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Classmates Media Swings To Profitability In Latest Quarter

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Classmates Media, the social networking unit of United Online (NSDQ: UNTD) that’s gearing up for an IPO, has filed an amended S-1 covering the quarter ending June 30, 2007. During the quarter, the company turned a modest $570,000 operating profit, which compares favorably to the $212,000 operating loss in the year-ago period and the $442,000 loss in the prior quarter. In 2005, the company reported an operating loss of $11.5 million. Revenue growth for the quarter was also solid, rising to $47.7 million from $36.8 million year ago. Obviously, that’s not the kind of wild growth some social networks are showing, but Classmates.com, founded in 1995, has been around a fair bit longer than most. Filing.

One Response to “Classmates Media Swings To Profitability In Latest Quarter”

  1. This IPO of Classmates is going to be very good for United On Line (UNTD), because UNTD is going to retain at least 50% ownership. I think the IPO is actually undervalued, and in the real market place the stock price of Classmates will go much higher. Being that the investment in Classmates will be an asset of UNTD, this asset will be worth much more then the IPO price. Just look around what is going on in the market place today. Is there any truth to the rumor that Microsoft is offering 350mil for 5% of Facebook? Facebook is another social networking site, just to give you an idea as to what valuations are going to be for this arena. In addition, UNTD has consistantly paid a .20 dividend per share, per quarter. I think the play here is to own UNTD before Classmates goes public.