Revenue in free-fall, but company still generating cash.
Domain name and local search company Marchex (NASDAQ: MCHX) today reported a 44% drop in revenues for Q2 2009 compared to the same quarter last year, but the company still managed to generate cashflow and carries no debt.
The company posted $21.1M in revenue for the quarter, compared to $37.4M in the same quarter of 2008. For the first half of the year revenue dropped to $47.7M compared with $74.4M in the first half of 2008.
Marchex also reported that it sold a small number of domain names for $900,000 during the quarter.
The company reported a loss in the quarter on a GAAP basis, losing 4 cents per diluted share. Last year in the same quarter the company earned a penny per share. On an adjusted basis, the company earned 3 cents per share compared to 9 cents in the same period last year.
Marchex will hold an investor conference call this afternoon. It’s stock is down a penny in after hours trading.
wow! 44 percent drop in rev but still generating cash at approximately the same rate. Sounds fishy!
Adam – they were prepared for the drop and cut expenses accordingly. Profits beat expectations but revenue fell just short.
Andrews, I have been following this company for sometime to buy stocks. However, I have not seen any news items related to significant cost reductions happening in this company for a while now. This is the reason I remain cautious about this co.
@adam – I don’t know the details on the cuts, but if you look at the income statement in today’s filing you’ll see that they cut them about in line with the revenue drop.
My guess would be Marchex’s biggest expense keeps beeing Horowitz’s + his clique salaries + bonuses
This says a lot Marchex lists their domains for sale http://www.domainnamenews.com/domain-sales/marchex-lists-domains-sale/6024