MOVE Movano Inc

Move, Inc. (NASDAQ: MOVE) reported financial results for the second quarter ended June 30, 2007. Total revenue for the second quarter was $73.6 million compared to $73.9 million in the second quarter of 2006. �Clearly the residential real estate market is going through a challenging period,� said Mike Long, Move�s chief executive officer. �We are the market leader and have the financial strength to adapt and expand our lead in the category. As the most visited and the most comprehensive online real estate network, we are well positioned to help both consumers and real estate professionals weather current conditions and emerge stronger.� Net loss applicable to common stockholders for the second quarter of 2007 was $3.5 million, or $0.02 per share, compared to net income of $1.4 million, or $0.01 per share, for the second quarter of 2006. Move�s EBITDA (earnings before interest, restructuring charges and certain other non-cash and non-recurring items, principally stock-based charges, depreciation, and amortization) for the second quarter of 2007 was $6.9 million, compared to $4.7 million for the second 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. �Since joining Move 60 days ago, our agenda has been simplifying and focusing the Company�s strategy and prioritizing the order of execution for our strategic imperatives,� said Lorna Borenstein, Move�s president. �Our first priority is to improve and optimize the real estate search experience for our over 9 million(1) monthly consumers.� CONFERENCE CALL As previously announced, Move will host a conference call, which will be broadcast live over the Internet today, Thursday, August 2, 2007, at 2:00 p.m. PDT (5:00 p.m. EDT). Chief Executive Officer, Mike Long, President, Lorna Borenstein and Chief Financial Officer, Lew Belote, will discuss the Company's second 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 two hours after the end of the call. A telephone replay will be available from 5:00 p.m. PDT (8:00 p.m. EDT) until midnight on August 9, 2007 at 888-286-8010, conference ID 64110879. 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 June 30, 2007 is expected to be filed with the Securities and Exchange Commission on, or before, August 6, 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 and six months ended June 30, 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. ABOUT MOVE, INC. Move, Inc. (NASDAQ: MOVE), the leading online network of web sites for real estate search, finance, moving and home enthusiasts, is the essential resource for consumers seeking the information and connections they need before, during and after a move. Move, Inc. operates Move.com (http://www.move.com), a leading destination for information on new homes and rental listings, moving, home and garden and home finance; REALTOR.com� (http://www.realtor.com), the official Web site of the National Association of REALTORS� offering more than 3 million homes for sale; Welcome Wagon� (http://www.welcomewagon.com), the expert in providing new neighbors with comprehensive information about businesses and professionals in their new communities; Moving.com; SeniorHousingNet�; TOP PRODUCER� Systems; FactoryBuiltHousing.com; and Home Plans. Move, Inc. is based in Westlake Village, California and employs more than 1600 people throughout North America. For more information: http://www.move.com. (1) comScore Media Metrix, monthly average April � June, 2007 MOVE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) � Three Months EndedJune 30, Six Months EndedJune 30, � 2007 � � 2006 � � 2007 � � 2006 � (unaudited) (unaudited) Revenue $ 73,626 $ 73,891 $ 144,656 $ 142,870 Cost of revenue (1) 15,299 � 16,447 � 29,997 � 32,853 � Gross profit 58,327 � 57,444 � 114,659 � 110,017 � � Operating expenses: (1) Sales and marketing 27,626 28,312 55,520 53,653 Product and web site development 9,324 8,793 18,146 17,148 General and administrative 25,097 19,378 45,804 40,354 Amortization of intangible assets 505 � 589 � 1,003 � 1,336 � Total operating expenses 62,552 � 57,072 � 120,473 � 112,491 � Income (loss) from operations (4,225 ) 372 (5,814 ) (2,474 ) � Interest income, net 2,503 1,794 4,816 3,409 Other income (expense), net (371 ) 431 � 384 � 503 � Net income (loss) before income taxes (2,093 ) 2,597 (614 ) 1,438 � Provision for income taxes 169 � � � 253 � � � � Net Income (loss) (2,262 ) 2,597 (867 ) 1,438 � Convertible preferred stock dividends and related accretion (1,241 ) (1,181 ) (2,473 ) (2,355 ) Net income (loss) applicable to common stockholders $ (3,503 ) $ 1,416 � $ (3,340 ) $ (917 ) � Net income (loss) per common share: Basic net income (loss) applicable to common stockholders $ (0.02 ) $ 0.01 � $ (0.02 ) $ (0.01 ) Diluted net income (loss) applicable to common stockholders $ (0.02 ) $ 0.01 � $ (0.02 ) $ (0.01 ) � Shares used to calculate basic and diluted per share amounts Basic 154,885 � 150,769 � 154,614 � 149,865 � Diluted 154,885 � 165,127 � 154,614 � 149,865 � � � (1) Includes stock-based compensation as follows: � Cost of revenue $ 33 $ 29 $ 77 $ 158 Sales and marketing 347 302 833 791 Product and web site development 292 340 567 839 General and administrative 7,148 � 1,878 � 11,762 � 4,131 � $ 7,820 � $ 2,549 � $ 13,239 � $ 5,919 � MOVE, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURE � INCOME (LOSS) FROM OPERATIONS EXCLUDING CERTAIN NON-CASH AND NON-RECURRING ITEMS, PRINCIPALLY STOCK-BASED COMPENSATION AND CHARGES, DEPRECIATION, AND AMORTIZATION (EBITDA) (in thousands) � Three Months Ended June 30, Six Months Ended June 30, � 2007 � � 2006 � � 2007 � � 2006 � (unaudited) (unaudited) Income (loss) from operations $ (4,225 ) $ 372 $ (5,814 ) $ (2,474 ) � Plus: Stock-based charges 136 (174 ) 284 (33 ) Amortization of intangible assets 505 589 1,003 1,336 Depreciation 2,681 2,571 5,328 5,015 Stock-based compensation 7,820 2,549 13,239 5,919 Non-recurring refund of insurance premium � � (1,184 ) � � (1,184 ) EBITDA $ 6,917 � $ 4,723 � $ 14,040 � $ 8,579 � MOVE, INC. SEGMENT OPERATING RESULTS (in thousands) � Three Months Ended June 30, Six Months Ended June 30, � 2007 � � 2006 � � 2007 � � 2006 � Revenue: (unaudited) (unaudited) Real Estate Services $ 54,750 $ 52,099 $ 108,273 $ 101,348 Consumer Media 18,876 � 21,792 � 36,383 � 41,522 � Total revenue $ 73,626 � $ 73,891 � $ 144,656 � $ 142,870 � � Operating income (loss) (1) Real Estate Services $ 13,805 $ 11,379 $ 27,034 $ 22,976 Consumer Media (2,384 ) 323 (5,163 ) (1,254 ) Unallocated (15,646 ) (11,330 ) (27,685 ) (24,196 ) Income (loss) from operations $ (4,225 ) $ 372 � $ (5,814 ) $ (2,474 ) � � (1) Includes stock-based compensation as follows: � Real Estate Services $ 2,030 $ 1,068 $ 4,108 $ 2,348 Consumer Media 707 321 1,383 945 Unallocated 5,083 � 1,160 � 7,748 � 2,626 � $ 7,820 � $ 2,549 � $ 13,239 � $ 5,919 � MOVE, INC. SEGMENT OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE (in thousands) � Three months ended June 30, 2007 (unaudited) Real Estate Consumer Stock-based Services Media Unallocated Compensation Total � Revenue $ 54,750 $ 18,876 $ - $ - $ 73,626 Cost of Revenue 8,463 � � 6,168 � � � 635 � 33 � 15,299 � Gross Profit 46,287 12,708 (635 ) (33 ) 58,327 � Sales and marketing 17,003 8,752 1,524 347 27,626 Product and web site development 6,931 1,831 270 292 9,324 General and administrative 6,518 3,802 7,629 7,148 25,097 Amortization of intangibles - - � 505 � - � 505 � Total operating expenses 30,452 14,385 � 9,928 � 7,787 � 62,552 � � Income (loss) from operations $ 15,835 $ (1,677 ) $ (10,563 ) $ (7,820 ) $ (4,225 ) � � � Three months ended June 30, 2006 (unaudited) Real Estate Consumer Stock-based Services Media Unallocated Compensation Total � Revenue $ 52,099 $ 21,792 $ - $ - $ 73,891 Cost of Revenue 8,449 � 7,063 � � 906 � 29 � 16,447 � Gross Profit 43,650 14,729 (906 ) (29 ) 57,444 � Sales and marketing 17,875 9,272 863 302 28,312 Product and web site development 6,283 1,173 997 340 8,793 General and administrative 7,045 3,640 6,815 1,878 19,378 Amortization of intangibles - - � 589 � - � 589 � Total operating expenses 31,203 14,085 � 9,264 � 2,520 � 57,072 � � Income (loss) from operations $ 12,447 $ 644 � $ (10,170 ) $ (2,549 ) $ 372 � MOVE, INC. SEGMENT OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE (in thousands) � Six months ended June 30, 2007 (unaudited) Real Estate Consumer Stock-based Services Media Unallocated Compensation Total � Revenue $ 108,273 $ 36,383 $ - $ - $ 