Digitas Reports Losses | Adweek Digitas Reports Losses | Adweek
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Digitas Reports Losses

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BOSTON -- As expected, Digitas on Wednesday reported dismal fourth-quarter and full-year 2001 earnings and revenue figures. Even so, management cited recent account wins such as Celebrity Cruises and Six Continents Hotels as positive signs for the future.

The independently owned Boston interactive and direct marketing company reported fourth-quarter 2001 revenue of $47 million, compared with $80 million the previous year. The company said its Q4 2001 net loss was $6.3 million, or 10 cents per diluted share, compared with a net loss of $5.5 million, or 10 cents per diluted share, for the same quarter a year ago.

For the full fiscal year, Digitas notched revenue of about $236 million, down from $288 million in 2000. The company lost $94 million, or $1.58 per share, in 2001, compared with a net loss of $23 million, or 41 cents per diluted share, in 2000.

Digitas said it anticipates revenue of $48-52 million for the first quarter of 2002 and $190-220 million for the full year.

"We are confident that our leaner cost structure and continued gains in market share will generate further improvements ... when economic growth resumes," said CFO Jeff Cote.

Digitas shares have traded in the $4-5 range in recent weeks on the Nsadaq exchange.