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LOCM OTCM· Local Corporation
Earnings report Q2 2015

Local Corporation Reports Significant Decrease in Revenue in Latest Quarter

Segments of revenue

In the latest quarter, Local Corporation reported a significant reduction in revenue. The company's revenue decreased from $49 million in the first half of 2014 to approximately $25 million in the first half of 2015. This decrease in revenue was primarily due to lower revenue from its Network business. The decrease in Network revenue can be attributed to a reduction in network partners as well as more stringent traffic filters, which resulted in accepting less traffic from network partners.

Strengths

Despite the decrease in revenue, Local Corporation has shown strength in managing its financial challenges. The company has filed for Chapter 11 bankruptcy protection and is currently acting as a debtor-in-possession. Management comments indicate that the company is evaluating and quantifying impairment charges related to goodwill and other assets. This proactive approach demonstrates the company's commitment to addressing its financial challenges and restructuring its operations.

Challenges

Local Corporation faces significant challenges in its financial performance. The decrease in revenue from its Network business highlights the need for the company to attract more network partners and improve its traffic conversion for advertisers. Additionally, the bankruptcy filing and financial challenges are expected to result in impairment charges related to goodwill and other assets. The company's inability to estimate these charges at this time further adds to the challenges it faces.

Noteworthy

The significant decrease in revenue and the bankruptcy filing are noteworthy events in Local Corporation's latest quarter. The company's decision to file for Chapter 11 bankruptcy protection indicates its commitment to addressing its financial challenges and restructuring its operations. The evaluation and quantification of impairment charges related to goodwill and other assets will have a significant impact on the company's financial position.

Summary

Local Corporation reported a significant decrease in revenue in the latest quarter, primarily due to lower revenue from its Network business. The company's proactive approach in addressing its financial challenges through the bankruptcy filing and evaluation of impairment charges demonstrates its commitment to improving its financial performance. However, the challenges of attracting more network partners and improving traffic conversion for advertisers remain. Overall, Local Corporation's latest quarter reflects a need for strategic measures to overcome its financial challenges and drive revenue growth.

Source documents

Form NT 10-Q  filed on Aug 17, 2015
51 pages scanned

Reference data

Company financials Q2 revenue 13.1M
Analyst estimates Q2 EPS missed by 0.00%
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