NEW YORK DoubleClick raised its full-year earnings guidance yesterday after achieving its second consecutive quarter of net profit in Q2.
The online ad technology company reported on Tuesday a second-quarter net income of $5.8 million, or 4 cents a share, compared to a $4.1 million, or 3 cents a share, in the year-earlier period. In the first quarter, DoubleClick swung to a net profit of $906,000, or 1 cent per share, after recording two quarters of net losses.
Second-quarter revenue for DoubleClick totaled $63.6 million, versus $75.7 million during the same time a year ago. The company attributed the 16 percent year-over-year drop to the divestitures of DoubleClick Japan and its media and research businesses in 2002. On a sequential basis, revenue rose 5.8 percent.
Based on strong results to date, the company revised its 2003 earnings outlook towards the high end. It now expects earnings per share of 7-12 cents for the full year, compared to the previously projected 3-12 cents. Full-year revenue was tightened to $260-275 million from $250-300 million.
"Even as we invest in new products and clean up excess real estate exposure, profitability continues to improve, indicating that the fundamentals of the business are healthy," said DoubleClick chief financial officer Bruce Dalziel.
Operating expenses for the quarter were down 45 percent to $32.1 million versus $58.4 million in the year-earlier period.
The company said its earnings and expenses benefited in part from a net restructuring credit of $6.9 million. That resulted from a $14.3 million reversal of the company's real estate reserve for its New York headquarters, offset by $7.4 million in additional restructuring charges in connection with some other facilities.
Shares of DoubleClick (DCLK) closed on the Nasdaq today at $11.38, up $1.19 or nearly 12 percent. The stock's 52-week high is $12.13 and 52-week low is $4.42.