Internet advertising powerhouse DoubleClick on Tuesday
announced plans to issue a $135 million debt offering to service other debt,
and said its second quarter results would come in at the higher end of
earlier guidance.
The New York-based DoubleClick, which hit
profitability in the previous quarter, now expects Q2 revenues to be
between $61 million and $63 million and earnings to break even or reach 2
cents per share.
DoubleClick had earlier projected revenues to be between $60 million and
$63 million in the second quarter. For the full year, the company
reaffirmed earlier guidance of
between $250 million and $300 million in revenues, with earnings to be
between 3 cents and 12
cents per share.
DoubleClick said the improved expectations take into account a gain that
will be recognized from the sale of certain patents and equity losses in the
company’s investment in MaxWorldwide, Inc. DoubleClick came to own shares in
MaxWorldwide when it sold its media business to the firm for 4.8 million
shares and $5 million in cash.
The ad-serving and marketing firm is also negotiating a lease buy-out of
its New York City headquarters, which will involve a cash payment of
approximately $40 million. “The company would not expect EPS guidance for
the second quarter or the full year to be negatively impacted if the lease
termination were completed,” DoubleClick said in a statement.
Separately, DoubleClick said it would offer $135 million of convertible
subordinated notes due in 2003 to help retire other debt due in 2006.
