Table of Contents
ITEM 1. Business
This report contains forward looking statements that involve risks and uncertainties. The statements contained in this report that are not
purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. We use words such as anticipates, believes, plans, expects, future,
intends, may, will, should, estimates, predicts, potential, continue, and similar expressions to identify such forward
looking statements. Forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause our
results, levels of activity, performance, achievements and prospects, and those of the wireless and Internet software and application services
industry, to be materially different from those expressed or implied by such forward looking statements. These risks, uncertainties and other
factors include, among others, those identified under Factors Affecting Our Operating Results, Business Prospects and Market Price of
Stock and elsewhere in this report.
InfoSpace, Inc. is a provider of wireless and Internet software and application services. We have developed and deliver a wireless and
Internet platform of software and application services that enable companies to offer network based services under their own brands. Our
customers in turn, offer these products and application services to their customers as their solutions. We provide our services across multiple
platforms simultaneously, including PCs and non PC devices.
We develop and deliver our products and application services to a broad range of customers that span each of our business areas of
wireline and broadband, merchant and wireless. In our wireline and broadband business, we deliver our services to Web portals such as
America Online, destination sites such as Disney, and DSL providers such as Verizon Online. In our merchant business, we deliver our
products to regional Bell operating companies such as Verizon, merchant banks such as Union Bank of California, and financial institutions
such as American Express. In our wireless business, we deliver our products and application services to wireless carriers such as Verizon
Wireless, AT&T Wireless and Cingular, and other consumer service companies such as Charles Schwab.
Our services are predominately built on our core technology platform and use the same operational infrastructure. We do not currently
allocate development or operating costs to any of these services. The following provides detail on each of our business areas.
Wireline and Broadband
Through our wireline and broadband business area, we develop and deliver Internet services for high speed broadband and dial up
narrowband Web sites. We enable our customers such as destination Web sites and broadband service providers, including digital subscriber
line (DSL) companies, to offer their customers an array of private labeled services. We deliver our services to Web sites including America
Online, Microsoft's MSN, NBCi, Lycos and Verizon Online, among others.
InfoSpace's product offerings are designed to help businesses attract customers, improve loyalty, create new revenue streams and
monetize their customer base. Further, our services are private labeled and delivered with each customer's logo, color scheme and navigation
design, to help strengthen the value of their brand. This ensures that our customers own the value relationship with their customer. Our wireline
business unit is focused on delivering three main categories of products:
products are meta search engines in that they simultaneously search many engines at the same time, producing fast,
extensive results. Rather than offering just a single search engine, our search solutions offer some of the best search engines on the
Web. We integrate search engines including Alta Vista, Overture, About, Direct Hit and Looksmart, among others, into our meta