InfoSpace Inc. posted a 21 percent increase in quarterly profit Tuesday, but revised its full year earnings outlook downward, sending its shares down 34 percent in after-hours trade.
The company, an operator of Web search properties like DogPile.com and a provider of game, music and ring tone downloads for mobile phones, had second-quarter net income of $16.3 million, or 44 cents a share, compared to year-earlier net income of $13.5 million, or 37 cents a share.
Revenues rose 53 percent to $83.2 million from $54.4 million in the second quarter of 2004.
Analysts, on average, had expected Infospace to have a profit of 38 cents a share on revenue of $85.4 million, according to Reuters Estimates.
Citing softer market trends, the Bellevue, Washington company expects third quarter revenue of $75 million to $80 million, with net income ranging from $5.5 million to $7.5 million, and earnings per share of 15 cents to 20 cents.
Analysts' consensus estimates for the third quarter had called for net earnings of 45 cents a share on revenue of $94.6 million.
For full year 2005, Infospace revised its revenue forecast to a range of $330 million and $340.0 million, compared with prior guidance of $375 million and $395.0 million.
It forecast net income of $44 million to $47 million, and earnings per share of $1.15 to $1.25.
This compares to a prior expectation of net income to range from $67 million and $75.0 million, and earnings per share to be between $1.75 and $1.95.
