8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 14, 2007

FISHER COMMUNICATIONS, INC.

(Exact Name of Registrant as Specified in Charter)

Washington	000-22439	91-0222175
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

100 Fourth Avenue N., Suite 510, Seattle, Washington 98109
(Address of Principal Executive Offices, including Zip Code)

(206) 404-7000
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

Item 2.02 Results of Operations and Financial Condition

     The information in this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, unless expressly set forth by specific reference in such filing.

     On February 14, 2007, Fisher Communications, Inc. issued a press release announcing financial results for the fourth quarter and annual periods ended December 31, 2006. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

     (d) Exhibits

     99.1 Press release issued by Fisher Communications, Inc., dated February 14, 2007.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FISHER COMMUNICATIONS, INC.
Dated: February 14, 2007	By:	/s/ S. Mae Fujita Numata
		S. Mae Fujita Numata
		Senior Vice President and Chief Financial Officer

-3-

Exhibit Index

99.1 Press release, dated February 14, 2007

-4-

EX-99.1

EXHIBIT 99.1

CONTACT:	Colleen B. Brown, President & CEO, Fisher Communications, Inc.
	(206) 404-6783

FISHER COMMUNICATIONS ANNOUNCES FOURTH QUARTER AND YEAR END 2006 IMPROVEMENT

SEATTLE—(BUSINESS WIRE)—February 14, 2007—Fisher Communications, Inc. (Nasdaq: FSCI) today announced its financial results for the fourth quarter and annual periods ended December 31, 2006. During 2006, the Company became profitable for the first time in five years from continuing operations.

The Company reported that revenue increased $8.4 million, or 23 percent, for the quarter ended December 31, 2006, compared to the same quarter in 2005. Political advertising contributed to the revenue increase as well as improved local advertising initiatives for both the English and Spanish language stations. For the full year ended December 31, 2006, revenue increased $17.6 million, or 13 percent, in comparison to 2005.

Fourth quarter income from operations increased to $12.1 million from a loss of $228,000 in the same quarter of 2005. YTD income from operations increased to $19.0 million from a loss of $5.6 million in 2005. Fourth quarter 2005 selling, general and administrative expenses include a $4.3 million non-cash charge to third-party agency commissions. The non-cash contract termination charge was a result of Fisher’s decision in December 2005 to change its national advertising sales agency for television operations. The termination amount will be amortized over the five-year term of the agreements with the successor agency as a decrease to agency expense.

During the fourth quarter of 2006, the Company closed on the sale of 18 out of 24 small-market radio stations located in Montana and Eastern Washington for $26.1 million. The remaining six stations were excluded from the original sale in order to secure FCC approval, but continue to be held for sale. The operating results for this group of stations are reported as discontinued operations.

Also announced in fourth quarter 2006, the Company finalized its purchase of two Oregon television stations for $19.3 million, affected through a like kind exchange of the sold radio properties mentioned above. This transaction was initially announced in December 2005 and included the purchase of two Idaho television stations that was finalized in May 2006.

The Company reported consolidated net income of $16.9 million for fourth quarter 2006. This included both continuing and discontinued operations. Fourth quarter 2006 income from continuing operations was $7.0 million, compared to income from continuing operations for fourth quarter 2005 of $1.6 million. Income from discontinued operations in fourth quarter 2006 of $9.9 million, reflects the after-tax sale gain of $10.0 million, compared to income from discontinued operations of $321,000 in fourth quarter 2005. During the fourth quarter of 2005, the Company dissolved certain wholly owned inactive subsidiaries and recognized a corresponding tax benefit of $3.4 million.

2006 consolidated net income was $16.8 million in comparison to a 2005 consolidated net loss of $5.1 million. Income from continuing operations for the full year ended December 31, 2006 was $6.3 million, compared to a loss from continuing operations for the year ended December 31, 2005 of $6.1 million. Income from 2006 discontinued operations was $10.6 million, which includes an after-tax gain of $10.0 million, compared to income from 2005 discontinued operations of $1.1 million.

“We are pleased with the outcome of a year filled with aggressive initiatives. The 2006 results and asset alignment have set the foundation for Fisher to build on an attractive business structure going forward,” stated Colleen Brown, President and CEO of Fisher Communications.

###

Fisher Communications, Inc. is a Seattle-based communications company that owns or manages twelve full power and seven low power television stations and nine radio stations in the Pacific Northwest. The Company owns and operates Fisher Pathways, a satellite and fiber transmission provider, and Fisher Plaza, a media, telecommunications, and data center facility located near downtown Seattle.

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts) Unaudited

	Year ended						Three months ended
	December 31						December 31
	2006			2005			2006			2005
Revenue	$	154,699		$	137,086		$	44,716		$	36,273
Costs and expenses Direct operating costs		52,793			51,145			13,800			13,098
Selling, general and administrative expenses		53,975			58,713			13,836			18,615
Amortization of program rights		18,646			19,959			2,228			2,214
Depreciation and amortization		10,277			12,835			2,762			2,574
		135,691			142,652			32,626			36,501
Income (loss) from operations		19,008			(5,566	)		12,090			(228	)
Other income, net		3,881			3,629			1,067			971
Interest expense		(13,956	)		(13,726	)		(3,560	)		(3,485	)
Income (loss) from continuing operations before income taxes		8,933			(15,663	)		9,597			(2,742	)
Provision (benefit) for federal and state income taxes		2,677			(9,532	)		2,562			(4,297	)
Income (loss) from continuing operations		6,256			(6,131	)		7,035			1,555
Income from discontinued operations, net of income taxes		10,580			1,059			9,905			321
Net income (loss)	$	16,836		$	(5,072	)	$	16,940		$	1,876
Income (loss) per share:
From continuing operations	$	0.72		$	(0.70	)	$	0.81		$	0.18
From discontinued operations		1.21			0.12			1.13			0.04
Net income (loss) per share	$	1.93		$	(0.58	)	$	1.94		$	0.22
Weighted average shares outstanding		8,713			8,678			8,720			8,700
Income (loss) per share assuming dilution:
From continuing operations	$	0.72		$	(0.70	)	$	0.81		$	0.18
From discontinued operations		1.21			0.12			1.13			0.04
Net income (loss) per share	$	1.93		$	(0.58	)	$	1.94		$	0.22
Weighted average shares outstanding assuming dilution		8,716			8,678			8,723			8,708

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS	December 31		December 31
(in thousands) Unaudited	2006		2005
Assets Current assets	$	57,058	$	60,253
Marketable securities, at market value		188,307		170,053
Other assets		104,005		65,775
Property, plant and equipment, net		148,207		144,312
Total assets	$	497,577	$	440,393
Liabilities and stockholders’ equity
Current liabilities	$	26,044	$	24,691
Long-term debt		150,000		150,000
Deferred income taxes		54,414		31,381
Other liabilities		27,554		24,700
Total liabilities		258,012		230,772
Stockholders’ equity, other than accumulated other comprehensive income		120,071		102,193
Accumulated other comprehensive income, net of income taxes		119,494		107,428
Total stockholders’ equity		239,565		209,621
Total liabilities and stockholders’ equity	$	497,577	$	440,393