xfdce CNNfn-MARKET-CALL-08
Show: MARKET CALL>
Date: November 25, 2003>
Time: 09:00:00>
Tran: 112508cb.l05>
Type: INTERVIEW>
Head: Ask Jeeves — CEO, CNNfn>
Sect: Business>
Byline: Rhonda Schaffler, Douglas Lane>
Guest: Steve Berkowitz>
Spec: Business; Internet Services; ASKJ (Nasdaq); SIC: 7379>
Time: 09:44:00>
RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: Let`s focus in a little bit on Ask Jeeves (Company: Ask Jeeves Inc.; Ticker: ASKJ; URL: http://www.ask.com/) now. Shares were up a little more than 600 percent over the past year. Not bad for a company whose stock was trading below $2 last December. But with its main competitor, Google, expected to launch its own IPO perhaps early next year, could the space be getting a little crowded?Steve Berkowitz, the newly appointed CEO of Ask Jeeves working to make sure his company stabit about some of the challenges that you face, since becoming the newly appointed CEO. What`s first on your agenda?
BERKOWITZ: Well I think the first thing on my agenda is continue to do what we`ve been accomplishing over the last two and a half years, since I`ve been with Jeeves, is to continue to grow market share. So we`re focusing on how do we meet the needs of the users and give them a great search experience.
DOUGLAS LANE, CNNfn GUEST HOST, MARKET CALL: Steve, Doug Lane here. Your technology was it Tekoma (ph) — or how do you pronounce that?
BERKOWITZ: It`s Teoma (ph).
LANE: Teoma (ph), OK. Is that a kind of technology that you can expand? I understand you`re having some integration problems with moving it along. Is it something that can actually you can leverage to get much bigger or is it something that`s going to have a limit to it eventually?
BERKOWITZ: No, first of all, it`s been — we acquired Teoma (ph) in September of 2001 and since then, we`ve taken its index, which is the size of the documents it searches, from 60 million to over $1.5 billion and it`s continuing to grow. So the technology is extremely scalable and we believe the best search technology in the entire Web.
LANE: Can you integrate it with other people`s products?
BERKOWITZ: Oh, sure. I mean search — you know our — you know, search, as being the gateway to the Internet, you know, we can put search on anybody`s site. I mean it`s – you know, in addition, to our own. So, I mean, the technology is just – it`s an incredible piece of engineering.
LANE: Second question I have, you recently raised $110 million on a zero convertible, is that …
BERKOWITZ: Yes, we did that in June.
LANE: And what — here`s a company with no debt and relatively small company in revenues. What do you need $110 million? Are you just feeding the hedge funds so they can short your stock and trade it or do you have a real reason for the money?
BERKOWITZ: No. You know, at the time, we got the money, we had about $40 million in cash, which was not – you know probably not a prudent amount to be running a technology company with. But more importantly, you know, we acquired the money so we can look at probably acquiring companies that will help leverage our market share.
SCHAFFLER: Steve, it`s interesting, on that market share topic because, obviously, you`ve got some big player ahead of you.
BERKOWITZ: Right.
SCHAFFLER: When you talk about trying to gain market share, do you have any numbers out there or how do you go up against some of the Goliaths in your industry?
BERKOWITZ: Well, I mean, for us, it`s been great because the last three quarters we have gained market share. I mean the market`s been growing at about 10 percent in terms of queries per quarter, and we grew at 21, 31 and 33 respectively for the last three quarters. So we are gaining market share and it`s coming because we have a lot of people who use us, they just don`t use us frequently enough. And what we`re seeing now is they`re using us more frequently so it`s really an exciting time for us.
SCHAFFLER: It`s also interesting, too, I`ve read that you`re actually going to be hiring, since we spend most of the time talking about companies that have to lay off workers. Tell us a little bit about some of the brighter prospects here. Do you think that`s just your company or are we really, do you think, on the edge now of a serious turnaround in the labor market?
BERKOWITZ: You know, I hope we are. I really can`t speak to that but I can speak to the fact that Jeeves is an extremely strong market and we`re just — you know we`re growing. And for us to grow and meet the needs of our users, you know, and our advertisers, we need to bring people in. So it`s kind of an exciting time. The momentum of the company, the culture of the company, I mean, everything is moving in a real positive direction.
SCHAFFLER: All right, just don`t fire the butler, OK?
BERKOWITZ: Never.
SCHAFFLER: Steve Berkowitz, good to have you on the program.
BERKOWITZ: Thank you.
SCHAFFLER: Thanks so much.
BERKOWITZ: OK.
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