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Article by DailyStocks_admin    (08-18-08 09:21 AM)

The Daily Magic Formula Stock for 08/18/2008 is Monster Worldwide Inc. According to the Magic Formula Investing Web Site, the ebit yield is 11% and the EBIT ROIC is >100 %.

Dailystocks.com only deals with facts, not biased journalism. What is a better way than to go to the SEC Filings? It's not exciting reading, but it makes you money. We cut and paste the important information from SEC filings for you to get started on your research on a specific company.


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BUSINESS OVERVIEW

Our Strategy

Monster Worldwide's long-term business strategy is designed to capitalize on the opportunity we foresee in the global online recruitment marketplace and related markets, while focusing on improved operating efficiencies and controlling our expense growth rates. Our strategy calls for continued investment in product innovation, and enhanced technology and marketing to expand our global leadership position in an effort to achieve long-term profitability and build shareholder value.

Monster was built by focusing on the needs of employers and job seekers, and we are developing stronger customer relationships and improved products as a part of our growth strategy. Through innovative product offerings, we continue to offer greater value to all job seekers – even those seekers who are not currently actively engaged in a job search. The improvements we have made to our product offerings and services are designed to drive quality traffic to our site and increase our visitors' job response rate. We believe that more active seeker engagement will translate directly into higher quality candidates for our employers.

We are focused not only on customer service and satisfaction, but also on building and maintaining customer loyalty. Our ongoing investments in our technology platforms are designed to create secure, scalable and redundant systems. We are drawing on our full global network for "best in class" product and service ideas, taking concepts that have been well-received in one market and adapting them for the entire organization as appropriate.

We have refocused our efforts across the entire organization to streamline and globalize our resources and control the growth rate of our operating expenses. At the same time, we are committed to funding critical investments through our cost savings initiatives.

To fuel continued growth in our business, we are striving to increase our local and regional presence, while providing more relevant products and services to our customers and job seekers, and at the same time expanding globally. We believe that our sharpened focus on engaging customers, a new marketing program, and continued efforts to increase sales force productivity will allow us to be substantially more competitive. We will continue to capitalize on the strong market position we have developed in larger international markets, particularly Europe. Our ongoing investments in infrastructure, brand building and operating efficiencies gained through our restructuring efforts continue to generate strong revenue growth and margin expansion in our international business. The Asia Pacific region represents a substantial growth opportunity for Monster, particularly China. As we develop plans for the greater China market, as well as Southeast Asia, we are equally excited about the opportunities that exist in neighboring markets.

During the past year, we increased our global footprint by expanding Monster's presence in smaller markets through low-cost launches. In 2008, we plan to continue to further develop these smaller markets, particularly in Eastern Europe.

We are also committed to entering adjacent markets. Our recent acquisition in January 2008 of Affinity Labs Inc. ("Affinity Labs") provides an opportunity to provide highly relevant content to our seekers through a portfolio of professional and vocational communities. It will also provide employers access to a large, "hard-to-reach" pool of job candidates and allow us to expand our core product more aggressively.

We have re-organized our marketing function and are gaining greater efficiencies in both purchasing and placing media through a more centralized media buying program. Our new marketing approach is designed to evolve the brand from job transaction focused to a life improvement company by enhancing our seekers' experience and making Monster a trusted partner in their career/life decisions. Our mission is to inspire people to improve their lives.

Our Services

We operate in three business segments: Careers – North America, Careers – International and Internet Advertising & Fees. For the year ended December 31, 2007, these operating segments represented approximately 52%, 36% and 12% of our consolidated revenue, respectively. During the year ended December 31, 2006, we disposed of our global Advertising & Communications business to focus our resources on building the Monster franchise and expanding the content of our online businesses. See Note 16 to the consolidated financial statements for further discussion of our segment results.

Careers (North America and International)

Monster is the premier global online employment solution for more than a decade, striving to inspire people to improve their lives. Monster has a presence in approximately 40 countries around the world. With a local presence in key markets in North America, Europe and Asia, Monster works by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. We have been able to build on Monster's brand and create worldwide awareness by offering online recruiting solutions that we believe are redefining the way employers and job seekers connect. For the employer, our goal is to provide the most effective solutions and easiest to use technology to simplify the hiring process and deliver access to our community of job seekers. For job seekers, our purpose is to improve their careers by providing work-related content, services and advice to enhance the consumer experience.

Our services and solutions include searchable job postings, a resume database, and other career related content. Job seekers can search our job postings and post their resumes free-of-charge on each of our websites. Monster also offers premium career services at a fee to job seekers, such as resume writing and priority resume listing. Employers and human resources professionals pay to post jobs, search our resume database, and utilize career site hosting and other ancillary services.

Monster targets the enterprise market, or those businesses that we consider to be among the 1,500 largest organizations globally. Additionally, we also concentrate our efforts on expanding our reach to include small-to-medium sized businesses ("SMBs"), those businesses with approximately 10 to 2,000 employees that operate primarily in local and regional markets. We currently have alliances with media and publishing companies that extend our presence with local and regional job seekers in various markets across the United States.

Internet Advertising & Fees

Our Internet Advertising & Fees segment provides consumers with content, services and useful offerings that help them manage the development and direction of their current and future careers, while providing employers, educators and marketers with innovative and targeted media-driven solutions to impact these consumers at critical moments in their lives. Our network of online properties appeals to advertisers and other third parties as these sites cost-effectively deliver certain discrete demographic groups in a relevant and engaging online environment. We believe that by strengthening our user engagement, driving additional traffic and increasing usage of our websites, we can increase the appeal to our customers and reward them with a higher return on their marketing investment. Our sites are constantly evolving to integrate new and innovative features, in order to provide the relevant content that connects with our users. The majority of our services are free to users and are currently offered in North America.

Revenue for the Internet Advertising & Fees segment is derived primarily from three types of services: lead generation, display advertising and products sold to consumers for a fee. Lead generation is a highly scalable direct response business in which marketers pay for connections to consumers whose demographics and interests match the requirements of specific business offerings. Our large database of users and ongoing collection of numerous points of data allows us to provide our clients with targeted and valuable leads. Display advertising opportunities have been integrated across the Monster Worldwide network of websites, allowing marketers to deliver targeted online advertising messages via numerous sizes and formats of creative units. Consumers come to Monster's websites for information and advice on how to manage critical life transitions, and this environment is typically seen by marketers as desirable for promotion of products and services as consumers are actively looking for new ideas and solutions. Premium content and services comprise the final source of revenue for the Internet Advertising & Fees segment, as consumers pay for access to information and tools that provide greater support in the development of their educational and career opportunities.

Our largest customer categories are employers, schools, financial services and consumer products and services. Employers use our media solutions to attract job seekers to job postings and to help job seekers better understand what it is like to work for a particular employer. Schools find our advertising and lead generation services to be effective tools in attracting new students to investigate enrollment in higher education programs. Numerous companies in the financial services sector continue to find success promoting their products to consumers who are looking for help in managing the cost of their education and in establishing a strong financial base for their careers. Marketers of a variety of consumer products and services, including automotive, telecommunications, apparel and entertainment have come to us to provide cost-effective and highly targeted solutions to connect with specific consumer segments.

