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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: investor.shareholder.com/looksmart/relea...

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.

seekingalpha.com/instablog/36191-looking...
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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.

seekingalpha.com/instablog/36191-looking...

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: investor.shareholder.com/looksmart/relea...
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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.

Q3-Report: investor.shareholder.com/looksmart/relea...
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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.

$800,000

"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: investor.shareholder.com/looksmart/relea...

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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'.

seekingalpha.com/instablog/36191-looking...

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)

LC

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

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

Link: messages.finance.yahoo.com/Stocks_%28A_t...
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