Avantax (AVTA) 8-K InfoSpace Announces Second Quarter 2007 Results

Exhibit 99.1

InfoSpace Announces Second Quarter 2007 Results

BELLEVUE, Wash. (August 8, 2007) – InfoSpace, Inc. (NASDAQ: INSP) today announced financial results for the three months ended June 30, 2007.

Revenues for the second quarter of 2007 were $70.5 million, reflecting a $25.3 million decrease over the second quarter of 2006. Of this decrease, $19.0 million was attributable to the exit of the mobile media business.

Net loss for the second quarter of 2007 was $28.1 million, or $0.86 per share, versus net income of $1.0 million, or $0.03 per diluted share, in the second quarter of 2006. Net loss in the second quarter of 2007 includes a $22.3 million payment, or $0.68 per share, made to employees and directors related to the $208.2 million special dividend to shareholders. Additionally, the Company recorded an $8.8 million non-cash charge, or $0.27 per share, for stock-based compensation expense.

Cash, cash equivalents, and marketable investments as of June 30, 2007 totaled $197.8 million, after accounting for the cash distribution to shareholders of $208.2 million in the second quarter. At the end of the quarter, the Company had no debt obligations.

“Our second quarter operating results were largely in line with expectations. We have completed our restructuring, exited the mobile media business and significantly reduced costs. Moreover, we have good momentum in the mobile services business and have added several new high quality online distribution partners,” said Jim Voelker, Chairman and CEO of InfoSpace, Inc. “Additionally, we completed the $208 million special dividend and reauthorized our $100 million stock repurchase plan.”

Second Quarter Highlights and Recent Developments

InfoSpace:

• Signed seven new online distribution partners, including Free SAS, one of the leading Internet service providers in France, as well as Publishers Clearing House and Break.com.

• Renewed our partnership with Verizon to provide hosting, infrastructure and subscription management capabilities from its platform to power Verizon’s Mobile Web 2.0 service through 2010.

• Launched mCore(R) Mobile Services Platform, an innovative end-to-end technology platform that enables a world class unified mobile media experience spanning mobile search, storefronts, portals and messaging.

• Announced a new partnership with blinkx, the world’s largest video search engine, to offer video search capabilities for InfoSpace’s family of metasearch brands.

• Launched InfoSpace Find It! for the Apple iPhone. InfoSpace Find It! is a premium local search application that allows users to easily locate and navigate to nearby points of interest.

Second Quarter 2007 Segment Information and Adjusted EBITDA

Online

Online revenues were $39.7 million in the second quarter of 2007, a decrease of $10.6 million, compared to the second quarter of 2006. The revenue decrease is largely attributable to the reduction in traffic from the Company’s search engine marketing distribution partners. Online segment income was $15.8 million in the second quarter of 2007.

Mobile

Mobile revenues were $30.8 million in the second quarter of 2007, a net decrease of $14.7 million compared to the second quarter of 2006. The $30.8 million is comprised of $13.4 million in mobile services revenues, an increase of $4.3 million from the second quarter of 2006 and $17.4 million in media content revenues, representing a decrease of $19.0 million from the second quarter of 2006. Mobile segment loss was $3.6 million in the second quarter of 2007.

Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization (“Adjusted EBITDA”)

Adjusted EBITDA was a negative $17.5 million in the second quarter of 2007, compared to Adjusted EBITDA of $8.9 million in the second quarter of 2006. InfoSpace’s Adjusted EBITDA is calculated by adjusting GAAP net income, which includes the effects of the restructuring charges, the payments made to employees and directors related to the cash distribution to shareholders, and sale of non-core operations, to exclude the effects of income taxes, depreciation, amortization of intangible assets, stock-based compensation expense, and other income, net (including such items as interest income, foreign currency gains or losses, and gains or losses from the disposal of assets), as detailed in the accompanying table to the condensed consolidated financial statements.