Sales and Marketing

We maintain separate sales and marketing staffs for our Careers and Internet Advertising & Fees businesses. The sales force for our Careers business consists of Telesales and Field sales and is complemented by a self-service online sales channel which we refer to as "eCommerce." Within these groups are specialty units dedicated to serving our vertical markets, such as enterprise, small-to-medium sized businesses, government, healthcare and staffing. Our Telesales staff is primarily responsible for telemarketing and customer service for small-to-medium sized clients and is located in our offices around the world. Our Field sales staff focuses on both local and national clients and is also dispersed throughout our offices globally. Our eCommerce channel is available to all customer groups and is most heavily used by smaller employers today. Our Internet Advertising & Fees sales force is located throughout the United States and is focused on cross-selling the products of each property within its network.

We use sponsorships and broad-based media, such as broadcast television, the Internet, radio, and business, consumer and trade publications, to market and promote the Monster brand. The majority of our marketing and promotion expense is allocated to our Careers – North America and Careers – International segments.

Customers

Our customers are comprised of individuals, small and medium-sized organizations, enterprise organizations, federal, state and local government agencies and educational institutions. No one client accounts for more than 5% of our total annual revenue.

Competition

The markets for our services and products are highly competitive and are characterized by pressure to win new customers, expand the market for our services and to incorporate new capabilities and technologies. We face competition from a number of sources. These sources include other employment-related websites, traditional media companies (primarily newspaper publishers), Internet portals, search engines and social networking websites. Many traditional media companies and newspaper publishers offer new media capabilities such as online recruitment websites. The barriers to entry into Internet businesses like ours are relatively low such that new competitors continuously arise. For example, over the past several years many niche career websites have been launched targeted at specific industry verticals. Many of our competitors or potential competitors have long operating histories, and some have greater financial, management, technological, development, sales, marketing and other resources than we do. In addition, our ability to maintain our existing clients and generate new clients depends to a significant degree on the quality of our services, pricing and reputation among our clients and potential clients.

Intellectual Property

Our success and ability to compete are dependent in part on the protection of our domain names, trademarks, trade names, service marks, patent and other proprietary rights. We rely on copyright laws to protect the original website content that we develop. In addition, we rely on Federal and state trademark laws to provide additional protection for the identifying marks appearing on our Internet sites. A degree of uncertainty exists concerning the application and enforcement of copyright and trade dress laws to the Internet, and there can be no assurance that existing laws will provide adequate protection for our original content or the appearance of our Internet sites. In addition, because copyright laws do not prohibit independent development of similar content, there can be no assurance that copyright laws will provide any competitive advantage to us.

We also assert common law protection on certain names and marks that we have used in connection with our business activities.

We rely on trade secret and copyright laws to protect the proprietary technologies that we have developed to manage and improve our Internet sites and advertising services, but there can be no assurance that such laws will provide sufficient protection to us, that others will not develop technologies that are similar or superior to ours, or that third parties will not copy or otherwise obtain and use our technologies without authorization. We have obtained patents and applied for several other patents with respect to certain of our software systems, methods and related technologies, but there can be no assurance that any pending applications will be granted or that any patents will not in the future be challenged, invalidated or circumvented, or that the rights granted thereunder will provide us with a competitive advantage. In addition, we rely on certain technology licensed from third parties, and may be required to license additional technology in the future, for use in managing our Internet sites and providing related services to users and advertising customers. Our ability to generate fees from Internet commerce may also depend on data encryption and authentication technologies that we may be required to license from third parties. There can be no assurance that these third-party technology licenses will be available or will continue to be available to us on acceptable commercial terms or at all. The inability to enter into and maintain any of these technology licenses could significantly harm our business, financial condition and operating results.

Policing unauthorized use of our proprietary technology and other intellectual property rights could entail significant expense and could be difficult or impossible, particularly given the global nature of the Internet and the fact that the laws of other countries may afford us little or no effective protection of our intellectual property. In addition, there can be no assurance that third parties will not bring claims of patent, copyright or trademark infringement against us. We anticipate an increase in patent infringement claims involving Internet-related technologies as the number of products and competitors in this market grows and as related patents are issued. Further, there can be no assurance that third parties will not claim that we have misappropriated their trade secrets, creative ideas or formats or otherwise infringed their proprietary rights in connection with our Internet content or technology. Any claims of infringement, with or without merit, could be time consuming to defend, result in costly litigation, divert management attention, and require us to enter into costly royalty or licensing arrangements or prevent us from using important technologies or methods, any of which could significantly harm our business, financial condition and operating results.

Employees

At February 1, 2008, we employed approximately 5,210 people worldwide. Generally, our employees are not represented by a labor union or collective bargaining agreements except that our employees located in France, Italy and Spain are covered by collective bargaining agreements that are generally prescribed by local labor law. We regard the relationships with our employees as satisfactory.


CEO BACKGROUND

Salvatore Iannuzzi has been Chairman of the Board, President and Chief Executive Officer of the Company since April 2007. Prior to joining the Company, Mr. Iannuzzi served as President of Motorola, Inc.'s Enterprise Mobility business from January 2007 to April 2007. Prior to that, Mr. Iannuzzi served as President and Chief Executive Officer of Symbol Technologies, Inc., a publicly traded company engaged in the business of manufacturing and servicing products and systems used in end-to-end enterprise mobility solutions, from January 2006 to January 2007, when Symbol Technologies was sold to Motorola. He previously served as Symbol Technologies' Interim President and Chief Executive Officer and Chief Financial Officer from August 2005 to January 2006 and as Senior Vice President, Chief Administrative and Control Officer from April 2005 to August 2005. He also served as a director of Symbol Technologies from December 2003 to January 2007, serving as the Non-Executive Chairman of the Board from December 2003 to April 2005. From August 2004 to April 2005, Mr. Iannuzzi was a partner in Saguenay Capital, a boutique investment firm. Prior thereto, from April 2000 to August 2004, Mr. Iannuzzi served as Chief Administrative Officer of CIBC World Markets. From 1982 to 2000, he held several senior positions at Bankers Trust Company/Deutsche Bank, including Senior Control Officer and Head of Corporate Compliance.

Timothy T. Yates has been Executive Vice President and Chief Financial Officer of the Company since June 2007. Prior to joining the Company, Mr. Yates served as Senior Vice President, Chief Financial Officer and a director of Symbol Technologies, Inc. from February 2006 to January 2007. From January 2007 to June 2007, he was a Senior Vice President of Motorola, Inc.'s Enterprise Mobility business responsible for Motorola's integration of Symbol Technologies. From August 2005 to February 2006, Mr. Yates served as an independent consultant to Symbol Technologies. Prior to this, from October 2002 to November 2005, Mr. Yates served as a partner and Chief Financial Officer of Saguenay Capital, a boutique investment firm. Prior to that, he served as a founding partner of Cove Harbor Partners, a private investment and consulting firm, which he helped establish in 1996. From 1971 through 1995, Mr. Yates held a number of senior leadership roles at Bankers Trust New York Corporation, including serving as Chief Financial and Administrative Officer from 1990 through 1995.

Darko Dejanovic has been Executive Vice President, Global Chief Information Officer and Head of Product since November 2007. Previously, he had served as Executive Vice President and Global Chief Information Officer since July 2007, and as Senior Vice President and Global Chief information Officer since April 2007. Prior to joining the Company, Mr. Dejanovic served as Senior Vice President and Chief Technology Officer for Tribune Company, a publicly traded media company, from December 2004 until March 2007. During that same period, Mr. Dejanovic also served as Vice President and Chief Technology Officer of Tribune Publishing Company, a subsidiary of the Tribune Company, a position he held since 2002. Before joining the Tribune Company, Mr. Dejanovic had technology leadership roles for the Education Management Group, a provider of post-secondary education, and for the European Community Monitor Mission, an international public policy organization.

