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Looksmart's French CEO (like Marie-Antoinette), says ...'Qu'ils mangent de la brioche' ??

#.. Great news !!! ..# ... was the initial comment made by texas16qld, over on Yahoo's LOOK board. Re: Q3 Preliminary - Net Profit $0.5 million to $0.7 ...

Yes it is Tex, but it is nothing that wasn't expected and that we had been told of, to expect. (No more, no less)

The exciting point coming out of this preliminary advice is the news that gross margins are expected to remain in the range of 42% to 44%. And that this represents a follow-on from the 42% in the second quarter of 2010.

With a "cap" now being firmly placed on costs, it's clear that the circa $4.9M (or, there-abouts - being the Q2 quarterly expenses, that also includes $0.2M in profit sharing), can not only now be achieved, but (it appears) that it has been done so, once again.

This means
(in keeping those quarterly costs in line, as the Co has done so), that with any Q4 (expected) increase in revenues (at all), some 40% odd of all such revenue (& almost in total), gets to fall through to the bottom line. - (Apart from, of course, a follow-on increase in the area of 'profit sharing' and any costs associated with any new staffing appointments that may be made, during the quarter)

The "hint" of doing so (that's, the Co increasing/driving it's revenues in this quarter), has clearly been 'pre-empted' by Looksmart's French CEO Dexmier, when he says.

"As we begin the final quarter of the year, we are now focused on driving revenues without sacrificing our traffic quality or operating efficiencies."

And it's simply a case of the AdCenter management platform retaining a lot of 'latent' revenues that are most probably (currently), all going back to Microsoft. (I'm sure that much of the ecosystem has now been "hooked-up" and tested, no doubt)

Traffic to Looksmart continues to rise with an increase of 26% noted in the past 7 days.

In my blog post [Link, here -],
I've had much to say about AppNexus, an RTB Exchange that is an obvious 'built by Microsoft' (and again, like Looksmart, built around their AdECN RTB technology), that Microsoft (itself) will use (as we are clearly told today)...

 .........'accelerate the demand for our remnant inventory that we're going to be running through the AppNexus RTB platform'

HMmm? "R-E-M-N-A-N-T Inventory", is what Microsoft tell us.

Be assured that ALL 'enabled' Exchanges have a need to go through an INDEPENDENT (final) RTB auction process (a kind of BLACK BOX), to achieve complete transparency in the eye of both big brand, DSP operators and Advertisers, who are all bidding against each other and (after-all), they are paying for those many billions of daily, secondary marketplace impressions.

In my own story, I had advised that:

AppNexus (we are told) are a company that has experienced dramatic growth since its own founding just three years ago and has more than 120 ad networks in 12 countries that are using the AppNexus' real-time ad platform, including eight of the top global 15. AppNexus, currently auctions more than four billion ads daily, constituting 676% year-over-year growth.

Many of these (those
120 ad networks in 12 countries and other) Exchange remnant inventory Ad fills (I'm sure), will ALL soon get to go through the Looksmart AdCenter (O P E N) secondary marketplace, is what I believe will happen....

Publishers (Global-y) will then (and, finally), always be seen to be fairly getting their maximum return for effort daily, on their endless supply. (With global 'reach' out to users and subsequently, many more available and monetisable impressions, then being filled)

Whilst Looksmart  "insiders" are given bonus options (with strike rates at this totally, rediculously low SP value) and "profit sharing" (itself) has been in place now for the past TWO (profitable) quarters, the long suffering & most loyal shareholders of the company.....Can eat cake?

Oct 04, 2010

Form 4 / Dial, Terri A


3:59PM EDT: $1.99  Up 0.05 (+2.58%)

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