Key Developments For CoStar Group Inc
CoStar Group Inc (CSGP.O) (Nasdaq)
CoStar Group, Inc. Issues Q4, FY 2009 Mixed Guidance
CoStar Group, Inc. announced that for the fourth quarter of 2009, it expects approximately $53.0-$54.0 million in revenues, and fully diluted net income per share (EPS) of approximately $0.16 to $0.19. Fourth quarter outlook includes approximately $0.03 per share of deal-related costs, purchase amortization, equity compensation, and other costs related to the acquisition of Resolve. For fiscal 2009, it expects approximately $208.0-$209.0 million in revenues, and fully diluted net income per share of approximately $0.92 to $0.95. Full year guidance includes approximately $6.9 million in pre-tax, non-cash equity compensation charges related to the vesting of restricted stock and stock option grants. According to Reuters Estimates, analysts are expecting the Company to report EPS of $0.22 on revenues of $52.7 million for the fourth quarter of 2009; EPS of $0.97 on revenues of $206 million for fiscal 2009.
CoStar Group, Inc. Acquires Resolve Technology; Reaffirms Q3 2009 Guidance
CoStar Group, Inc. announced the acquisition of Resolve Technology, Inc., a provider of business intelligence and portfolio management software serving the institutional real estate investment industry. Financial terms of the transaction were not disclosed. The acquisition will have no effect on CoStar Group's third quarter 2009 results, scheduled to be released on October 21, 2009, and the Company reaffirmed its guidance for the third quarter of 2009. According to Reuters Estimates, analysts on an average are expecting the Company to report earnings per share (EPS) of $0.20 on revenue of $51.4 million for the same period.
LoopNet, Inc. Announces Significant Legal Victory in Lawsuit Against CoStar Group, Inc.
LoopNet, Inc. announced a significant legal victory against CoStar Group, Inc. The California Superior Court denied CoStar`s Motion for Preliminary Injunction, it confirmed LoopNet`s right to enforce its Terms of Use against CoStar, it rejected as "unreasonable" CoStar`s CEO`s interpretation of the parties` 2005 Settlement and it rejected as completely unsubstantiated CoStar`s claim it was somehow harmed when it was not able to engage in unfettered data mining from LoopNet`s website. The Court`s ruling, which followed a two-day hearing during which the Court heard live testimony from LoopNet`s CEO and CoStar`s CEO, arose from a data mining project launched by CoStar against LoopNet`s website in February 2009. The undisputed evidence established that during the data mining project, CoStar management directed as many as several hundred of CoStar employees and foreign contractors to run tens of thousands of searches on the LoopNet website for the stated purpose of "identifying advertisers and then determining how many listings they have" and to use this information for potential "sales and marketing uses," such as advertising. This competitive data mining effort was a violation of LoopNet`s Terms of Use which prohibit the use of LoopNet listings and data for a competitive service.
CoStar Group, Inc. Issues Q3, FY 2009 Mixed Guidance
CoStar Group, Inc. announced that for the third quarter of 2009, it expect approximately $51.0 to $52.5 million in revenues, which includes $2.5 to $3.0 million of prorated PPR revenue in the quarter, and fully diluted net income per share of approximately $0.19 to $0.21. The third quarter outlook includes approximately $500,000 of deal-related costs, approximately $200,000 to $300,000 of purchase amortization, and approximately $150,000 of equity compensation related to the acquisition of PPR. For fiscal 2009, it expect approximately $205.0 to $208.5 million in revenues, which includes $7.0 to $7.5 million of prorated PPR revenue for the year, and fully diluted net income per share of approximately $0.95 to $1.00. The fiscal 2009 outlook also includes approximately $500,000 of deal-related costs, approximately $500,000 of purchase amortization, and approximately $300,000 of equity compensation related to the acquisition of PPR. In total, the fiscal guidance includes approximately $6.5 million in pre-tax, non-cash equity compensation charges related to the vesting of restricted stock and stock option grants. According to Reuters Estimates, analysts were expecting the Company to report revenues of $49.2 million and EPS of $0.24 for third quarter of 2009; revenues of $199.6 million and EPS of $1.01 for fiscal 2009.
CoStar Group, Inc. Acquires Property and Portfolio Research From Daily Mail and General Trust plc's DMG Information, Inc.-Penton Insight
Penton Insight reported that CoStar Group, Inc. has acquired Boston-based Property and Portfolio Research (PPR), which provides commercial real estate analysis. DMG Information, Inc., a division of Daily Mail and General Trust plc, agreed to sell PPR in exchange for shares of CoStar common stock valued at approximately $22 million, according to CoStar. CoStar will preserve PPR's separate identity and operate it as an independent subsidiary, executives said. The PPR staff will remain in Boston and in its offices in London and Hong Kong.
