Web.Com Stock Pounded on Q4 Results- Down Over 10%

ATLANTA, March 13, 2007 (PRIME NEWSWIRE) -- Web.com, Inc. (Nasdaq:WWWW), a leading destination for websites and web services, today reported results for its fourth quarter and fiscal year ended December 31, 2006.

Summary of Fourth Quarter 2006 Results:

• Total revenues for the quarter were $12.5 million, up from $12.3 million in the third quarter of 2006.
• Net loss for the quarter was $2.0 million, or $(0.13) per share, versus a loss of $0.6 million, or $(0.04) per share, in the quarter ended September 2006. The decline quarter over quarter includes $1.0 million in legal expenses and $0.6 million in bonus accrual.
• Adjusted net income from continuing operations (1) was negative $0.8 million, down from $0.1 million in the third quarter of 2006. The decline quarter over quarter includes $1.0 million in legal expenses and $0.6 million in bonus accrual.
• Net subscribers totaled approximately 155,000 at December 31, 2006, up approximately 3,000 from approximately 152,000 at September 30, 2006.

"Web.com spent 2006 stabilizing the business, implementing cost controls and developing a highly-scalable growth engine," stated Jeff Stibel, President and CEO, Web.com. "This quarter represents another period of strong organic revenue and subscriber growth. I am particularly excited to announce that average revenue per user also grew this quarter and look forward to leveraging our business model further."

"Our net loss increased as a result of annual bonuses and higher legal expenses as we move toward closure of our legacy case load. The fundamental cost structure of the Company has not changed and it is expected to improve as we move forward with server consolidation and implement future operating efficiencies," stated Gonzalo Troncoso, Executive Vice President and Chief Financial Officer. "Organic revenue and subscriber growth are ramping and we believe the Company is positioned to drive growth and increase shareholder value."

On March 7, 2007, Web.com's Board of Directors approved an amendment to its Shareholder Rights Plan to accelerate its expiration date from July 23, 2007 to today, March 13, 2007. The Company had adopted the Shareholder Rights Plan in July 2006 to protect its approximately $320 million in net operating loss carry-forwards (NOLs). Since that date, the composition of the Company's shareholders has changed so that there is less of a risk of a change in ownership that could jeopardize the NOLs under applicable tax laws.

Highlights of Full-Year 2006 Results:

• Total revenues for the year were $49.1 million.
• Net subscribers totaled approximately 155,000 at December 31, 2006, up over 18,000 or 13% from approximately 137,000 at the beginning of the year.
• Net loss for the year was $13.8 million, or $(0.84) per share.
• Adjusted net income from continuing operations(a) was negative $4.2 million. This includes the second quarter WebSource Media impairment of $3.5 million.

The Market reacted harshly to the 4th Quarter results with the stock finishing the day down over 10% at $4.75 per share. The

About Web.com

Web.com, Inc. (Nasdaq:WWWW) is a leading destination for the simplest, yet most powerful solutions for websites and web services. Web.com offers do-it-yourself and professional website building, website hosting, ecommerce, web marketing, professional website design and e-mail. Since 1995, Web.com has been helping individuals and small businesses leverage the power of the Internet to build a web presence. More than 4 million websites have been built using Web.com's proprietary tools, services and patented technology. The company's web hosting and website building services can also be found under the Interland (www.interland.com) and Trellix (www.trellix.com) brands. For more information on the company, please visit www.web.com or call at 1-800-WEB-HOST.

By Admin with No comments