AQuantive Continues to Better Bottom Line

NEW YORK Digital marketing and technology company aQuantive recorded its eighth consecutive quarter of improved bottom line performance, reporting this morning a Q2 net profit on revenue of $52 million.

The parent of Avenue A, i-Frontier and Atlas DMT realized a Q1 net profit of $2.4 million, or 4 cents per share. That compares to a net loss for the year-ago period of $1.8 million, or 3 cents per share, and a net profit in Q1 of $1.9 million or 3 cents per share.

Second-quarter revenue for the Seattle-based company, which services clients like AstraZeneca and Starwood Hotels, rose 71 percent to $52 million from $30.4 million in Q2 2002. The increase can be partly attributed to the addition of i-Frontier, the Philadelphia interactive agency aQuantive bought last December [IQ Daily Briefing, Dec. 3, 2002]. Q1 revenue was $47.5 million.

AQuantive met the high end of its Q2 guidance, set in May. For the third quarter, the company said it expects revenue of $53-57 million and net income of 3-5 cents per share.

After last week’s loss of AT&T Wireless, one of its top five clients, aQuantive revised its full-year guidance to revenue of $200-220 million and net income of 15-20 cents per share. In May, the company projected 2003 revenue of $190-210 million and net income of 16-22 cents per share. The account defection will be partially offset by new business from Starwood Hotels and Victoria’s Secret, among others, a company representative said last week.

AQuantive (AQNT) shares closed on the Nasdaq today at $9.67, up $1.77 or 22 percent. The stock’s 52-week high is $12.30; its 52-week low, $1.95.