Internet advertising company DoubleClick Inc. [NASDAQ:DCLK] said it lost $10.5 million in the first quarter of 2001.
The company, which has been hammered by the decline in online advertising over the past year, put on the best face it could by declaring that the 8 cent loss per share beat consensus analyst expectations.
DoubleClick said first quarter revenue was $114.9 million, an increase of 4 percent over the same period last year. Revenue was down, however, compared to the fourth quarter of 2000, when the company brought in nearly $132.3 million.
The company does not expect things to turn around before the end of this year. It projects a loss in the second quarter of between 5 cents and 7 cents per share.
Citing "continued softness in online advertising," DoubleClick revised its guidance for the remainder of 2001 and projected revenue to be between $425 million and $450 million. The company said full-year loss per share will be between 18 cents and 22 cents.
A decline in DoubleClick's revenue from media is a large factor in the company's woes. DoubleClick reported global media revenue of $46.1 million, which it said is a decrease of 24 percent from the fourth quarter of 2000 and 23 percent below the first quarter a year ago.
The decline in advertising by dot-coms continues to impact the online space. DoubleClick said the proportion of its revenues from traditional advertisers is now up to 59 percent. That figure was 55 percent in the fourth quarter of 2000, the company said.
Company officials trumpeted the fact that DoubleClick's balance sheet was in the black. The company said as of the end of the first quarter it had $831 million in cash and marketable securities and long-term debt of $257 million.
"We have leadership positions in each of the business segments in which we operate, world class technology, a robust balance sheet and a great team," said CEO Kevin Ryan in a prepared statement. "I am excited about our prospects for the future."
DoubleClick's announcement comes the same week Yahoo Inc. [NASDAQ:YHOO] said it lost $11,486,000 in the first quarter.
Yahoo blamed part of its financial problems on the plight of dot-coms. Yahoo said advertising dollars from pure-play Internet companies has dropped consistently each quarter since June, and pure-play Internet companies spent 50 percent less in the first quarter than they did in the previous quarter.
The financial markets in the United States are closed today for Good Friday. DoubleClick's stock price closed Thursday at $12.01, well off its 52-week high of $88.50 recorded last May. The price has traded under $15 since the middle of February.
More information on DoubleClick is available on the Web at http://www.doubleclick.com .
Reported by Newsbytes.com, http://www.newsbytes.com .
13:24 CST
(20010413/Press Contact: Jennifer Blum, DoubleClick, 212-381-5705 /WIRES ONLINE, BUSINESS/DOUBLECLICK/PHOTO)
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