CORRECTING and REPLACING Autobytel Announces Fourth Quarter and Full Year 2007 Financial...

CORRECTING and REPLACING Autobytel Announces Fourth Quarter and Full Year 2007 Financial Results

Restating 2007 Quarterly Results after Resolution of Patent
Litigation Accounting
IRVINE, Calif.--(Business Wire)--
Statements of Cash Flows in this news release corrected and
replaced to reflect the effect of a reclassification of $39,000 in
items from Net Cash Used in Operating Activities to Net Cash Provided
by Investing Activities. There is no change in Cash and Cash
Equivalents.

The corrected release reads:

AUTOBYTEL ANNOUNCES FOURTH QUARTER AND FULL YEAR 2007 FINANCIAL
RESULTS

Restating 2007 Quarterly Results after Resolution of Patent
Litigation Accounting

Autobytel Inc. (Nasdaq: ABTL), a leading Internet automotive
marketing services company, today announced financial results for the
fourth quarter and year ended December 31, 2007. For the purposes of
financial reporting, revenues and expenses related to the company's
Retention Performance Marketing (RPM) and Automotive Information
Center (AIC) businesses, both divested in 2007, and its AVV business,
which was sold in the first quarter of 2008, have been accounted for
in discontinued operations.

Revenue in the fourth quarter of 2007 was $18.9 million, compared
with $20.4 million in the prior-year period. The decrease in revenue
was primarily the result of the strategic elimination of low quality
traffic sources, which negatively affected advertising revenue in the
2007 fourth quarter.

Autobytel reported a loss from continuing operations of $6.3
million in the 2007 fourth quarter, compared with a loss from
continuing operations of $9.1 million in the fourth quarter of 2006.
The loss from continuing operations in the fourth quarter of 2007 was
affected by the lower advertising revenue and by higher sales and
marketing costs related to MyRide.com, offset by lower general and
administrative expenses. Also included in the loss from continuing
operations in the fourth quarter of 2007 is other income of $4.0
million related to renegotiation of a license agreement and sale of
shares of an investment the company previously held in Japan. Non-cash
share based compensation expense was $1.0 million and $1.4 million in
the fourth quarters of 2007 and 2006, respectively.

Net loss in the fourth quarter of 2007 was $4.4 million, or $0.10
per share, compared with a net loss of $7.3 million, or $0.17 per
share, in the fourth quarter of 2006.

"During the fourth quarter we began several initiatives designed
to make Autobytel a stronger company...one that we believe can deliver
sustainable, long-term growth and increased value to our consumers,
advertisers, shareholders and employees," said Jim Riesenbach,
president and CEO of Autobytel. "We've already completed actions that
are expected to remove at least $10 million in annualized costs from
our P&L, and we expect to achieve additional expense reductions,
bringing the total to approximately $15 million on an annual basis by
the end of 2008.

"Although our revenue results this quarter were impacted by our
decision to strengthen traffic quality across Autobytel's properties,
we believe these actions will produce enhanced value for automotive
marketers and increased revenue opportunities for the company," said
Riesenbach. "We remain focused on optimizing the MyRide experience for
consumers and advertisers, while continuing to make progress toward
simplifying our cost structure. We are excited about our prospects for
the future and our ability to significantly change and improve the
automotive Internet."

Full year revenue for 2007 was $84.4 million, compared with $85.1
million in 2006. The change in revenue was primarily related to
decreased advertising revenues in the fourth quarter of 2007.
Autobytel reported a loss from continuing operations of $17.3 million
in 2007, compared with a loss from continuing operations of $37.3
million in 2006. The 2007 full year net loss was $5.4 million, or
$0.12 per share, compared with a net loss of $31.5 million, or $0.74
per share, in 2006. Non-cash share based compensation expense was $4.8
million and $5.4 million in 2007 and 2006, respectively.

Cash and cash equivalents and, to the extent applicable,
restricted cash and cash equivalents, and short-term investments,
totaled $28.3 million at December 31, 2007, compared with $26.1
million at December 31, 2006. The December 31, 2007 cash balance
excludes $21.9 million in cash proceeds received in the first quarter
of 2008 from the company's sale of its AVV business.

