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Earnings Calls: 
The Knot Earnings Call, Third Quarter 2008
Author: Godwin Gwetu
123jump.com
Last Update: 2:44 AM ET November 11 2008

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The life stage media company reported third quarter net revenues of $27 million, an increase of 8% from net revenues of $25 million for the third quarter of 2007. The net income for the quarter was $2.2 million or 7 cents per share versus net income of $2.9 million or 9 cents per share in the equivalent period last year. The dip in net income was due to the company’s ongoing investment in strategic initiatives to extend brands and enhance technological infrastructure.


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William Morrison (Thinkpanmure, LLC): Can you talk more about the pipeline? You said earlier that you got about 85% of the quarter booked at this point?

John P. Mueller: Correct.

William Morrison (Thinkpanmure, LLC): How concrete are those bookings? On the national side, people are still planning to spend in December; can they still cancel those?

John P. Mueller: On the national side they can cancel. We haven’t experienced much of that but that is definitely a risk and we review our pipeline during the week and every week. I took a look at it today and there have not been much movement in what our sales force is telling us about the feedback they’re getting. In this market, it’s day-to-day so we’re trying to keep our pulse on it as closely as we can because you just don’t know. However, we’re surprised by the resilience we’re seeing right now. We’re certainly not willing to go out on a limb and paint a picture of what we think 2009 is going to be like. We’re not going to do anything drastic until we get a little bit better visibility going forward.
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