Expedia, Inc has announced that it expects to report that, on a net basis, revenue for its fourth quarter of fiscal 2001, ended June 30, more than doubled over the year-earlier quarter and rose approximately 37% over the third quarter. Gross bookings rose to $802 million, up 78% year-over-year and up 19% from the third quarter.
The Company also expects to report income before non-cash items of $12 million to $14 million, or $0.24 to $0.29 per basic share and $0.20 to $0.23 per diluted share, for the June quarter, which is substantially above earlier guidance and analyst estimates. On a GAAP basis, the Company expects the net loss to be $5.5 million to $7.5 million, or a loss of $0.11 to $0.15 per basic share. The per share amounts are calculated using an average outstanding basic share count for the quarter of 49 million and average diluted shares of 61 million.
In the year-ago quarter, the Company reported a net loss before non-cash items of $13 million, or $0.30 per basic share, and a net loss on a GAAP basis of $42 million, or $0.98 per basic share, with 43 million shares outstanding.
“Our tremendous momentum continued in the quarter, particularly in our merchant business. Expedia* Bargain Fares, a discount airline product introduced in the quarter, gained immediate traction, and Expedia* Special Rate hotel bookings rose significantly,” said Richard Barton, president and CEO of Expedia. “Also, Expedia* Packages, which we introduced with the deployment of our leading-edge Expert Searching and Pricing platform, grew rapidly. That platform lets consumers combine their choices of flights and hotels to create their own Expedia Packages, enabling flexibility, immediacy and access to wide choice.”
Separately, USA Networks Inc. announced that it has signed an agreement by which it will acquire up to 37.5 million shares of Expedia* common stock. Microsoft Corp., the majority shareholder of Expedia, has agreed to exchange all of its 33.7 million Expedia shares and warrants for the USA consideration, subject to pro-ration with other shareholders. In a separate contract, Expedia and Microsoft have extended the term of Expedia`s MSN distribution agreement. “This agreement, combined with Expedia`s ongoing .NET development efforts, is a clear sign of the value of the long term relationship between Microsoft and Expedia,” said Barton.