DoubleClick Improves Net Income, Adjusts Forecast

NEW YORK DoubleClick reported yesterday third-quarter revenue rose 8 percent to $81 million compared to $74.8 million in the year-ago period.

Q3 net income totaled $15.4 million, or 12 cents per share, up from $6.3 million, or 4 cents per share, in the year-earlier period, and $3.9 million, or 3 cents per share, in the second quarter.

Earnings benefited from a $7.1 million non-operating gain from DoubleClick’s sale of its 15 percent stake in AdLINK Internet Media AG, a German online ad network. In addition, the company recorded a restructuring credit relating to its Louisville, Colo., facility, which lowered operating expenses by $4.5 million.

DoubleClick’s third-quarter net income was negatively affected by a write-down of its enterprise marketing solutions business and by $8.3 million in accelerated depreciation charges associated with the relocation of the company’s New York headquarters and the termination of a San Francisco lease. The company’s earnings, however, improved thanks to a $2.2 million net restructuring credit related to those facilities, as well as $1.4 million received in connection with an insurance claim.

The online ad technology concern again revised its full-year outlook due to lower estimated revenue from its marketing automation and data management solutions businesses and better than anticipated results from its direct-marketing unit Abacus and search and affiliate marketing specialist Performics.

The company now expects fourth-quarter revenue of $72-77 million and earnings per share of 1-4 cents. For 2004, DoubleClick narrowed its revenue guidance to $290-295 million from the previously projected $290-305 million, and raised its earnings forecast to 21-24 cents per share from 13-17 cents per share.

DoubleClick shares (DCLK) were trading midday on the Nasdaq at $6.38, down 53 cents or nearly 8 percent. The stock’s 52-week high is $12.81; its low, $4.52.

Publish date: October 29, 2004 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT