Infoseek Reports Fourth Quarter Fiscal 1999 Results; Revenues More Than Doubled Year-Over-Year to $41.3 Million

Business Wire, Oct 28, 1999

SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 28, 1999--

Infoseek Corporation (NASDAQ: SEEK), home of GO Network (www.go.com), today reported revenues totaling $41.3 million for the quarter ended October 2, 1999, a 14 percent increase over the previous fiscal quarter, and an increase of 115 percent compared to revenues of $19.2 million for the comparable quarter last fiscal year. Revenues for the fiscal year ended October 2, 1999 totaled $137.2 million, an increase of 116 percent over fiscal year 1998.

Pro forma net loss for the quarter ended October 2, 1999 was $21.5 million, or $0.34 per share, excluding $29.8 million for the effects of amortization of intangible assets and $1.8 million related to transaction costs for the pending merger with The Walt Disney Company. This compares to a pro forma net loss of $22.3 million, or $0.36 per share for the previous quarter and a net loss of $2.6 million, or $0.08 per share, for the comparable period last fiscal year. Net loss for the quarter ended October 2, 1999, including amortization of intangible assets and transaction costs, was $53.0 million, or $0.85 per share. This compares to a net loss of $51.3 million, or $0.83 per share, for the quarter ended July 3, 1999.

Including transaction costs, amortization of intangible assets, and charges related to in-process research and development, net loss for the fiscal year was $265.2 million or $4.58 per share. This compares to a net loss of $10.3 million, or $0.35 per share, for fiscal year 1998. Pro forma net loss for fiscal year 1999 was $86.1 million, or $1.48 per share, excluding $1.8 million of transaction costs and $177.4 million related to the total of amortization of intangible assets and charges related to in-process research and development.

"After focusing in the first half of this calendar year on developing GO Network and broadly enhancing our product offerings, we demonstrated this quarter our ability to leverage relationships with our customers and partners to generate our record revenue growth. This growth reflects the strength of the brands that make up GO Network and the expertise and depth of our sales organization. That we were able to report this level of revenues is also a reflection of the intense amount of cooperation and mindshare between Infoseek and The Walt Disney Company," said Harry Motro, President and Chief Executive Officer of Infoseek.

Growth in Key Metrics

According to the September Media Metrix report, GO Network ranked in the top 5 properties in terms of unique users, reaching 33% percent of the market, or 21 million users. GO Network's registered user base grew at a faster rate during the month than any of the other top 6 Web properties, including AOL and Yahoo. For GO Network and the company's joint venture sites - ABCNEWS.com and ESPN.com - daily page views averaged 55 million in the month of September, up from 49 million in the month of June. GO Network's registered user base grew to 16 million, up from 14 million in the June quarter and doubling since the launch of GO Network earlier this year.

Key Leadership Positions Announced

During the quarter, The Walt Disney Company announced that Steven Bornstein will assume the role of CEO of go.com upon completion of the proposed transaction between the two companies. As Chairman of Buena Vista Internet Group, Mr. Bornstein directs and oversees Disney's strategic investments in the Internet. He is presently a board member of Infoseek and has been involved in Disney's increased online presence over the last four years. He has served as President of ABC, Inc., President of ABC Sports and President and CEO of ESPN, where he guided the company through its most active growth period through the creation of new networks, global expansion and strategic acquisitions. "The addition of Steve Bornstein to the management team signals The Walt Disney Company's commitment, at the most senior level, to the success of GO Network. Steve's unparalleled experience in building premier, global brands makes him the ideal choice to lead the company going forward," said Mr. Motro.

In addition, Judy Fearing was appointed to the newly created position of Senior Vice President of Marketing for Disney's Buena Vista Internet Group and will be named Senior Vice President of Marketing for go.com upon completion of the proposed merger. Ms. Fearing will be responsible for developing and implementing marketing and branding strategies across GO Network, including Buena Vista Internet Group's various Web sites: ABC.com, ABCNEWS.com, Disney.com, ESPN.com and Family.com. She most recently served as Senior Vice President of Global Marketing and Studio Development for Disney Consumer Products.

Additions and Enhancements to GO Network Services

During the quarter, Infoseek increased branding and marketing efforts for GO Network, including the continuation of its popular "Before You GO There, GO Here" TV campaign and the launch of GO Network's unique Internet Exhibit, centrally located at the newly designed Internet Zone at The Walt Disney World Resort. GO Network also launched its new auction service - GO Network Auction - supported by a marketing and promotions campaign, including the opportunity to bid on unique collectibles, such as Mark McGwire's bat, a signed Michael Jordan basketball, Stairway to Heaven sheet music signed by Led Zeppelin, and more. The company continued to add and enhance the content and services offered for GO Network, including a number of strategic communications and e-commerce initiatives, empowering its users by providing practical solutions for everyday life. Features and services added to GO Network since the last earnings release include: