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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 23, 1998
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INFOSEEK CORPORATION
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
California 1-11797 77-0353450
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1399 Moffett Park Drive, Sunnyvale, California 94089
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(Address of Principal Executive Offices) (Zip Code)
Company's telephone number, including area code (408) 543-6000
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Same
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(Former name or Former Address, if Changed Since Last Report.)
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ITEM 5. OTHER EVENTS.
On January 23, 1998, Infoseek Corporation, a California Corporation
(the "Registrant"), announced its earnings and results of operations for the
fourth quarter and fiscal year ended December 31, 1997. Further details
regarding this announcement are contained in the Registrant's press release
dated January 23, 1998, a copy of which is attached hereto as Exhibit 99.1 and
incorporated by reference herein.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits:
Exhibit
Number Description
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99.1 Registrant's press release dated January 23, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INFOSEEK CORPORATION
Date: January 28, 1998 By: /s/ Leslie E. Wright
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Leslie E. Wright
Vice President of Finance and Chief
Financial Officer
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EXHIBIT INDEX
Sequentially
Exhibit Numbered
Number Description Page
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99.1 Registrant's press release dated January 23, 1998.
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Exhibit 99.1
INFOSEEK REPORTS 105% GROWTH IN FOURTH QUARTER REVENUE
Infoseek Q4 Sequential Revenue Growth Rate Eclipses Yahoo and Excite
SUNNYVALE, Calif., January 23, 1998 -- Infoseek Corporation (Nasdaq: SEEK) today
reported that revenues for the 1997 fourth quarter were $12.5 million, a 105%
increase over revenues of $6.1 million for the fourth quarter of 1996. The
Company reported a net loss for the fourth quarter of 1997 of $4.1 million, or
$0.15 per share, compared to a net loss of $4.0 million, or $0.15 per share, for
the fourth quarter of 1996.
In addition to the strong year over year revenue growth, Infoseek's revenues
grew from $8.3 million for the third quarter ended September 30, 1997 to $12.5
million for the fourth quarter, a sequential increase of 51%. This growth rate
eclipsed the same quarter's growth rates for both Yahoo and Excite.
Revenues for the year ended December 31, 1997 increased 129% to $34.6 million,
compared to $15.1 million for the corresponding period of 1996. Net loss for the
year ended December 31, 1997 was $24.6 million, or $0.93 per share. Excluding
the impact of the $7.4 million restructuring charge in June 1997, net loss for
the year was $17.3 million or $0.65 per share. This compares with 1996 revenues
of $15.1 million and a net loss of $15.9 million or $0.73 per share in 1996.
Traffic Growth
Infoseek's traffic continued to increase in the fourth quarter, with total page
views growing 23 percent from the previous quarter. In the fourth quarter,
Infoseek delivered an average of approximately 12.5 million page views per day.
Operating Highlights
Harry Motro, president and CEO of Infoseek, said, "We are very pleased with our
revenue growth from the third to fourth quarter and consider it a signal of a
real transformation in our business. The increased revenue and traffic is a
result of a number of strategic initiatives undertaken in the fourth quarter
including our successful launch of a major new release of our Internet search
and navigation service. The Infoseek service now integrates topic-specific
channels throughout the entire service. Additionally, customers can now build
shared-interest communities through our chat and instant messaging services.
These product initiatives were matched by aggressive steps to increase brand
awareness and equity with the launch of a major consumer branding campaign."
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Launch of New InfoSeek Service
In October, the company launched a new version of its free search and navigation
service, adding "intelligent Web channels" that integrate superior search
resultswith relevant content, products, services and communities. Since the
successful launch of its new service, the company has concluded new agreements
with key advertising and content partners.
Infoseek Partners With Best-of-Class Content, Commerce and Community Sites
The new version of the Infoseek service has fifteen "channels" and gives the
company a platform for creating content and marketing partnerships that benefit
viewers and expand revenue opportunities. These channels include automotive,
computer, Internet, travel, sports, personal finance, and entertainment. During
the quarter, Infoseek concluded agreements with Auto-By-Tel, Microsoft's
CarPoint, CMP Media, Borders Online, Microsoft Investor, Ameritrade, Datek, and
DLJ Direct to be sponsors within these channels, to provide content and in some
instances, the potential for commerce related revenue over the terms of the
contracts. In addition, Infoseek has begun to provide a richer user experience
by partnering with community services providers Talk City and PeopleLink. These
agreements augment previous important agreements with Bell Atlantic and United
Parcel Service.
