related litigation defense costs.
• Operating income before depreciation, amortization, and stock-based compensation expense for the first quarter of 2008 was $433 million, a 6 percent decrease compared to $460 million for the same period of 2007.
o Operating income before depreciation, amortization, and stock-based compensation expense for the first quarter of 2008 includes a pre-tax cash charge of $29 million for severance pay
expenses and related cash expenditures related to a strategic workforce realignment the Company implemented during the quarter.
o Operating income before depreciation, amortization, and stock-based compensation expense for the first quarter of 2008 includes incremental costs of $14 million incurred for outside advisors related to Microsoft’s unsolicited proposal, other strategic alternatives, and related litigation defense costs.
• Cash flow from operating activities for the first quarter of 2008 was $786 million, an 81 percent increase compared to $435 million for the same period of 2007.
o Cash flow from operating activities for the first quarter of 2008 includes a $350 million one-time payment from AT&T Inc.
• Free cash flow for the first quarter of 2008 was $647 million, a 75 percent increase compared to $369 million for the same period of 2007.
o Free cash flow for the first quarter of 2008 includes a $350 million one-time payment from AT&T Inc.
• Net income for the first quarter of 2008 was $542 million or $0.37 per diluted share compared to $142 million or $0.10 per diluted share for the same period of 2007.
o Net income for the first quarter of 2008 includes the Company’s net non-cash gain of $401 million related to Alibaba Group's initial public offering of Alibaba.com, net of tax, which is included in earnings in equity interests.
• Non-GAAP net income for the first quarter of 2008 was $150 million or $0.11 per diluted share compared to non-GAAP net income of $154 million or $0.11 per diluted share for the same period of 2007.

“The heart of Yahoo!'s strategy to win is the simple proposition that if we are the starting point for the most users and provide the most comprehensive, easiest-to-use, ‘must-buy’ platform for advertisers, we can drive the growth in volume and the improvement in yield we need to accelerate growth in revenues and operating cash flow. That, in turn, we believe will deliver attractive value to our stockholders,” said Sue Decker, president, Yahoo! Inc. “This past quarter’s financial results, important acquisitions, and, most importantly, the string of successful product rollouts demonstrate our enhanced execution against our longer-range goals. As we look forward, we are particularly excited by the potential capability of AMP! from Yahoo!, our revolutionary new ad management platform to help us further extend our lead in display advertising, which more than any other area of online advertising we believe has great potential for growth.”

First Quarter 2008 Segment Financial Results
• United States segment revenues for the first quarter of 2008 were $1,307 million, a 19 percent increase compared to $1,101 million for the same period of 2007.
• International segment revenues for the first quarter of 2008 were $510 million, an 11 percent decrease compared to $571 million for the same period of 2007.
• United States segment operating income before depreciation, amortization, and stock-based compensation expense for the first quarter of 2008 was $315 million, an 8 percent decrease compared to $342 million for the same period of 2007.
• International segment operating income before depreciation, amortization, and stock-based compensation expense for the first quarter of 2008 was $118 million, a 1 percent decrease compared to $119 million for the same period of 2007.

Cash Flow Information

In addition to free cash flow of $647 million for the first quarter of 2008 (including a $350 million one-time payment from AT&T Inc.), Yahoo! generated $127 million from the issuance of common stock as a result of the exercise of employee stock options. This was offset by $79 million used for direct stock repurchases, $52 million used for tax withholdings related to net share settlements of restricted stock awards and restricted stock units, and $166 million used for acquisitions. Cash, cash equivalents, and investments in marketable debt securities were $2,848 million at March 31, 2008 as compared to $2,363 million at December 31, 2007, an increase of $485 million

“Yahoo!'s first quarter 2008 financial performance was on target and aligned with our strategy to generate substantial value for stockholders,” said Blake Jorgensen, chief financial officer, Yahoo! Inc. “Our strong growth in free cash flow, excellent capital position, and ample scale give us the resources to execute our plans to grow operating cash flow substantially. Core revenue grew at an attractive, double-digit pace. The capital expenditures and substantial investments we made in people last year and early this year are now producing gains in our core, long term growth initiatives,” Jorgensen added.

Podcast here:

 

 CNet Q1 2008 Earnings Call - Part 1, Management Remarks: Play Now | Play in Popup

 

 CNet Q1 2008 Earnings Call - Part 2, Q and A: Play Now | Play in Popup

Press Release

CNET Networks Reports First Quarter 2008 Financial Results

Company Posts First Quarter Revenue of $91.4 Million

Monthly Unique Users Increase to 161 Million

SAN FRANCISCO–(BUSINESS WIRE)–April 24, 2008–CNET Networks, Inc. (Nasdaq:CNET) today reported financial results for the quarter ended March 31, 2008.

