(Nasdaq: PCLN) today updated its financial guidance for the 2nd quarter 2002, which ends on June 30, 2002.
Priceline.com said that it expects revenue to come in approximately 5 percent below the low end of previous guidance of $320 million. The revised revenue target represents an approximately 16 percent sequential increase over 1st quarter 2002 revenues. The Company also said that it expects to report 2nd quarter pro forma net income of approximately $6 million or approximately $0.03 per share, at the low end of the Company`s previous guidance. Pro forma net income is stated before stock-based compensation and option payroll taxes of approximately $275,000. The Company also said it would announce 2nd quarter results and provide future guidance on July 31, 2002.
“Priceline.com continues to experience strong growth in its hotel business,” said priceline.com Chairman and Chief Executive Officer Richard S. Braddock. “However, our earlier guidance was premised on steady monthly increases which we have historically experienced in airline ticket revenue throughout the quarter. Such increase did not occur in June, which is typically our strongest selling month of the year. The June shortfall was primarily caused by pressure on the airline ticket bind rate and softer than expected customer demand as difficult industry conditions persist.”
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