InfoSpace Announces Quarterly Results

Payment Solutions revenues were $7.8 million in the fourth quarter of 2003, an increase of $1.9 million (or 33%) from the fourth quarter of 2002. The revenue increase is primarily due to growth in the number of credit card merchants using the Authorize.Net® service and an increase in the number of transactions, in part from the holiday shopping season.

At the end of the fourth quarter, approximately 91,000 active gateway merchants were using the Authorize.Net service, generating an average of approximately $24.30 in monthly revenue per active merchant. Payment Solutions segment income totaled $2.8 million or 35% of revenues for the fourth quarter of 2003.

For the full year 2003, Payment Solutions revenues were $27.8 million, an increase of $6.7 million (or 31%) from full year 2002. Segment income for 2003 was $6.9 million, an increase of 293% from the $1.8 million in Payment Solutions segment income reported for 2002.

The company did not provide any information on transaction volumes processed during the quarter. The company had earlier announced that it has engaged an investment bank to explore strategic alternatives for its payments business.