News Feed Item

WebMediaBrands Inc. Reports Financial Results For Its Fourth Quarter and Year Ended December 31, 2012

WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the fourth quarter and full year ended December 31, 2012.

Highlights for the fourth quarter of 2012 include:

  • Revenues for the fourth quarter of 2012 were $3.3 million and revenues from trade shows and research increased 24% and 6%, respectively, compared to the same period in 2011.
  • Net loss for the fourth quarter of 2012 was $6.5 million and included a non-cash impairment charge of $5.5 million related to the write-down of goodwill, compared to a net loss of $9.1 million for the same period in 2011.

Highlights for the year ended December 31, 2012 include:

  • Revenues for the year ended December 31, 2012 were $14.0 million compared to revenues of $12.4 million for the year ended December 31, 2011, an increase of 12%. Revenues from research, trade shows and advertising increased 80%, 35% and 18%, respectively, compared to 2011. Inside Network’s market research and data services business, which includes AppData, contributed $1.7 million in revenues during 2012. We acquired Inside Network in May 2011.
  • Net loss was $8.7 million for the year ended December 31, 2012, and included a non-cash impairment charge of $5.5 million related to the write-down of goodwill, compared to a net loss of $11.9 million for the year ended December 31, 2011. Non-GAAP loss, excluding interest, taxes, impairment, depreciation, amortization and stock-based compensation, or EBITDA, was $1.5 million for the year ended December 31, 2012 and included severance-related costs and a loss on the sale of certain assets totaling $402,000. EBITDA loss was $1.6 million for the same period in 2011. Stock-based compensation expense was $528,000 during the year ended December 31, 2012 compared to $991,000 during the same period in 2011.

“Our financial results for the year ended December 31, 2012, included revenue growth of 12%, with our research and trade show businesses leading the way with growth of 80% and 35%, respectively,” stated Alan M. Meckler, Chairman and CEO of WebMediaBrands, Inc. “We have continued to invest in our product offerings, specifically with our research and trade show businesses,” added Meckler. “We remain optimistic and encouraged about the future success and value of our business.”

WebMediaBrands Inc. Fourth Quarter 2012 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2012 fourth quarter results on Wednesday, February 27, 2013 at 5:00 pm EST.

The conference call number is 888-437-9445 for domestic participants and 719-325-2329 for international participants; confirmation code “4162863.” Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Tuesday, March 5, 2013. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code “4162863.”


WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Operations

For the Three Months and Year Ended December 31, 2012 and 2011

(in thousands, except per share amounts)

  Three Months Ended
December 31,
  Year Ended
December 31,
2012   2011 2012   2011
Revenues $ 3,320 $ 3,375 $ 13,962 $ 12,429
Cost of revenues 2,101 1,897 7,931 7,154
Advertising, promotion and selling 772 551 2,692 2,088
General and administrative 1,142 1,395 5,080 5,475
Depreciation 71 77 309 319
Amortization 131 142 540 513
Impairment 5,542 8,289 5,542 8,289
Contingent acquisition consideration         329
Total operating expenses   9,759   12,351   22,094   24,167
Operating loss (6,439 ) (8,976 ) (8,132 ) (11,738 )
Other loss, net (24 ) (2 ) (240 ) (9 )
Interest income 1 45 4 86
Interest expense   (62 )   (122 )   (271 )   (657 )
Loss before income taxes (6,524 ) (9,055 ) (8,639 ) (12,318 )
Provision (benefit) for income taxes   4   14   34   (403 )
Net loss $ (6,528 ) $ (9,069 ) $ (8,673 ) $ (11,915 )
Loss per share:
Basic net loss $ (1.09 ) $ (1.52 ) $ (1.45 ) $ (2.05 )
Diluted net loss $ (1.09 ) $ (1.52 ) $ (1.45 ) $ (2.05 )
Weighted average shares used in computing loss per share:
Basic   6,014   5,976   5,991   5,818
Diluted   6,014   5,976   5,991   5,818

Shares outstanding and per share data have been adjusted to give effect to the one-for-seven reverse stock
split implemented on August 16, 2012.


WebMediaBrands Inc.

