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Infospace (ticker: INSP) CEO Jim Voelker outlined his company's disappointing Q2 guidance on its Q1 conference call. Here's what he said:

Overall second quarter guidance reflects normal seasonal trends. The second quarter has historically been the slowest search quarter due to decreased Internet usage going into summer months, reduced advertising spending, and reduced retail spending.

On the mobile side, we are seeing anticipated seasonality in this business. This is driven by a number of factors, in particular normal slowdown in new phone sales relative to fourth quarter, a lack of top-selling music combined with an 11% decline in music sales for the industry year-to-date, and limited promotional activity by the publishers.

...this is a very new industry and our longer-term visibility is limited.

We believe that the second half of 2005 will show continued growth as it is a seasonally strong period for new phone sales, new music sales, and Internet usage.

...you are going to have our growth correlate with handset sales... there is a significant drop-off in handset sales from the fourth quarter to the first quarter... it is about 20% drop across Western Europe because a lot of our new users come from somebody who bought a new handset...

...the first quarter was significantly higher... When we look into the second quarter, we think there's got to be some softness there. That is reflected in the guidance number that you see.

(Quotes are from the CCBN StreetEvents transcript.)

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Source: Infospace comments on disappointing Q2 outlook (1Q05 conf call quotes)