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Recent Highlights/Metrics
(in thousands, except average revenue per
purchase request or finance lead and
percentages)
4Q 2007 3Q 2007 4Q 2006
-------- -------- --------
Lead fee revenue $15,901 $17,576 $15,288
Advertising revenue $ 2,914 $ 4,318 $ 5,120
Purchase requests 723 825 626
Retail 61% 58% 70%
OEM and Enterprise 39% 42% 30%
Average revenue per purchase request $ 18.30 $ 17.65 $ 19.92
Finance leads 148 180 179
Average revenue per finance lead $ 18.14 $ 16.74 $ 15.68
*T

Restatement of 2007 Quarterly Results after Resolution of Patent
Accounting

As disclosed in the company's Form 8-K filed earlier today with
the Securities and Exchange Commission (SEC), Autobytel will restate
within its Annual report on Form 10-K expected to be filed today with
the SEC the condensed consolidated financial statements for the first,
second and third fiscal quarters of 2007 relating to the accounting
treatment of the $20.0 million patent litigation settlement entered
into with Dealix Corporation relating to a patent infringement
lawsuit. Accordingly, such quarterly financial statements contained in
Autobytel's Form 10-Qs for the fiscal quarters ended March 31, June 30
and September 30, 2007 should not be relied upon. Corrected quarterly
financial information will be included in the Annual Report on Form
10-K.

For the quarter ended March 31, 2007, the company will revise its
accounting by recognizing a net increase in the recorded settlement of
$2.1 million, which it had previously reported as deferred revenue
resulting in all of the initial proceeds of $12.0 million received in
2007 being recognized, and reversing the previously recorded
receivable and related deferred liability.

In addition, for the quarters ended June 30, and September 30,
2007, the company will revise its accounting by reversing the
previously recorded amortization of deferred liability and discount on
future payments of approximately $0.3 million in both periods, and
reversing the remaining balances of the previously recorded receivable
and related deferred liability.

More information about the restatement is detailed in Note 13 of
the company's consolidated financial statements included in the Form
10-K.

The resolution of the accounting treatment of the Dealix patent
litigation settlement does not affect the terms of the settlement.

Conference Call

Autobytel management will host a conference call today at 5:00
p.m. ET/2:00 p.m. PT to discuss its fourth quarter and year-end 2007
financial results. The conference call will be available to all
interested parties through a live webcast at www.autobytel.com
(click on "Investor Relations" and then click on "Conference Calls").
Please visit the website at least 15 minutes prior to the start of the
call to register and download any necessary software. For those unable
to listen to the live broadcast, the call will be archived for one
year on Autobytel's website. A telephone replay of the call will also
be available for approximately one week by dialing 800-642-1687
(domestic) or 706-645-9291 (international) and entering conference ID:
39750857.

About Autobytel Inc.

Since launching the first car-buying website in 1995, Autobytel
Inc.'s (Nasdaq: ABTL) mission has been to empower automotive consumers
with the tools and information they need to make smart, well-informed
vehicle purchasing and ownership decisions. The company has helped
millions of car shoppers and generated billions of dollars in car
sales for dealers. Today, the company's innovative, consumer-driven
flagship site, MyRide.com, expands the company's mission across the
automotive purchase and ownership life cycle. As the first vertical
search experience for the automotive marketplace, MyRide.com is
designed to help Internet-savvy consumers FIND, SEE, BUY and LEARN
anything automotive and BELONG to a diverse community of people who
have similar automotive interests.

By providing a convenient and comprehensive automotive consumer
experience across the purchase and ownership lifecycle, Autobytel
provides new value and touch-points for automotive marketers. Through
MyRide.com and Autobytel's marketing network, the company connects
dealerships with a steady, diverse stream of motivated, serious
shoppers, while providing both dealers and manufacturers with
precision-targeted brand and product marketing opportunities. The
company's advanced web-based advertising and marketing programs also
help dealers and manufacturers build relationships with customers, as
well as help them to efficiently manage and convert online business.