Unaudited Consolidated Condensed Balance Sheets

December 31, 2012 and 2011

(in thousands, except share and per share amounts)

December 31,
December 31,
Current assets:
Cash and cash equivalents $ 2,210 $ 3,438
Accounts receivable, net of allowances of $16 and $11, respectively 524 489
Prepaid expenses and other current assets   503   575
Total current assets 3,237 4,502
Property and equipment, net of accumulated depreciation of $1,475 and $1,350, respectively 268 477
Intangible assets, net of accumulated amortization of $1,144 and $722, respectively 2,305 2,626
Goodwill 9,574 15,116
Investments and other assets   687   1,146
Total assets $ 16,071 $ 23,867
Current liabilities:
Accounts payable $ 509 $ 367
Accrued payroll and related expenses 493 391
Accrued expenses and other current liabilities 649 662
Deferred revenues   1,294   1,288
Total current liabilities 2,945 2,708
Loan from related party 7,647 7,647
Deferred revenues 17 22
Deferred income taxes 474 444
Other long-term liabilities     60
Total liabilities   11,083   10,881
Commitments and contingencies:
Stockholders’ equity:
Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued
Common stock, $.01 par value, 75,000,000 shares authorized, 6,138,879 and 6,077,911 shares issued and 6,019,594 and 5,958,626 shares outstanding at December 31, 2012 and 2011, respectively 61 61
Additional paid-in capital 289,711 289,036
Accumulated deficit (284,288 ) (275,615 )
Treasury stock, 119,285 shares, at cost   (496 )   (496 )
Total stockholders’ equity   4,988   12,986
Total liabilities and stockholders’ equity $ 16,071 $ 23,867

Shares outstanding and per share data have been adjusted to give effect to the one-for-seven reverse stock
split implemented on August 16, 2012.


WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Cash Flows

For the Years Ended December 31, 2012 and 2011 (in thousands)

  Year Ended December 31,
2012   2011
Cash flows from operating activities:
Net loss $ (8,673 ) $ (11,915 )
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment 5,542 8,289
Depreciation and amortization 849 832
Stock-based compensation 528 991
Provision for losses on accounts receivable 27 15
Other, net 236 (2 )
Amortization of debt issuance costs 36 28
Deferred income taxes 30 (410 )
Changes in current assets and liabilities (net of businesses acquired):
Accounts receivable, net (62 ) 135
Prepaid expenses and other assets 176 660
Accounts payable, accrued expenses and other liabilities 167 (702 )
Deferred revenues   1   236
Net cash used in operating activities   (1,143 )   (1,843 )
Cash flows from investing activities:
Purchases of property and equipment (117 ) (57 )
Acquisitions of businesses, assets and other (220 ) (9,062 )
Proceeds from sale of assets   132  
Net cash used in investing activities   (205 )   (9,119 )
Cash flows from financing activities:
Borrowings from related party 1,750
Purchase of treasury stock (390 )
Debt issuance costs (23 ) (26 )
Repayment of borrowings from related party (50 )
Proceeds from exercise of stock options   143   146
Net cash provided by financing activities   120   1,430
Effect of exchange rates on cash    
Net decrease in cash and cash equivalents (1,228 ) (9,532 )
Cash and cash equivalents, beginning of year   3,438   12,970
Cash and cash equivalents, end of year $ 2,210 $ 3,438
Supplemental disclosures of cash flow:
Cash refund of income taxes, net $ 70 $ 393
Cash paid for interest $ 235 $ 629

About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM) (http://www.webmediabrands.com) is a leading Internet media company that provides content, education, and career services to social media, traditional media, and creative professionals through a portfolio of vertical online properties, communities, and trade shows. The Company's online business includes: (i) mediabistro.com, a leading blog network providing content, education, community, and career resources (including the industry's leading online job board) about major media industry verticals including new media, social media, Facebook, TV news, advertising, public relations, publishing, design, and mobile; (ii) InsideNetwork.com, a leading network of online properties providing original market research, data services, news, and job listings on the Facebook platform, on social gaming, and on mobile applications ecosystems; and (iii) SemanticWeb.com, a leading blog providing content, education, community resources and career resources on the commercialization and application of Semantic Technologies, Linked Data, and Big Data. The Company's online business also includes community, membership and e-commerce offerings including a freelance listing service, a marketplace for designing and purchasing logos (stocklogos.com) and premium membership services. The Company's trade show and educational offerings include conferences, online and in-person courses, and video subscription libraries on topics covered by the Company's online business.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts are "forward-looking statements" under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example: general economic conditions; the competitive environment in which WebMediaBrands competes; and the unpredictability of WebMediaBrands’s future revenues, expenses, cash flows and stock prices. For a more detailed discussion of such risks and uncertainties, refer to WebMediaBrands’s reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and WebMediaBrands assumes no obligation to update the forward-looking statements after the date hereof, except as required by law.

All current WebMediaBrands press releases can be found online at http://www.webmediabrands.com/corporate/press.html.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, will discuss the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They will also review two "free infrastruct...
Qosmos, the market leader for IP traffic classification and network intelligence technology, has announced that it will launch the Launch L7 Viewer at CloudExpo | @ThingsExpo Silicon Valley, being held November 1 – 3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The L7 Viewer is a traffic analysis tool that provides complete visibility of all network traffic that crosses a virtualized infrastructure, up to Layer 7. It facilitates and accelerates common IT tasks such as VM migra...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...