Quotesmith.com 2nd Q.: Loss Narrows

NU Online News Service, Aug. 5, 11:30 a.m. EST?Quotesmith.com Inc., Darien, Ill., reported a net loss of $222,000, or $.04 per share, for the second quarter on $3.2 million in revenues, compared with a net loss of $2.6 million, or $.048 per share, on $2.1 million in revenue for the second quarter of 2001.

On a year-to-date basis, the online insurance broker, which provides instant quotes from more than 300 leading insurance companies, reported revenues of $5.77 million for the first six months of 2002 as compared to $4.55 million for the same period in 2001.

Net loss for the first six months of 2002 totaled $922,000, or $0.18 per share, as compared to a net loss of $5.05 million, or $.089 per share, for the first six months of 2001, the company said.

"Quotesmith.com delivered an outstanding quarter of progress and momentum," said Robert Bland, Chairman and CEO. "We slashed our net loss, grew revenues, and made solid progress with our new customer revenue and acquisition cost economics."

For the second quarter, Quotesmith.com reported 6,343 policies sold, representing an increase of 19 percent from the 5,314 policies sold in the second quarter of 2001. Policies sold for the first six months of 2002 amounted to 11,399, down two percent from the 11,633 paid policies reported in the same period of 2001.

Quotesmith.com said it revised its 2002 financial forecast, announced Dec. 7, 2001, and reaffirmed on Jan. 23, 2002. The Company previously anticipated 2002 revenues of $10 to $11 million, a net loss of less than $1 million, and year-end cash investment balances of $17 to $18 million.

The Company said it is looking for 2002 revenues of $10 to $11 million, a net loss of $1.5 to $2 million, and year-end cash and investment balances of $14 to $15 million. The increase in projected net loss is due to higher levels of planned technology spending and other operations costs.

Quotesmith.com believes its current capital structure, including cash and short-term investments of $16.4 million, is adequate to reach profitability without the necessity of additional debt or equity financing.

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Quotesmith.com 2nd Q.: Loss Narrows

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