Earnings: CNET's Profits Fall Due To Costs Of Options Investigation; Closing Korean Operations

Updated from earnings call below: CNET Networks reported its Q4 2006 results today, and its profits fell to $6.3 million, compared to $20.7 million in the year ago quarter, as a result of higher costs related to its stock options investigation. Revenues rose 14 percent to $118.4 million. The company also filed its amended earnings statements up to date with SEC, thus fulfilling Nasdaq’s conditions for continued listing. The total stock option investigation costs came in at $6.5 million…the investigations resulted in longtime CEO Shelby Bonnie resigning last year.
More details in earnings release here.
For Q107, it expects total revenues of $90 million to $94 million, including approximately $5.5 million in non-cash stock compensation expense, management estimates an operating loss of between $4.5 million and $8.5 million for Q1.
Updated: From conference call: CNET Networks had over 136 million monthly unique users globally, generating nearly 85 million page views per day. Unique users were up 17 percent and page views were down 18 percent from the year ago quarter. Excluding Webshots, page views were up 8 percent during the quarter (meaning Webshots has a bad quarter pageviews wise, despite redesign).
Also, in Q4 the company closed its events business in China and the UK, its full operations in Korea and discontinued PC Forum in the US. The combined revenue of these businesses totaled $7.8 million in 2006.

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