Forward-Looking Statement Disclaimer

The statements contained in this press release that are not
historical facts are forward-looking statements under the federal
securities laws, including, but not limited to, statements relating to
our ability to deliver sustainable, long-term growth and increased
value, our ability to achieve cost reductions and the expected impact
on our business and results of operations of our initiative to
strengthen traffic quality across the company's properties. These
forward-looking statements are not guarantees of future performance
and involve certain risks, uncertainties and assumptions that are
difficult to predict. Actual outcomes and results may differ
materially from what is expressed in, or implied by, such
forward-looking statements. Autobytel undertakes no obligation to
update publicly any forward-looking statements, whether as a result of
new information, future events or otherwise. Among the important
factors that could cause actual results to differ materially from
those expressed in, or implied by, the forward-looking statements are
changes in general economic conditions, the economic impact of
terrorist attacks or military actions, increased dealer attrition,
pressure on dealer fees, increased or unexpected competition, the
failure of new products and services to meet expectations, failure to
retain key employees or attract and integrate new employees, that
actual costs and expenses exceed the charges taken by Autobytel,
changes in laws and regulations, costs of legal matters, including,
defending lawsuits and undertaking investigations and related matters,
and other matters disclosed in Autobytel's filings with the Securities
and Exchange Commission. Investors are strongly encouraged to review
our Annual Report on Form 10-K for the year ended December 31, 2007 to
be filed later today, and other filings with the Securities and
Exchange Commission for a discussion of risks and uncertainties that
could affect operating results and the market price of our stock.

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AUTOBYTEL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
(unaudited)

December 31, December 31,
2007 2006
------------ ------------
ASSETS
Current assets:
Domestic cash and cash equivalents $ 27,601 $ 22,743
Restricted international cash and cash
equivalents - 360
Short-term investments 686 3,000
Accounts receivable, net of allowances for
bad debts and customer credits of $534
and $798, respectively 11,692 17,250
Prepaid expenses and other current assets 1,739 1,819
Assets held for sale 17,160 2
------------ ------------
Total current assets 58,878 45,174
Property and equipment, net 10,757 7,954
Goodwill 52,074 70,697
Acquired intangible assets, net 303 674
Other assets 144 197
------------ ------------
Total assets $ 122,156 $ 124,696
============ ============

LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 5,852 $ 9,271
Accrued expenses 6,470 7,607
Deferred revenues 1,749 2,138
Other current liabilities 1,199 1,090
Current liabilities held for sale 198 393
------------ ------------
Total current liabilities 15,468 20,499
Deferred rent - non-current 241 195
Deferred revenue - non-current 195 -
------------ ------------
Total liabilities 15,904 20,694
Minority interest 184
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value;
11,445,187 shares authorized; none
outstanding - -
Common stock, $0.001 par value;
200,000,000 shares authorized; 43,788,633
and 42,665,840 shares issued and
outstanding, respectively 44 43
Additional paid-in capital 296,964 289,862
Accumulated other comprehensive income -
securities available-for-sale 686 -
Accumulated deficit (191,442) (186,087)
------------ ------------
Total stockholders' equity 106,252 103,818
------------ ------------
Total liabilities, minority interest and
stockholders' equity $ 122,156 $ 124,696
============ ============
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AUTOBYTEL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(unaudited)

Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------- -------------------------

2007 2006 2007 2006
------------ ------------ ------------ ------------

Revenues:
Lead fees $ 15,900 $ 15,287 $ 67,386 $ 67,496
Advertising 2,914 5,120 16,885 17,505
Other 72 32 114 101
------------ ------------ ------------ ------------
Total revenues 18,886 20,439 84,385 85,102
------------ ------------ ------------ ------------

Costs and
expenses:
Cost of revenues 13,077 10,720 52,448 47,653
Sales and
marketing 5,293 4,204 21,474 20,128
Technology
support 4,730 4,728 18,119 17,476
General and
administrative 6,558 10,201 27,065 38,416
Amortization of
acquired
intangible
assets 42 303 464 1,209
Patent
litigation
settlement - - (12,000) -
------------ ------------ ------------ ------------
Total costs
and expenses 29,700 30,156 107,570 124,882
------------ ------------ ------------ ------------

