SOURCE: Customer Acquistion Network

November 14, 2007 16:05 ET

Customer Acquisition Network Reports Third Quarter 2007 Results

FT LAUDERDALE, FL--(Marketwire - November 14, 2007) - Customer Acquisition Network, Inc. (OTCBB: CACN), an emerging pay-for-performance, multi-channel Internet marketing company, reported record financial results for its third quarter 2007 ended September 30, 2007.

"This third quarter was our first quarter as an operating company," said Michael Mathews, CEO and co-founder of Customer Acquisition Network. "Much was accomplished operationally, including assembling a management team of highly accomplished industry veterans, raising substantial capital, acquiring interCLICK -- one of the nation's largest and the fastest-growing ad networks -- and becoming a publicly traded company. We accomplished this at a phenomenal pace and I am particularly proud of our team. Our achievements this quarter have set the stage for rapid growth, both organically and through acquisition, as we leverage our resources to take advantage of one of the greatest growth industries of our time."

Revenues for the quarter totaled $1.2 million. This represented one month's contribution from the operations of interCLICK, which was acquired at the end of August and was the sole source of revenues for the quarter. Since Customer Acquisition Network effectively began operations in July 2007, there are no comparative periods to report.

Pro forma revenues, which include interCLICK, totaled $3.5 million in the third quarter, an increase of 101% from the previous quarter pro forma revenues of $1.7 million. For the nine months ended September 30, 2007, revenues were $6.4 million on a pro forma basis.

Net loss totaled $0.9 million or ($0.04) per share in the quarter. On a pro forma basis, net loss totaled $1.0 million or ($0.03) per share in the quarter and $0.9 million or ($0.03) per share for the nine months ended September 30, 2007. The net loss reflects start-up costs of Customer Acquisition Network, as well as recurring corporate overhead required to target, acquire, and integrate platform acquisitions. For the quarter, such acquisition related expenses comprised those related to interCLICK and the doubling of interCLICK's sales force as an investment to support its continued rapid growth.

Devon Cohen, Customer Acquisition Network's COO, commented, "We are confident interCLICK will continue the strong expansion that resulted in comScore reporting during the quarter that interCLICK grew 135% from December to September, which was twice the rate of the next fastest growing network. We are now looking to acquire other platform networks which would be synergetic to interCLICK and fulfill our vision of building a fully integrated, pay-for-performance, multi-channel internet marketing company."

During the quarter, interCLICK's rapid growth catapulted it to the position of the 11th largest online advertising network, reaching 85 million unique U.S. visitors per month, or 47 percent of the U.S. online population, with impressions per month exceeding four billion.

Much of interCLICK's success is due to its partnerships with some of the world's largest Internet publishers and advertisers, as well as the fact that interCLICK is the only ad network that provides real-time operational transparency for both advertisers and publishers. interCLICK advertisers select publisher sites for their ads via an easy-to-use Web interface and then receive performance reports on each site placement in real-time. Per-site, real-time reporting allows advertisers to implement highly efficient campaigns and maximize return-on-investment (ROI).

Conference Call

The company will hold a conference call later today to discuss its third quarter financial results. Customer Acquisition Network CEO and founder Michael D. Mathews, COO Devon M. Cohen, and CFO Bruce G. Kreindel will host the presentation, along with Michael Katz, president of interCLICK. This will be followed by a question and answer period.

Date: Wednesday, November 14, 2007
Time: 4:30 pm Eastern (1:30 pm Pacific)
Dial-In Number: 1-866-328-4270
International: 1-480-293-1744
Conference ID#: 3801305

Internet Simulcast: http://viavid.net/dce.aspx?sid=000047D8
(Windows Media Player needed for simulcast)

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call, please contact the Liolios Group at (949) 574-3860.

