ValueClick Reports Loss on Goodwill Charge

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During tough times for Internet advertisers, ValueClick Inc. reported a fourth quarter loss Thursday, though its revenue and adjusted earnings exceeded Wall Street expectations.

After the market closed, the Westlake Village online advertising services company reported a net loss of $256 million (-$2.95 per share), compared with net income of $17.5 million (18 cents) a year ago. Revenue fell 14.5 percent to $150 million, exceeding the $142 million revenue forecast by analysts surveyed by Thomson First Call.

During the quarter the company sold its AdVault advertising agency management software suite and its inkjet e-commerce business and recorded at $327 million non-cash goodwill impairment charge. Adjusted net income, which excludes the goodwill charge, discontinued operations and other items, was $19.9 million (23 cents). Analysts expected 15 cents per share.

For the full year, the company reported a net loss of more than $218 million (-$2.37), compared with net income of $70.3 million (70 cents) in 2007. Revenue grew 1.5 percent to nearly $626 million.

Chief Executive Tom Vadnais noted the company generated $30 million in free cash flow in the fourth quarter, bringing the full year total free cash flow generation to more than $120 million.

“Our performance-based offerings, strong balance sheet and relentless focus on driving margins make us a formidable competitor in this challenged environment,” Vadnais said in a statement.

ValueClick shares closed up 23 cents, or 3.5 percent, to $6.72 on the Nasdaq, and jumped 10 percent in after-hours trading.

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