BELLEVUE, Wash.-Shares of InfoSpace Inc. edged downward despite a solid fourth quarter that helped the company nearly double its annual profits.
The Internet and mobile search provider reported a net fourth-quarter income of $37.9 million, or $1.14 per diluted share, up from $18.9 million, or 50 cents per diluted share, during the same period in 2004. The recent quarter was boosted by a tax benefit of $24 million, or 74 cents per share.
The company reported an annual profit of $159.4 million, up from $82.4 million in 2004. Annual revenue increased 36 percent to $340 million.
Revenue from wireless was $42.3 million during the quarter, up 30 percent over the year-ago period. The company’s mobile business generated 17 percent of overall revenues during the quarter. Annual profit from wireless was $32.6 million, up from $25.6 million in 2004.
InfoSpace, which also publishes games for wireless phones, has recently gained traction in mobile search, launching a new portal and search technology with Cingular Wireless L.L.C. late last year. But the field is becoming increasingly crowded, with Internet giants Google Inc. and Yahoo Inc. moving in to challenge startups including 4INFO, JumpTap and others.
In other InfoSpace news, the company announced Chief Financial Officer David Rostov will resign to pursue other opportunities. Rostov’s departure follows the resignation of Chief Strategy Officer Victor Melfi, who left the company at the end of last year.
The front-office transitions may have impacted InfoSpace’s performance on Wall Street, where shares tumbled 89 cents to $23.45 in after-hours trading after the news. The stock was trading at $23.60 per share on the Nasdaq the day after the company’s earnings report.
