NEW YORK -- As DoubleClick continued key divestitures in the second quarter, the company swung to a net profit.
The New York-based online advertising company last week reported a net profit for the second quarter of $4.1 million, or three cents per share. That compares to a net loss of $6 million in the first quarter and $38 million during the same time a year earlier. Pro forma net income was $2.5 million, or two cents per share.
Despite the small profit, DoubleClick saw revenues slide in the second quarter as it sold off business units. Revenue for the second quarter fell to $76 million, down 9.5 percent from $84 million in the first quarter and 25 percent from $102 million in Q2 2001.
Demonstrating management's focus on cost control, operating expenses totaled $48 million for the second quarter, the lowest level since 1999 and a nine percent decline versus the first quarter.
Last year, DoubleClick started to concentrate on higher margin technology and data-marketing products and services. To this end, DoubleClick sold its European media business in November to AdLINK and its @plan audience measurement tool in May to NetRatings, a subsidiary of Adweek parent VNU [IQ Daily Briefing, May 6]. And earlier this month, the company sold off its North American media operations to MaxWorldwide, formerly L90 [IQ Daily Briefing, July 1].
Reflecting its shifting business model, DoubleClick's TechSolutions division reported the bulk of the revenue, $48 million, for the second quarter. Its Data division and Media unit tallied revenue of $18 million and $11 million, respectively.
The company projected third quarter revenues to fall between $67-73 million and operating expenses of $48-49 million.
DoubleClick [DCLK] was trading on the Nasdaq midday Monday at $5.72, down seven cents. Its 52-week high is $13.88 and 52-week low is $4.68.