DoubleClick Says Loss Widens On Slowdown in Web Advertising
NEW YORK -- DoubleClick Inc. reported a widened second-quarter loss as it struggles with a prolonged slowdown in Internet advertising.</br></br>DoubleClick, which handles online advertising for other companies, reported a net loss of $37.9 million, or 29 cents a share, compared with $22.1 million, or 18 cents a share, a year earlier. Revenue fell 20% to $101.9 million from the year-earlier's $128.1 million.</br></br>The results are far from the company's confident stance augured as late as January, when DoubleClick officials predicted a profit of seven cents to nine cents a share for the year. Four months later, officials reversed their prediction, saying the company wouldn't be profitable in 2001, blaming the economic slowdown across the Internet sector.</br></br>In a conference call after the close of markets, DoubleClick Chief Executive Officer Kevin Ryan said, "We don't see any indication that ad revenue is going to pick up in the third quarter."</br></br>DoubleClick said that after excluding eight different items, including amortization of intangibles, certain noncash compensation, a write-down of investments and a gain on issuance of DoubleClick Japan stock, its per-share loss would have been seven cents. This was in line with its guidance to investors in April, when it projected a loss after certain items of between five cents and seven cents a share on revenue of $100 million to $105 million. Despite its continuing losses, DoubleClick reported a strong cash position of $812.8 million, though down from $831.5 million at the beginning of the quarter.