CNET Q1 Revs Up 3 Percent, But Shy Of Estimates; Loss Slims; Yahoo Deal
This story was written by Joseph Weisenthal.
At first blush, it doesn't look like CNET's quarterly numbers will do much to persuade shareholders to side against Jana: Revenues were up 3 percent to $91.4 million, from $89.1 million in the year-ago period. But they were shy of analyst estimates of about $93.5 million. And the company lost another $6.1 million ($.04 per share) in the quarter, although that is narrower than a $9 million ($.06 per share) loss a year ago. For the coming quarter, CNET is anticipating revenue of $100-$104 million; analysts are currently looking for about $103.6 million.
Separately, CNET confirmed the partnership with Yahoo (NSDQ: YHOO) that was first reported this morning. Some additional details: the deal, which will involve CNET content being distributed across Yahoo Tech and Yahoo News, will run for three years, and it will be the CNET sales force in charge of selling ads against that content. Yahoo, as expected, will sell some display advertising across CNET (NSDQ: CNET). And as a (very) little cherry on top, the Yahoo toolbar will be distributed via CNET's Downloads.com. Release.
The announcement makes no mention of the company's ongoing battle with Jana
By Joseph Weisenthal