Silicon Alley online advertising firm 24/7 Media said it expects to post charges of $150 million to $157 million in the fourth quarter. However, the company projected it would still meet its own earnings estimates for the critical fourth quarter of 2000.
24/7 Media, which laid off 200 employees in a bid to save some $20 million annually, said that only $5 million to $7 million of the charges are for restructuring. The majority of the fourth quarter charges are related to goodwill and other intangible asset write-downs, it added.
Hard hit by the shakeout in the Internet advertising industry, which also forced market leader DoubleClick to make staff cuts, 24/7 Media said its fourth-quarter financial results are in-line with guidance given earlier this year and now expects a loss between 39 and 44 cents for the quarter.
The company also projected revenues for the fourth quarter would come in between $48 million and $55 million. Having raised more than $18 million in capital to help fund operations, 24/7 Media said it is optimistic about the future of the online advertising market. (We will continue) to be opportunistic in the sale of non-core assets to ensure that cash resources help us reach (the) goal of cash break-even by fourth quarter 2001.”
Last month, 24/7 Media reported third quarter net losses of $56.8 million, or $1.49 per share, compared with a loss of $11.7 million, or 55 cents per share, for the same quarter in 1999. However, the company raked in $48.1 million in revenue, almost doubling the $24.3 million for the previous year.
– This story was originally published in Internet Advertising Report sister publication atNewYork.com