Shares dropped 70 cents before Jupitermedia announced after market-close that revenues and net income grew for the company in the third quarter.
The former owner of the Search Engine Strategies conferences and the ClickZ network of sites saw revenues of $34.4 million and net income of $60.4 million for its most recent fiscal quarter.
Much of the net income came from the sale of SES and ClickZ; that contributed $29.1 million, plus a $23.5 million “reversal of the valuation allowance related to deferred income tax assets,” the company said.
“Our financial results for the third quarter included record revenues, operating income and net income,” stated Jupitermedia’s Chairman and CEO Alan M. Meckler. “We have been emphasizing the development of our JupiterImages division and the third quarter illustrates continued organic and overall growth in the sales and distribution of commercial images.”
Jupitermedia has been acquiring image companies recently, picking up Picture Arts Corp for $63.2 million in cash in July, and UK-based BananaStock Limited for $19 million in October.
The image space has become a competitive one, and Getty Images has taken steps to remove Jupitermedia from its image distribution network. Meckler posted about this change in a corporate blog two weeks ago:
This is fine with me. I like competition and am more than ready to compete with Getty Images.
However my company will compete with integrity, honesty and a willingness to work with any competitor. Getty on the other hand must resort to threats and dishonesty in its dealing with the image world.
David Utter is a staff writer for Murdok covering technology and business. Email him here.
