BELLEVUE, Wash.-Shares of InfoSpace Inc. plummeted to a 52-week low Wednesday after the content provider and Internet search company slashed its outlook for the second half of the year.
InfoSpace reported a second-quarter net income of $16.3 million, or 44 cents per share, compared with $13.5 million, or 37 cents per share, last year. Revenues for the period were $83.2 million, up 53 percent from the $54.4 million in revenues from the second quarter of 2004.
Mobile revenues increased dramatically, up 85 percent to $37.1 million during the quarter. The company’s wireless business represented 22 percent of overall revenues during the period.
But investors fled in after-hours trading late Tuesday on the company’s revised projections. InfoSpace projected third-quarter revenues of $75 million to $80 million, or 15 cents to 20 cents per share, compared with previous estimates of $94 million in revenues.
Shares of InfoSpace plunged more than one-third in after-hours trading, reaching $22.52 on the Nasdaq. The exodus stopped Wednesday morning as the stock settled at $23.90 by mid-day Wednesday.
“Given current trends, we anticipate revenues to decline in the third quarter and to grow in the fourth quarter,” said Jim Voelker, InfoSpace’s chairman and chief executive officer. “In the second half of the year, we will continue to invest in new products that leverage our unique search and mobile assets.”
