NetRatings Announces Fourth Quarter and Full Year 2006 Financial Results
Market Wire, March, 2007
NetRatings, Inc. (NASDAQ: NTRT), a global leader in Internet media and market research, today announced financial results for the fourth quarter and year-ended Dec. 31, 2006.
Revenues for the fourth quarter of 2006 were $22 million, a 24 percent increase compared to revenues of $17.7 million for the fourth quarter of 2005. Revenues for the year-ended Dec. 31, 2006 were $81.8 million, an increase of 20 percent compared to revenues of $68 million in 2005.
Net income for the fourth quarter 2006 was $99,000, or $0.00 per share, on approximately 35.2 million shares. This compares with a net loss in the fourth quarter of 2005 of ($713,000), or ($0.02) per share, on approximately 36 million shares. During the fourth quarter of 2006, NetRatings recorded $778,000 in acquisition-related expenses in connection with the October 2006 proposal from The Nielsen Company B.V. to acquire the outstanding publicly held minority interest in NetRatings. NetRatings' results improved from a net loss of ($8.4 million), or ($0.23) per share, in 2005 to net income of $2.8 million, or $0.08 per share, in 2006.
For the fourth quarter of 2006, on a pro forma EBITDA basis (a non-GAAP measure that reflects net income/loss excluding interest income/expense, taxes, depreciation, amortization of intangibles and stock-based compensation, as well as acquisition-related expenses), NetRatings earned $3.3 million, or $0.09 per share, compared to pro forma EBITDA income in the fourth quarter of 2005 of $779,000, or $0.02 per share. NetRatings significantly improved its full year pro forma EBITDA results during 2006, moving from a loss in 2005 of ($1.2 million), or ($0.03) per share, to earnings of $10.1 million, or $0.29 per share, in 2006. A complete reconciliation of GAAP results to pro forma EBITDA results may be found in the accompanying financial tables and footnote.
Merger Agreement
On Feb. 5, 2007, NetRatings announced that it had signed a definitive merger agreement pursuant to which The Nielsen Company and its subsidiaries will acquire the outstanding publicly held minority interest in NetRatings for $21.00 in cash per share. Nielsen beneficially owns approximately 60 percent of the company's currently outstanding shares. NetRatings' board of directors unanimously adopted and approved the merger agreement following the unanimous recommendation of a special committee of NetRatings' board of directors comprised solely of independent directors. The merger is expected to be completed in the second quarter of 2007, subject to customary conditions and approvals. The exact timing is dependent on the review and clearance of necessary filings with the Securities and Exchange Commission. Due to the proposed merger, NetRatings will not hold a conference call or webcast regarding its fourth quarter and full year results.
About NetRatings
NetRatings, Inc. (NASDAQ: NTRT) delivers leading Internet media and market research solutions, marketed globally under the Nielsen//NetRatings brand. With high quality, technology-driven products and services, Nielsen//NetRatings is the global standard for Internet audience measurement and premier source for online advertising intelligence, enabling clients to make informed business decisions regarding their Internet and digital strategies. The Nielsen//NetRatings portfolio includes panel-based and site-centric Internet audience measurement services, online advertising intelligence, user lifestyle and demographic data, e-commerce and transaction metrics, and custom data, research and analysis. For more information, please visit www.nielsen-netratings.com .
Safe Harbor Statement
This news release contains "forward-looking statements." Such statements include, but are not limited to, statements relating to anticipated financial and operating results, the companies' plans, objectives, expectations and intentions and other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," and other similar expressions. Such statements are based upon the current beliefs and expectations of Nielsen's and NetRatings' management and involve a number of significant risks and uncertainties. Actual results may differ materially from the results anticipated in these forward-looking statements. The following factors, among others, could cause or contribute to such material differences: change in general economic conditions; the performance of financial markets and interest rates; the ability to obtain governmental approvals of the merger transaction or to satisfy other conditions to the merger transaction on the proposed terms and schedule; increased competition and NetRatings' business and financial results. Information about potential factors that may affect NetRatings' business and financial results is included in its annual report on Form 10-K for the fiscal year ended Dec. 31, 2005 and its quarterly reports on Form 10-Q, including, without limitation, under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors." Each of these documents is on file with the SEC and is available free of charge at the SEC's Internet site ( http://www.sec.gov ). Readers of this press release are referred to such filings. We caution you not to place undue reliance on our forward-looking statements, which speak only as of the date of this news release or the date of the documents incorporated by reference in this news release.
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