MOVE Movano Inc

Move, Inc. (NASDAQ:MOVE) reported financial results for the quarter ended March 31, 2007. Total revenue for the first quarter was $71.0 million, a three percent increase compared to $69.0 million in the first quarter of 2006. Net income applicable to common stockholders (�net income�) for the first quarter of 2007 was $163,000 or $0.00 per diluted share, compared to a net loss of $2.3 million, or $(0.02) per diluted share, for the first quarter of 2006. Move�s EBITDA (earnings before interest and certain other non-cash and non-recurring items, principally stock-based compensation charges, depreciation, and amortization) for the first quarter of 2007 was $7.1 million, compared to $3.9 million for the first quarter of 2006. The Company has reported EBITDA because management uses it to monitor and assess the Company�s performance and believes it is helpful to investors in understanding the Company�s business. �We were pleased with the profitability and cash flow performance of the Company in the first quarter, but our revenue growth was unbalanced as two of our three major businesses are being retooled along with launching a completely new venture,� said Mike Long, Move�s CEO. �In spite of a weak residential real estate market, we believe the strategic investments we are making will significantly improve our growth and profitability prospects.� In a separate announcement today, the Company named Lorna Borenstein to be President of Move, Inc. �With the addition of Lorna as President, and new leaders in place for all of our businesses, the board of directors and I are confident we have the best team to drive growth and secure our long-term market leadership,� continued Mike Long. At March 31, 2007, Move had $188.4 million in cash and short-term investments available to fund operations. CONFERENCE CALL As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Tuesday, May 1, 2007, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Chief Executive Officer, Mike Long, and Chief Financial Officer, Lew Belote, will discuss the Company's first quarter 2007 results. In order to participate in the call, investors should log on to http://investor.move.com and click on "Event Calendar." Please connect to the above Web site ten minutes prior to the call to load any necessary audio software. A replay of the call will be available in the same section of the Company's Web site approximately one hour after the end of the call. A telephone replay will be available from 4:00 p.m. Pacific Time (7:00 p.m. Eastern Time) today until midnight on May 8, 2007 at 888-286-8010, conference ID 49224616. For additional information regarding the Company's results, please go to the "SEC Filings" section at http://investor.move.com to view annual reports as filed with the Securities and Exchange Commission on Form 10-K. Move�s Form 10-Q for the quarter ended March 31, 2007 is expected to be filed with the Securities and Exchange Commission on, or before, May 7, 2007. USE OF NON-GAAP FINANCIAL MEASURES To supplement its consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (�GAAP�), Move uses a non-GAAP measure of income (loss) from operations excluding restructuring, impairment and certain other non-cash and non-recurring items, principally depreciation, amortization and stock based compensation and other charges, which is referred to as EBITDA. We have also presented a non-GAAP table of our Segment Data for the three months ended March 31, 2007 that extracts stock based compensation under SFAS 123R �Share Based Payment�. A reconciliation of these non-GAAP measures to GAAP is provided in the attached tables. These non-GAAP adjustments are provided to enhance the user's overall understanding of Move�s current financial performance and its prospects for the future and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP measures are the primary basis management uses for planning and forecasting its future operations. Move believes these non-GAAP results provide useful information to both management and investors by excluding certain expenses that it believes are not indicative of its core operating results and a more consistent basis for comparison between quarters and should be carefully evaluated. This press release may contain forward-looking statements, including information about management's view of Move�s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move�s