Engage Lowers Q4 Revenue Forecast

Share this article:
Ad serving network Engage Inc. expects to post lower revenue in its fiscal fourth quarter than previously announced because of the soft advertising market.


The company's fourth quarter ended July 31. It expects to report results in mid-September.


The company said yesterday it expects fourth-quarter revenue to be $15 million to $16 million, down from its previously revised forecast of $20 million to $22 million. Engage said the lower revenue is largely a result of weakness in its media business, which posted third-quarter revenue of $12.8 million, down from $19.8 million in the second quarter. It did not forecast its fourth-quarter media revenue.


Engage now expects to post a pro-forma net loss per share for the fourth quarter of 9 cents to 12 cents, up from its previous estimate of 8 cents to 11 cents per share.


"Given the current economic climate, Engage no longer expects to achieve cash operating breakeven exiting fiscal first quarter ending Oct. 31, 2001," said Tony Nuzzo, Engage's president/CEO.


To make matters worse, Engage said CMGI Inc. has not extended its $50 million conditional financing commitment to the company beyond July 31. However, CMGI did say it was willing to discuss continued financing. Engage is a majority-owned operating company of CMGI.


Engage said it expects to end the fourth quarter with $31 million in cash and equivalents, down from $55 million in the third quarter.


The company also upgraded its AdManager advertising management software for Web publishers to version 5.5. The new version includes increased ad targeting and performance measurement capabilities.


Engage said AdManager 5.5 is the first site-side, enterprise-level software to offer XML functionality, which allows publishers to integrate the software easily with their management databases.


AdManager 5.5 will be available in October. Pricing depends on the number of ads served by a site.


Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

News Byte: CX Scores to Take Their Place Beside Price Listings

News Byte: CX Scores to Take Their Place ...

E-commerce aggregator PriceGrabber will begin offsetting price info with service expectations.

Data Byte: Interactive Ad Revenues Exceeding TV for the First Time

Data Byte: Interactive Ad Revenues Exceeding TV for ...

At nearly $43 billion, interactive advertising revenues exceeded broadcast for the first time in 2013.

Marketers: Data Rich and Knowledge Poor

Marketers: Data Rich and Knowledge Poor

While advertisers have become incredibly data-savvy, the most difficult challenge remains causally linking that data to outcomes that really matter.