DoubleClick raises 2003 forecast
The Internet marketing company reports a net income of $1.4 million in the first quarter, beating Wall Street expectations.
The New York-based company reported a net income of $1.4 million, or 1 cent per share, on revenue of $60.1 million, in accordance with Generally Accepted Accounting Principles (GAAP) for the first quarter, which ended March 31. That compares with a net loss of $6 million, or 4 cents per share, on revenue of $83.7 million in the same period in 2002.
Pro forma net income for the first quarter was $3.5 million, or 3 cents per share--a difference that was the result of the amortization of intangible assets.
Analysts had expected DoubleClick to report pro forma earnings of 1 cent per share in the quarter, according to a survey by First Call.
"Our results this quarter highlight the operational stability and financial flexibility gained through unwavering focus on right-sizing our business," DoubleClick CEO Kevin Ryan said in a statement.
"In 2003 we are focused on meeting our customers' needs by developing products and integrating those into our suite of solutions while driving growth and profits," he said.
For the full year, DoubleClick raised its pro forma earnings' per share guidance to between 3 cents and 12 cents. For the second quarter, DoubleClick is expecting revenue to be between $60 million and $63 million, or a loss of 2 cents per share or a gain of 2 cents per share, in accordance with GAAP and including costs associated with noncash items like the amortization of intangible assets.
The company ended the quarter with $745 million in cash and marketable securities, and a net cash position of $585 million, or $4.28 per share.
Still, revenue dropped 28.2 percent year over year because of the company's divestitures in three business units: media, research and DoubleClick Japan. Separately, DoubleClick decreased its staff by 2 percent in the first quarter to little more than 2,000 people.
Revenue from the company's technology division was down in the first quarter to about $41.5 million from about $50.4 million in the same period a year earlier. The company's data division was up by nearly $300,000 to $18.5 million. DoubleClick attributed its margin and revenue decline to seasonality and the costs associated with the acquisition of Protagona in November of 2002.
For 2003, DoubleClick plans to integrate its marketing technology, including further combining its DARTmail e-mail software. In 2003, DARTmail is expected to be integrated with Ensemble, its campaign-management tool.
At the close of regular trading, DoubleClick shares were down by 45 cents to $8.29. The earnings report was issued after the close of regular trading. In after-hours trading, DoubleClick shares were up to $8.70.