AdForce, Inc. (Nasdaq:ADFC) beat earnings expectations Monday as losses narrowed to 40 cents a share, 18 cents less than First Call's expected loss. The Internet ad management and delivery service also announced Monday it had replaced the volume lost when its third-largest customer, GeoCities, switched accounts.
AdForce shares closed at 29 Friday, down from a 52-week high of 62 11/16.
AdForce's net loss for the second quarter was $5.2 million, or 40 cents a share, compared to First Call's estimate of a loss of 58 cents a share. The consensus estimate was based on a poll of two analysts. Adforce's results were also an improvement over a net loss of $1.62 a share for the same quarter last year and a net loss of $1.26 per share for the first quarter of 1999.
AdForce also announced record revenues for the second quarter of $4.2 million, a whopping 433 percent increase over the same quarter last year. In the same period a year before, AdForce posted a net loss of $4.07 million, or $1.62 a share, on revenues of $784,000.
"We are particularly pleased with our growth given the transition of GeoCities to Yahoo in June,'' said Chuck Berger, AdForce chairman and chief executive in a company release. AdForce slid after GeoCities, an Internet services company, switched its ad business to Yahoo! Inc. (Nasdaq:YHOO) when Yahoo! bought GeoCities in May.
"AdForce delivered over 18 billion impressions during the quarter, more than a five billion increase from the prior quarter,'' Berger added. The company has signed 14 new customers, and experienced a strong increase in the total volume of ads served in the quarter. New customers include Wise Ads, Language Force, Net Power, Gamers.com, Topfile.com, Echo Images Inc., PowersGolf.com, Virtual Analysts, IsoSmart, Opensite Technologies and Artist Direct.
AdForce also saw growth in volumes with its three largest customers, AdSmart, 24/7 Media and Netscape. The total number of ads served in the quarter was 18.4 billion, compared to 13.4 billion in the prior quarter.