StepForth Web Marketing Inc.
Your Weekly Step Forth into the World of Search Engines
Wednesday - February 1st 2006
Highlight of the Week
Large Q4 Revenues Yet Stock Falls Overnight >>
  Special Note to Newsletter Subscribers >>
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42,000 Kilometers by Human Power >>
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Highlight of the Week

Google Shows Large Q4 Revenues Yet Stock Falls OvernightGoogle Shows Large Q4 Revenues Yet Stock Falls Overnight

Google released its forth quarter results yesterday, posting revenues of $1.919 billion for the three month period ending December 31, 2005.

"We are very pleased with our results for the fourth quarter as we achieved excellent performance across our businesses," said Eric Schmidt, CEO of Google in a press release issued late yesterday. "We generated significant revenue growth in our core search and advertising business, driven by continued strength in traffic and monetization. We will continue to invest significantly as we develop innovative new products and as we extend our core technologies to new user access points and to different channels."

Unfortunately for Google stock holders, record profits built on an increasingly diversified stable of products and services simply wasn't enough to please Wall St. analysts who had expected larger returns. Google's share prices dropped below $400 in the largest drop in value since their initial public offering in August 2004. (Google shares closed slightly higher at $401.78 by the end of the day at NASDAQ.)

Google's $1.919 billion in revenues represents an 86% increase over revenues of $1.032 billion reported in the same period of 2004. It is also a 22% increase in revenues Google enjoyed in the third quarter of 2005, $1.578 billion.

Google continues to make most of its money from paid search advertising. 57% of Google's revenues ($1.098 billion) were generated on Google owned properties such as Google.com, Gmail or Google Local, representing a 24% increase over revenues from the third quarter. 42% of total revenues ($799 million) were generated from advertising partnerships through the AdSense program, an 18% increase over third quarter revenues.

Revenues generated outside the United States remained fairly constant with 38% of total revenues coming from non-US based entities. Google claims this share of its revenues would be slightly above 40% if the US dollar had not declined in value against other world currencies.

At the end of the Q4 balance sheet, Google saw an operating income of $570 million which represents 29.7% of total revenues. The percentage of income is slightly lower than that of Q3 ($529 million or 33.5% of revenues), however Google made a large donation of $90 million to the Google Foundation, an outlay it does not expect to make again in the foreseeable future.

Investors had anticipated higher earnings over the Christmas season and appear to have been disappointed. Part of the problem might have been a similar Q4 report issued by Yahoo last week that was met with lackluster enthusiasm by analysts.

Google also released financial reports for the entire 2005 fiscal year. Showing revenues of $6.139 billion, Google saw growth of over 92% over its 2004 year-end reported revenue of $3.189 billion. Google's operating income in 2005 was $2.017 billion, up substantially from the $640 million earned in 2004.

All in all, Google had an amazing forth quarter and fiscal year in 2005. The temporary drop in Google share prices appears to be balancing itself and Google appears to be on a strong course heading into 2006.

by Jim Hedger, News Editor
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Special Note to Newsletter Subscribers

What a rough week it has been for Team StepForth!

StepForth Placement has undergone a number of changes over the past seven days the largest and most obvious of which is we have moved from the friendly neighbourhood of Fernwood to the oldest section of downtown Victoria , Bastion Square .

Our new building is actually quite old, built almost 130 years ago behind the western wall of the former Fort Victoria . Its history has more stories than a skyscraper though, like most buildings in Victoria , it is less than five floors high. Built originally as a warehouse, our office building has housed a hotel, a miner's pub, one of Victoria 's notorious turn-of-the-century (1890's) brothels, and was once considered one of the finer opium dens on the west coast. Mere feet from the front entry, a blank spot in the square marks the point where the hangman's gallows once stood, right behind British Columbia's first provincial courthouse. According to several local legends, the building is among the most haunted in the region.

Today, 26 Bastion Square is considered a prestige building, a perception borne out by its tenants. Where we were once surrounded by artists' lofts, musician jam spaces and a plethora of pizza parlors, we now rub shoulders with two architectural firms, innumerable law offices, and several other professional looking professionals. A couple of nightclubs, the new Irish pub and some of the best restaurants the Pacific Northwest has to offer are our new temptations, each a far step above the beer and pizza nightlife surrounding our former location.

Aside from moving, we have been beset by weather issues and by illness. For those who don't live on an island, things are a bit different out here on the perimeters. Victoria has been hit by five straight days of extremely foul weather. Gale forced winds have knocked 200 year old trees over, taking telephone and power lines down with them. Virtually every section of the south Island has seen at least one blackout, in some cases, several. Forty percent of our staff prefers to telecommute, a productive luxury that was denied today by a sudden and unpredictable lack of electricity.

Along with the rough weather, StepForth has been visited by illness. Our sales manager, Bill Stroll is down until Monday of next week at the earliest. The SEO staff is doing well, for the most part, however a vicious flu-bug is hanging around the area and all of us are feeling a bit out-of-sorts. The new paint smell in the office doesn't help settle our stomachs either.

Anyhow, tired, wind weary and rain slogged as we are, the StepForth management and staff are getting ourselves back up to speed. While we have been able to meet (and exceed) our production commitments, the good humour and happy banter among our staff has been truly tested this week.

by Jim Hedger, News Editor
The Net Reality

42,000 Kilometers by Human Power

Worried by global warming and North America's apparent addiction to the automobile, Vancouver BC resident Colin Angus decided to prove a point by traveling around the world using nothing but human power.

Angus split the round-the-world trip into three segments. He will be completing all three, accompanied in stages by a few friends and his fiancée, Julie Wafaei.

The first segment started in June 2004 and saw Angus and Wafaei ride from their home in Vancouver to Whitehorse in the Yukon . From there, they boarded a large canoe and paddled 1500km on the Yukon River to Fairbanks Alaska . In Fairbanks , they switched from canoe to an ocean-going rowboat to complete the 1600km stretch to the North Pacific Ocean . Remaining in their rowboat, the team crossed 800 angry kilometers of the Bearing Sea , landing in Siberia .

From Siberia, Angus and his team made it to Moscow and then traveled across Europe to the Atlantic Ocean . They are currently crossing the Atlantic on their way to their North American landfall in Florida . They expect to arrive in mid-February.

From Florida , they plan to ride their bikes across North America back to Vancouver . When they reach the totem pole in the Vancouver neighbourhood of Kitslano, Angus will have traveled over 42,000 kilometers powered entirely by his own muscles.

The trip is being documented on Angus' website, Expedition Canada.

by Jim Hedger, News Editor
 
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Important ©Copyright Note: readers are welcome to republish the content from StepForth Weekly newsletters
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