InfoSpace’s management believes that this non-GAAP financial measure provides meaningful supplemental information regarding the Company’s performance by excluding certain expenses and gains that are not indicative of the Company’s core business operating results. InfoSpace believes that management and its investors benefit from referring to this non-GAAP financial measure in assessing InfoSpace’s performance. Adjusted EBITDA should be evaluated in light of the Company’s financial results prepared in accordance with GAAP. A table reconciling the Company’s Adjusted EBITDA to net income in accordance with GAAP accompanies the condensed consolidated financial statements in this release.

Third Quarter and Full Year Outlook

The Company’s guidance excludes the potential impact of any future one-time gains or losses. The Adjusted EBITDA guidance below has been prepared in a manner consistent with the historical Adjusted EBITDA data provided above and in the accompanying table.

For the third quarter of 2007, with the exit of the mobile media business ($17.4 million in the second quarter of 2007), the Company expects revenue to be between $49 million and $51 million. Additionally, the Company expects Adjusted EBITDA to be between $1 million and $2 million and GAAP net loss to be between $16.5 million and $17.5 million, or $0.50 and $0.53 per share.

For the full year of 2007, the Company expects revenue to be between $260 million and $264 million (includes $47.1 million from the mobile media business that the Company exited in the second quarter of 2007). Additionally, the Company expects Adjusted EBITDA to be between negative $1 million and $3 million (includes a $22.3 million payment made to employees and directors related to the $208.2 million special dividend to shareholders) and GAAP net loss to be between $55 million and $57 million (includes $43 million of stock-based compensation), or $1.68 and $1.74 per share.

A conference call will be held today at 2 p.m. Pacific/ 5 p.m. Eastern. The live Webcast can be accessed in the Investor Relations section of the InfoSpace corporate Web site, athttp://www.infospaceinc.com. A replay of the call will be available approximately one hour after the call through August 20, 2007, at 7:30 p.m. Pacific/ 10:30 p.m. Eastern.

About InfoSpace, Inc.

InfoSpace, Inc. is a leading developer of tools and technologies to help people discover and enjoy content and information - whether on a mobile phone or on the PC. The Company’s mobile platform and applications, such as InfoSpace Find It! (www.infospacefindit.com), create programming and sales opportunities for carriers, while satisfying consumer demand for highly relevant mobile functionality and content. InfoSpace uses its proprietary metasearch technology to power a portfolio of branded Web sites, including Dogpile (www.dogpile.com), and provide private-label search and online directory services to consumers on a global basis. More information can be found atwww.infospaceinc.com.

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Source: InfoSpace, Inc.

For more information, contact:

Stacy Ybarra, InfoSpace

425.709.8127

stacy.ybarra@infospace.com

This release contains forward-looking statements relating to InfoSpace, Inc.’s operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “believe,” “expect,” “intend,” “anticipate,” variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward looking. Forward-looking statements include, without limitation, statements regarding our projected financial performance for the third quarter and full year 2007. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect InfoSpace’s actual results include general economic, industry and market sector conditions, the progress and costs of the development of our products and services, the timing and extent of market acceptance of those products and services, our dependence on companies to distribute our products and services, the ability to successfully integrate acquired businesses and the successful execution of the Company’s strategic initiatives and restructuring plans. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed

in InfoSpace’s most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q as filed from time to time, in the section entitled “Risk Factors,” and InfoSpace’s current reports on Form 8-K as filed from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. InfoSpace undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

InfoSpace, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Amounts in thousands, except per share data)