Operating loss (10,814) (9,717) (23,185) (39,780)
Interest and other
income 4,481 545 5,906 2,367
Foreign currency
exchange loss - - (7) -
------------ ------------ ------------ ------------
Loss from
continuing
operations
before income
taxes and
minority
interest (6,333) (9,172) (17,286) (37,413)
Income taxes
(expense) benefit - 81 - 107
Minority interest - (21) (21)
------------ ------------ ------------ ------------
Loss from
continuing
operations (6,333) (9,112) (17,286) (37,327)
Income from
discontinued
operations 1,951 1,854 11,931 5,859
------------ ------------ ------------ ------------
Net loss $ (4,382) $ (7,258) $ (5,355) $ (31,468)
============ ============ ============ ============

Loss per share
from continuing
operations: Basic
and Diluted $ (0.14) $ (0.21) $ (0.40) $ (0.88)
============ ============ ============ ============

Net loss per
share: Basic and
Diluted $ (0.10) $ (0.17) $ (0.12) $ (0.74)
============ ============ ============ ============

Weighted average
common shares
used in computing
loss per share:
Basic and Diluted 43,778,307 42,684,004 43,413,908 42,389,050
============ ============ ============ ============
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AUTOBYTEL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited)

Twelve Months
Ended
December 31,
------------------
2007 2006
-------- ---------
Cash flows from operating activities:
Net loss $(5,355) $(31,468)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 3,648 2,171
Amortization of acquired intangible assets 507 1,515
Provision for bad debt 401 391
Provision for customer credits 1,321 1,645
Write-off of capitalized internal use software - 264
(Gain) loss on disposal of property and
equipment (1) 111
Gain on sale of investment in Autobytel Japan (3,985) -
Gain on sale of AIC (2,762) -
Gain on sale of RPM business (3,576) -
Share-based compensation 4,753 5,397
Minority interest - 21
Foreign currency exchange loss (gain) 7 (22)
Changes in assets and liabilities, net of the
effects of discontinued operations:
Accounts receivable 1,457 (244)
Prepaid expenses and other current assets 141 635
Other assets 52 (73)
Accounts payable (2,535) 2,754
Accrued expenses (757) (4)
Deferred revenues (391) (1,364)
Other current liabilities 167 (512)
-------- ---------
Net cash used in operating activities (6,908) (18,783)
-------- ---------
Cash flows from investing activities:
Maturities of short-term investments 3,000 14,998
Purchases of short-term and long-term investments - (2,998)
Distribution of foreign investment 354 -
Change in restricted international cash and cash
equivalents - (97)
Purchases of property and equipment (7,647) (5,282)
Proceeds from sale of property and equipment 2 15
Proceeds for the sale of investment in Autobytel
Japan 3,985 -
Proceeds from sale of AIC 2,573 -
Proceeds from sale of RPM business 7,343 -
-------- ---------
Net cash provided by investing activities 9,610 6,636
-------- ---------
Cash flows from financing activities:
Distribution to minority interest shareholder (184) -
Net proceeds from exercise of stock options and
awards issued under the employee stock purchase
plan 2,340 1,537
-------- ---------
Net cash provided by financing activities 2,156 1,537
-------- ---------
Net increase (decrease) in cash and cash
equivalents 4,858 (10,610)
Cash and cash equivalents, beginning of period 22,743 33,353
-------- ---------
Cash and cash equivalents, end of period $27,601 $ 22,743
======== =========

Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes $ 85 $ 465
======== =========
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Autobytel Inc. Investor Relations
Crystal Hartwell, 949-225-4553
crystalh@autobytel.com
or
PondelWilkinson Inc.
Roger Pondel/Laurie Berman, 310-279-5980
investor@pondel.com
or
Autobytel Inc. Media Relations
Melanie Webber, 949-862-3023
melaniew@autobytel.com
or
Ruder Finn
Joe Foster, 310-882-4014
fosterj@ruderfinn.com

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