Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Looksmart's Q4 Profit Of $0.8M - - And On Revs Of Just $5.3 Million?

Comedian Vince Martin who admits he is .... 'still deathly afraid of Internet stocks, bubbles, and excessively high valuations', has really caused the need for some serious "thought".

In a reply comment (when approached by me - re; the credibility of his instapost - LookSmart Is As Good As Finished), he further stated:

"LOOK was unprofitable for the first nine months of '11-from my notes one quarter was profitable, one even, one loss..."

I 'beg to differ', Vince. In fact, Looksmart were (effectively) profitable in each of it's FOUR quarters of 2011 & I'll show you why I feel this is so.

Q1 Profit $0.1M - Q2 Profit $0.69M
Q3 Profit $0.88M - Q4 Profit $0.9M

In Q1-2011:

"Excluding restructuring charges, net income for the first quarter of 2011 was $0.1 million, or $0.01 per share. (Loss from continuing operations for the 1st quarter of 2011 was $0.8 million which includes $0.9 million of restructuring charges.)

Q1 - Report:

And as a shareholder over on Yahoo's LOOK board clearly points out,

"They made a profit on 34% less Y-Y revenues. It doesn't matter what revs are, if you can't make money."

Note that In the conference call (that followed the Q1 - 2011 Report) Looksmart's CEO made mention of what is now 'fact', that Looksmart are now starting to work with BOTH the "Yahoo" and the "Google" Publisher partner networks.

In Q2-2011:

Looksmart (during the Q2 period), had announced that in the past three months, the Co has generated ONE MILLION in free cash flow.

Looksmart's stated Net income for the second quarter of 2011 was $354 thousand or $0.02 per diluted share. (And this includes $339 thousand in non-operating income -- from the closure of a Settlement Fund established in 2008 to cover a litigation matter. Note, that in this regard, all settlements related to the Fund have now been paid.)

Q2 - Report:

In Q3-2011:

Net loss for the third quarter of 2011 was $224 thousand, or ($0.01) per diluted share. (That includes a capitalization of internally developed software in the third quarter of 2011 of $0.2 million and, $0.9 million in restructuring charges.)

The Company ended the quarter with $25.6 million in cash, cash equivalents, and investments, compared to $26.0 million in cash in the second quarter of 2011.


In Q4-2011:

Net loss for the fourth quarter of 2011 was $1.8 million, or $0.11 per diluted share. Loss from continuing operations for the fourth quarter of 2011 was $1.8 million.

CEO Dexmier:"In the fourth quarter, several customers were charged back with very significant settlements for traffic quality -- a large portion of which was unrelated to LookSmart."

The Company ended the 2011 year with $24.8 million in cash, cash equivalents, and investments, compared to $25.6 million at September 30, 2011 and $26.9 million at December 31, 2010. - Net cash used in operating activities for the three months ended December 31, 2011 was approximately $0.02 million.

Total operating expenses in the fourth quarter of 2011 were $4.2 million & when compared with operating expenses for the third quarter of 2011 (that were $3.4 million), this represents an increase of $0.8 million.


"We spent $300,000 on Capitalised Operating Assets and we spent $300,000 on Lease Payments." (From within the CC) Yes (and again), .....'Net cash used in operating activities for the three months ended December 31, 2011 was approximately $0.02 million.'

Q4 Report:


On the surface (and as was, explained above), it would appear to me that cash associated with the "very significant settlements" (or, at least, Looksmart's portion) has amounted to $1 million. (And what becomes now, a 'final' payment to the saga, according to the CEO, Dexmier)

And if you do need to 'pay out' a million, it's pretty clear (or, should be), that you had it before, you're paying it out!

So, in then 'backing out' this sum-Q4 was likely profitable (itself),to the tune of $0.8 million, no?

It was on March 19th, 2010 that I noted that shareholder Brian Horey (from Aurelian Management) had made it quite clear in Looksmart's CC the previous day (following Q4 2009), that 'enough is enough'.

I'd pointed out that after 25 quarters had gone by since last recording a profit Brian Horey (and, not un-like "Oliver" who had said to Fagan in the Dicken's classic), told the CEO he wanted 'more'- and that in regards to some clarity (going forward), that all shareholders alike- do expect much, much more.-With FY 2011 behind us it's clearly, NOT to be so!

But a continuation of total distortion of the facts & zero announcements surrounding the "true" story (as I see it so clearly), can go on for how much longer, is now the $64 question?

Always, only just my own opinion.

LOOK: At 3:45PM EDT: $1.11 Up 0.01 (+0.91%)

At today's closing price Looksmart's Market Cap is just, $19.19M

What must the "Zombies" be thinking, I ask?

Yes, "Oh what a tangled web we weave, when first we practise to deceive"! (Sir Walter Scott)


Disclosure: Long LOOK and so happy to be so....

ps: Re: LOOK through - "You talkin bout ME, boy?"