Mark Stoever has been Executive Vice President, Internet Advertising & Fees since July 2007. Previously, he had served as Senior Vice President, Internet Advertising & Fees since July 2005. Prior to joining the Company, Mr. Stoever served as Executive Vice President of Decision Matrix Group, an investment fund specializing in technology market research, from January 2005 to May 2005. Prior to that, beginning in 1996 he held various management roles at Lycos, Inc., a global Internet content and service provider, most recently as President and Chief Executive Officer from October 2002 to November 2004. Prior to Lycos, Mr. Stoever held management roles at ON Technology Corporation, a software company, from 1994 to 1996, and at Microcom, Inc., a modem technology company, from 1989 to 1994.

Jonathan Trumbull has been Global Controller and Chief Accounting Officer since March 2005. Previously, he had served as Vice President and Corporate Controller since October 2002. Prior to joining the Company, from 1989 to October 2002, Mr. Trumbull was associated with Ernst & Young, LLP, most recently as Senior Manager from 1997 to October 2002.

MANAGEMENT DISCUSSION FROM LATEST 10K

OVERVIEW

Business

Monster Worldwide is the premier global online employment solution, bringing people together to improve their lives, with a presence in approximately 40 countries around the world. We have been able to build on Monster's brand and create worldwide awareness by offering online recruiting solutions that we believe are redefining the way employers and job seekers connect. For the employer, our goal is to provide the most effective solutions and easiest to use technology to simplify the hiring process and deliver access to our community of job seekers. For job seekers, our purpose is to help improve their careers by providing work-related content, services and advice to enhance the consumer experience.

Our services and solutions include searchable job postings, a resume database and other career related content. Users can search our job postings and post their resumes for free on each of our websites. Employers pay to post jobs, search the resume database and access other career related services.

Our strategy has been to grow our business both organically and through strategic acquisitions and alliances where the perceived growth prospects fit our plan. We believe the growth opportunities overseas are particularly large and believe that we are positioned to benefit from our expanded reach and increased brand recognition around the world. Our Careers – International segment is now 36.1% of our consolidated revenue for the year ended December 31, 2007, and increased 59.3% over the comparable 2006 period. We are positioned to benefit from the continued secular shift towards online recruiting. In addition, through a balanced mix of investment, strategic acquisitions and disciplined operating focus and execution, we believe we can take advantage of this online migration to significantly grow our Careers – International business over the next several years.

We also operate a network of websites within our Internet Advertising & Fees segment that connect companies to highly targeted audiences at critical stages in their life. Our goal is to offer compelling online services for the users through personalization, community features and enhanced content. We believe that there are significant opportunities to monetize this web traffic through lead generation, display advertising and other consumer related products. We believe that these properties are appealing to advertisers and other third parties as they deliver certain discrete demographics entirely online.

Financial Summary

Monster Worldwide has three operating segments: Careers – North America, Careers – International and Internet Advertising & Fees. In 2007, we had strong revenue growth of 21% over the 2006 period, driven by a 59.3% increase in our Careers – International revenue. Our income from continuing operations and diluted earnings per share from continuing operations decreased 4.2% and 3.4% respectively, over the 2006 period due primarily to expenses from our restructuring plan of $16.6 million, severance related to the departure of three former executive officers of $15.8 million and the expenses from the security breach that occurred in August 2007 of $9.0 million. These costs were offset by improved operating efficiencies and savings from our restructuring plan, as well as strong international revenue growth. Our cash and available for sale securities balance decreased to $578.4 million as of December 31, 2007, compared to $596.6 million as of December 31, 2006, as a result of $262.5 million of share repurchases, repayment of acquisition debt of $23.4 million and our commitments to strengthen our infrastructure, invest in key talent and fund projects intended to position us for long-term growth, offset by strong operating cash flows of $269.2 million and cash received from the exercise of employee stock options of $54.9 million.

Careers – North America delivered a 31.8% operating margin on $707.4 million of revenue in 2007, as our Enterprise channel successfully grew the client base and leveraged our existing clients. We are particularly encouraged by the performance of our Careers – International segment as the business generated a 10.7% operating margin, despite increased investments in sales and marketing, compared to 5.7% operating margin in 2006. Revenue in our Careers – International business is now 36.1% of our consolidated revenue, compared to 27.4% in 2006. Our Internet Advertising & Fees segment grew revenue 2.3% over 2006, and experienced decelerating revenue trends throughout 2007, particularly in the second half of the year. This was primarily due to the decision to reduce the placement of certain interstitial advertisements on the Monster.com site and reevaluate our overall ad placement strategy.

In July 2007, we announced a strategic restructuring plan intended to position us for sustainable long-term growth in the rapidly evolving global online recruitment and advertising industry. The restructuring plan is designed to reduce our current workforce by approximately 800 associates, or 15% of our full-time staff, through 2008. Through December 31, 2007, we have notified or terminated approximately 360 associates and approximately 100 associates have voluntarily left the Company. The restructuring plan arose out of a review of our organizational and cost structure by our executive management team. The restructuring is intended to realign the Company's cost structure to permit investment in key areas that will improve the customer experience, foster revenue growth and margin expansion and reduce operating expense growth rates from current levels.

Business Combinations

Discontinued Operations

During the years ended December 31, 2006 and 2005, we disposed of the following businesses that collectively comprised the entire Advertising & Communications operating segment and the remaining businesses in our Directional Marketing operating segment. We executed these transactions in order to focus more resources to support the growth of the Monster franchise on a global basis. The results of operations of these businesses and the associated disposal costs are reflected as discontinued operations in the consolidated statements of operations for all periods presented:


On August 31, 2006, we sold our TMP Worldwide Advertising & Communications business in the United States and Canada. The Company received cash of $36.2 million (net of working capital and other adjustments). The Company recorded a pre-tax loss on the sale of the business of $125.0 million ($123.1 million after-tax loss, net of a $1.9 million tax benefit) in the third quarter of 2006. Included in the pre-tax loss is approximately $133.0 million of remaining goodwill and other intangible assets associated with the Advertising & Communications operating segment. This disposition was considered material and included a significant amount of assets, primarily due to the amount of goodwill on the balance sheet as of August 31, 2006.


On May 10, 2006, we sold our TMP Worldwide Advertising & Communications businesses in the United Kingdom and Ireland. In a separate transaction, the Company also sold its recruitment advertising agency in Spain. The Company received cash of $32.9 million (net of working capital and other adjustments) and approximately a $9.0 million interest bearing note receivable maturing on May 10, 2013. The Company recorded a pre-tax gain on the sale of these businesses of $543,000 ($812,000 after-tax loss, net of a $1.4 million tax expense) in the second quarter of 2006, included as a component of discontinued operations in the statements of operations. The disposition was not considered material and did not include a significant amount of assets.


On March 1, 2006, we sold our TMP Worldwide Advertising & Communications businesses in Australia/New Zealand and Singapore in two separate transactions. The Company recognized a pre-tax gain on the sale of these businesses of $2.5 million ($5.4 million including the tax benefit recognized upon disposition) in the first quarter of 2006. The disposition was not considered material and did not include a significant amount of assets.


