Local.com raises Q3 guidance, but lowers full year
Local online search company, Local.com (NASDAQ:LOCM), raised its third quarter outlook on Tuesday, largely on positive modifications to some of its contracts, but lowered its full year forecast, with fourth quarter guidance coming in below estimates.
The company, which operates a network of local search sites, now expects third quarter revenues to be around $21.5 million, a 38% increase over the second quarter, and a 4.4% decrease from the year ago period.
Adjusted for certain items, net loss for the period is anticipated to be around $1.5 million, largely on a $500,000 benefit from modified contracts.
Local.com had originally anticipated revenues of $21.0 million, and an adjusted net loss of under $1.9 million.
"We predicted strong revenue growth in the second half of 2011, and we're pleased that this is now coming in ahead of our expectations," said CEO Heath Clarke.
"We continue to remain laser-focused on integrating our recent acquisitions, and are pleased to report Spreebird's first million-dollar month in August."
However, the company opted to drop its full year revenue outlook to over $78 million, from around $85 million, which it predicted at the end of last year. Analysts' estimated $79.55 million in revenues for the year.
The Irvine, California-based company said it expects revenues greater than $24 million for its fourth quarter, with a forecast net loss of just under $1.5 million. Analysts were hoping for a much narrower $500,000 loss, on revenues of $26.2 million.
On the Nasdaq Exchange, Local.com shares slid in early trading on Tuesday, and continued to sink 3.42% to $2.54 as at 9:19 am EDT.
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