NetRatings, Inc. (NASDAQ: NTRT), a global leader in Internet media and market research, last week announced financial results for the third quarter ended Sept. 30, 2006. NetRatings' revenues for the third quarter of 2006 were $21.6 million, a 29 percent increase over revenues of $16.8 million in the third quarter of 2005. The company also provided updates on its patent enforcement program, VNU proposal to purchase common stock, guidance, and related information.

Net income for the third quarter of 2006 was $2.1 million, or $0.06 per share, on approximately 35 million shares. This compares with a net loss of ($3.7 million), or ($0.10) per share, in the third quarter of 2005, on approximately 36.2 million shares.

On an EBITDA basis (a non-GAAP measure that reflects net income/loss excluding interest income/expense, taxes, depreciation, amortization of intangibles and stock-based compensation), the company reported earnings of $3.7 million, or $0.10 per share, during the third quarter of 2006. This compares with an EBITDA loss in the third quarter of 2005 of ($2.2 million), or ($0.06) per share. A complete reconciliation of GAAP results to non-GAAP results may be found in the financial tables and footnotes in the complete financial release at the Nielsen//NetRatings web site.

"We are extremely pleased with our performance in the third quarter, having exceeded our targets on both the top and bottom line," said William Pulver, president and CEO of NetRatings. "Strong sales results, the contribution from our patent licensing program and prudent expense management have put us on track to deliver NetRatings’ first full year of profitability." Mr. Pulver continued, "We continue to make significant progress to exploit the growing product opportunities presented by the Internet and digital media. We have completed AdRelevance launches in China and Japan; our enhanced NetView product is rolling out in Europe; and we are moving quickly to deliver digital audio and video measurement solutions -- both independently as well as in conjunction with Nielsen Media Research’s A2/M2 initiative."

Patent Enforcement Program

NetRatings announced earlier this month the settlement of its patent infringement action against Coremetrics, Inc. This represents the fifth licensee under NetRatings’ patent enforcement program, an initiative commenced in early 2005 to protect the company’s investment in its intellectual property. NetRatings recently expanded the program and has complaints pending against seven companies: WebSideStory, Inc., WhenU.com, Inc., 180solutions, Inc., TACODA, WebTrends, Inc., Digital River, Inc. and its subsidiary, Fireclick, Inc.

Complete financial results release

Follow the link below for the complete financial results release and disclaimers at the NetRatings web site.

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