On June 1, 2005, we sold substantially all of our Directional Marketing division for net cash consideration of $49.6 million ($80.0 million purchase price less working capital and other adjustments and $2.5 million of cash placed in escrow for an 18 month period following the disposition date) and a $7.0 million, 3% promissory note due to the Company after seven years. The sale included the Company's Yellow Pages business in North America and Japan along with its online relocation business. The Company recognized a pre-tax loss on sale of these businesses of $10.7 million ($1.8 million net of tax benefits) in the second quarter of 2005. In the third quarter of 2005, the Company returned cash consideration of $657,000 upon final determination of working capital sold in connection with the disposition. In the fourth quarter of 2006, the Company received the cash previously placed in escrow of approximately $2.7 million and approximately $7.3 million related to the promissory note as an early repayment in full. The sale of the Directional Marketing business did not include the Company's Directional Marketing operations in the United Kingdom. The Company's European Advertising & Communications management continued to operate that business, and accordingly, those results were reclassified to our Advertising & Communications operating segment.


On May 2, 2005, we sold our TMP Direct business unit, an order fulfillment business, formerly part of our Directional Marketing segment. The business was purchased by Gecko Inc., an entity owned 65% by George Eisele, a director of Monster Worldwide, for $2.5 million cash paid at closing plus an amount equal to 50% of TMP Direct's working capital as of the closing date payable on May 2, 2006. George Eisele and another individual shareholder of Gecko Inc. personally guaranteed the May 2, 2006 payment obligation of Gecko Inc. We received $500,000 in the second quarter of 2006 in connection with this obligation. The sale was not considered material and did not include a significant amount of assets. We recognized a pre-tax and after tax loss on sale of this business of $551,000 in the second quarter of 2005.

Included in the loss from discontinued operations, net of tax calculation in 2005 is the impact of the stock option adjustments discussed in Note 8 to the consolidated financial statements. We recorded $636,000 of non-cash stock based compensation costs in the year ended December 31, 2005 as a component of discontinued operations, which directly relate to stock options that were awarded to individuals who were employed by the businesses discussed above that were disposed. In addition, the income (loss) from discontinued operations, net of tax includes a loss of $323,000 and income of $906,000, related to dispositions that occurred in the year immediately preceding each of the years ended December 31, 2006 and 2005, respectively. The provision for income taxes reported in discontinued operations for the years ended December 31, 2006 and 2005 differs from the tax benefit computed at our Federal statutory income tax rate primarily as a result of non-deductible goodwill and other expenses, and change in valuation allowances on losses.

RESULTS OF OPERATIONS

The Year Ended December 31, 2007 Compared to the Year Ended December 31, 2006

Careers – North America

Our Careers – North America segment grew revenue 7.5% in 2007 representing 52.3% of our consolidated revenue, down from 58.9% of total revenue in 2006. Sluggish economic trends within the labor markets across the United States contributed to moderating revenue growth throughout 2007. We also experienced decreasing demand across our small-to-medium sized customer base whose pace of hiring slowed as a result of the overall macro-economic environment. Our global enterprise accounts continued to perform well in 2007, reflecting the global nature of our business and the breath of our product lines. We continue to benefit from a secular shift from print to online advertising, and we believe that we continue to maintain market share within the recruitment advertising industry.

The Careers – North America segment generated an operating margin of 31.8% in 2007 down from 34.5% reported in 2006. Total operating expense grew 12.0% compared to revenue growth of 7.5%. Total operating expenses included $11.5 million related to the security breach and restructuring plan. We have made substantial progress to slow our expense growth rate through our restructuring efforts in the third and fourth quarters. We reduced our workforce by approximately 12% during 2007, primarily related to non-sales force employees and we continue to monitor our revenue per employee. The operating expense growth rate has slowed even as we have continued to make investments in marketing, technology and product innovation.

We plan to continue to invest in our infrastructure and new product innovation in 2008 in order to improve the customer experience and drive incremental revenue growth. We are also continuing our work to slow the growth rate of our operating expenses while increasing our spending in market facing initiatives and innovation. We believe that our primary opportunity for future growth in North America is at the regional and local market level and we therefore continue to monitor our pricing structure in the local and regional markets in order to achieve a competitive advantage. While we remain committed to investing for long-term growth, we will closely monitor the operating expense base in line with our revenue expectations.

Our Careers – International segment demonstrated significant revenue growth of 59.3% in 2007, mainly driven by investments in key European and Asian countries, coupled with increased production from a growing sales force and a 10.1% favorable effect from foreign exchange rates. We continued to see strong revenue gains in our top European countries, particularly the United Kingdom, France, Germany and the Netherlands, which contributed approximately 66.3% of total Careers – International revenue. Outside these four countries, our smaller markets also posted solid revenue growth. In Asia, we saw strong year-over-year increases in all countries where we operate, and we believe that our strategy to capture market share while aggressively investing in the business will position Monster firmly in the region for significant future revenue growth.

Our considerable investments in marketing and sales in the major countries across Continental Europe and Asia are paying off, evidenced by the segment's organic revenue growth rate of 48.5%, excluding the effects of currency exchange rates and the results of businesses acquired within the last year. We continue to benefit from the secular shift from print to online media.

We aggressively increased our investments overseas through a refined mix of marketing, sales and product enhancements. Marketing expenses increased approximately 32% over the 2006 period as we invested to increase our brand awareness, drive job seeker traffic to our websites and expand our reach, both to the job seeker and to the employer. Those investments, combined with the addition of sales and support staff during the first half of 2007, have helped us achieve a significant portion of our overall revenue growth and gain market share in key European and Asian countries. We are committed to growing our business overseas, while still mindful of profitability and the cost structure. In 2007, the segment increased total operating expenses by 50.9%, including a 9.5% impact from foreign exchange rates, while expanding its operating margin to 10.7%. Although our headcount increased by approximately 400 associates in 2007, the overall expense growth rate slowed in the second half of the year due to our restructuring initiatives.

Our Internet Advertising & Fees segment posted revenue growth of 2.3% in 2007 when compared to 2006. This was a significantly slower growth rate than throughout 2006 and resulted from decelerating revenue trends throughout 2007. The second half of 2007 was particularly impacted by our decision to reduce the placement of certain interstitial advertisements on the Monster.com website and a reevaluation of our relationship with certain clients engaged in student loan advertising. Although the decision to reduce placements had the effect of reducing revenue in the second half of 2007, and will continue into the first half of 2008, we believe it was the appropriate action to take to improve the quality of the job seeker experience on the Monster.com site. We continue to believe that online advertising represents a significant growth opportunity for us, as our audience is appealing to both brand and remnant advertisers. We posted an operating margin of 7.8% for 2007, a sharp decline from the 29.6% operating margin reported in the same period in 2006 as our expense base grew at a faster rate than our revenue. The expenses increased in 2007 for almost all expense categories, especially compensation and related expenses. We invested in our business model by adding sales capacity, increasing product and technology expenditures and initiating infrastructure build-outs during the first half of the year. Marketing expenses increased 15.9% over the 2006 period as we invested in our websites and expanded their recognition among users. We believe that the fourth quarter 2007 results represent a reasonable base from which to expand the business, subject to market conditions.

Consolidated Operating Expenses and Operating Income

Our consolidated operating expenses grew 28.2% in 2007 compared to 2006. In the second half of 2007, we incurred restructuring and other special charges of $16.6 million related to the strategic restructuring initiatives that we announced on July 30, 2007. We have increased our global headcount

by approximately 6% over the 2006 period, primarily for sales and support in our Careers segments. As a result, we incurred higher salary, benefits and commission costs. Included in salaries and related is approximately $15.8 million of severance related to the departure of three former executive officers in the second quarter of 2007. Of that amount, approximately $12.8 million is non-cash and relates to the accelerated vesting of equity awards. Office and general expenses increased 37.6% as a direct result of investments in our infrastructure, additional headcount and technology costs. Included within the office and general expenses is approximately $19.1 million of professional fees related to the ongoing stock option investigation and $9.0 million for the remediation of the August 2007 security breach of our resume database. We also increased marketing and promotion expenditures by $39.6 million as a result of increasing promotional activities particularly in the fourth quarter, in anticipation of the brand re-launch in January 2008.