"During the quarter we saw strong traffic growth at each of our key brands, embarked on an exciting strategic partnership with Yahoo! that will positively impact many areas of our business, and we took important steps to reduce costs and improve the profitability of our operating structure," said Neil Ashe, chief executive officer, CNET Networks. "While we are pleased with our progress against these strategic initiatives, there is more to do and we are focused on improving our operational performance."

First Quarter 2008 Financial and Operating Highlights

Revenues - Total revenues for the first quarter were $91.4 million, a 3% percent increase compared to revenues of $89.1 million for the same period of 2007.

Operating Loss - On a reported basis, operating loss totaled $18.0 million during the first quarter of 2008 compared to an operating loss of $7.7 million in the year-ago quarter. First quarter 2008 reported operating loss reflects restructuring charges of $5.1 million. Operating loss also includes $2.0 million of costs related to stockholder proposals and $0.3 million of expenses related to the Company's stock option investigation related costs offset by a $2.2 million insurance recovery for litigation expenses. First quarter 2007 reported operating loss reflects $4.4 million in stock option investigation related costs.

Non-GAAP operating income before depreciation, amortization, stock compensation expense, restructuring charges and stockholder proposals and stock option investigation related costs, net, was $1.7 million compared to $11.0 million during the first quarter of 2007.

Net Loss - Net loss for the first quarter of 2008 was $6.1 million or a loss of $0.04 per share as compared to a net loss of $9.1 million, or a loss of $0.06 per share for the first quarter of 2007. Excluding depreciation, amortization, stock compensation expense, restructuring charges, expenses associated with stockholder proposals and stock option investigation related costs, net, discontinued operations and certain non-operating gains, non-GAAP net loss for the first quarter of 2008 was $4.3 million, or $0.03 per share, compared to non-GAAP net income of $0.5 million during the first quarter of 2007.

Cash Flow and Capital Expenditures - Net cash provided by operating activities for the first quarter of 2008 was $15.9 million, up from $11.0 million for the first quarter of 2007. Capital expenditures in the first quarter of 2008 were $7.7 million compared to $7.2 million in the first quarter of 2007. Excluding costs of $2.0 million associated with stockholder proposals costs and a net recovery related to the Company's stock option investigation related costs of $1.9 million in the first quarter of 2008 and of $4.4 million in the first quarter of 2007, free cash flow for the first quarter of 2008 and 2007 was $8.3 million. Free cash flow is defined as cash flow from operating activities less capital expenditures.

User Metrics - CNET Networks' global network of Internet properties reached an average of 161 million unique monthly users during the first quarter of 2008 (1). Average daily page views were nearly 90 million during the first quarter (1).

Business Highlights

Strategic Partnerships: In a separate press release issued today, CNET Networks and Yahoo!, Inc., announced a broad, multi-year agreement that encompasses advertising, content, and search marketing. Under the partnership, CNET Networks and Yahoo! will work together to offer both companies' marketing partners additional opportunities to reach their target audience across both networks' leading web sites. In addition, CNET.com will become the leading provider of technology and consumer electronics content across Yahoo! Tech and other Yahoo sites, and CNET will sell its video inventory in the Yahoo environment. Finally, CNET will construct a program at CNET Download.com for the thousands of independent software vendors in its marketplace to profit from distribution of the Yahoo! toolbar with their products and services.

"We're excited about this important partnership with Yahoo!," said Ashe. "With this relationship, we have dramatically expanded the reach of our most important brand, we have optimized our undersold inventory with a premium ad network, and we have created the largest vertical technology ad network for our sales force to sell."

Business Realignment: During the quarter, CNET Networks announced a 10 percent reduction in its U.S. workforce. The reduction was the result of the continued implementation of CNET Networks' established business plan and long-term growth strategy, and allows the company to put greater emphasis on its strategic priorities, which include focusing on its leading brands, driving efficiencies throughout the business, and reducing costs.

Brand Highlights: During the first quarter, CNET Networks continued to drive innovation and product developments across its leading brands. Recent examples include:

BNET (www.bnet.com) continued to launch new features to help business professionals succeed at work. The site, which launched just over a year ago, offers practical insight and straightforward tools that address the challenges business managers face everyday, including award-winning original content, and access to more than 11 million resource articles from over 3,000 leading independent publishers. During the first quarter, BNET launched BNET Industries (www.bnet.com/industries), a free, comprehensive resource providing in-depth news and analysis on 11 industries, including healthcare, automotive, media, pharmaceutical, financial services, food, retail, advertising, energy, technology, and travel, with more industries to be added in the future. BNET Industries combines original reporting with information on more than 9,000 public companies, giving business managers a single destination where they can research their business ecosystem, and easily access the information that keeps them sharp, informed, and competitive. With a monthly audience of more than nine million people, BNET also continued to attract new advertisers during the quarter, including American Express, AT&T, MasterCard, Visa, and WebEx.

