DoubleClick Net Loss Widens in 2Q; More Layoffs Possible

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DoubleClick Inc. yesterday reported a second-quarter net loss of $37.9 million, or 29 cents per share, up from a loss of $22.1 million, or 18 cents per share, in the same quarter a year earlier.


It also posted total revenue of $101.9 million in the quarter, down 20 percent from $128 million a year ago. The company said international revenue accounted for 30.3 percent of its total revenue in the quarter. The proportion of revenue from traditional advertisers rose to 61 percent in the second quarter, from 59 percent in the first quarter.


The company said it would continue to manage costs aggressively, including possibly laying off more employees in the coming months. It laid off about 10 percent of its workforce earlier this year. The company has about 1,850 employees.


"We will continue to take the necessary actions to effectively manage costs, including head count reductions, to ensure that we meet our earnings goals," said Stephen Collins, DoubleClick's chief financial officer.


Once again, DoubleClick's media business was hardest hit, reporting revenue of $33.7 million for the quarter, down 51 percent from $68.9 million in 2000. Technology revenue rose 6.4 percent to $51.8 million in the second quarter, from $48.6 million in the year-ago quarter. Its data revenue rose 22 percent to $19.3 million, from $15.8 million in the same period a year earlier.


DoubleClick said its List Services division for e-mail has 32 million names under management. It also said it delivered more than 2 billion e-mails for more than 250 clients in the quarter.


In April, DoubleClick reported a loss of $60.4 million for the first quarter, or 48 cents per share, on revenue of $114.8 million. The company said revenue from its media business in the first quarter was $46 million. Revenue from its technology business was $54.9 million, and data revenue was $18.2 million.


At the end of the second quarter, DoubleClick had $813.8 million in cash and marketable securities, down from $821 million at the end of the first quarter.


Collins said DoubleClick forecasts third-quarter total revenue of $96 million to $102 million. Media revenue is forecast at $26 million to $28 million, technology revenue at $49 million to $51 million and data revenue at $24 million to $26 million.


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