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Jupitermedia Fourth Quarter 2007 Results

Jupitermedia (NASD: JUPM) just reported their full year and fiscal fourth quarter 2007 results. The company reported a slight revenue increase in 2007, but earnings per share came in at a negative $2.13 per share. This earnings number is discouraging and a bit misleading. Excluding their one-time charges and non-cash items, their earnings for the year would have been $0.06 per share.

There are two items to note regarding this release. First of all, the company is still producing a good deal of cash flow. Adding back depreciation, amortization, and their non-cash goodwill write-down, the company produced cash flow before capital items of over $0.62 per share. I look forward to their cash flow statement release so that I can determine a true “owner earnings” number and update my valuation of the company.

The second item to note, and this drives me crazy, is the impairment charge of $82.2 million, or $2.28 per share. Jupitermedia still has $143 million in goodwill on their balance sheet. Total shareholder equity is still $160 million, or $4.44 per share. Why write-down only $82.2 million? Maybe they can’t due to some accounting rule, but it is the season for massive write-downs of fake assets. Not only that, but the company provided no information about this impairment charge. What company that they purchased is now considered worthless? Or, what companies (plural)? I don’t think investors believed that the company had equity of $236 million at the end of last quarter, so why not be candid and forthcoming with shareholders now? Maybe the conference call will shed some light, but I would really like to hear from management about how and why things didn’t work out for whatever acquisitions that are now considered worthless.

Disclosure: Long Jupitermedia

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    This entry was posted on Monday, March 17th, 2008 at 8:05 pm and is filed under Holdings, WebMediaBrands. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

    One Response to “Jupitermedia Fourth Quarter 2007 Results”

    1. Dan Says:
      July 31st, 2008 at 5:01 pm

      Hey Dan -

      Saw your post on Jupitermedia. Next time, you should consider including a stock chart to show your readers how prices have moved.

      You can “Embed” any stock chart at http://www.wikinvest.com in your blog as easily as you would embed a YouTube video. This is a lot simpler than hitting print-screen on google finance, cropping down the image in a photo editor, uploading it to your blog, and putting it in your post.

      And, an embedded Wikinvest chart is better for your readers because it’s interactive – your readers can click, drag, pan, zoom, and play with the chart on your site without a page refresh.

      Here’s a good example of an embedded stock chart in action:

      http://www.techcrunch.com/2008/07/31/wikinvest-gives-the-world-embeddable-interactive-stock-charts/

      Could you try it out in one of your posts and let me know what you think / how we could improve the charts? – you can create your own chart at http://www.wikinvest.com/special/Embed_Stock_Chart?ticker=jupm

      Thanks!
      Dan