DoubleClick Q3 Loss Greater that First Predicted

25 September 2001

New York-headquartered online advertising specialist DoubleClick has revised downward its third quarter earnings and revenue forecasts in the light of the post-attack economic turmoil and the general malaise besetting e-business.

The firm now expects to record a net loss of between 9 cents to 11 cents per share – compared with its earlier estimate of 5 to 7 cents – on revenues of $87 million to $90m (previously $96m-$102m). This compares with analysts’ consensus loss forecasts of 6 cents a share.

According to DoubleClick chief financial officer Bruce Dalziel, the firm’s position had been adversely affected by the recent terrorist attacks, leading to “softness in both on-line advertising and software sales”. The future outlook for the firm’s media and technology segments had also been hit, although data activities remained strong.

Last week, the firm said it planned a stock buy-back valued at up to $100m over the next twelve months.

News source: CampaignLive (UK)