future results. The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances. MOVE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) � � Three Months Ended March 31, � 2007� � 2006� (unaudited) Revenue $ 71,030� $ 68,979� Cost of revenue (1) 14,698� 16,406� Gross profit 56,332� 52,573� � Operating expenses: (1) Sales and marketing 27,894� 25,341� Product and web site development 8,822� 8,355� General and administrative 20,707� 20,976� Amortization of intangible assets 498� 747� Total operating expenses 57,921� 55,419� Loss from operations (1,589) (2,846) � Interest income, net 2,313� 1,615� Other income, net 755� 72� Net income (loss) before taxes 1,479� (1,159) � Provision for income taxes 84� -� � Net income (loss) 1,395� (1,159) � Convertible preferred stock dividends and related accretion (1,232) (1,174) (a) � Net income (loss) applicable to common stockholders $ 163� $ (2,333) � Net income (loss) per common share: � Basic net income (loss) per share applicable to common stockholders $ 0.00� $ (0.02) Diluted net income (loss) per share applicable to common stockholders $ 0.00� $ (0.02) � Shares used to calculate basic and diluted per share amounts � Basic 154,339� 148,951� Diluted 167,390� 148,951� � (1) Includes stock-based compensation due to SFAS 123R: � Cost of revenue $ 44� $ 129� Sales and Marketing 486� 489� Product and web site development 275� 499� General and administrative 4,614� 2,253� $ 5,419� $ 3,370� MOVE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) � � Three Months Ended March 31, � 2007� � 2006� Cash flows from continuing operating activities: (unaudited) Net income (loss) $ 1,395� $ (1,159) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 2,647� 2,444� Amortization of intangible assets 498� 747� Gain on sales and disposals of fixed assets (336) -� Provision for doubtful accounts 291� 173� Stock-based compensation and charges 5,567� 3,511� Change in market value of embedded derivative liability (473) -� Other non-cash items 11� 1� Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 1,685� 305� Other assets (360) 454� Accounts payable and accrued expenses (2,444) (15,539) Deferred revenue 2,031� 8,659� Net cash provided by (used in) operating activities 10,512� (404) � Cash flows from investing activities: Purchases of property and equipment (4,155) (2,513) Proceeds from the surrender of life insurance policy 5,200� -� Proceeds from sale of marketable equity securities 15,743� -� Proceeds from sale of fixed assets 336� -� Purchases of intangible assets (11) -� Maturities of short-term investments 10,950� 16,075� Purchases of short-term investments (26,900) (1,600) Acquisitions, net -� (9,572) Net cash provided by investing activities 1,163� 2,390� � Cash flows from financing activities: Proceeds from exercise of stock options 2,493� 2,414� Restricted cash 926� 904� Payments on capital lease obligations (463) (449) Net cash provided by financing activities 2,956� 2,869� � Change in cash and cash equivalents 14,631� 4,855� � Cash and cash equivalents, beginning of period 14,873� 13,272� Cash and cash equivalents, end of period $ 29,504� $ 18,127� MOVE, INC. CONSOLIDATED BALANCE SHEETS (in thousands) � � � March 31, 2007 � December 31, 2006 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 29,504� $ 14,873� Short-term investments 158,925� 142,975� Accounts receivable, net 16,303� 18,279� Other current assets 13,821� 34,468� Total current assets 218,553� 210,595� � Property and equipment, net 30,776� 29,245� Goodwill, net 23,877� 23,877� Intangible assets, net 16,228� 16,715� Restricted cash 3,353� 4,279� Other assets 1,233� 1,238� Total assets $ 294,020� $ 285,949� � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities: Accounts payable $ 3,708� $ 4,904� Accrued expenses 25,461� 26,738� Obligation under capital leases 1,937� 1,904� Deferred revenue 52,132� 50,075� Total current liabilities 83,238� 83,621� � Obligation under capital leases 1,671� 2,167� Other liabilities 2,027� 2,497� Total liabilities 86,936� 88,285� � Series B convertible preferred stock 97,444� 96,212� � Stockholders� equity: Series A convertible preferred stock -� -� Common stock 155� 154� Additional paid-in capital 2,077,390� 2,069,399� Accumulated other comprehensive income 359� 326� Accumulated deficit (1,968,264) (1,968,427) Total stockholders� equity 109,640� 101,452� � Total liabilities and