SBJ/July 30 - August 5, 2001/Finance

SportsLine moves back expected break-even's pro forma consolidated revenue was $13.1 million in the second quarter, down from $16.5 million in the same quarter last year. The company lost $26.4 million, or 97 cents a share, compared to a loss of $23.7 million, or 90 cents a share, last year. Analysts had expected the company to lose about $1.04 per share.

The company also pushed back its break-even point by roughly a year, to the end of 2002. This is the second revision the company has made, having nudged it from the third quarter 2001 to the end of 2001 late last year in light of troubles at, in which was a major investor. closed its doors in February.

In an earnings call last week, the company revised down its estimate for third-quarter revenue to between $12 million and $13 million, from previous expectations of $19.1 million. CEO Michael Levy attributed the revised estimates and the disappointing second quarter "almost entirely to the general advertising environment." derives most of its revenue from advertising and sponsorships, and said its advertiser cost per thousand impressions (CPM) was $16 in the quarter, down from $21 to $23 in "recent quarters."

"We do believe we'll see CPMs in the $20 range in the second half of the year based on current and expected sales around the U.S. Open, PGA Championship and the NFL and college football seasons," said CFO Kenneth Sanders. He said the second quarter is typically harder for the company due to the relative lack of marquee sports events.

SportsLine said it averaged 28.8 million page views a day during the quarter ended June 30.

The company's staff now stands at 389 in the United States, down from 461 at the beginning of the year. It retains 211 staffers in Europe, largely for its subsidiary. SportsLine has cut its staffing costs 15 to 20 percent in 2001, Sanders said, via cuts and attrition, but has been staffing up slightly to produce

The company had roughly $75 million in cash and marketable securities at the end of the quarter, and expects to have $50 million at year end. Inc.
 Headquarters: Fort Lauderdale, Fla.
  Chairman and CEO: Michael Levy
  Web site:
  Nasdaq listing: SPLN

* Profit due to extraordinary gain on extinguishment of debt
** Overall loss widened by loss on equity investment in
*** Profit due to gain on termination of agreements with and Internet Sports Network

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