Autobytel Announces 2008 First Quarter Financial Results

Business Wire, May 8, 2008

Company Continues to Make Progress toward Meeting Operational Goals

IRVINE, Calif. -- Autobytel Inc. (Nasdaq: ABTL), a leading Internet automotive marketing services company, today announced financial results for the first quarter ended March 31, 2008.

Revenue for the 2008 first quarter was $20.7 million, compared with $21.9 million in the first quarter of 2007. The expected decline was primarily attributable to lower advertising revenue reflecting the planned elimination of low quality traffic sources in the fourth quarter of 2007, slightly offset by an increase in fees generated from leads. Revenue for the quarter was up 10% from the preceding fourth quarter of 2007.

Total operating expenses in the 2008 first quarter were $13.5 million, versus $6.8 million in the prior-year period. In the first quarters of 2008 and 2007, total operating expenses included a credit to expense of $2.7 million and $12.0 million, respectively, related to the Dealix Corporation patent litigation settlement. Excluding the credit to expense, total operating expenses for the 2008 first quarter declined 14% to $16.1 million, from $18.8 million in the prior-year first quarter.

For the purposes of financial reporting, revenues and expenses related to the company's Retention Performance Marketing (RPM) and Automotive Information Center (AIC) businesses, both divested in 2007, and its AVV business, which was sold in the first quarter of 2008, have been accounted for in discontinued operations.

Autobytel reported a loss from continuing operations of $6.1 million, or $0.14 per share, in the 2008 first quarter, compared with income from continuing operations of $3.9 million, or $0.09 per diluted share, in the 2007 first quarter, which included the $12.0 million credit to expense related to the patent litigation settlement. Non-cash share-based compensation expense was $0.9 million and $1.5 million, respectively, in the first quarters of 2008 and 2007.

Net loss for the first quarter of 2008 was $2.0 million, or $0.05 per share, compared with net income of $7.7 million, or $0.17 per diluted share, in the first quarter of 2007, including the aforementioned credits to expense related to the patent litigation settlement.

"We continue to make solid progress against our operational goals," said Jim Riesenbach, president and CEO of Autobytel. "We are pleased that, in spite of a challenging environment, our lead referral business continues to show strength with a 5% increase in revenue from leads. Additionally, the steps we have taken to strengthen traffic quality and user engagement have improved ad performance across our network, as we have further enhanced the MyRide.com consumer experience. We are continuing our efforts to market MyRide.com and generate traffic across the Autobytel network.

"We are confident that our strong cash balance, decreased expenses and more efficient operations, in conjunction with our strategy of continuing to leverage the expanding opportunities in the automotive Internet category, put us in a strong position to provide significant long-term value to all of our stakeholders," concluded Riesenbach.

Cash and cash equivalents and short-term investments advanced to $43.8 million at March 31, 2008, from $28.3 million at December 31, 2007. The March 31, 2008 cash balance includes $21.9 million in cash proceeds received during the first quarter of 2008 from the sale of the company's AVV business.

Beginning this quarter, metrics representing the key performance indicators of Autobytel's business will be published. These metrics are designed to display the traffic and engagement across the company's network, growth in syndication and ad network participation, the key trends of Autobytel's auto lead referral business and increasing corporate productivity. Additional discussion of these and other business drivers will be included in our quarterly conference call.

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Conference Call

Autobytel management will host a conference call today at 8:00 a.m. ET/5:00 a.m. PT to discuss its 2008 first quarter financial results. The conference call will be available to all interested parties through a live webcast at www.autobytel.com (click on "Investor Relations" and then click on "Conference Calls"). Please visit the website at least 15 minutes prior to the start of the call to register and download any necessary software. For those unable to listen to the live broadcast, the call will be archived for one year on Autobytel's website. A telephone replay of the call will also be available for approximately one week by dialing 800-642-1687 (domestic) or 706-645-9291 (international) and entering conference ID: 44633214.

About Autobytel Inc.

Since launching the first car-buying website in 1995, Autobytel Inc.'s (Nasdaq:ABTL) mission has been to empower automotive consumers with the tools and information they need to make smart, well-informed vehicle purchasing and ownership decisions. The company has helped millions of car shoppers and generated billions of dollars in car sales for dealers. Today, the company's innovative, consumer-driven flagship site, MyRide.com, expands the company's mission across the automotive purchase and ownership life cycle. As the first vertical search experience for the automotive marketplace, MyRide.com is designed to help Internet-savvy consumers FIND, SEE, BUY and LEARN anything automotive and BELONG to a diverse community of people who have similar automotive interests.