The company put guidance for 2008 non-GAAP EPS at $0.78 to $0.82, above the $0.77 consensus estimate.  It also puts 2008 revenues at $133 to $137 million, while consensus estimates are $134.4 million.

The company’s customer metrics looked better quarter over quarter as well, with its churn rate down to 4% from 4.1% and its total subscribers were 263,000 from 255,000.  It also noted how its acquisition of Web.com will boost non-GAAP EPS during the first half of 2008.

We have featured this one positively for the last two weeks in "UNDER $10 STOCKS" subscriber letter.  Frankly, we do see some areas where the bulls can make their cheers and also where some of the nay-sayers could point to issues.  But all in all, this was a solid quarter and this remains one of our top small cap internet stocks with upside from current levels.

Shares closed up 2.4% at $9.88 today, and shares are up almost 4% at $10.26 in after-hours trading.  Its 52-week trading range is $7.92 to $12.00.  This one is thinly covered and has an average analyst target of roughly $14.00, although our fair value is a bit under those targets.

Jon C. Ogg
February 12, 2008