UPDATE 1-DoubleClick cuts earnings view on soft ad market
MONDAY, DECEMBER 11, 2000 6:10 PM
- Reuters
By Derek Caney
NEW YORK, Dec 11 (Reuters) - Online advertising company DoubleClick Inc.
(NASDAQ NM:DCLK) said on Monday it expects fourth quarter results between
break even and a 3 cent per share loss, down from previous estimates of a 2 cent
per share profit, because of softer spending on advertising.
The company, which reported a loss of 3 cents a share in last year's fourth
quarter, also said fourth-quarter revenues would be 8 to 10 percent below current
expectations at between $126 million and $129 million.
"Not only is online ad spending weak, but overall ad spending is coming under
pressure in general," Chief Financial Officer Stephen Collins told analysts and
reporters in a conference call. "We do not expect a rapid recovery in the first
quarter of 2001."
The company also said it would take a one-time fourth quarter charge of $2.5
million related to job cuts announced last Thursday.
Despite the news, the company's shares rose to $12-7/8 in after hours trading
from $11-15/16 at Monday's close on Nasdaq.
Collins said he expected a first quarter 2001 loss of 5 to 7 cents a share,
compared with a loss of 11 cents a share in the year-earlier quarter. The First Call
consensus was a loss of 2 cents.
First quarter revenues for 2001 would be approximately 5 percent over the first
quarter of 2000, excluding the results of e-mail marketer NetCreations and
research firm AtPlan, which it recently acquired.
Collins said he expects the company's media business, which manages the
advertising inventory of a network of Web sites, would be down 9 to 12 percent in
the fourth quarter from the third quarter.
"The softness is being felt across all media properties, but especially in Europe,"
Collins said.
The company said it expects to show a profit for the full year of 2001.
Rtr 18:10 12-11-00
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Copyright 2000, Reuters News Service
