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"LookSmart Is As Good As Finished" - Oh, Is It? (My Reply)

Vince Martin feels that "LookSmart Is As Good As Finished"...... I'm not so sure and I have asked Vince to reply to my concern in regards to a few points he has raised, as follows:

LookSmart Is As Good As Finished [View article - tiny.cc/997kbw]

Hi Vince....

As a long time shareholder and supporter of Looksmart, I've found your above instapost most interesting, to say the least.

Being a person who had a front-row seat to the 1999-2000 dot-com bubble (at a small brokerage in NYC, as you state in your bio), I've no doubt then, that you may well know lots about both Looksmart and it's actual business area of involvement.

On revenues (in particular, of late) you mention that the Co has reported an annual profit only the once since 2003 - in 2010.

You also hilite that the company's search advertising placement business is (as you have put it) cratering - - with this fourth quarter revenues down 46% year-over-year, and 2011 net sales 42% below those of 2010.

Can you advise me and your readers as to Looksmart's profitability (or, not) for the previous 4 or, 5 quarters had - - those quarters prior to this seemingly disastrous Q4 2011 period?

And if I may ask you, is it possible that Looksmart are now reporting it's revenues as being the total (gross) "Comprehensive Income".(the management fees) that the Co receives in it's role - and prior to any TAC payments (as due), are being paid out by Looksmart?

I'm wondering (also), if you have taken into account that the Co (in finishing the FY 2011 with $24.8 million in cash), has stated that its actual Net cash used in operating activities (for the three months ended December 31, 2011), was approximately $0.02 million?

Thanks. I look forward to your reply.

Ross Bradley Mar 22 03:26 PM | 0 Likes Like |Report Abuse |Link to Comment

Always, an opinion.

LOOK: $1.1298 Down 0.0602 (-5.06%) 3:43PM EDT - Nasdaq RT Price

LC

ps; Comprehensive income? "This new guidance is to be applied retrospectively." http://tiny.cc/5gblbw

Disclosure: Long LOOK and comfortable about my being so...
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