Doubleclick (NASDAQ:DCLK)
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DoubleClick Raises Fourth Quarter & Full Year 2004 Outlook
Higher than Expected Revenue from TechSolutions Drives Results
NEW YORK, Jan. 6 /PRNewswire-FirstCall/ -- DoubleClick Inc. (NASDAQ:DCLK), the
leading provider of data and technology solutions for marketers, advertising
agencies and web publishers, today announced that it has revised guidance for
the fourth quarter and full year 2004 in order to reflect better than
anticipated revenue generation in the TechSolutions segment. The Company is
also adjusting guidance to reflect a higher diluted share count as required
under FASB EITF Issue No. 04-8.
Company Raises Revenue Expectations
Due to higher than projected revenue from its Performics, Ad Management, and
Email products, DoubleClick now expects that fourth quarter revenue from its
TechSolutions segment will be $6 million to $7 million higher than the
mid-point of its previous guidance range. Data segment revenue is expected to
be within a narrower range than indicated in the previous outlook. These
figures are preliminary. The Company plans to report final fourth quarter and
full year 2004 results on February 3, 2005.
"This quarter we saw an increase in Ad Management volume from both existing
customers and from large new customers coming on board," said Kevin Ryan, CEO,
DoubleClick Inc. "In addition, our Search, Affiliate, and Email businesses all
benefited from a strong holiday season."
New GAAP Rules on Contingent Convertibles
Under FASB EITF Issue No. 04-8, "The Effect of Contingently Convertible
Instruments on Diluted Earnings per Share," DoubleClick's Zero Coupon
Convertible Subordinated notes will be included in the calculation of diluted
earnings per share regardless of whether any of the conversion contingencies
have been met. The new EITF Issue is effective for reporting periods ending
after December 15, 2004, subsequent to which date publicly traded companies
must retroactively restate diluted earnings per share calculations for 2004 and
prior year periods.
Under the EITF issue, DoubleClick will treat its Zero Coupon Convertible
Subordinated Notes, which have a conversion price of $13.12 per share, as
though they had been converted into approximately 10.3 million shares beginning
June 23, 2003. In this restatement, DoubleClick will treat its former 4.75%
Subordinated Notes as though they had been converted into approximately 3.8
million shares from January 1, 2003 through July 24, 2003. No restatement will
be necessary for periods prior to January 1, 2003, because the 4.75% Notes
would have been anti-dilutive.
Revised 2004 Outlook
The Company now anticipates fourth quarter TechSolutions revenue of $54 million
to $55 million, compared to the previous guidance range of $46 million to $50
million. Fourth quarter Data revenue is expected to range from $26 million to
$27 million, versus the previous outlook of $25 million to $28 million.
DoubleClick's overall 4Q04 top line is estimated to be $81 million to $82
million, compared to the previous guidance of $72 million to $77 million.
DoubleClick expects full year 2004 TechSolutions revenue to be $193 million to
$194 million, against the previous guidance range of $185 million to $190
million. 2004 Data revenue is expected to be between $104 million and $105
million, versus the previous outlook of $103 million to $106 million. Total
Company revenue is expected to range from $298 million to $299 million,
compared to the previous estimate of $290 million to $295 million.
DoubleClick's gross margin is expected to be in the low 70's percent range for
the quarter and year. The Company had previously anticipated full year gross
margins in the high 60s to low 70s percent range, while the 4Q04 gross margin
projection is unchanged. GAAP operating expenses are projected to be $50
million to $51 million for 4Q04, versus the previous guidance range of $50
million to $52 million. Full year GAAP operating expenses are expected to be
approximately $190 million.
The Company now anticipates GAAP EPS of between $0.06 and $0.07 and $0.24 and
$0.25, respectively, for the quarter and year ending December 31, 2004. These
estimates assume a reduction in EPS of approximately $0.01 for 4Q04 and $0.02
for FY04 due to the EITF change described above. DoubleClick's previous
outlook for GAAP EPS was $0.01 to $0.04 for the fourth quarter of 2004 and
$0.21 to $0.24 for the full year, exclusive of EITF Issue No. 04-8. Unusual
items are not expected to have a material impact on the quarter's results.
Fourth Quarter And Full Year 2004 Financial Results
DoubleClick will be releasing its fourth quarter and full year 2004 results
after market close on Thursday, February 3, 2005. At 5:00 p.m. EST on the same
day, the Company will be hosting a conference call to discuss these results as
well as to provide its preliminary first quarter and full year 2005 financial
outlook.
To listen to a live Webcast of the call, please go to
http://ir.doubleclick.net/ 15 minutes prior to the planned start of the call to
register, download, and install (at no cost) any necessary software. There
will be a replay of the Webcast available beginning approximately one hour
after it has ended at http://ir.doubleclick.net/. This replay will be
available for 30 days thereafter. For dial-in information, please contact
Investor Relations at (212) 683-0001.
The Webcast is also being distributed over CCBN's Investor Distribution Network
to both institutional and individual investors. Individual investors can
listen to the call at http://www.fulldisclosure.com/ or by visiting any of the
investor sites in CCBN's Individual Investor Network. Institutional investors
can access the call via http://www.streetevents.com/.
About DoubleClick
DoubleClick is the leading provider of data and technology solutions for
advertising agencies, marketers, and web publishers to plan, execute, and
analyze their marketing programs. DoubleClick's marketing solutions help
clients yield the highest return on their marketing dollar. DoubleClick Inc.
has global headquarters in New York City and maintains 22 offices around the
world.
Note: This press release includes forward-looking statements, including
earnings and revenue projections, plans, and the expected impact of FASB EITF
Issue No. 04-8. The results or events predicted in these statements may vary
materially from actual future events or results.
Factors that could cause actual events or results to differ from anticipated
events or results include: intense competition in DoubleClick's industry, lack
of growth or decline in online advertising or marketing, changes in government
regulation, uncertainties related to DoubleClick's decision to review strategic
options, failure to manage the integration of acquired companies, failure to
successfully manage the Company's international operations and other risks that
are contained in documents which the Company files from time to time with the
Securities and Exchange Commission, including the Company's most recent reports
on Form 10-K and Form 10-Q. In addition, any forward-looking statements
represent the Company's estimates only as of today and should not be relied
upon as representing the Company's estimates as of any subsequent date. While
the Company may elect to update forward-looking statements at some point in the
future, it may choose not to do so, even if the Company's estimates change.
INVESTOR CONTACT: Jason McGruder
Manager, Investor Relations
212-381-5182
PRESS CONTACT: Jennifer Miller
VP, Corporate Communications
212-381-5705
DATASOURCE: DoubleClick Inc.
CONTACT: Investors - Jason McGruder, Manager, Investor Relations,
+1-212-381-5182, or Media - Jennifer Miller, VP, Corporate Communications,
+1-212-381-5705, both of DoubleClick Inc.
Web site: http://www.doubleclick.com/
http://ir.doubleclick.net/