SAN FRANCISCO (05/01/2000) - Domain name provider register.com Inc. topped expectations today in its first earnings report as a public company, as the firm's first-quarter losses narrowed to slightly less than US$1 million.
For the three months ended March 31, 2000, register.com reported a loss of $991,000, or 4 cents per diluted share, compared with a loss of $1.1 million, or 6 cents per share a year ago. Analysts had expected the New York-based company to report a loss of 14 cents per share, according to First Call/Thomson Financial.
Net revenue for the first quarter of fiscal 2000 was $12.4 million, up 139 percent from $5.2 million reported in the fourth quarter of 1999, and compared with $747,300 year over year, register.com said in a statement issued today.
The company registered about 908,000 Internet addresses ending in .com, .net and .org during the quarter, almost a threefold increase over the 308,000 it registered in the fourth quarter of 1999, register.com said.
In June of last year, register.com became the first company to compete against market leader Network Solutions Inc. under a new system for registering Internet addresses introduced by the U.S. government. Since that time, more than 30 companies around the world have started to offer domain name registration services and more are expected to follow.
Register.com estimates that it handled 18 percent of all new registrations for the com, .net and .org domains during the first quarter, up from 13 percent in the fourth quarter of 1999, based on information released quarterly by Network Solutions, which still operates the registry for those three domains.
Register.com's shares on the Nasdaq closed at $57.06 today, up almost 12 percent from the previous day's trading. The company's shares are recovering gradually from last month's high-tech stock sell-off, when they sunk as low as $18.88 on April 17, down from a 52-week high of $116 just a month earlier.
The upstart registrar has a way to go before it matches the size of Network Solutions, which last week reported its fourteenth consecutive quarter of record profitability. First-quarter net income for Network Solutions of Herndon, Virginia, increased 206 percent to $14.7 million, or 20 cents per diluted share, on revenue of $98.2 million, the company reported.
Register.com can be contacted at +1-212-798-9100, and on the Web at http://www.register.com/.