Even Collectors Universe Can Make Money From Online Ads (CLCT 2Q05 conf call quotes)

Aug.26.05 | About: Collectors Universe, (CLCT)

Following yesterday's posting of The Bull Case for Collectors Universe, here's an extract from the company's fiscal Q3 May 9th conference call. CEO Michael Haynes discussed organic growth in CLCT's core authentication business, but also described how the company, like others, has exploited the current profitability of Web advertising. Extracts:

…third-quarter …revenue growth resulted principally from a 33% increase in the number of units processed for authentication and grading. Each of our markets in coins, sportscards and stamps recorded increases in units when compared to the same fiscal quarter of the prior year. About 2% of our total units from the autograph market recorded a… decrease…

…we launched a campaign in the first fiscal quarter of 2005 to sell advertising on our several websites. And in the third fiscal quarter of 2005 we realized approximately 94,000 in advertising revenues for a total in website advertising of about 294,000 for the nine months of fiscal 2005. There was an aggregate of approximately 50,000 in similar ad revenues in the first nine months of the 2004 fiscal year. In the third fiscal quarter, we launched First Strike, a new service in PCGS, our coin and authentication grading service. This service provides a designation of First Strike for coins that are struck in January of each calendar year, since the mint uses new dyes showing the new date with the initial production from the new year resulting in a higher quality specimen than a coin manufactured later in the year...

(Quotes are from the CCBN StreetEvents transcript.)

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