AdForce Recoups GeoCities Revenues, but Posts Loss

Ad management and delivery company AdForce posted a net loss for the second
quarter of $5.2 million, or $0.40 a share, on substantially higher revenues
of $4.2 million that came despite the loss of the GeoCities business.

That compares to a net loss of $4.07 million, or $1.62 a share, on revenues
of $784,000 in the same period a year earlier.

“Our dramatic revenue growth demonstrates our leadership position as an
Internet infrastructure provider as well as the strength of the AdForce
business model,” said Chuck Berger, Chairman and CEO. “We are particularly
pleased with our growth given the transition of the GeoCities (account, the
company’s third largest) to Yahoo in June. AdForce delivered over 18 billion
impressions during the quarter, more than a 5 billion increase from the prior
quarter, and has now solidly replaced the GeoCities volume.”

During the second quarter, AdForce said it partnered with targeting firm
Engage and signed contracts with Adsmart, Netscape International and 24/7
Media Europe, and began providing significant ad management services for
traffic outside the U.S.