Digitas Posts Upbeat 3Q Performance

BOSTON Digitas on Wednesday reported net income of $3.2 million, or 5 cents per share, for the third quarter, an improvement over the loss of $45 million, or 71 cents per share, it posted for the same period in 2002.

Added during the quarter were customer relationship management projects from Pfizer and Time Warner Cable, said David Kenny, Digitas’ chief executive, declining to disclose further details about the assignments.

The independent Boston-based interactive and direct marketing shop said its revenue for the quarter was $78 million, down 9.3 percent from nearly $86 million a year ago, but in line with management projections.

For the first nine months, the company posted a profit of nearly $9 million, compared with a loss of $42 million for the same period a year ago. Revenue for the first nine months of 2003 was slightly less than $230 million, flat compared with the year-ago period.

“It does feel like momentum is back” to pre-2001 levels, said Kenny, who noted that Digitas is hiring again following last year’s downsizing, with “several dozen” positions now open in the agency’s various offices.

Digitas said it anticipates full-year 2003 fee revenue of $208-210 million and earnings per share of 17-19 cents and adjusted cash earnings per share of 29-31 cents. The company’s shares were trading on the Nasdaq stock exchange at $9 late Wednesday. The 52-week high was $9.32, the 52-week low was $2.30. Clients include Allstate, American Express, AT&T, Delta Air Lines and General Motors.