Software License Sales
During the quarter, Infoseek's Ultraseek Server Software Division continued to
add quality names to its list of customers. Companies such as Boeing, BellSouth
and L.M. Ericsson chose the software version of the Infoseek Service for use
within their intranet sites. Licensing of Infoseek's Ultraseek Server software
accounted for approximately 6% of total revenue in the fourth quarter.
Risks Associated with Forward Looking Statements
This press release contains forward looking statements that involve risks and
uncertainties, including those relating to the Company's ability to continue to
increase its levels of traffic and revenue, to continue to successfully
implement branding and promotional efforts, to accelerate its participation in
the growth of the on-line media market and expand revenue opportunities, to form
content and marketing partnerships that benefit users and generate increasing
revenue and to realize commerce related revenue. The failure to achieve any of
the foregoing initiatives could materially adversely affect the Company's
business, financial condition and results of operations. Actual results could
differ materially from the results indicated in such forward-looking statements
and any trends evident from historical performance. The potential risks and
uncertainties include, among others, the company's limited operating history,
the increasingly competitive environment for the company's services and
products, and dependence on advertising revenues and other parties for sales,
technology, content and distribution.
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About Infoseek
Based in Sunnyvale, Calif., Infoseek Corporation (Nasdaq: SEEK) is a connected
media company and a leading Internet navigation service that is designed to be
everyone's first stop on the Internet. In addition to the Infoseek Internet
service, Infoseek provides companies with search and navigation software for
their own Intranet, Extranet and Internet sites.
Infoseek is one of the most popular sites on the Internet because its search
service is both easy to use and extremely powerful, allowing both novice and
professional users to find information on the Web quickly and easily.
By offering intelligent channels and one of the world's largest directories of
Web sites organized by topic, Infoseek provides consumers with a familiar and
meaningful search experience in addition to accurate, high-quality search
results. Infoseek has commerce and content arrangements with entities including
AmeriTrade Holding Corporation (Nasdaq: AMTD), Auto-By-Tel, Borders Group, Inc.
(NYSE: BGP), CMP Media, Inc. (Nasdaq: CMPX), Datek Online, Inc., DLJ/Direct,
Microsoft Corporation (Nasdaq: MSFT), PeopleLink Inc., Bell Atlantic (BEL), UPS,
Reuters and Talk City.
Infoseek's World Wide Web site and Internet navigation services can be accessed
at http://www.infoseek.com. For more information on Infoseek's software
portfolio, visit http://software.infoseek.com.
* Infoseek awards include PC Computing "5 Stars", Family PC "Top Rated",
Internet World "Best of Test", PC Computing "Most Valuable Internet Tool."
Infoseek, Ultraseek, and the Infoseek logo are trademarks of Infoseek
Corporation, which may be registered in certain jurisdictions.
(tables to follow)
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<TABLE>
<CAPTION>
INFOSEEK CORPORATION
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
(AUDITED)
December 31, December 31,
1997 1996
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<S> <C> <C>
ASSETS
Cash, cash equivalents
and short-term investments $ 31,334 $ 46,653
Accounts receivable, net 6,918 2,428
Other current assets 626 371
Property and equipment, net 10,283 7,587
Deposits and other assets 1,993 1,293
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Total assets $ 51,154 $ 58,332
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable $ 4,779 $ 3,269
Accrued expenses and other current
liabilities 12,236 3,426
Deferred revenue 2,542 760
Long-term obligations 4,329 1,892
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Total liabilities 23,886 9,347
Shareholders' Equity:
Common stock 72,662 69,756
Accumulated deficit (45,394) (20,771)
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Total liabilities and shareholders' equity $ 51,154 $ 58,332
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<TABLE>
<CAPTION>
INFOSEEK CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Twelve Months Ended
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(Unaudited) (Audited)
Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1997 Dec. 31, 1996
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<S> <C> <C> <C> <C>
Total revenues $ 12,513 $ 6,071 $ 34,603 $ 15,095
Cost of revenues 1,858 948 6,100 3,194
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Gross profit 10,655 5,123 28,503 11,901
Operating expenses
Research and development 1,895 1,448 7,327 4,550
Sales and marketing 11,488 6,913 33,364 20,455
General and administrative 1,599 1,307 6,406 4,177
Restructure and other charges -- -- 7,349 --
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Total operating expenses 14,982 9,668 54,446 29,182
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Operating loss (4,327) (4,545) (25,943) (17,281)
Interest income, net 237 594 1,320 1,343
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Net loss $ (4,090) $ (3,951) $ (24,623) $ (15,938)
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Basic and diluted net loss per share $ (0.15) $ (0.15) $ (0.93) $ (0.73)
Shares used in computing basic and
diluted net loss per share 27,130 25,938 26,610 21,737
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