BELLEVUE, Wash.—Shares of InfoSpace Inc. dipped after the company reported first-quarter revenue of $90 million, up 4 percent from the year-ago period.
The mobile communications company and content provider topped its own forecast as well as analyst projections, reporting $3 million in net profit during the quarter. The gains were down from the first quarter of 2005, however, when results were boosted by a one-time gain of $77.3 million from a legal matter.
The recent quarter included $4.1 million in expenses for employee stock options.
As expected, InfoSpace’s mobile business shored up losses from its online operations. The company reported $44.1 million in mobile revenues during the first quarter of 2006, up more than $5 million from the year-ago period. Meanwhile, online revenues sank roughly 4 percent to $46.1 million.
InfoSpace has made strides in recent months, inking content and search service deals with Cingular Wireless L.L.C., Sprint Nextel Corp. and Verizon Wireless. The company is working to build a direct-to-consumer content business and continues to expand its wireless game offerings.
“We are successfully executing on our strategic initiatives including the deployment of two new mobile search products,” said Chief Executive Officer Jim Voelker. “Our search applications are now available on three of the four major carriers in North America.”
Shares of InfoSpace slid 2 percent following the report, losing 50 cents to $26.69 per share.