MANAGEMENT DISCUSSION FOR LATEST QUARTER

Results of Operations

Our consolidated revenue grew 9.4% in the second quarter of 2008 compared to 2007. The effect of the weakening U.S. dollar contributed approximately $14.0 million to reported revenue, or approximately 4.3% of the overall growth. Careers - International experienced strong revenue growth throughout continental Europe and in the Asia Pacific region. Careers – North America revenue decreased 5.8%.

Our consolidated operating expenses grew 14.9% in the second quarter of 2008, primarily as a result of $40.1 million in provisions for legal settlements, net recorded in 2008 related to the proposed and anticipated settlement of the class action and related lawsuits. The other operating expenses grew 0.6% reflecting our continued commitment to reinvest in critical areas such as sales, technology, product innovation, brand support and infrastructure, as well as our efforts to contain expense growth. Included within the salaries and related expense for the quarter ended June 30, 2007 was approximately $12.8 million of accelerated stock-based compensation expense related to former executive officers. Although overall headcount is lower by approximately 1% from the second quarter of 2007, stock based compensation, excluding the $12.8 million of accelerated expense in 2007, increased to $8.5 million in 2008 from $4.4 million in 2007, as we are providing equity and incentive compensation opportunities to a broader set of associates, designed to reward increased productivity. The effects of the weakening U.S. dollar increased our consolidated operating expenses by approximately $10 million in the second quarter of 2008 compared to the 2007 period. Increases in office and general expenses were driven primarily by increased expense from depreciation and amortization of $2.8 million, other professional fees of $3.0 million that included work associated with current investment projects, and $4.3 million associated with running our new additional and existing facilities. Included in office and general expenses are $4.3 million and $5.3 million of professional fees and expenses related to the ongoing stock option investigation for 2008 and 2007, respectively. Marketing and promotion expenses decreased $4.6 million, or 6.2%, in 2008 compared to 2007 mainly as a result of the decision to shift more spending into the first quarter of 2008 to support the launch of the Monster re-branding efforts, an initiative that we believe will benefit future quarters and years.

Our consolidated operating margin was 8.8% in the second quarter of 2008, compared to 13.2% in the second quarter of 2007. Operating income decreased $11.6 million or 27.1% in the second quarter of 2008 compared to 2007, primarily as a result of the $40.1 million provision for proposed and anticipated legal settlements, net. As a result of our restructuring and reinvestment programs, we believe we have made solid progress in improving the Company's operating platform to facilitate future growth. Increased revenue partially offset the effects of the higher costs on operating margin.

The following presentation of our segment results is prepared based on the criteria we use when evaluating the performance of our business units. For these purposes, management views certain non-cash expenses, such as depreciation expense, amortization of intangibles, amortization of stock-based compensation and non-cash restructuring and other special charges, as a separate component of operating profit. We believe that this presentation provides important indicators of our operating strength and is useful to investors when evaluating our operating performance.

Revenue in our Careers – North America segment decreased $10.2 million or 5.8% in the second quarter of 2008, compared to the prior year period. The weaker U.S. economy impacted overall hiring demand as customers became more deliberate with their recruiting decisions. Our business was impacted in the credit, financial services and housing sectors, reflecting the overall weakness in these industries, as well as associated industries, such as construction and manufacturing. Partially offsetting this was growth in our government and Canadian business.

Operating costs in our Careers – North America segment decreased primarily as the result of a 29% decrease in marketing and promotion expenditures caused by the decision to shift more spending into the first quarter of 2008 to support the global brand re-launch efforts to reposition the Monster brand in the global marketplace. In addition, salary and related expenses decreased by 9%, primarily the result of a 14% decrease in headcount resulting from restructuring, partially offset by an increase in stock-based compensation in 2008 of $1.1 million compared to 2007, as a result of a broader level of associates participating in our stock-based compensation plan. The portion of Careers – North America's costs for technology infrastructure increased by 12%, as we remain committed to investing in our product, new technology and other assets in order to sustain long-term profitability. Restructuring expenses were $0.9 million in the second quarter of 2008. We expect to continue our cost containment efforts in order to mitigate some of the effects of the weaker U.S. economy on revenue, while still investing in efforts to improve customer service and our technology infrastructure.

Our Careers – North America segment generated an operating margin of 35.6% in the second quarter of 2008, compared to 31.3% reported in the comparable 2007 period. Operating income in our Careers – North America segment increased $3.8 million or 7.0% in the second quarter of 2008 compared to the 2007 period. The increase was primarily the result of the reduction in the operating costs items noted above; partially offset by the decrease in revenue and increases in depreciation, amortization and stock-based compensation expenses of $3.0 million.

Our Careers – International segment delivered revenue growth of 34.1% in the second quarter of 2008 compared to the second quarter of 2007. We experienced strong revenue growth throughout continental Europe with our Careers - International revenue accounting for 44.2% of consolidated revenue in 2008, compared to 36.1% in 2007. The effect of the weakening U.S. dollar contributed approximately $13.3 million to reported revenue, or approximately 11% of the growth. Our leading position in large geographic markets across Europe and the ongoing secular shift from print to online continued to drive revenue growth; however we did experience a slowdown in customer activity, particularly from U.S. based multi-national customers reflecting the uncertain economic environment. In the Asia/Pacific region we continued to experience strong revenue growth. We are beginning to see signs of economic slowdown in a majority of the regions where we operate.

Our Careers – International segment operating expenses increased primarily as a result of an 8% increase in technology infrastructure costs in the second quarter of 2008, as we remain committed to investing in our product, new technology and other technology assets in order to sustain long-term profitability. In addition, we incurred higher salary and related costs of 20% on essentially unchanged employee headcount, as a result of increased compensation and a broader level of associates participating in our stock-based compensation plan. The effect of the weakening U.S. dollar contributed approximately 9% to the expense growth in 2008. Marketing costs were essentially unchanged in 2008 when compared to 2007.

Our Careers – International segment generated an operating margin of 20.4% in the second quarter of 2008, an increase from a 10.3% reported operating margin in the comparable 2007 period. Operating income in our Careers – International segment increased $19.9 million or 164.8% in the second quarter of 2008 compared to the 2007 period. The increase was primarily the result of an increase in revenues of $39.8 million, partially offset by higher expenses. The effect of the weakening U.S. dollar contributed approximately $5 million to reported operating income, or 5.7%.

Revenue at our Internet Advertising & Fees segment increased 2.1% in the second quarter of 2008 compared to the second quarter of 2007. The increase in revenue is primarily as a result of growth in sales from our Military.com website and our acquisition of Affinity Labs in January 2008, as part of our strategy to access the significant opportunities to expand our presence in online vertical communities. Our strategic decision in 2007 to remove interstitial advertisements and student loan advertising continued to negatively impact comparable results in the second quarter.

Our Internet Advertising & Fees segment operating expenses increased $1.7 million or 6.3% in the second quarter of 2008 compared to the 2007 period. Marketing and promotion costs increased 58%, driven by $3.0 million of increased online media advertising, primarily from the acquisition of Affinity Labs in January of 2008. In addition, we incurred lower compensation expense of $0.9 million related to lower cash compensation expenses, partially offset by a broader level of associates participating in our stock-based compensation plan.