144,656 Cost of Revenue 16,698 � � 12,026 � � � 1,196 � 77 � 29,997 � Gross Profit 91,575 24,357 (1,196 ) (77 ) 114,659 � Sales and marketing 34,837 17,430 2,420 833 55,520 Product and web site development 13,458 3,348 773 567 18,146 General and administrative 12,138 7,359 14,545 11,762 45,804 Amortization of intangibles - - � 1,003 � - � 1,003 � Total operating expenses 60,433 28,137 � 18,741 � 13,162 � 120,473 � � Income (loss) from operations $ 31,142 $ (3,780 ) $ (19,937 ) $ (13,239 ) $ (5,814 ) � � � Six months ended June 30, 2006 (unaudited) Real Estate Consumer Stock-based Services Media Unallocated Compensation Total � Revenue $ 101,348 $ 41,522 $ - $ - $ 142,870 Cost of Revenue 16,043 � � 14,759 � � � 1,893 � 158 � 32,853 � Gross Profit 85,305 26,763 (1,893 ) (158 ) 110,017 � Sales and marketing 33,914 17,591 1,357 791 53,653 Product and web site development 11,905 2,132 2,272 839 17,148 General and administrative 14,162 7,349 14,712 4,131 40,354 Amortization of intangibles - - � 1,336 � - � 1,336 � Total operating expenses 59,981 27,072 � 19,677 � 5,761 � 112,491 � � Income (loss) from operations $ 25,324 $ (309 ) $ (21,570 ) $ (5,919 ) $ (2,474 ) MOVE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) � Six Months Ended June 30, � 2007 � � 2006 � Cash flows from operating activities: (unaudited) Net income (loss) $ (867 ) $ 1,438 Adjustments to reconcile net income (loss) to net cash provided by (used in) continuing operating activities: Depreciation 5,328 5,015 Amortization of intangible assets 1,003 1,336 Gain on sales of property and equipment (336 ) � Provision for doubtful accounts 556 540 Stock-based compensation and charges 13,523 5,886 Change in market value of embedded derivative liability (98 ) � Other non-cash items (14 ) (315 ) Changes in operating assets and liabilities: Accounts receivable 1,739 (1,842 ) Other assets (3,002 ) (2,380 ) Accounts payable and accrued expenses 2,096 (16,995 ) Deferred revenue (1,457 ) 11,941 � Net cash provided by operating activities 18,471 � 4,624 � � Cash flows from investing activities: Purchases of property and equipment (12,601 ) (6,854 ) Proceeds from the surrender of life insurance policy 5,200 � Proceeds from sale of marketable equity securities 15,743 � Proceeds from sale of property and equipment 336 � Purchases of intangible assets (418 ) � Maturities of short-term investments 36,350 16,950 Purchases of short-term investments (43,475 ) (10,050 ) Acquisitions, net � � (9,572 ) Net cash provided by (used in) investing activities 1,135 � (9,526 ) � Cash flows from financing activities: Proceeds from exercise of stock options 2,708 4,816 Restricted cash 993 855 Payments on capital lease obligations (935 ) (1,374 ) Net cash provided by financing activities 2,766 � 4,297 � � Change in cash and cash equivalents 22,372 (605 ) � Cash and cash equivalents, beginning of period 14,873 � 13,272 � Cash and cash equivalents, end of period $ 37,245 � $ 12,667 � MOVE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) � � June 30, 2007 � December 31, 2006 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 37,245 $ 14,873 Short-term investments 150,100 142,975 Accounts receivable, net 15,984 18,279 Other current assets 16,214 � 34,468 � Total current assets 219,543 210,595 � Property and equipment, net 36,739 29,245 Goodwill, net 23,877 23,877 Intangible assets, net 16,130 16,715 Restricted cash 3,286 4,279 Other assets 1,413 � 1,238 � Total assets $ 300,988 � $ 285,949 � � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities: Accounts payable $ 5,963 $ 4,904 Accrued expenses 28,086 26,738 Obligation under capital leases 1,971 1,904 Deferred revenue 48,659 � 50,075 � Total current liabilities 84,679 83,621 � Obligation under capital leases 1,165 2,167 Other liabilities 2,403 � 2,497 � Total liabilities 88,247 � 88,285 � � Series B convertible preferred stock 98,685 96,212 � Stockholders� equity: Series A convertible preferred stock - - Common stock 155 154 Additional paid-in capital 2,085,134 2,069,399 Accumulated other comprehensive income 533 326 Accumulated deficit (1,971,766 ) (1,968,427 ) Total stockholders� equity 114,056 � 101,452 � � Total liabilities and stockholders� equity $ 300,988 � $ 285,949 