Earnings Call Excerpt
Interchange Corp. (INCX)
Q4 2005 Earnings Conference Call
February 21st 2006, 5:00 PM.
Executives:
Heath Clarke, Chairman and Chief Executive Officer
Bruce Crair, Chief Operating Officer
Doug Norman, Chief Financial Officer
Analysts:
Clay Moran with Stanford Group
Richard Fetyko of Merriman & Co
Paul Leung (phonetic), Susquehanna Financial Group
Presentation
Operator
Good afternoon. My name is Landon Barodo, and I'll be the moderator for today's presentation, which is being recorded. Thank you for your interest in Interchange Corporation. With me today are the Chairman and Chief Executive Officer of Interchange, Mr. Heath Clarke, Chief Operating Officer, Mr. Bruce Crair, and the Chief Financial Officer, Mr. Doug Norman. Mr. Clark, Mr. Crair and Mr. Norman are going to discuss the Company's financial results for the fourth quarter of 2005. At the conclusion of their prepared remarks, we'll open the conference for questions.
Some of the discussions today will involve forward-looking statements, and I will now read to you the following warnings about reliance on forward-looking statements. Certain matters discussed during this conference call will include forward-looking statements within the meaning of Section 21-E of the United States Securities and Exchange Act of 1934 as amended. All statements regarding potential results and future plans and objectives of the Company, including those made regarding the expected results of modifications to the Company's search traffic, the Company's assumptions regarding the value, growth, margins and dependability of Local.com, and the Company's planned and future search activities are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk factors" and elsewhere in the Company's documents filed from time to time with the United States Securities and Exchange Commission, and other regulatory authorities. Forward-looking statements made during today's call are only made as of the date of this conference call, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances by traffic and usage statistics provided during today's call are from third party service providers engaged by the Company.
Gentlemen, please proceed.
Heath Clarke, Chairman and Chief Executive Officer
Thank you, Landon. And welcome to everybody on the call today. We achieved considerable success in local search since our last call with traffic and revenues exceeding expectations. This is just the beginning. On this call, we are going to explain our strategy to sustain this performance over the long-term. Interchange recorded fourth quarter revenues of 3.4 million, a 16% decrease from the third quarter, and slightly below guidance of 3.5 to 3.8 million. Our GAAP net loss was 3 million. Our non-GAAP net loss was $2.7 million, $200,000 better than guidance of 2.9 to 3 million. We are projecting Q1 revenues of 3 to 3.2 million, with local search revenues growing by 51% to 68% to between $900,000 and $1 million with a projected non-GAAP net loss of $2.9 and $3.1 million.
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