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DoubleClick meets views
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July 15, 1998: 6:19 p.m. ET
Internet advertising firm 2Q 28c loss, in talks to renew ties with AltaVista
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NEW YORK (CNNfn) - DoubleClick Inc., a provider of Internet advertising services, on Wednesday reported second-quarter losses that met expectations as revenue more than doubled.
But DoubleClick's high-flying stock (DCLK), which came public at a price of $17 earlier this year, fell back in late Wednesday trading amid concern about ties with a key strategic partner.
For the quarter, net losses totaled $4.67 million, or 28 cents a share, compared with $1.23 million, or 11 cents a share, in the second quarter of 1997.
Analysts had expected a loss of 28 cents, according to First Call.
Revenue increased to $17.3 million from $6.1 million a year earlier.
Contributing to the strong gains were the increased traffic experienced by the DoubleClick Network -- a collection of highly public brand name website anchored by the AltaVista search engine.
But DoubleClick entered into its alliance with AltaVista prior to the sale of the search engine's parent, Digital Equipment Corp., to Compaq Computer Corp. (CPQ).
Sensing the urgency to re-negotiate the strategic ties, DoubleClick said it has initiated discussions with Compaq. The alliance with the search engine firm currently runs through December 1999.
"We believe it is important for us to build a relationship directly with Compaq and to strengthen our agreement so that we can invest in building the AltaVista business for the long term," said Kevin O'Connor, DoubleClick chief executive.
"The timing and outcome of these discussions cannot yet be determined," he said in a statement.
DoubleClick said about 49 percent of the revenue in the latest quarter came from advertisements delivered on or through the AltaVista website.
Amid the concern, DoubleClick shares, which rose 5/16 to 53-1/8 during the regular Wednesday session on the Nasdaq, fell back to 52 in after-hours trading.
Overall traffic delivered an average of 81 million ad impressions per day in June 1998, up 35 percent from 60 million impressions in the month of March.
For the first half of the year, the company reported a net loss of $9.1 million, or 59 cents, on revenue of $30.3 million.
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