RealTime IT News

Flycast to Report Better Than Expected 3Q Revenue

Ad network Flycast Communications Corp. (FCST) expects to report total revenues of between $11 and $12 million for the third quarter, up about 70 percent from revenue of $6.4 million recorded in the prior quarter.

The company, soon to be acquired by Internet holding company CMGI Inc., also said it expects operating losses for the third quarter to be less than currently published consensus estimates.

Flycast said its year-to-date revenue through the first three quarters of 1999 will exceed $22 million, compared to $3.9 million for the first three quarters of the prior year.

CMGI will issue .4738 of its shares for every share of Flycast. The stock deal is expected to close in January 2000.

CMGI also holds the option to purchase up to 19.9 percent of Flycast's stock if the merger agreement falls through. The company's stock closed at 45-1/2, up sharply after the acquisition announcement.

On September 20, CMGI announced an agreement to acquire AdForce Inc. in a $500 million stock deal.

Only days early the Internet holding company said it would acquire AdKnowledge in a stock deal valued at approximately $193 million.

The moves bolster a CMGI Internet advertising arsenal that already includes ad network Adsmart and Web measurement firm I/PRO.

Flycast's flagship offering, the Flycast Network, consisting largely of small and medium sized Web sites, reaches more than 25 million people a month, or 41 percent of the Web in the U.S., the company says.