Digitas Improves 2Q Income

BOSTON — Digitas on Wednesday reported second-quarter net income of $1.8 million.

That ranks as an improvement on the $711,000 profit the company posted during the first quarter and a big advance from the $35 million loss it suffered in the second quarter of 2001.

Digitas reported 2Q revenue of $74 million, compared with $89.5 million for the same period a year ago. The company reported $50 million in revenue for the first quarter of 2002.

Digitas warned investors, however, that it may take a $25-35 million charge in the third quarter if it cannot renegotiate real-estate contracts or dispose of excess space in several markets where it maintains offices.

The company also said it had repurchased 11,500 shares of common stock at an average price of $3.94 per share between June 13 and the end of the second quarter. Digitas executives have described the repurchase plan as a means of enhancing shareholder value and have said there is no plan at present to re-privatize the company.