Jupiter Media Metrix Sees $396M Third Quarter Loss
In the third quarter the company reported a one-time charge of $34 million related to the restructuring of its business operations and event cancellation penalties. It also recorded a non-cash charge of $320 million related to the write down of goodwill associated with its acquisition of Jupiter Communications a year ago. Goodwill is the amount paid in excess of the purchase price over the fair market value in an acquisition.
The ratings company reported total revenue for the third quarter of $19.9 million, up from $16.5 million a year ago. Its measurement business reported revenue of $9.6 million, down from $13.9 million in the third quarter of 2000. Research services revenue in the third quarter rose to just over $9 million, from $1.2 million a year earlier. Revenue from Jupiter Media Metrix's events business rose to $1.3 million from $557,000 a year ago.
Total operating expenses rose substantially in the third quarter to $405.2 million from $23.9 million in 2000. The company reported a loss from operations of $395.6 million in the quarter, up from $12.3 million a year ago.
On Oct. 25 NetRatings Inc. said it would acquire Jupiter Media Metrix in a deal worth about $71.2 million. The transaction, expected to close in the first quarter, calls for Jupiter stockholders to receive either 0.1490 NetRatings shares or $1.95 in cash for each of their Jupiter shares. NetRatings also has agreed to lend Jupiter up to $25 million under a secured credit facility that Jupiter will use to replace a standby letter of credit that it has with Jupiter chairman Tod Johnson.