Autobytel Inc. (NASDAQ: ABTL), an internet auto marketing services company, continues to lose money while constructing what it hopes will be the go-to website for automobile information, accessories, and purchasing options. CEO Jim Riesenbach asserts that Autobytel will be profitable before the end of 2008. The company hopes to launch its consumer information site MyRide.com in June 2007, but as of June 7, the site was not yet available. When finally launched, will MyRide.com be another advertising channel or will the editorial content be more along the lines of bias-free Consumer Reports? Just how neutral will the information about cars and aftermarket products be?

Autobytel did show a profit of $3.1 million for 1Q 2007 but only because the company won a $9.9 million patent infringement lawsuit. Otherwise the $6 million loss for 1Q 2007 would go alongside the $9.1 million loss for 1Q 2006 and the $8 million loss for 4Q 2006. At least the multi-million dollar losses are getting smaller. Meanwhile, revenues remain as flat as a spiked tire, $28.4 million in 1Q 2007 vs. $28.3 million for 1Q 2006. EPS are currently negative $.41. It is difficult to see how Autobytel will compete with auto manufacturers' and dealers' own websites, even after MyRide.com is available. In order to be large enough to be the go-to website, MyRide.com will not be able to offer specialization products for consumers who will probably be able to find them more efficiently through smaller niche parts and products websites. Autobytel is a business model that has yet to make sense.

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Late last week there was another partnership from AOL, a division of Time Warner, Inc. (NYSE: TWX). The company has partnered with Autobytel (NASDAQ: ABTL), where Autobytel will be the exclusive fulfillment channel on the AOL Autos area for new price quotes from local car dealers.

Autobytel will integrate its lead distribution technology with AOL's automotive channel to provide consumers with an AOL-branded price quote process. Autobytel already processes more than a quarter of a million leads per month, and now AOL is essentially getting the Autobytel network for its own brand.

AOL Autos car shoppers can research the make, model and trim options on new vehicles, read reviews written by leading auto industry critics, compare options from one model to another, read about new dealership incentives, and then submit a price quote request to the local dealer of their choice.

This is not going to instantly be a monster revenue deal, but it is yet one more positive step among many that add to a greater branded content reach under the AOL name without the hardships of trying to go it alone.

Autobytel's stock gained 1.5% on the news to close at $3.31 last Friday.

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