DCLK ($13-$11) EPS -$2...beats by 6 cents, beats on rev's estimate, guides higher.
15-Jan-02
16:37 ET DoubleClick (DCLK) 12.63 +0.28: Company reports Q4 $0.01 per share, $0.06 better than the consensus; reports Q4 revenues of $96.2 mln versus the current consensus estimate of $88.7 mln; company guides higher on earnings for FY02; sees earnings in the range of $0.01-$0.12 per share versus the current consensus estimate for a net loss of $0.03 per share; sees revenues in the range of $330-$400 mln versus the current consensus estimate of $395.7 mln.
Tuesday January 15 6:54 PM ET
DoubleClick Ekes Out Operating Profit
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DoubleClick posts Q4 profit despite tough ad market - (ON24)
By Reshma Kapadia
NEW YORK (Reuters) - Online advertising network DoubleClick Inc. (Nasdaq:DCLK - news) said on Tuesday its fourth-quarter net loss narrowed from a year ago, as it managed to eke out an operating profit, before items and charges, on job cuts and the sale of certain businesses amid a prolonged ad slump.
Revenues slipped 27 percent from a year-earlier as the New York-based company contended with the worst ad downturn in recent history, but some analysts said they were stronger than expected as technology became a larger part of its business.
``The company beat expectations on both the top and bottom line, showing a lot of attention to its cost structure and return to growth in its crown jewel -- the ad-serving unit (TechSolutions),'' said SoundView analyst Jordan Rohan. ``Truth is ... DoubleClick is a profitable company and no one expected them to be anywhere close.''
DoubleClick, which beat analyst estimates for the latest fourth quarter, also said it expected 2002 pro forma profit of a penny to 12 cents a share, compared with Wall Street analysts' consensus expectations of a loss of 2 cents.
``Volumes have stabilized, and our cost cutting initiatives are beginning to deliver results to the bottom line,'' said DoubleClick Chief Financial Officer Bruce Dalziel.
DoubleClick said it posted a quarterly net loss, including items, of $64 million, or 48 cents a share, compared with a net loss of $104.8 million, or 85 cents a share, a year ago. Revenues fell to $96 million from $132.3 million a year but rose 3.7 percent from the third quarter.
The company's TechSolutions unit, which serves ads to Web sites, posted revenue of $51.8 million in the fourth quarter, up 7 percent over the third quarter but down from $61.5 million a year-earlier. Its data unit posted revenue of $19.6 million compared with $17.8 million a year-earlier.
The company's media business -- which has been hit hardest by the advertising slump -- posted revenue of $27.2 million in the latest fourth quarter, down from revenues of $60.4 million a year-ago but up 22 percent from the third quarter.
DoubleClick posted a pro forma profit, excluding non-cash and non-recurring items, of $1.66 million, or a penny, compared with income, before charges, of $216,000, or break-even on a per share basis, in the year-earlier period.
The pro forma profit posted in the quarter topped Wall Street expectations, which on average, expected a loss of 5 cents a share, before items, and revenues of $88 million, according to Thomson Financial/First Call.
Pro forma results excluded amortization of intangible assets, acquisition related non-cash compensation charges, restructuring charges and certain non-recurring items.
For 2001, the company said its net loss totaled $265.8 million, or $2.02 a share, including items, on revenue of $405.6 million. A year-earlier it posted a net loss of $156 million, or $1.29 a share, on revenues of $505.6 million.
Before items the company posted a 2001 loss of nearly $31 million, or 24 cents a share, compared with a loss of $13 million, or 11 cents a share, a year-earlier.
``CONSERSATIVE'' OUTLOOK
DoubleClick said it expected first quarter 2002 revenues of between $82 million to $87 million and a pro forma loss of 3 cents a share to 6 cents a share for the quarter.
Wall Street analysts on average had expect a loss of 4 cents a share and revenue of $86.5 million, according to First Call.
The company also said it expects full-year 2002 revenues of $330 million to $400 million, with 62 percent of that level coming from its technology business and just 16 percent coming from its media business.
Wall Street analysts expect revenues of $388.3 million. The Street had a wide range for 2002 results of a profit of 7 cents a share to a loss of 19 cents a share, with a consensus of loss of 2 cents, according to First Call.
Some analysts said the 2002 revenue guidance was a little lighter than they expected, but William Blair analyst Troy Mastin said it could be a sign of the company's conservatisim that allowed them to solidly beat estimates this quarter rather than providing aggressive targets and disappointing.
``I think we are seeing a bottom in the market,'' Mastin said. ``The worst is over and from here it should look more like a normal industry rather than one that may cease to exist.''
DoubleClick has been cutting costs aggressively and paring back a variety of businesses, including exiting its ad effectiveness business and selling its European media business last year.
The company also cut about 52 percent of its global media team to about 236 people, Chief Executive Kevin Ryan said in a conference call. |
