BOSTON (05/17/2000) - Web portal provider Lycos Inc., which is being merged with Terra Networks SA, today reported net income of US$7.9 million for the third quarter, or 7 cents per diluted share, beating analysts' expectations.
Fifteen analysts polled by First Call/Thomson Financial had predicted Lycos would report earnings of 5 cents per diluted share. The company's net income for the third quarter, ended April 30, 2000, compares to a reported net loss of $1 million in the year-ago quarter.
Lycos reported revenue of $78.6 million, a 15 percent increase over the second quarter, and a 120 percent jump over the year-ago quarter, the company said in a statement released today.
Global traffic to Lycos Network sites averaged 148 million page views per day in April, up 21 percent from the previous quarter. Registered users reached 55 million, up 15 percent, with 90,000 new users signing up daily, according to Lycos. The company has services in 25 countries and 65 sites in 13 languages.
Terra announced yesterday that it plans to acquire Lycos in a stock swap valued at $12.5 billion, with the new company to be called Terra Lycos. Terra is the ISP (Internet service provider) arm of telecommunications provider Telefónica SA, based in Madrid, Spain. The merger has already been approved by the boards of directors of both companies. [See "UPDATE - Terra to Buy Lycos in US$12.5B Stock Deal," May 16.]Lycos, in Waltham, Massachusetts, can be reached at +1-781-370-2700 or http://www.lycos.com/.