	Three months ended						Six months ended
	June 30, 2007			June 30, 2006			June 30, 2007			June 30, 2006
Revenues	$	70,530		$	95,846		$	157,173		$	186,120
Operating expenses:(1) (2)
Content and distribution		28,904			46,121			70,521			87,733
Systems and network operations		7,484			7,880			14,209			14,988
Product development		15,882			12,467			30,624			21,775
Sales and marketing		11,153			12,567			20,102			22,130
General and administrative		35,099			12,547			48,793			26,633
Depreciation		4,809			3,457			9,400			6,774
Amortization of intangible assets		1,668			3,611			3,470			7,319
Restructuring and other, net(3)		(1,669	)		—			(2,502	)		—
Total operating expenses		103,330			98,650			194,617			187,352
Operating loss		(32,800	)		(2,804	)		(37,444	)		(1,232	)
Other income, net		4,384			4,723			9,575			8,595
Income (loss) before income taxes		(28,416	)		1,919			(27,869	)		7,363
Income tax benefit (provision)		286			(900	)		(801	)		(3,339	)
Net income (loss)	$	(28,130	)	$	1,019		$	(28,670	)	$	4,024
Net income (loss) per share - Basic	$	(0.86	)	$	0.03		$	(0.89	)	$	0.13
Weighted average shares outstanding used in computing basic net income (loss) per share		32,626			31,239			32,047			31,162
Net income (loss) per share - Diluted	$	(0.86	)	$	0.03		$	(0.89	)	$	0.12
Weighted average shares outstanding used in computing diluted net income (loss) per share		32,626			32,931			32,047			32,925

⁽¹⁾ Stock-based compensation expense for the three and six months ended June 30, 2007 and 2006 is allocated among the following captions (in thousands):

	Three months ended				Six months ended
	June 30, 2007		June 30, 2006		June 30, 2007		June 30, 2006
Systems and network operations	$	746	$	464	$	1,300	$	654
Product development		2,023		714		3,648		1,129
Sales and marketing		2,412		1,509		4,504		2,551
General and administrative		3,631		1,948		6,645		4,410
Total stock-based compensation expense	$	8,812	$	4,635	$	16,097	$	8,744

⁽²⁾ Amounts for the three and six months ended June 30, 2007 include $22.3 million of payments made to employees and directors related to the cash distribution to shareholders in May. This amount is allocated among the following captions (in thousands):

	Three months ended				Six months ended
	June 30, 2007		June 30, 2006		June 30, 2007		June 30, 2006
Systems and network operations	$	507	$	—	$	507	$	—
Product development		1,577		—		1,577		—
Sales and marketing		2,367		—		2,367		—
General and administrative		17,825		—		17,825		—
Total	$	22,276	$	—	$	22,276	$	—

⁽³⁾ Amount for the three months ended June 30, 2007 consists of a gain on the sale of the assets related to mobile media operations of $2.1 million and adjustments to estimated restructuring charges of $0.4 million. Amount for the six months ended June 30, 2007 consists of a gain on the sale of the assets related to the mobile media operations of $3.3 million and adjustments to estimated restructuring charges of $0.8 million.

InfoSpace, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands)

	June 30, 2007			December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	110,342		$	163,505
Short-term investments, available-for-sale		87,458			238,444
Accounts receivable, net		60,820			78,742
Other receivables		2,836			3,402
Prepaid expenses and other current assets		11,763			14,753
Total current assets		273,219			498,846
Property and equipment, net		39,993			33,212
Goodwill		104,424			104,424
Other intangible assets, net		16,095			19,565
Deferred tax assets, net		100,771			101,571
Other long-term assets		9,206			8,221
Total assets	$	543,708		$	765,839
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	13,515		$	13,031
Accrued expenses and other current liabilities		43,382			61,156
Short-term deferred revenue		9,271			6,708
Total current liabilities		66,168			80,895
Long-term liabilities:
Other liabilities and long-term deferred revenue		626			877
Deferred tax liabilities		5,502			5,502
Total long-term liabilities		6,128			6,379
Total liabilities		72,296			87,274
Stockholders’ equity:
Common stock		3			3
Additional paid-in capital		1,534,423			1,712,897
Accumulated deficit		(1,064,283	)		(1,035,613	)
Accumulated other comprehensive income		1,269			1,278
Total stockholders’ equity		471,412			678,565
Total liabilities and stockholders’ equity	$	543,708		$	765,839
Summary of cash and short-term investments:
Cash and cash equivalents	$	110,342		$	163,505
Short-term investments, available-for-sale		87,458			238,444
Cash and short-term investments	$	197,800		$	401,949

