Web.com Group Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Total revenue was $26.1 million for the third quarter of 2009, compared to $30.0 million for the third quarter of 2008. Due to non-recurring restructuring and related stock-based compensation charges of approximately $1.9 million, the company reported an operating loss, calculated in accordance with U.S. generally accepted accounting principles (GAAP), of $1.6 million, compared to operating income of $1.4 million for the third quarter of 2008. GAAP net loss from continuing operations, due to the above mentioned non-recurring restructuring and related stock-based compensation charges, was $1.6 million for the third quarter of 2009. This compares to net income from continuing operations of $1.6 million in the third quarter of 2008. GAAP net loss from continuing operations was $0.06 per basic and diluted share for the third quarter of 2009, compared to net income from continuing operations of $0.05 per diluted share for the third quarter of 2008. Non-GAAP operating income was $4.1 million for the third quarter of 2009, representing a non-GAAP operating margin of 16% and compared to $5.4 million for the third quarter of 2008. Adjusted EBITDA, which excludes the impact of stock-based compensation, depreciation and amortization expenses, and restructuring charges was $4.8 million for the third quarter of 2009, compared to $6.2 million for the third quarter of 2008. Non-GAAP net income was $4.1 million for the third quarter of 2009, compared to $5.2 million in the third quarter of 2008. Non-GAAP net income per diluted share was $0.15 for the third quarter of 2009, compared to $0.17 per diluted share for the third quarter of 2008. Cash flows from operations were $3.5 million for the third quarter of 2009, and $5.1 million excluding the pay down of accrued restructuring expenses. This compared to $6.2 million and $7.1 million, respectively, for the third quarter of 2008. Loss before income taxes from continuing operations was $1.6 million against income before income taxes from continuing operations of $1.6 million last year. Net loss was $1.6 million against net income of $1.3 million last year. Basic and diluted loss per share was $0.06 against diluted loss per share of $0.04 last year. For the nine months, total revenues were $80.1 million against $91.4 million last year. The company reported an operating loss of $0.6 million, compared to operating income of $3.5 million for the year ago period. GAAP net loss from continuing operations was $0.5 million. This compares to net income from continuing operations of $4.0 million last year. GAAP net loss from continuing operations was $0.02 per basic and diluted share compared to net income from continuing operations of $0.13 per diluted share last year. Non-GAAP operating income was $13.0 million compared to $15.0 million last year. Adjusted EBITDA was $15.2 million compared to $17.0 million last year. Non-GAAP net income was $14.0 million compared to $15.4 million last year. Non-GAAP net income per diluted share was $0.52 compared to $0.51 per diluted share last year. Net cash provided by operating activities was $11.6 million against $10.2 million last year. Investments on purchase of property and equipment were $0.867 million against $4.4 million last year. Investment in intangible assets was $4,000 against $945,000 last year. Loss before income taxes from continuing operations was $0.4 million against income before income taxes from continuing operations of $4.0 million last year. Net income was $0.5 million against net income of $4.0 million last year. Basic and diluted income per share was $0.02 against diluted income per share of $0.13 last year.

Web.com Group Inc. provided earnings guidance for the fourth quarter of 2009. For the quarter, the company is targeting revenue in the range of $25.5 million to $26.5 million which is similar to its guidance for the third quarter and reflects the stabilization in its revenue. The company expects non-GAAP net income per diluted share to be in the $0.14 to $0.16 range.

Web.com Group, Inc. said that the company will vigorously look for acquisitions. David L. Brown, Chief Executive Officer and Director of Web.com said, “But, I will tell you it’s a true Easter egg hunt, trying to find good opportunities that fit the requirements that I just defined that will also fit in to the culture of our company and that we can implement successfully. After seven of these we feel that we’ve demonstrated to the market that we know how to integrate acquisitions successfully and we also know how to walk away from ones that won’t make sense. We’re going to continue to be very careful but also very, very vigorous in looking for acquisitions.”