Updates 2nd Quarter 2003 Financial Guidance
Incorporated announced today that it had effected a
1-for-6 reverse stock split of all outstanding shares of its common
stock, par value $0.008 per share. The reverse stock split was
effective at 12:01 a.m. this morning.
As a result of the reverse stock split, each
stockholder will receive 1 new share of common stock in
exchange for every 6 old shares. Stockholders who hold their shares in
brokerage accounts or “street name” will not be required to take any
action to effect the exchange of their shares. Stockholders of record
who hold share certificates will receive a letter of transmittal
requesting that they surrender their old stock certificates for new
stock certificates reflecting the adjusted number of shares as a
result of the reverse stock split. Mellon Investor Services, LLC,`s transfer agent, will act as the exchange agent for
purposes of implementing the exchange of stock certificates.
Also today, updated its 2nd quarter 2003 financial
guidance. “Our previous pre-split guidance was for 2nd quarter
earnings per share in the range of $0.02 to $0.03,” said
Chief Financial Officer Robert J. Mylod, Jr. “On a post-split basis,
this translates to earnings of between $0.12 to $0.18 per share, and
we remain comfortable with estimates within that range.” The average
First Call consensus earnings estimate for the 2nd quarter 2003 was
for net income of $3.6 million, which translates to $0.10 per share on
a post-split basis.`s reverse stock split will reduce the Company`s
shares of common stock outstanding from approximately 227 million to
approximately 37.5 million. “ has a well-recognized
brand, no debt, a strong cash position and an attractive array of
products,” said President and CEO Jeffery H. Boyd. “We
believe is well-positioned to be a long-term winner in
online travel. We also believe that this reverse stock split enhances
our position by expanding investor interest, reducing transaction
costs for trading our stock, making our results more comparable to
peer companies with far fewer outstanding shares, and allowing`s earnings per share on a post-split basis to more
precisely reflect the Company`s operating results.”

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