InfoSpace, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)

	Six months ended
	June 30, 2007			June 30, 2006
Operating activities:
Net income (loss)	$	(28,670	)	$	4,024
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		12,870			14,093
Stock-based compensation		16,097			8,744
Deferred income taxes		800			2,765
Gain on sale of assets		(3,313	)		—
Restructuring		811			—
Other		384			78
Cash provided (used) by changes in operating assets and liabilities:
Accounts receivable		17,713			7,039
Other receivables		2,189			408
Prepaid expenses and other current assets		3,042			2,242
Other long-term assets		1,015			(2,315	)
Accounts payable		(1,959	)		(1,701	)
Accrued expenses and other current and long-term liabilities		(19,075	)		2,524
Deferred revenue		2,306			119
Net cash provided by operating activities		4,210			38,020
Investing activities:
Purchases of property and equipment		(13,847	)		(10,082	)
Proceeds from the sale of assets		2,223			33
Loan to equity investee		(2,000	)		—
Proceeds from sales and maturities of investments		225,480			231,263
Purchases of investments		(74,523	)		(233,053	)
Net cash provided (used) by investing activities		137,333			(11,839	)
Financing activities:
Dividend paid		(208,203	)		—
Proceeds from stock option and warrant exercises		12,756			2,564
Proceeds from issuance of stock through employee stock purchase plan		741			943
Net cash (used) provided by financing activities		(194,706	)		3,507
Net increase (decrease) in cash and cash equivalents		(53,163	)		29,688
Cash and cash equivalents:
Beginning of period		163,505			153,013
End of period	$	110,342		$	182,701

InfoSpace, Inc.

Segment Information⁽¹⁾

(Unaudited)

(Amounts in thousands)

	Three months ended						Six months ended
	June 30, 2007			June 30, 2006			June 30, 2007			June 30, 2006
Online
Revenue	$	39,742		$	50,373		$	84,782		$	96,503
Content and distribution expenses		13,837			18,122			30,154			34,397
Operating expenses		10,112	(2)		9,419	(3)		20,823	(2)		19,213	(3)
Segment income		15,793			22,832			33,805			42,893
Segment margin		39.7	%		45.3	%		39.9	%		44.4	%
Mobile
Revenue		30,788			45,473			72,391			89,617
Content and distribution expenses		15,067			27,999			40,367			53,336
Operating expenses		19,330	(2)		25,140	(3)		39,030	(2)		44,407	(3)
Segment loss		(3,609	)		(7,666	)		(7,006	)		(8,126	)
Segment margin		-11.7	%		-16.9	%		-9.7	%		-9.1	%
Total
Total revenue		70,530			95,846			157,173			186,120
Total content and distribution expenses		28,904			46,121			70,521			87,733
Total segment operating expenses		29,442	(2)		34,559	(3)		59,853	(2)		63,620	(3)
Total segment income		12,184			15,166			26,799			34,767
Total segment margin		17.3	%		15.8	%		17.1	%		18.7	%
Corporate
Operating expenses(4)		31,364			6,267			37,778			13,162
Depreciation		4,809			3,457			9,400			6,774
Amortization of intangible assets		1,668			3,611			3,470			7,319
Stock-based compensation		8,812			4,635			16,097			8,744
Restructuring and other, net(5)		(1,669	)		—			(2,502	)		—
Other income, net		(4,384	)		(4,723	)		(9,575	)		(8,595	)
Income tax (benefit) provision		(286	)		900			801			3,339
Net income (loss)	$	(28,130	)	$	1,019		$	(28,670	)	$	4,024

⁽¹⁾ In the six months ended June 30, 2007, the Company realigned its operations and, as a result, changed the way it presents its financial information to its chief operating decision maker to better reflect how management measures operating performance.

