NEW YORK Shares in aQuantive rose 95 cents or nearly 13 percent to close on the Nasdaq today at $8.51, following the company's favorable Q2 earnings report yesterday.
For the second-quarter, the digital marketing and technology concern posted net income of $7.5 million, or 11 cents per diluted share, a 216 percent improvement over net income of $2.4 million, or 3 cents per diluted share, in the year-ago period.
Q2 revenue for aQuantive, which serves clients like AstraZeneca and Starwood Hotels and Resorts, increased 83 percent to $27.8 million from $15.2 million during the same time last year.
AQuantive's digital marketing services segment, consisting of Avenue A and i-Frontier, recorded Q2 revenue of $12.8 million, compared to $7 million in the year-earlier quarter. Operating income in the quarter for these interactive agencies was $4.7 million, up from $887,000 in Q2 2003.
Atlas DMT, OnePoint and NetConversions, which encompass aQuantive's digital marketing technologies division, posted second-quarter revenue of $14.4 million, compared to $8.2 million a year ago. Operating income was $5.9 million, as opposed to $3 million in Q2 2003.
Its digital performance media segment had Q2 revenue of $665,000 and an operating loss of $374,000. That division was launched in April with the formation of DRIVEpm, a unit that buys ad inventory from online publishers and resells it to advertisers based on Web surfers' past behavior, demographic makeup and geographic location, among other factors.
AQuantive's July acquisitions of SBI.Razorfish, TechnologyBrokers and MediaBrokers have been added to the digital marketing services, technologies and performance segments, respectively.
Accounting for these purchases, aQuantive predicted third-quarter revenue of $44-46 million and net income of 3-5 cents per fully diluted share, assuming an income tax rate of 40 percent. For full-year 2004, the company projected revenue of $148-155 million and net income of 24-28 cents per fully diluted share.
"With the strategic acquisitions we have made recently, I feel very confident about our future prospects," said aQuantive president and CEO Brian McAndrews.
The 52-week high for aQuantive's stock (AQNT) is $13.55; its 52-week low, $7.25.