AQuantive Ends Year on High Note

NEW YORK Digital marketing and technology company aQuantive this morning reported net profit of $4.1 million on revenue of $63.9 million for the fourth quarter.

The parent of Avenue A, I-Frontier and Atlas DMT realized Q4 net income of 7 cents per basic share, or 6 cents per diluted share. That compares to net income of $1.7 million, or 3 cents per share for the year-ago period.

Fourth-quarter revenue for the Seattle-based company, which serves clients like JCPenney.com and AstraZeneca, rose 44 percent to $63.9 million from $44.4 million during the same time a year ago.

The increase can be partly attributed to Atlas DMT’s Q4 acquisition of Go Toast, a paid-search management company with estimated 2003 revenue of $3-4 million. The purchase was accretive to aQuantive’s earnings.

For full-year 2003, aQuantive’s revenue increased to $222 million from $132.7 million the year before. The December 2002 purchase of Philadelphia interactive agency I-Frontier contributed to the 67 percent year-over-year growth.

The company’s 2003 net income was $11.8 million, or 20 cents per basic share, or 17 cents per diluted share. That is an improvement over a 2002 net loss of $4.6 million, or 8 cents per share in 2002.

For the first quarter, AQuantive projected revenue of $17-19 million and net income of 3-4 cents per basic share, or 2-3 cents per diluted share. For full-year 2004, the company forecasted revenue of $88-98 million and net income of 28-33 cents per basic share, or 24-28 cents per diluted share.

AQuantive (AQNT) shares closed on the Nasdaq today at $11.47, down $1.41 or 11 percent. The stock’s 52-week high is $13.55; its 52-week low, $2.55.