A replay of the conference call will be available starting November 14, 2007 at 7:30 PM Eastern and until December 14, 2007:

Toll-free replay number:  1-800-406-7325
International replay number:  1-303-590-3030
Replay Pin#:  3801305
Webcast Replay:  http://viavid.net/dce.aspx?sid=000047D8

About InterCLICK

As a wholly owned subsidiary of Customer Acquisition Network, Inc., interCLICK operates the interCLICK Network, a highly targeted contextual marketing network designed to balance the interests of publishers, advertisers and users. The InterCLICK Network combines advanced contextual awareness technology with a large base of top tier publisher sites to create a highly effective advertising platform. interCLICK's unique model delivers dramatically higher response rates than traditional ad networks, helping advertisers increase brand awareness, catalyze customer action and improve ROI on their advertising spend. The end result is that the user appreciates the targeted content, the advertiser has a significantly improved return on investment, and the publisher shows higher quality and better paying ads. For more information about the interCLICK Network, visit www.interclick.com.

About Customer Acquisition Network

Customer Acquisition Network, Inc. is an emerging leader in the Internet multi-channel, pay-for-performance network business. Customer Acquisition Network was formed to build an integrated, multi-channel network that provides advertisers the ability to drive high-volume, high-quality customer leads and acquisitions, and refocus ad dollars quickly based upon ROI. For more information about Customer Acquisition Network, visit www.customeracquisitionnetwork.com.

       CUSTOMER ACQUISITION NETWORK HOLDINGS, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEET
                                (Unaudited)

                                                        September 30, 2007
                                                        ------------------
Assets
Current assets:
Cash and cash equivalents                               $        2,029,093
Accounts receivable, net                                         1,554,047
Prepaid assets and other current assets                             89,111
                                                        ------------------
Total current assets                                             3,672,251
Property and equipment, net                                        114,021
Intangible assets (net of accumulated amortization of
 $91,094)                                                        1,298,906
Goodwill                                                         7,208,566
Other assets                                                        66,212
Deferred tax asset, net                                            243,582
                                                        ------------------
Total assets                                            $       12,603,538
                                                        ==================

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                                        $        1,566,116
Accounts payable - related parties                                  22,412
Accrued expenses                                                   422,073
Past service bonus                                                 200,000
                                                        ------------------
Total current liabilities                                        2,210,601
Deferred tax liability                                             519,563
                                                        ------------------
Total liabilities                                                2,730,164
Commitments and contingencies

Stockholders' equity:
Preferred Stock, $0.001 par value; 10,000,000 shares
 authorized, zero shares issued and outstanding                          -
Common Stock, $0.001 par value; 140,000,000 shares
 authorized, 34,313,000 issued and outstanding                      34,313
Additional paid-in capital                                      10,776,848
Accumulated deficit                                               (937,787)
                                                        ------------------
Total stockholders' equity                                       9,873,374
                                                        ------------------

                                                        ------------------
Total liabilities and stockholders' equity              $       12,603,538
                                                        ==================



       CUSTOMER ACQUISITION NETWORK HOLDINGS, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)

                                                             From June 14,
                                               Three-month       2007
                                              period ended  (inception) to
                                              September 30,  September 30,
                                                  2007           2007
                                              -------------  -------------

 Revenues                                     $   1,169,991  $   1,169,991
 Cost of revenue                                  1,083,613      1,083,613
                                              -------------  -------------
  Gross profit                                       86,378         86,378

 Operating expenses:
  General and administrative                        939,848        939,848
  Sales and marketing                               109,884        109,884
  Amortization of intangible assets                  91,094         91,094
  Merger, acquisition and organizational costs      187,353        187,353
                                              -------------  -------------
   Total operating expenses                       1,328,179      1,328,179

  (Loss) from operations                         (1,241,801)    (1,241,801)
 Other income (expense)                              23,995         23,995
                                              -------------  -------------

   (Loss) before income tax benefit           $  (1,217,806) $  (1,217,806)
      Income tax benefit                            280,019        280,019
                                              -------------  -------------
   Net loss                                   $    (937,787) $    (937,787)
                                              =============  =============

 Net loss per share - basic                           (0.04)         (0.04)

 Weighted average shares outstanding - basic     23,756,165     22,292,694

 Net loss per share - diluted                         (0.04)         (0.04)

 Weighted average shares outstanding -
  diluted                                        23,756,165     22,292,694

Contact Information

  • Customer Acquisition Network Contact:
    Devon M. Cohen
    Chief Operating Officer
    Customer Acquisition Network, Inc.
    Tel: 954-712-0000

    Investor Relations for Customer Acquisition Network
    Liolios Group, Inc.
    Tel: 949-574-3860