From Intermix Media’s 8-K released yesterday
“The Company has recently been advised by the Internet Bureau of the Office of the New York Attorney General (the “NY AG”) that it is considering commencing an action against the Company for unlawful and deceptive acts and practices associated with distribution of toolbar, redirect and contextual ad serving applications (“downloads”). The NY AG asserts that the Company and/or third parties distributed downloads that were installed by users without sufficient notice or consent and in a manner that made it difficult to locate and remove the programs. The NY AG, in the event of litigation, would be seeking disgorgement of profits, civil penalties and other remedies. While the Company respectfully disagrees with the assertions of the NY AG, the Company is committed to resolving the matter as soon as practicable. The Company’s download applications and business, part of its Network segment, were created by past leadership. The Company has been in the process of scaling down its download business, which does not represent a material component of the Company’s fiscal year 2006 forecasts contained in the Company’s current report on Form 8-K filed concurrently herewith. The Company’s estimate of the financial impact of the NY AG matter is included in the Company’s forecasts, although no assurance can be given that the financial impact of the matter will be confined to the Company’s expectations. “
Thanks to Ben Edelman/Eric Howes for the tip. Eric also posted more info on BroadbandReports.
We have over 30 Happy/Fun/Exciting! websites associated with Intermix Media / eUniverse / SirSearch / PowerSearch / KeenValue / PerfectNav, including ones like
ad-logics.com, casesladder.com, castlemountains.com, colorgenics.com, coolquiz.com, crazymates.com, cupidjunction.com, cursorzone.com, etc.
eUniverse Intermix is an interesting company. Publicly traded, they have an internet marketing practice. But in addition to that, they have a product division, Alena, which actually creates things like skin creams and even a vitamin formula for dogs.
A recent press release by the company said this about next year’s prospects:
The Company expects fiscal year 2006 revenues to be between $112 and $115 million, which represents an increase of approximately 40-45% over preliminary fiscal year 2005 results. The Company expects net income for fiscal year 2006 to be approximately $8 million, or 17 cents per fully diluted share prior to allocation of income to preferred stockholders, and expects EBITDA to be approximately $12 million. These forecasts do not include the impact of changes in accounting for stock-based compensation expected to take effect beginning with the Company’s second quarter of fiscal year 2006. The Company’s fiscal year 2006 forecasts include approximately $2 million in costs expected to be incurred in connection with Sarbanes Oxley Act compliance, which costs are expected to be substantially lower in fiscal year 2007. It also includes any financial impact which the Company anticipates may result from the New York Attorney General’s investigation and possible civil action, which the Company has described in a separate 8-K filed today with the SEC.