stockholders� equity $ 294,020� $ 285,949� MOVE, INC.SEGMENT OPERATING RESULTS (in thousands) � Three Months Ended March 31, � 2007� � 2006� Revenue: (unaudited) Real Estate Services $ 53,523� $ 49,249� Move-Related Services 17,507� 19,730� Total revenue $ 71,030� $ 68,979� � Operating income (loss) (1) Real Estate Services $ 13,229� $ 11,597� Move-Related Services (2,779) (1,577) Unallocated (12,039) (12,866) Loss from operations $ (1,589) $ (2,846) � � (1) Includes stock-based compensation due to SFAS 123R: � Real Estate Services $ 2,078� $ 1,280� Move-Related Services 676� 624� Unallocated 2,665� 1,466� $ 5,419� $ 3,370� MOVE, INC.SEGMENT OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE (in thousands) � � Three Months Ended March 31, 2007 (unaudited) Real Estate Move-Related Stock-based Services Services Unallocated Compensation Total Revenue $ 53,523� $ 17,507� $ -� $ -� $ 71,030� Cost of Revenue 8,235� � 5,858� � 561� 44� 14,698� Gross Profit 45,288� 11,649� (561) (44) 56,332� � Sales and marketing 17,834� 8,678� 896� 486� 27,894� Product and website development 6,527� 1,517� 503� 275� 8,822� General and administrative 5,620� 3,557� 6,916� 4,614� 20,707� Amortization of intangibles -� -� 498� -� 498� Total operating expenses 29,981� 13,752� 8,813� 5,375� 57,921� � Income (loss) from operations $ 15,307� $ (2,103) $ (9,374) $ (5,419) $ (1,589) Three Months Ended March 31, 2006 (unaudited) Real Estate Move-Related Stock-based Services Services Unallocated Compensation Total Revenue $ 49,249� $ 19,730� $ -� $ -� $ 68,979� Cost of Revenue 7,594� � 7,696� � 987� 129� 16,406� Gross Profit 41,655� 12,034� (987) (129) 52,573� � Sales and marketing 16,039� 8,319� 494� 489� 25,341� Product and website development 5,622� 959� 1,275� 499� 8,355� General and administrative 7,117� 3,709� 7,897� 2,253� 20,976� Amortization of intangibles -� -� 747� -� 747� Total operating expenses 28,778� 12,987� 10,413� 3,241� 55,419� � Income (loss) fromoperations $ 12,877� $ (953) $ (11,400) $ (3,370) $ (2,846) MOVE, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURE � LOSS FROM OPERATIONS EXCLUDING CERTAIN NON-CASH AND NON-RECURRING ITEMS, PRINCIPALLY STOCK-BASED COMPENSATION CHARGES, DEPRECIATION, AND AMORTIZATION (EBITDA) �(in thousands) � � Three Months Ended March 31, 2007� 2006� (unaudited) Loss from operations $ (1,589) $ (2,846) � Plus: Stock-based charges 148� 141� Amortization of intangible assets 498� 747� Depreciation 2,647� 2,444� Stock-based compensation 5,419� 3,370� EBITDA $ 7,123� $ 3,856� (a) In the first quarter of 2006, the amounts reported as �Dividends on convertible preferred stock� in the Company�s Form 10-Q omitted the related accretion of the discount that was derived from the issuance of the convertible preferred stock. The reported results for that quarter have been revised to reflect both the accretion and the dividends in arriving at �Net income (loss) applicable to common stockholders.� As a result of the revision, additional expense of $296,000 in the first quarter of 2006 is reflected in the line �Convertible preferred stock dividends and related accretion.� As a result of this change, basic and diluted loss per share attributable to common stockholders in the first quarter of 2006 decreased by $0.01 from $(0.01) to $(0.02). ABOUT MOVE, INC. Move, Inc. (NASDAQ: MOVE), the media leader for the when, where and how to move, provides homebuyers and renters with the real estate and community information, and professional connections they need before, during and after a move. The Company operates Move.com� (http://www.move.com), the most comprehensive real estate search site for rentals and homes to buy and REALTOR.com� (http://www.realtor.com), the official Web site of the National Association of REALTORS�. Move also operates Welcome Wagon� (http://www.welcomewagon.com), a 78-year old neighborhood expert that provides new movers with valuable and comprehensive information about businesses and professionals in their new communities. Move.com is the official new homes Web site of the National Association of Home Builders. Move also operates Moving.com (http://www.moving.com), SeniorHousingNet� (http://www.seniorhousingnet.com), TOP PRODUCER� Systems (http://www.topproducer.com), FactoryBuiltHousing.com (http://www.factorybuilthousing.com) and Home Plans (http://www.homeplans.com). On the Net: http://investor.move.com.