LookSmart (LookSmart) Operating Income : $-4.74 Mil (TTM As of Jun. 2015)

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What is LookSmart Operating Income?

LookSmart's Operating Income for the three months ended in Jun. 2015 was $-1.01 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 was $-4.74 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. LookSmart's Operating Income for the three months ended in Jun. 2015 was $-1.01 Mil. LookSmart's Revenue for the three months ended in Jun. 2015 was $1.02 Mil. Therefore, LookSmart's Operating Margin % for the quarter that ended in Jun. 2015 was -99.22%.

LookSmart's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. LookSmart's annualized ROC % for the quarter that ended in Jun. 2015 was -88.38%. LookSmart's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 was -139.30%.

LookSmart Operating Income Historical Data

The historical data trend for LookSmart's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LookSmart Operating Income Chart

LookSmart Annual Data

Trend

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Operating Income

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0.64

-2.84

-11.09

-5.53

-6.58

LookSmart Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Operating Income	Get a 7-Day Free Trial															-1.90	-1.39	-1.35	-0.98	-1.01

LookSmart Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-4.74 Mil.

LookSmart (NAS:LOOK) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

LookSmart's annualized ROC % for the quarter that ended in Jun. 2015 is calculated as:

	ROC % (Q: Jun. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2015 )	+	Invested Capital (Q: Jun. 2015 ))	/ count )
=	-4.048 * ( 1 - 0% )	/	( (4.298	+	4.862)	/ 2 )
=	-4.048	/	4.58
=	-88.38 %

where

	Invested Capital		(Q: Mar. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4.49	-	1.684	-	( 0.292	-	max(0, 2.585	-	1.093	+	0.292	))
=	4.298

	Invested Capital		(Q: Jun. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4.67	-	1.271	-	( 0.554	-	max(0, 2.997	-	1.534	+	0.554	))
=	4.862

Note: The Operating Income data used here is four times the quarterly (Jun. 2015) data.

2. Joel Greenblatt's definition of Return on Capital:

LookSmart's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2015		Q: Jun. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-3.968	/	( ( (2.979 + max(-1.697, 0))	+	(2.718 + max(-1.118, 0)) )	/	2 )
=	-3.968	/	( ( 2.979	+	2.718 )	/	2 )
=	-3.968	/	2.8485
=	-139.30 %

where Working Capital is:

	Working Capital		(Q: Mar. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.264	+	0	+	0.537)	-	(1.684	+	0.814	+	0)
=	-1.697

	Working Capital		(Q: Jun. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.293	+	0	+	0.687)	-	(1.271	+	0.827	+	0)
=	-1.118

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2015) EBIT data.

3. Operating Income is also linked to Operating Margin %:

LookSmart's Operating Margin % for the quarter that ended in Jun. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2015 )	/	Revenue (Q: Jun. 2015 )
	=	-1.012	/	1.02
	=	-99.22 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

LookSmart Operating Income Related Terms

Thank you for viewing the detailed overview of LookSmart's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

LookSmart (LookSmart) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » LookSmart Ltd (NAS:LOOK) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.looksmart.com

LookSmart Ltd was organized in 1996 and is incorporated in the State of Delaware. The Company is a search advertising network solutions Company that provides relevant solutions for search advertising customers. It operates in a large online search advertising ecosystem serving ads that target user queries on partner sites. It operates in the middle of this ecosystem, acquiring search queries from a variety of sources and matching them with the keywords of its search advertising customers. The Companys largest category of customers has been intermediaries, the majority of which purchase clicks to sell into the affiliate networks of the large search engine providers. Another category of customers are direct advertisers and their agencies whose objective is to obtain conversions or sales from the clicks. The last category of customers is self-service advertisers that sign-up online and pays by credit card. It offers search advertising customers targeted, pay-per-click (PPC) search via a monitored search advertising distribution network using the Companys AdCenter platform technology. The Companys search advertising network includes publishers and search advertising customers, including intermediaries and direct advertising customers and their agencies as well as self-service customers in the United States and certain other countries. The Companys application programming interface (API) allows search advertising customers and their advertising agencies to connect any type of marketing or reporting software with minimal effort for easier access, management, and optimization of search advertising campaigns. It also offers publishers licensed private-label search advertiser network solutions based on its AdCenter platform technology (Publisher Solutions). Publisher Solutions consist of hosted auction-based ad serving with an ad backfill capability that allows publishers and portals to manage their advertiser relationships, distribution channels and accounts. The Companys trademarks include LookSmart. It is subject to a number of domestic state and federal laws that affect companies conducting business on the Internet.

Executives

Michael Onghai	director, 10 percent owner, officer: President, CEO and Secretary	122 WEST 26TH ST. 5TH FLOOR, NEW YORK NY 10001
Pelosi Paul Francis Jr	director	2269 CHESTNUT STREET, SAN FRANCISCO CA 94123
Christian Jason Chan	director	C/O SECLAW GROUP, 100 CRESCENT COURT #700, DALLAS TX 75201
Platinum Partners Value Arbitrage Fund, Lp	10 percent owner	250 WEST 55TH STREET, 14TH FLOOR, NEW YORK NY 10019
Mark Nordlicht	10 percent owner	250 WEST 55TH STREET, NEW YORK NY 10019
Platinum Management (ny) Llc	10 percent owner	250 WEST 55TH STREET, NEW YORK NY 10019
Terri A Dial	director	1564 NE EXPRESSWAY, ATTN: BJ PURCELL, ATLANTA GA 30329
Jean-yves Dexmier	director	C/O LOOKSMART, LTD. 625 2ND STREET SAN FRANCISCO CA 94107
Scott L Kauffman	director	260 CHURCHILL AVENUE, PALO ALTO CA 94301
Stephen C Markowski	officer: Chief Financial Officer	SYMANTEC CORPORATION, 20330 STEVENS CREEK BLVD., CUPERTINO CA 95014
Stacey Giamalis	officer: General Counsel & SVP Legal/HR	C/O PAGERDUTY, INC., 600 TOWNSEND ST., STE. 200, SAN FRANCISCO CA 94103
William John Bush	officer: CFO	539 BRYANT STREET, SUITE 403, SAN FRANCISCO CA 94107
Greg J Santora	director	4201 GRANT COURT, PLEASANTON CA 94566

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