look misses guidance by a long way

LookSmart Revises Guidance for Fourth Quarter 2004

SAN FRANCISCO, Jan 13, 2005 /PRNewswire-FirstCall via COMTEX/ -- LookSmart (Nasdaq: LOOK; ASX: LOK), an Internet search company, announced today that is has revised its guidance for revenue from continuing operations for the fourth quarter of 2004 to $16.5-$17.0 million from the previously issued guidance of $18-20 million. It has also revised guidance for fourth quarter adjusted net loss to approximately $1.4-$1.7 million from the original figure of less than $1 million. For the full year, the Company now expects to report revenue from continuing operations of $77.0-$77.5 million, revised from its prior guidance of $78.5-$80.5 million, both excluding $6.0 million for discontinued international operations. Adjusted net loss guidance for 2004 has been revised to $9.8-$10.1 million from less than $9.4 million, both including restructuring charges of approximately $4.2 million.

LookSmart's Chief Executive Officer, David B. Hills, who joined the Company on October 26, 2004, said, "The company did not sufficiently deploy sales resources against new advertisers to achieve the projections issued in late October. We have adjusted our deployment and in a separate release, will announce the appointment of two new senior managers tasked to drive our business."