Feeds

LookSmart chops third of staff

Dotcom war claims more casualties

  • alert
  • submit to reddit

Reducing security risks from open source software

LookSmart has chopped a third of staff after announcing it will miss Q4 targets.

The dotcom directory said it expected sales of $30 million to $31 million for the quarter, down on its previous estimate of $33 million to $36 million. It forecast a loss of between 14 and 15 cents, from previously expected losses of 12 cents.

In an effort to save $44 million per year, it will turn eleven operating groups into four, and cut 172 employees worldwide. It will also take a one-time charge this quarter.

The San Francisco outfit said it would quit non-core activities and pump its efforts into its listings businesses - which have pulled it $10 million in their first three quarters.

"The trends we identified in our prior guidance proved to be true both positive and negative," said LookSmart chairman and CEO Evan Thornley. "Untargeted advertising is declining while highly targeted online direct marketing is growing rapidly. However in the fourth quarter, the parts of our business that were weakening did so faster and to a greater degree than expected."

"At the same time, our highly targeted listings businesses grew over 40 per cent from the third quarter despite very negative industry trends."

LookSmart is due to report earnings on January 25.

Earlier this week online search and directory giant Yahoo! cut earnings forecasts for Q1, citing an anticipated dotcom ad sales slump. ®

Related Stories

BT spreads wings with $200m JV
Dotcom value drops 88 per cent in 2000
Yahoo! slashes forecasts
Directory sites doomed, says survey
Dotcom Death Race 2000
QXL shares going, going, gone

Eight steps to building an HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.