24/7 Real Media Revenue Slips on Mail Unit Sale
Web ad server 24/7 Real Media posted results
in-line
with guidance, with revenue and losses slipping slightly due to the
sale of
its 24/7 Mail unit to Naviant in May.
The New York-based firm reported that revenue grew 7.8 percent from
last
quarter, to $10.2 million — not counting the first-quarter
contribution of
the recently sold division. Including revenue from the Mail business,
last
quarter’s revenue topped $10.8 million.
Net losses expanded to $4.2 million, or $0.08 per share, an increase
from
$3.7 million, or $0.07 per share last quarter. Had it not written down
$800,000 in asset losses due to the sale of 24/7 Mail, the company
would
have posted losses roughly flat with the previous quarter.
The company’s ad serving unit produced revenue equal to the previous
quarter, roughly $3.3 million. Excluding revenue from 24/7 Mail from
last
quarter’s numbers, ad sales and other marketing services — such as the
24/7
Website Results search marketing unit — increased about 12 percent.
(Including 24/7 Mail, revenue from the media unit decreased 2.5
percent.)
For next quarter, the company said it anticipates revenue to grow
between
5 percent and 10 percent, despite the seasonally weak quarter. With
operating expenses expected to be slightly higher — thanks to the
firm’s
efforts to launch its agency-side solution, Open Advertiser — 24/7
Real
Media said pro forma losses should remain in the $0.05 to $0.07 per
share
range.
“Our recovery is almost complete — and with the launch of Open
Advertiser in the next quarter, and improved market conditions, we
expect to
post continued, improved results in future quarters,” said Chairman and
Chief Executive David Moore.
ValueClick Integrates Be Free Ahead of Schedule, Posts Pro Forma
Breakeven
Westlake Village, Calif.-based ad server ValueClick
posted better-than-expected results for the second quarter.
The company said revenues rose to $14.1 million, a 14 percent
increase
from last quarter that included a full month of results from Be Free, a
recently acquired unit that ValueClick said it integrated more quickly
than
previously anticipated. Because of the unexpected inclusion of Be Free
in
the quarter’s results, revenues topped earlier guidance.
Net losses totaled $2.8 million, or $0.04 per share, slightly wider
than
last quarter’s net loss of $1.1 million, or $0.02 per share. In part,
the
increased losses include a restructuring charge of $2.3 million related
to
office consolidation.
On a pro forma basis, the company posted operating income of $19,000
—
roughly breakeven on a per-share basis. Last quarter, the firm posted
a pro
forma loss of $1.3 million.
“We are proud that despite the lingering softness in the market we
were
able to outperform our expectations in the second quarter, and that our
plan
for profitability in 2002 is on track,” said Chairman and CEO James
Zarley.
“After completing the integration of Mediaplex and the acquisition of
Be
Free ahead of schedule, we are focused on finding ways to rapidly grow
our
revenue and continuing our position as a leader in interactive
marketing
solutions.”
Zarley also said the company’s Board of Directors authorized an
increase
in the company’s stock buyback program to $50 million. The company
said it
has cash and marketable securities totaling $276.7 million.
IVillage Looks Beyond The Net
Women-focused online company iVillage is pinning
its
hopes on moving into the offline world.
In its second-quarter earnings report, iVillage said it would
continue to
explore non-Internet revenue opportunities, as it tries to buck a tough
online advertising market.
The company has a deal with Rutledge Hill Press to publish between
six
and twelve books a year, with the first four scheduled for release in
the
first half of next year. In addition, iVillage has begun to move into
endorsing lifestyle products, beginning with vitamins. The company said
that
over the next few weeks it plans to roll out 35 vitamins and
supplements to
sell on the iVillage site.
IVillage continued to make progress in trimming its losses. For the
three
months ended June 30, the company’s net loss was $3.6 million, down
from
$18.5 million in second quarter 2001. Revenues increased to $16 million
from
$11.4 million over the same two periods.
Two weeks ago, iVillage made waves by announcing it would cease using
pop-up
ads, which it said users viewed as unnecessarily intrusive. The company
said
a recent survey revealed that 92.5 percent of its users said the ads
were
the most frustrating part of using the Web.
