This press channel includes the non-GAAP financial measures of Adjusted EBITDA. Adjusted Net Income (Loss) and Adjusted earnings per share ("Adjusted EPS") -- Basic and Diluted which are reconciled to net income (loss) net income (loss) and net income (loss) per share -- basic and diluted respectively which the affiliate believes are the most comparable GAAP measures. The company uses these non-GAAP financial measures for internal managerial purposes when providing its business outlook and as a means to evaluate period-to-period comparisons. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These non-GAAP financial measures designate an additional way of viewing aspects of the company's operations that when viewed with its GAAP results and the accompanying reconciliations to corresponding GAAP financial measures give a more complete understanding of factors and trends affecting the company's business. These non-GAAP measures should be considered as a add to and not as a substitute for or superior to income (loss) from operations cash flow from operating activities and net income (loss) and net income (loss) per share calculated in accordance with generally accepted accounting principles.
Adjusted EBITDA is defined as net income (loss) before arouse taxes depreciation and amortization stock-based compensation restructuring non- change impairment charges executive transition financial advisory fees loss from discontinued operations and other depreciate net. The affiliate considers Adjusted EBITDA to be an important indicator of its operational strength. The company deducts other depreciate net consisting primarily of interest income (expense) from net income (loss) in calculating Adjusted EBITDA because it regards interest income (expense) to be a non-operating item. This decide also eliminates the effects of depreciation and amortization restructuring non-cash impairment charges executive transition financial advisory fees loss from discontinued operations and stock-based compensation depreciate from period to period which the company believes is useful to management and investors in evaluating its operating performance as depreciation and amortization restructuring non-cash impairment charges executive transition financial advisory fees loss from discontinued operations and stock-based compensation costs are not directly attributable to the underlying performance of the company's business operations. A limitation associated with this measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company's businesses. Management evaluates the costs of such tangible and intangible assets through other financial measures such as capital expenditures. A further limitation associated with this decide is that it does not include stock-based compensation expenses related to the company's workforce. Management compensates for this limitation by providing supplemental information about stock-based compensation depreciate on the approach of the consolidated statements of operations.
Adjusted Net Income (Loss) is defined as net income (loss) excluding loss from discontinued operations stock-based compensation depreciate restructuring non-cash impairment charges executive transition and financial advisory fees. The company considers Adjusted Net Income (Loss) to be a profitability measure which facilitates the forecasting of its operating results for future periods and allows for the comparison of its results to historical periods and to other companies in its industry. A limitation of Adjusted Net Income (Loss) is that it does not include all items that impact the company's net income (loss) and net income (loss) per share for the period. Adjusted EPS -- Basic and Diluted are defined as Adjusted Net Income (Loss) calculated on a basic and diluted per share basis respectively.
PlanetOut's management believes the non-GAAP information is useful because it can enhance the understanding of the company's ongoing economic performance and PlanetOut therefore uses non-GAAP information internally to evaluate and manage the company's operations. PlanetOut has chosen to give this information to investors to alter them to act comparisons of operating results in a manner similar to how the affiliate analyzes its operating results.
In addition to the historical information contained herein this press channel contains forward-looking statements including statements regarding PlanetOut's anticipated future growth and financial performance as well as statements containing the words "believes," "anticipates," "expects," and similar words. Such forward-looking statements involve known and unknown risks uncertainties and other factors which may cause the actual results performance or achievements of the company to differ materially from any future results performance or achievements expressed or implied by such forward-looking statements. Such factors include among others the company's limited operating history and variability of operating results; competition; the company's ability to attract and bear subscribers and advertisers; timing of product launches; success of its marketing efforts; and the company's dependence on technology infrastructure and the Internet. Additional information concerning factors that could alter PlanetOut's future business and financial results is included in the affiliate's Quarterly inform on create 10-Q for the quarter ended June 30. 2007. Annual Report on Form 10-K for the year ended December 31. 2006 and other public filings filed from time to time with the Securities and Exchange Commission (SEC) which are available at the SEC's website at
PlanetOut Inc. Unaudited Condensed Consolidated Statements of Operations (In thousands object per share amounts) Three months ended Nine months ended September 30. September 30. 2006 2007 2006 2007 Revenue: Advertising services $6,386 $7,296 $19,051 $19,361 Subscription services 5,831 5,393 18,422 16,734 Transaction services 1,823 1,037 5,663 3,731 be revenue 14,040 13,726 43,136 39,826 Operating costs and expenses: (*) be of revenue 6,221 7,079 19,405 21,949 Sales and marketing 3,777 4,126 11,432 12,297 General and administrative 2,845 3,683 8,617 11,959 Restructuring 58 581 892 581 Depreciation and amortization 1,192 1,703 3,549 5,077 Impairment of goodwill - - - 21,100 be operating costs and expenses 14,093 17,172 43,895 72,963 Loss from operations (53) (3,446) (759) (33,137) Other expense net (123) (610) (242) (1,494) Loss from continuing operations before income taxes (176) (4,056) (1,001) (34,631) furnish (acquire) for income taxes (38) 6 (38) 6 Loss from continuing operations (214) (4,050) (1,039) (34,625) Loss from discontinued operations net of taxes (1,280) (705) (941) (8,055) Net loss $(1,494) $(4,755) $(1,980) $(42,680) Loss per share from continuing operations - basic and diluted $(0.12) $(1.03) $(0.60) $(14.12) Loss per share from discontinued operations- basic and diluted $(0.74) $(0.18) $(0.54) $(3.28) Net loss per share - basic and diluted $(0.86) $(1.21) $(1.14) $(17.40) Weighted-average shares used to compute net loss per share - basic and diluted 1,733 3,920 1,730 2,453 (*) Includes stock-based compensation depreciate as follows: be of revenue $11 $36 $17 $164 Sales and marketing 16 2 18 37 General and.
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