LOK looksmart limited

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  1. Yak
    13,672 Posts.
    For those interested:

    Looksmart
    Looksmart has released its March quarter result. Revenue was up 67% on the previous
    corresponding period to US$34m and earnings before interest, tax, depreciation and
    amortisation (EBITDA) of US$4m was up 45% on the previous corresponding period.
    However, while strong revenue growth is in line with expectations, increased product
    development costs as well as unforeseen expenses have seen management revise down its
    EBITDA guidance for the full year. It is now expecting EBITDA of $13m for 2003 versus
    previous guidance of US$22m to US$25m.
    Looksmart’s risk profile fell materially over 2002. However, as the March quarter result shows,
    it still faces industry risks over the short to medium term as (larger and well funded)
    competitors move into the potentially lucrative sector to compete more directly against
    Looksmart.
    The company’s price will remain under pressure in the short term until investors gain some
    level of comfort regarding the long term margin outlook for companies like Looksmart in what
    is still an evolving industry.
    ASX Code:
    LOK
    Share Price:
    $0.21
    Short term:
    Hold
    Long term:
    Hold
    Volatility index:
    Very High
 
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