CNET (www.cnet.com) continues to be the leading destination for a world gone digital. During the quarter, CNET further expanded the reach of its premium video content with the launch of its own channel on YouTube, featuring CNET's original shows such as The Buzz Report, Loaded, and Top 5. The site also announced the official launch of CNET TV 2.0 (www.cnettv.com), featuring closed captioning of the site's popular video content for the deaf and hard-of-hearing communities. To further expand the reach of the brand into new demographics, CNET partnered with Univision Online, Inc., the interactive division of Univision Communications, Inc. and the largest Spanish language brand in the country to launch a new Spanish-language technology mini site on Univision.com (keyword: Tecnologia). Hosted by Univision and branded CNET, the new site features CNET news, reviews, and videos all translated into Spanish. The Spanish speaking population is the fastest growing demographic in the U.S., and the Univision Web sites and broadcast operations reach over 90 percent of the approximately 44 million Hispanics in the U.S. today (2).

Awards

CNET Networks media properties continued to gain recognition for outstanding content from outside sources during the quarter. CNET News.com was recognized during the quarter for its story "iPhone: The Wait is Over" with a Best in Business Award from the Society of American Business Editors and Writers. In addition, CNET, GameSpot, Metacritic and, TV.com were all named Official Honorees for the 2008 Webby Awards, signifying an outstanding caliber of work. The company's food web site, CHOW, was recognized for its editorial content and design with nine award nominations. The prestigious nominations include a National Magazine Award for general excellence online; two James Beard awards for best website and best web cast; a Webby Award nomination in the food and beverage category; four Maggie awards, including best consumer web site and best consumer web site design; and a Bert Green Journalism award.

Business Outlook

For the second quarter of 2008, management anticipates total revenues of $100 million to $104 million. This represents year-over-year growth of between 6 percent and 10 percent. Management estimates operating income (loss) in the range of a loss of $0.3 million to income of $1.7 million for the second quarter. Management expects operating income before depreciation, amortization, stock compensation expense, restructuring costs and stockholder proposals and stock option investigation related costs, net, of between $15 million and $17 million for the second quarter. Earnings per share is expected to be in $0.00 in the second quarter.

For 2008, management expects total annual revenues to be in the range of $440 million to $460 million. This represents growth of between 8 percent and 13 percent. Management estimates operating income of between $24 and $33 million. Management expects operating income before depreciation, amortization, stock compensation expense, restructuring costs and stockholder proposals and stock option investigation related costs, net, to be between $88 million and $96 million. Earnings per share is expected to be in the range of $0.03 to $0.04 per share for the year.

Operating income and earnings per share guidance for the second quarter 2008 does not consider restructuring charges or ongoing costs or insurance reimbursements associated with the Company's concluded stock option investigation. Operating income and earnings per share guidance for 2008 does not consider restructuring charges or ongoing costs or insurance reimbursements associated with the Company's concluded stock option investigation or expenses associated with the Company's recent stockholder proposals that may be incurred in the third and fourth quarters of 2008.

Slides here

| View | Upload your own

 

 Microsoft Earnings Call, Q1 2008 (fiscal Q3). Remarks on Yahoo: Play Now | Play in Popup

 

 Microsoft Earnings Call, Q1 2008 (fiscal Q3). Q and A: Play Now | Play in Popup

Press Release:

REDMOND, Wash. — Apr. 24, 2008 — Microsoft Corp. today announced third-quarter revenue, operating income and diluted earnings per share of $14.45 billion, $4.41 billion and $0.47, respectively. Operating income and earnings per share results included a charge of $1.42 billion, or $0.15 per share, for the European Commission fine. Income taxes were reduced by $0.15 per share for the resolution of a tax audit. "Our third-quarter results demonstrate the benefit of our diversified business model,” said Chris Liddell, chief financial officer of Microsoft. “Our broad span across geographies, product categories and customer segments is a tremendous asset and supports our outlook for double-digit revenue, operating income and earnings per share growth for this fiscal year and also for fiscal year 2009." Entertainment and Devices revenue for the quarter grew 68% over the comparable period last year driven by robust demand for Xbox 360 consoles. Cumulative console sales surpassed 19 million during the quarter, up 74% from a year ago. Server and Tools revenue growth of 18% added to its string of consecutive double-digit revenue growth quarters, which now stands at 23. "The breadth of our product offerings and our ability to provide solutions across a range of customer and partner needs paid off again this quarter. The third quarter also kicked off the largest enterprise platform launch in our company history, which highlights Windows Server 2008, SQL Server 2008 and Visual Studio 2008,” said Kevin Turner, chief operating officer of Microsoft. “These new products strengthen our ability to help business customers and partners save money, optimize their people, processes and technology, and position IT as a strategic asset for their businesses." Business OutlookMicrosoft management offers the following guidance for the quarter ending June 30, 2008:

Management offers the following preliminary guidance for the full fiscal year ending June 30, 2009: