Avenue A Issues First-Quarter Profit Warning
Avenue A Inc., a digital marketing and technology company, is lowering its forecast revenue for the first quarter of 2001 to $20 million to $25 million because of reduced Internet advertising spending.It previously had forecast revenue of $30 million to $33 million.
The Seattle-based company said lower online spending was widespread among its clients.
"Clearly we are operating in a difficult and uncertain market environment," said Brian McAndrews, Avenue A's president/CEO. "Our lower revenue expectations are the result of cuts in online ad spending that are deeper than we had been anticipating."
McAndrews also said the slowdown has not affected the company's gross margin rates.
For fourth quarter 2000, Avenue A reported revenue of $48.2 million and a net loss of $11.9 million, or 21 cents per share. For the full year 2000, the company reported revenue of $194.5 million. Its net loss for the year was $42.9 million, or 86 cents per share.
The firm, founded in 1997, offers services including Web advertising, affiliate programs, search engine optimization, e-mail prospecting, e-mail list management, customer targeting and advanced analytical services.