Our Internet Advertising & Fees segment generated an operating margin of 14.0% in the second quarter of 2008, a decrease from a 17.4% reported operating margin in the comparable 2007 period. Operating income in our Internet Advertising & Fees segment decreased $1.0 million or 18.0% in the second quarter of 2008 compared to the 2007 period. The decrease was primarily the result of the increase in operating costs noted above; partially offset by the increase in revenue.

Loss in Equity Interests, net

We reported losses in equity interests of $3.6 million and $3.0 million for the quarters ended June 30, 2008 and 2007, respectively. The loss of $3.8 million for ChinaHR in second quarter of 2008 included higher bad debt expense. ChinaHR's 2007 second quarter loss was $3.2 million.

Our effective tax rates differ from the statutory rate due to the impact of state and local income taxes, tax exempt interest income, certain nondeductible expenses, foreign earnings taxed at different tax rates, valuation allowances and accrual of interest on accrued tax liabilities. Our future effective tax rates could be adversely affected by earnings being lower than anticipated in countries where we have lower statutory rates, changes in the valuation of our deferred tax assets or liabilities, or changes in tax laws or interpretations thereof. In addition, our filed tax returns are subject to the examination by the Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes.

Discontinued Operations, Net of Tax

Discontinued operations for the second quarter 2008 were for the wind-down of Tickle and included the write-down of $13.1 million of long-lived assets, an income tax benefit of $28.6 million and a pre-tax loss of $3.2 million from its operations. The 2007 results of $0.6 million were for Tickle and the disposed of businesses that collectively comprised the former Advertising & Communications operating segment.

Earnings Per Share

Diluted earnings per share from continuing operations decreased 31.8% in the second quarter of 2008 period, primarily as a result of lower operating income and lower non-operating income, partially offset by lower income taxes and a decrease in weighted average diluted shares. Diluted weighted average shares outstanding decreased approximately 11.6 million shares, primarily as a result of the repurchase of 10.6 million shares of common stock since August 2007 and a lower average share price in 2008. Net income was 8.7% of total revenue in the second quarter of 2008, compared to 8.8% in the second quarter of 2007.

CONF CALL

Robert Jones

Thank you, Operator. Good afternoon and thank you for joining us on Monster Worldwide’s second quarter 2008 conference call. Our format calls for us to have formal remarks from Sal Iannuzzi, Chairman and Chief Executive Officer; and Tim Yates, Executive Vice President and Chief Financial Officer. Joining us for the question-and-answer part of the call are the following members of our executive management team: Darko Dejanovic, Global CIO and Head of Product; Art O’Donnell, Customer Service; and Mark Stoever, Internet Advertising & Fees. We would also like to welcome James [Langrock], Senior Vice President Finance and Chief Accounting Officer who joined the management team in May.

Before we begin, I’d like to remind you that except for historical information, the statements made during this conference call constitute forward-looking statements under applicable securities laws. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company’s strategic direction, prospects, and future results, and do not include the effect of the defense or outcome of the ongoing investigations or litigations related to past stock option grants or costs associated with the restructuring and the security breach.

Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, seasonality, and the other risks discussed in our Form 10-Q and our other filings made with the Securities and Exchange Commission.

With that, I would like to turn the call over to Sal for his comments.

Salvatore Iannuzzi

Thank you, Bob. Good afternoon, everyone and welcome to our second quarter earnings conference call. On today’s call, I will share with you some of my thoughts on the current macroeconomic environment and how Monster is operating within it, provide an update on key initiatives underway within our company, and give you a preview of some exciting activities slated for the second half of the year, efforts which I believe will continue to redefine Monster and extend our leadership position around the world. Tim Yates, our CFO, will then discuss the second quarter operating and financial results in detail.

We’re going to keep our scripted remarks to about 30 to 35 minutes today. We have a lot of things to talk about and we want to leave ample time for questions and answers.

Another housekeeping note before we get started: we will be holding investor conferences some time in November. More details on these meetings will be provided in the coming weeks.

For anyone who reads a newspaper or watches television, this isn’t going to come as much of a surprise. The global economy continues to soften. Last quarter in fact we started to see some slowing internationally and now we can confirm Europe is slowing and we’re beginning to see signs of slowing in Asia as well.

Monster, like most global companies, continues to operate in this challenging economic environment. Not surprisingly, this economic slowdown is having an impact on our core business. It’s difficult, if not impossible, to predict when these economic conditions will turn around, so we’ll leave to the experts.

Having said that, what I can tell you is that I remain extremely confident in Monster's ability to navigate through current landscape and grow our market share as well as position the company for robust growth when the economic environment becomes more favorable.

In fact, and I think this is a critical point, we believe that Monster, given the multitude of things that we have done and are continuing to do, will be uniquely positioned in the industry to take advantage of the inevitable economic rebound.

In the second quarter on a non-GAAP basis, we accomplished a major financial goal by significantly slowing the growth rate of operating expenses as we continued to operate in an increasingly difficult global market. The quarter marked the first time since we announced the restructuring plan last year that revenue growth exceeded the increase in operating expenses as costs were brought in line with lower-than-anticipated revenue. As a result, we were able to expand our operating margins sequentially and year over year, demonstrating our ability to manage the business in a tough market, while at the same time continuing to aggressively invest in critical areas.

Operational efficiencies have allowed us to deliver $0.40 diluted earnings per share. Monster has a strong liquid balance sheet to support its growth plans and our healthy cash flow from operations provides the capital to purse strategic initiatives designed to increase shareholder value and position the company well for the long-term.

At this point, I would like to take a few moments to discuss recent developments in two of the outstanding actions related to Monster's historical stock option grant practices. As noted in a separate news release this afternoon, on Wednesday we entered into a memorandum of understanding with the [class representative] and the individual defendants in the shareholder securities class action that sets forth the terms under which the parties intend to settle the securities class action. The terms of the MOU will be incorporated into a formal settlement agreement which will be subject to final court approval.

Additionally, earlier in the week the New York State Supreme Court gave preliminary approval to the settlement of both the New York State and federal derivative lawsuits. A final hearing on the terms of the derivative settlement will be held in early October, at which point we anticipate securing final approval of the settlement.

Tim will speak to the numbers in his comments. However, I wish to emphasize how happy we are with the progress we have made in resolving the outstanding litigation related to Monster's historical stock option grant practices.

We look forward to final approval of the settlements in these cases, the quick resolution of the remaining outstanding litigation, and ultimately the closure of this chapter in Monster's history.

I want to take a moment to do something I normally don’t do and that is compliment our lawyers. But I’d like to thank the team of [Deckert] LLP and our lead external counsel, and [Solomon & Cromwell] for the outstanding job they have done in helping us through these matters.

Because of proactive and deliberate changes we have made, many of the legacy issues that face this company are now behind us and those that remain will soon be resolved. Without question, I am very optimistic about the future of this company.

A year ago, we outlined a comprehensive restructuring plan of our core global functions. At the time, we did not anticipate the challenges that would impact the global economy, namely a deepening of the credit crisis, oil peaking at $150 a barrel, and a collapse of the housing market.

We restructured because it was necessary to make Monster a stronger company, one that delivers better experiences for employers and seekers. However, in light of the downturn in the economy, this restructuring is already paying us dividends and has served us well in maintaining a strong financial and market leading position.

