Dice Holdings (DHX) Tops Q2 EPS by 1c, Offers Guidance, Plans to Sell Slashdot Media

Dice Holdings (NYSE: DHX) reported Q2 EPS of $0.11, $0.01 better than the analyst estimate of $0.10. Revenue for the quarter came in at $65.8 million versus the consensus estimate of $64.91 million.

Planned Sale of Slashdot Media

The Company announced that it plans to sell the Slashdot and SourceForge businesses (together referred to as "Slashdot Media") and has engaged KeyBanc Capital Markets Inc. to act as exclusive financial advisor to the Company in connection with such a transaction.

The Company acquired Slashdot Media in 2012 both to provide the Dice business with broader reach into Slashdot's user community base and to extend the Dice business outside North America by engaging with SourceForge's significant international technology user community. The Company, however, has not successfully leveraged the Slashdot user base to further Dice's digital recruitment business; and with the acquisition of The IT Job Board and success of Open Web, the anticipated value to the Company of the SourceForge traffic outside North America has not materialized. The Company now plans to divest the business, as it does not fit within the Company's strategic initiatives and believes the Slashdot Media business will have the opportunity to improve its financial performance under different ownership.

"While Slashdot Media has an established and solid position in the Open Source community with iconic brands and an incredibly loyal and passionate following of tech professionals, it is no longer a core strategic business for DHI. We believe Slashdot Media will have greater opportunity to capitalize on its brand equity and unique assets as part of a business that is focused primarily on media and software solutions and, at the same time, divestiture of the businesses will allow us to allocate resources to our core strategies," said Michael Durney, President and Chief Executive Officer.

The Slashdot Media business has been classified as "held for sale." As such, the assets of Slashdot Media are shown on the Condensed Consolidated Balance Sheets under the heading of "Assets Held for Sale" and the liabilities are shown under "Liabilities Held for Sale." Operating results are included in the Corporate & Other segment in Segment Information. Given the planned sale of Slashdot Media, we believe it is an important measure of our performance to present our financial results excluding Slashdot Media operations. For a reconciliation of our financial results for the three and six month periods ended June 30, 2015 and 2014 excluding Slashdot Media, see "Notes Regarding the Use of Non-GAAP Financial Measures" and "Supplemental Information and Non-GAAP Reconciliations."

For earnings history and earnings-related data on Dice Holdings (DHX) click here.

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