Boston-based Digitas announced a 22 percent increase over the previous year's earnings for Q1 2001 on Tuesday. Revenue for the interactive agency increased from $63 million in Q1 2000 to $77 million in the first quarter of this year, which ended March 31.
In addition, the company said it will be "realigning its administrative functions and reducing real estate commitments where possible to support a leaner overhead cost structure." As a result, Digitas expects to take a one-time charge of $8 to $12 million in Q2 2001. To eliminate additional costs, the company also said its senior leadership team will receive a temporary pay cut of 5 percent.