One of the results of our restructuring has been the significant reduction of costs over the past year and the reallocation of those savings to other parts of the business. To date, we have reduced costs by approximately $95 million, or $130 million to $140 million on an annualized basis, and there are additional savings to come.

These cost reductions have come through reduced headcount and to other expense management initiatives. We’ve eliminated positions that were either redundant, non-essential to our core business, or non-revenue generating. We have reinvested those realized savings into revenue and market growing positions, such as field sales, customer service, and product development.

To put this in perspective, from one year ago our total headcount remains relatively flat, resulting in an increase of 11% in annualized revenue per head. This reallocation of resources has positioned us to grow our customer base, develop innovative and new products, provide better customer service and strengthen our overall market position.

It was the right thing to do and it’s given the company a very solid foundation to navigate the current economic conditions and accelerate growth once the economy rebounds.

Should the recession last longer than expected, these changes will keep us strong and growing. Clearly, we could simply cut these costs without reinvesting the savings into revenue and market growing positions but we felt that kind of myopic approach would short-change our shareholders of value in the years to come and we’re simply not going to do that.

Given the weakening economy, coupled with our strong commitment to investment and innovation, we most likely will not meet our target of 25% operating margin by the end of this year. We believe that as the economy improves, this margin target will be well within grasp.

We’re holding back our margin growth to improve product and take market share.

I want to delve into more specifics about where and how we are allocating our resources, and why we chose to temporarily forego the 25% margin target. To break it out, the restructuring has allowed us to reinvest in the following areas, which I’ll go into one by one: sales force expansion, customer service optimization, product enhancement and innovation, geographic expansion, extension of our business into new areas. As you know, we are reorganizing our sales team in North America by regions and we are combining tele-sales with field sales. We are well underway in our hiring of new field sales representatives. In fact, we are celebrating our third graduating class of the new Monster field sales representatives from our training program.

Incidentally, and not surprisingly, we use all of our Monster tools to identify and recruit candidates for these 200 positions, and as a result we have received more than 10,000 qualified resumes.

At the risk of sounding immodest, we really do know how to do this.

We have also invested and added headcount to our overseas sales force. As you know, we have experienced rapid growth overseas and we believe these [individual] sales resources will help accelerate that growth.

One of the benefits of the expanded and newly integrated sales team is that it will enhance the overall customer experience, providing more touch points with the customer, deepening existing customer relationships, and better penetrating the marketplace.

We anticipate that this unified stronger sales force will allow us to acquire new customers and more deeply service our existing customer base over the next two quarters and beyond. We also believe this unified stronger sales presence positions us for exceptional growth as we come out of the global economic downturn.

As part of our efforts to optimize our customer service function, Monster announced in June that we will be bringing our North American customer service operations, some of which currently resides outside of the U.S., to a new state-of-the-art facility in Florence, South Carolina. We expect that this transition will occur between now and Q1 and will allow us to have the most advanced technology training customer service tools in the industry.

We are taking a similar consolidation in Europe as well, with the opening of our new customer service facility in Brno, Czech Republic. This facility will support our European customer base and will help us provide world class service as we become more flexible, effective, and efficient in our approach.

We could take up the entire call talking about our new product development but I won’t make you sit through that, at least not yet. We’ll get into more specifics on products at our upcoming investor conference in November but for now, suffice it to say that we’ve been absolutely committed to putting all the resources of the company behind overhauling the employer and seeker experience, a new Monster, if you will. It’s our biggest overhaul and relaunch since the inception of the company and one that we believe will dramatically improve our ability to anticipate and meet the needs of seekers and employers, energize our associates, and ultimately help us grow market share.

To put it in perspective, we are substantially rebuilding Monster's hiring site and virtually completely rebuilding the seeker experience.

Again, without giving away too much detail, you will be hearing more about this over the next two quarters. Our new offering will make it easier for employers to do business with Monster in that the new product will better match relevant candidates to existing career opportunities.

We understand that for employers, it is about quality candidates, not quantity. Our new technology will deliver more qualified candidates to help fulfill talent needs more quickly and more efficiently. These new applications will increase recruitment productivity and make it easier for employers to find the right person for the right opportunity.

For seekers, these new products will provide a highly customized, personalized, relevant experience, unparalleled online career management resources, and innovative targeted patent pending behavioral technology.

For employers, it will improve performance, streamline processes, and make the experience more intuitive and provide new applications for our recruiter customers.

As the creator of the online recruitment industry, Monster not only has 15 years of experience but also 15 years of rich data that gives us strategic insights into career pathing trends that no other company can claim. We are right now harnessing the power of this data to help recruiters make better strategic hiring decisions while also helping seekers explore and reach their career aspirations.

I would like to take this opportunity to comment on our announcement that Monster has acquired Trovix, a company based in Silicon Valley. Trovix is a leading provider of employment products that use advanced Symantec search technology that has the ability to analyze resumes and job descriptions by focusing on key attributes, such as skills, work history, and education. This is an all cash deal priced at approximately $73 million.

This acquisition will allow us to leapfrog the competition when it comes to search engine and matching capability. Let me be clear -- this technology, combined with the other innovations we just discussed, will provide a game-changing advantage for Monster, one that we think will further position us to provide the best customer experience for both seekers and employers.

This deal is another example of our continued commitment to developing and acquiring the most innovative technologies in our space.

Additionally, we’ve also acquired a military site in France called Armees.com, which establishes a beach head for us in Europe and expands our overall military portfolio, where we are already the market leader.

In addition to those deals, we have formed two new partnerships that we are very excited about, one with Cornerstone on Demand, a leading, e-learning company that will provide learning and development online courses to Monster jobseekers. The other, Hire Right, an on-demand employment screening solutions company that will allow Monster to provide recruiters and seamless candidate evaluation.

Two weeks ago, we launched something we call target post on our e-com platform. It’s a quick, easy, and affordable posting product targeted at the skilled and hourly recruitment market. We’re very excited about its potential to address this market much more effectively and efficiently.

As you know, we’ve been in negotiations for some time with China HR to finalize that acquisition. We are hoping that we will close it in Q3 and will continue to move forward with our due diligence.

Beyond China HR, however, we are looking at other opportunities in China and elsewhere as we continue to expand our global footprint.

In sum, we are spending your money wisely and aggressively overhauling our company. We are making the right investments, improving our products and technology, revitalizing our customer service, and expanding our markets. And as such, we are poised on a global basis to reap the benefits when the economy rebounds.

Put simply, we are on the right course and we don’t want to deviate from it. Irrespective of continued market turbulence in the months ahead, we will stay the course and continue to grow our business through investments in new technology, our sales force, and overseas markets. We are not going to cut our way through a recession for short-term gain at the expense of long-term growth.

I’m extremely proud of the progress of this company. This progress would not have been possible without the dedication and hard work of our nearly 5,400 global associates. Monster is not about one individual; it is about the sum total of each of those 5,400 individuals and their daily contributions to making this company stronger and better, and to helping improve [inaudible] every day.

I want to thank them for their commitment and I look forward to working with them to continue the momentum we’ve built.

I will now turn over the call to Tim, who will provide a more detailed look at our operating and financial performance in the second quarter. Tim.

Timothy T. Yates

Thank you, Sal and good evening, everyone. I would also like to welcome James to the Monster finance team. Both Sal and I have worked with James and have the highest regard for his abilities and I look forward to introducing him to you in the near-term.

First I will review our income statement highlighting our non-GAAP results while providing the GAAP reconciliations. I’ll then review the results within our operating segments, including our investment in China HR, and finish with a discussion of the balance sheet.

