According to this SEC filing/press release (thanks Gary Price), LookSmart CFO and COO John Simonelli announced his intention to resign. LookSmart has been struggling for several years to regain respect and traction following the loss of the company’s deal with Microsoft/MSN, which sent it into something of a tailspin. Since that time the company has been slowly climbing back and trying to improve the quality of its paid search network and restore profitability.
Along those lines, CEO David Hills made an accompanying statement that the company will see an improved Q2 and raised guidance:
LookSmart also announced today that given added visibility into the second quarter which ends June 30, 2007, it preliminarily expects that its financial results will meet or exceed prior guidance provided to the market. For the second quarter, the Company now expects to report a total revenue increase of 25-27% year-over-year, an increase from its previously issued second quarter guidance of a total revenue increase of 20-25% year-over-year. Also, as previously guided, for the second quarter the Company continues to expect gross margins of 42%-43% and operating expenses to increase approximately 5% year-over-year.