Local.com Updates Q4, Full Year 2009 Guidance

Company Forecasts Higher Fourth Quarter Revenue and Adjusted Net Income

IRVINE, CA, December 8, 2009 -- Local.com Corporation (NASDAQ: LOCM), a leading local search site and network, today announced that financial results for the fourth quarter and full year ending December 31, 2009 are expected to exceed the company’s previously reported guidance.

The company now expects total revenue for the fourth quarter to be between $16.2 and $16.6 million, which at the midpoint would represent an 8% sequential increase over the third quarter of 2009. The company expects net income (loss) for the fourth quarter of 2009 to be between ($100,000) and $150,000 or between ($0.01) and $0.01 per diluted share, and to include the following items:

• depreciation and amortization of approximately $900,000; and

• stock based compensation charges of approximately $700,000.

Excluding the above items from net income, fourth quarter Adjusted Net Income is now expected to be between $1.5 million and $1.8 million or between $0.10 and $0.12 per diluted share.

The net loss per share forecast assumes a weighted average share count of 14.4 million. The net income and adjusted net income per share forecast assumes a weighted average share count of 15.2 million, which takes into account the dilutive effect of stock options and warrants.

The company now expects fiscal year 2009 revenue to be between $56.1 and $56.5 million, which at the midpoint represents a 47% sequential increase over fiscal year 2008. The company now expects the net loss for fiscal year 2009 to be between $3.5 and $3.3 million, or between ($0.24) and ($0.23) per share, and to include the following items:

• interest and other income (expense), net, of ($14,000);

• provision for income taxes of $1,000;

• depreciation and amortization of approximately $3.2 million;

• stock based compensation charges of approximately $2.4 million; and

• non-recurring items of $521,000.

Excluding the above items from net income, fiscal year 2009 Adjusted Net Income is now expected to be between $2.6 million and $2.8 million or between $0.17 and $0.19 per diluted share.

The net loss per share forecast assumes a weighted average share count of 14.4 million. The Adjusted Net Income per share assumes a diluted weighted average share count of 14.9 million, taking into account the dilutive effect of stock options and warrants.

Adjusted Net Income is defined as net income (loss) excluding: provision for income taxes; interest and other income (expense), net; depreciation; amortization; stock based compensation charges and non-recurring items.

An explanation of the company’s use of non-GAAP financial measures, including the limitations of such measures relative to GAAP measures, is included below. A reconciliation between GAAP and non-GAAP measures, where appropriate, is included in the financial tables attached to this release.

Source: Local.com