I would like to point out that the results of Tickle are classified as discontinued operations for all periods presented.

Consolidated revenue reached $354 million in the second quarter, a 9% increase over the prior year period. Excluding a $14 million currency benefit, revenue grew 4%. In last year’s second quarter, currency had a positive impact on revenue of approximately $6 million versus the 2006 period.

On a non-GAAP basis, operating expenses grew 6% over the prior year period to $276 million, a significantly slower growth rate than prior period. This deceleration was primarily driven by operating efficiencies as a result of tightly controlled headcount and a more effective media spend, while continuing to allocate resources to critical revenue generating areas.

On a year-over-year basis, the currency impact on operating expenses was approximately $10 million. As a result, the non-GAAP operating margin expanded to 22% from 12% in this year’s first quarter and 20% in the 2007 period.

We are pleased with our progress thus far in our restructuring and our ability to control operating costs while making critical investments. However, as Sal has noted today and we have consistently noted over time, it is important for the company to continue to invest to protect and enhance the long-term value of our business. So while we will continue to be vigilant in managing operating costs and efficiencies, we will also continue to make the investments we have been talking about. The trend in operating expenses will not be linear and the progression in our operating margins is partially dependent on our revenue, which in turn is dependent on the overall economic environment.

Interest and other income was $3 million for the quarter, a 56% reduction over the prior year period, mainly reflecting our shift into U.S. government, short-term taxable instruments. Our effective tax rate was 35% and the loss in equity interests was $3.6 million. The diluted share count was $121.5 million, a 9% year-over-year decrease, reflecting repurchases of our common stock and a lower average quarterly price.

Excluding the items we have highlighted, income from continuing operations was $49 million, or $0.40 per diluted share, compared with $43 million, or $0.32 per diluted share in last year’s second quarter.

Before discussing the segment results, I want to review the impact of certain adjustments recorded in the second quarter that reconcile our GAAP and non-GAAP results. There are three pieces; first, as disclosed in today’s press release, the company has established a net provision covering $40 million related to the proposed settlement costs associated with outstanding fines and litigation stemming from the company’s historical stock option grant practices. The MOU, which provides for the full settlement of the claims asserted in the securities class action, calls for payment to the class of $47.5 million, the cost of which to the company will be approximately $25 million net of insurance recovery and payment by another defendant.

In addition to this provision, we have accrued an estimated $15 million to resolve other open items.

Second, and separate from the provision on the settlement, we also incurred $4 million of professional fees related to the external investigation during the quarter.

And third, $3 million of restructuring and other special charges, primarily related to severance costs.

Including these costs, the GAAP operating margin was 9% and income from continuing operations was $19 million, or $0.15 per diluted share.

As discussed last quarter, we are winding down the operations of Tickle and accordingly, we have restated its historical results as a component of discontinued operations. Included in discontinued operations for the second quarter is Tickle’s Q2 operating loss of $3 million and asset write-downs of $13 million, offset by an income tax benefit as a result of the wind-down. As such, we have recorded a net gain in discontinued operations of approximately $12 million, or $0.10 per diluted share.

Turning to the results of the operating segments, revenue from the combined career segments was up 10% over the prior year period and the consolidated non-GAAP operating margin for the second quarter was 29%, a six-point increase over the prior year period.

The value of Monster's broad geographic footprint is clearly evident this quarter. Our global product offering provides an important competitive advantage as we compete for business in a tough market, and while many of the economies around the world are slowing, following the United States, the fact that many of those markets are in an earlier stage in their conversion from print to online recruitment advertising appears to be mitigating to some extent the impact of the slowing of those economies on us.

The combined impact of these factors means that the international segment revenue grew 34%, or 23% excluding a $13 million currency benefit, reaching $157 million in the quarter.

The non-GAAP international operating margin more than doubled over the prior year period to 21% in the second quarter.

North American career revenue declined 6% to $164 million in the second quarter, as the weaker U.S. economy reduced overall hiring demand. Despite lower revenue, our ability to closely monitor the cost structure and reduce operating expenses while still investing in critical areas led to a non-GAAP operating margin of 36% in the second quarter, an increase of almost 500 basis points over the prior year period.

Our IAF business generated revenue of $33 million in the second quarter, a modest increase over the prior year, after adjusting historical results for the wind-down of Tickle. Looking ahead, we are optimistic about our IAF businesses.

Q2 marks the first quarter of slight growth since making the strategic decision mid last year around interstitial inventory and eliminating the student lending category of advertisers. We believe we have overcome these hurdles and are optimistic about the growth opportunities in lead generation and display across our sites.

The non-GAAP operating margin expanded sequentially to 15% in the second quarter and was below the 17% margin reported in the prior year, primarily due to higher operating costs in the quarter in part resulting from the acquisition of Affinity Labs.

Turning to our investment in China, we recorded a loss in equity interest of $3.8 million in the second quarter of 2008, which was higher than we anticipated due to additional bad debt expense recorded resulting from our ongoing due diligence efforts. Excluding the accounts receivable write-down, the loss would have been in line with their business plan and more consistent with past results.

Negotiations are at a critical stage. As Sal has mentioned, we are hoping that the transaction will close in Q3 and at the lower end of our original price expectations.

China HR’s revenue continues to grow at a faster pace than our overall international revenue and we are very committed to the long-term potential of the China market. We will, however, need to make significant investments in people, product, marketing and technology to fully capitalize on that potential.

In looking at the balance sheet, deferred revenue increased 4% over the prior year and was flat when excluding the benefits from currency, indicative of the slowing global economy.

Cash flow from operating activities in the second quarter was $71 million and capital expenditures were $30 million. In the quarter, we spent $6 million on stock repurchases to acquired 278,000 shares at an average price of $22.51.

Slowing our buy-back during the past quarter has been a difficult decision. We certainly believe that our current stock price does not adequately reflect the value of our company. However, because of the extreme market dislocations and an uncertain global macro environment, we believe that maintaining a strong liquidity position is of great value. We were preserving liquidity in anticipation of the potential resolution of the legacy legal issues and with today’s announcement, those are now close to being resolved.

In addition, a number of potential business opportunities are presenting themselves, such as today’s announcement, announced acquisition of Trovix.

We will pursue these opportunities to conclusion. As they become clearer and as the macroeconomic environment begins to turn, we will not hesitate to pick up the pace of our buy-back as appropriate.

As of the end of the quarter, we had approximately $168 million remaining under the stock repurchase program. Our net cash and securities balance was $533 million, which includes auction rate securities with a fair value of $99 million that are recorded as long-term assets. Our auction rate securities are primarily triple A rated and approximately 90% are backed by the U.S. government guarantee, with the remaining 10% backed by private insurers.

The company recorded a $1.4 million temporary impairment related to these auction rate securities as a component of stockholders’ equity at the end of the second quarter, down when compared with the $1.7 million temporary impairment recorded at the end of March, reflecting redemptions during the quarter.

In addition to the capital on hand and our improving ability to generate cash, we have an existing unused $250 million credit facility and no debt.

I will now hand the call back over to Sal for his closing remarks.

Salvatore Iannuzzi

Thank you, Tim. Let me sum it up -- we are confident in the company’s long-term potential. We will make investments decisions based on the long-term and not short-term gain. The transformation continues. Many, many positive changes have occurred. The momentum continues to build and over the next several quarters, you will see much more.

Thanks to our dedicated associates, we are committed to providing the support and resources they need to continue to perform at the highest level. We also want to thank our shareholders for their ongoing support and interest in Monster.

Bob.

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