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Greenfield Q2 Net Income Drops
In the US, Greenfield Online, which has recently received two takeover offers, has seen a decline in net income to $2.1m, compared with $3.1m a year earlier.
Overall revenues rose about 17% to $36m, or which 5.9% was due to favourable currency effects. However, for the Internet survey division, total third party net revenue increased only 5.4% to $24.6m for Q2, including the currency effects, compared with $23.3m for the same period in the prior year. Revenue for the comparison shopping segment was $11.4m, up 52.4% from $7.5m last year.
Total gross profit was $27.2m or 75.7% of revenues for the second quarter of 2008, as compared with $22.6m or 73.2% of revenues for the same period in the prior year.
Albert Angrisani, President and CEO, commented: 'Greenfield Online's overall business performed well in the second quarter despite a challenging economic environment, generating strong growth in revenue and pro forma adjusted EBITDA.'
Operating income dropped to $3.0m for the second quarter, compared with $4.4m for the same period in the prior year. Proforma operating income, excluding merger and other costs, was $5.2m. This excludes costs of c.$1.5m associated with the proposed merger with affiliates of Quadrangle Group, and charges related to the pending class action securities litigation, the Audit Committee investigation and subsequent remediation of approximately $0.8m.
In June, the company agreed to be bought by media-focused US buyout firm Quadrangle Group for $426m, but has since received a higher offer from an unnamed buyer.
Greenfield Online has cut its 2008 total revenue forecast to between $143m and $150m, due it says to the effect of market conditions on its Internet survey solutions business.
Shares rose 1 cent to $16.71 in early morning trading Monday on Nasdaq.
Web site: www.greenfield.com .
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