EXHIBIT 2
EarthWeb Inc.
Education Courseware Business
Income Statements
Year Ended 12-31-99 and Nine Months Ended 9-30-00
( $ in Thousands )
Below is the historical revenue and an estimation of expenses of EarthWeb's
Education Courseware business for each of the four quarters ended December 31,
1999 and for the three quarters ended September 30, 2000.
Year
1999 1999 1999 1999 Ended
Q 1 Q 2 Q 3 Q 4 December 31, 1999
---------------------------------------------- ----------------------
Revenue $120 $272 $727 $1,163 $2,282
Cost of Revenues 69 157 421 615 1,262
---------------------------------------------- ----------------------
Gross Profit 51 115 306 548 1,020
---------------------------------------------- ----------------------
Gross Profit Percentage 43% 42% 42% 47% 45%
Operating Expenses:
Product Development 1 1 4 14 20
Sales and Marketing 43 201 249 300 793
General and Administrative 12 206 106 125 449
Depreciation 0 1 1 1 3
---------------------------------------------- ----------------------
Total Operating Expenses 56 409 360 440 1,265
---------------------------------------------- ----------------------
Loss From Operations ($5) ($294) ($54) $108 ($245)
============================================== ======================
---------------------------------------------- ----------------------
EBITA (a) ($5) ($294) ($54) $108 ($245)
============================================== ======================
---------------------------------------------- ----------------------
EBITDA (b) ($5) ($293) ($53) $109 ($242)
============================================== ======================
Nine
Months
2000 2000 2000 Ended
Q 1 Q 2 Q 3 September 30, 2000
--------------------------------- -----------------------
Revenue $1,332 $930 $953 $3,215
Cost of Revenues 942 617 749 2,308
--------------------------------- -----------------------
Gross Profit 390 313 204 907
--------------------------------- -----------------------
Gross Profit Percentage 29% 34% 21% 28%
Operating Expenses:
Product Development 0 0 8 8
Sales and Marketing 449 382 306 1,137
General and Administrative 121 116 80 317
Depreciation 1 1 1 3
--------------------------------- -----------------------
Total Operating Expenses 571 499 395 1,465
--------------------------------- -----------------------
Loss From Operations ($181) ($186) ($191) ($558)
================================= =======================
--------------------------------- -----------------------
EBITA (a) ($181) ($186) ($191) ($558)
================================= =======================
--------------------------------- -----------------------
EBITDA (b) ($180) ($185) ($190) ($555)
================================= =======================
(a) EBITA is calculated by adding back interest, taxes and amortization to net
loss
(b) EBITDA is calculated by adding back interest, taxes, depreciation and
amortization to net loss