AdForce Stock Takes a Whipping
Page 1 of 1
The stock of Cupertino, CA-based ad server company AdForce Inc. took a beating after the company lost its fourth-largest customer, GeoCities, following Yahoo!'s $4.05 billion acquisition of GeoCities last week.
AdForce said it will no longer service ads for GeoCities as Yahoo! takes over managing the ads on its own. The stock closed Wednesday at 21 9/16, down 7 3/8.
AdForce said GeoCities, a provider of personal Web pages, accounted for 17 percent of the company's revenue last month.
"You win some, you lose some and we lost this one," AdForce Chief Financial Officer John Tanner told Bloomberg News.
"While we are obviously surprised and disappointed with Yahoo!'s decision, we will work closely with Yahoo! and GeoCities throughout the transition and look forward to the opportunity to demonstrate AdForce's capabilities to Yahoo!," said Chuck Berger, chairman and CEO of AdForce.
"Despite losing GeoCities as a customer to the Yahoo! consolidation, we expect to show continued revenue growth this quarter, a clear indicator of the strength of our overall business."
AdForce provides products that allow advertisers and publishers to target, deliver, measure and analyze Internet advertising programs for best results.