⁽²⁾ Amount includes expenses directly attributable to the reportable business units and, in addition, include certain indirect expenses allocated to the reportable business units based on internal usage measurements. Segment operating expenses do not include allocations for certain indirect general and administrative expenses, depreciation and amortization expense, stock-based compensation expense, restructuring and other charges, non-operating gains and losses, income taxes or interest income.

⁽³⁾ Amount includes certain indirect expenses allocated to the reportable business units based on the manner in which the Company currently operates. Segment operating expenses do not include allocations for certain indirect general and administrative expenses, depreciation and amortization expense, stock-based compensation expense, restructuring and other charges, non-operating gains and losses, income taxes or interest income.

⁽⁴⁾ Amounts for the three and six months ended June 30, 2007 include $22.3 million of payments made to employees and directors related to the cash distribution to shareholders in May.

⁽⁵⁾ Amount for the three months ended June 30, 2007 consists of a gain on the sale of the assets related to mobile media operations of $2.1 million and adjustments to estimated restructuring charges of $0.4 million. Amount for the six months ended June 30, 2007 consists of a gain on the sale of the assets related to the mobile media operations of $3.3 million and adjustments to estimated restructuring charges of $0.8 million.

InfoSpace, Inc.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measure

Adjusted EBITDA Reconciliation⁽¹⁾

(Unaudited)

(Amounts in thousands)

	Three months ended						Six months ended
	June 30, 2007			June 30, 2006			June 30, 2007			June 30, 2006
Net income (loss)(2)	$	(28,130	)	$	1,019		$	(28,670	)	$	4,024
Depreciation		4,809			3,457			9,400			6,774
Amortization of intangible assets		1,668			3,611			3,470			7,319
Stock-based compensation		8,812			4,635			16,097			8,744
Other income, net(3)		(4,384	)		(4,723	)		(9,575	)		(8,595	)
Income tax (benefit) provision		(286	)		900			801			3,339
Adjusted EBITDA	$	(17,511	)	$	8,899		$	(8,477	)	$	21,605

Adjusted EBITDA Reconciliation for Forward Looking Guidance

(Amounts in thousands)

	Ranges for the three months ended September 30, 2007						Ranges for the year ended December 31, 2007
Net loss	$	(17,500	)	$	(16,500	)	$	(57,000	)	$	(55,000	)
Depreciation and amortization of intangible assets		6,000			6,000			24,000			24,000
Stock-based compensation		15,000			15,000			43,000			43,000
Other income, net(3)		(2,500	)		(2,500	)		(14,000	)		(14,000	)
Income tax provision		—			—			1,000			1,000
Adjusted EBITDA	$	1,000		$	2,000		$	(3,000	)	$	(1,000	)

⁽¹⁾ Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) is a non-GAAP financial measure and is reconciled to net income (loss), which the Company’s management believes to be the most comparable generally accepted accounting principles (“GAAP”) measure. Adjusted EBITDA results are calculated by adjusting GAAP net income (loss) to exclude the effects of income taxes, depreciation, amortization of intangible assets, stock-based compensation expense and other income, net (including such items as interest income, litigation settlements and contingencies, foreign currency gains or losses, and gains or losses from the disposal of assets), as detailed above. The Company uses this non-GAAP financial measure for internal management purposes, when publicly providing guidance on possible future results, and as a means to evaluate period to period comparisons. The Company’s management believes that this non-GAAP financial measure is a common measure used by investors and analysts to evaluate its performance. This non-GAAP financial measure is used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the results of operations and trends affecting the Company’s business. This non-GAAP financial measure should be considered as a supplement to, and not as a substitute for, or superior to, income from continuing operations in accordance with GAAP.

⁽²⁾ As presented in the unaudited Condensed Consolidated Statements of Operations.

⁽³⁾ Other income, net, primarily consists of interest income, gains or losses from the disposal of assets, and foreign currency transaction gains or losses.