247 Real Media Inc (1062195) SEC Filing 10-K Annual report for the fiscal year ending Friday, December 31, 2004

24/7 Real Media

24/7 REAL MEDIA REPORTS STRONG RESULTS FOR FOURTH
QUARTER AND FULL YEAR 2004

Fourth Quarter Highlights:

•                  Revenue of $27.5 million, an increase of 109% over the comparable period in 2003.

•                  Pro forma operating income of $1.5 million, or $0.03 per share, compared with $0.2 million, or $0.01 per share, in Q4 of 2003; GAAP net loss of $2.8 million, or $0.06 per share, versus a loss of $6.0 million, or $0.26 per share, in Q4 of 2003.

•                  Integration of leading Search Engine Marketing company, Decide Interactive.

•                  Continued expansion and development of Pacific-Rim operations.

NEW YORK — March 2, 2005 — 24/7 Real Media, Inc. (Nasdaq: TFSM), a pioneer in interactive marketing and technology, today announced financial results for the fourth quarter and full year ended December 31, 2004.  Revenue for the fourth quarter of 2004 was $27.5 million

The Company reported solid revenue growth and improved profitability, both sequentially and year-over-year, in each of its business segments and geographic regions.  24/7 Real Media continued to expand its global reach in 2004, and non-U.S. operations contributed 52% of the Company’s revenue in the fourth quarter.

Pro forma operating income(1) for the fourth quarter of 2004 was $1.5 million, or $0.03 per share.  This compares with pro forma operating income of $206,000, or $0.01 per share, for the fourth quarter of 2003.

Net loss computed in accordance with generally accepted accounting principles (GAAP) for the fourth quarter was a loss of $2.8 million or $0.06 per share compared with a loss of $6.0 million or $0.26 per share for the fourth quarter of 2003.

For the year ended December 31, 2004, revenue was $85.3 million, an increase of 73% from the $49.2 million reported for the year ended December 31, 2003. Pro forma operating income for the 2004 fiscal period was $2.4 million, or $0.06 per share, a significant improvement over a loss of $670,000, or $0.04 per share, in the prior year.  GAAP net loss for 2004 was $3.5 million, or $0.10 per share, compared with a GAAP net loss of $14.4 million, or $0.86 per share, in 2003.

“2004 was a dynamic year for 24/7 Real Media,” said David J. Moore, chairman and chief executive officer of 24/7 Real Media. “We achieved a number of key objectives during the year, in particular our expansion into Asia and a significant Search acquisition, which has already been validated by industry recognition for its leading search technology platform, Decide DNA™.  Working with new management at Lycos, we improved our working relationship, and we completed the integration of Decide Interactive, transitioning all existing 24/7 Search clients onto the new technology platform.  Finally, we continued with the development and marketing of behaviorally targeted advertising solutions through 24/7 OnTarget.  All of these efforts combined to produce a strong performance by the Company in the fourth quarter, and we are pleased to report that the solid business momentum has continued into the first part of 2005.”