Company to Complete Shareholder Approved Reverse Stock Split
SACRAMENTO, Calif., December 14, 2001 – InsWeb Corp. (Nasdaq: INSW) today announced that it expects fourth quarter results to exceed previously announced expectations. The Company now anticipates revenues for the fourth quarter to be in the range of $5.7 to $5.9 million, significantly better than the previous guidance issued on October 17, 2001 of $4.2 to $4.8 million. Additionally, InsWeb continues to focus on ongoing cost controls and expects operating expenses to trend in line with previously anticipated levels. The Company further expects that cash used during the quarter will be at the lowest level in four years, coming in at less than $3 million, with cash and investments at December 31, 2001 estimated to be over $34 million.
“Consumer interest in our insurance offerings remains very high as we continue to experience strong traffic to our online marketplace despite the traditionally slower seasonal trend,” said Hussein Enan, chief executive officer of InsWeb. “We are pleased with this positive momentum in our business and believe it bodes well for InsWeb as we continue to make progress on our key operating and performance metrics.”
InsWeb is scheduled to release complete results for the fourth quarter ending December 31, 2001 on January 31, 2002, after the market close.
In addition, InsWeb today announced it intends to complete the shareholder approved reverse split of the Company’s outstanding common stock. The Company’s Board of Directors has adopted a resolution to implement a one-for-six (1:6) reverse stock split, which will become effective December 20, 2001. The reverse stock split would reduce the number of shares of the Company’s common stock outstanding to approximately 7,030,000. A “D” will accompany the Company’s ticker symbol (“INSWD”) for twenty consecutive trading days following the effective date.
InsWeb (Nasdaq: INSW) enables consumers to compare multiple, actionable quotes for auto, term life, health, homeowners, renters and condominium insurance offerings from many of the nation’s highly rated insurers. The top-rated online insurance marketplace also provides live customer service, interactive tools and independent research. Headquartered in Sacramento, Calif., InsWeb is accessible at www.insweb.com and through such prominent sites as MSN, Quicken.com, Lycos and Yahoo!