aQuantive, Inc. Announces 2003 Fourth Quarter Results.Business Editors SEATTLE--(BUSINESS WIRE)--Jan. 29, 2004 Strong 2003 Ends on High Note with 135 Percent Increase in Q4 Net Income and a 31 Percent Increase in Q4 Gross Profit Year-over-Year aQuantive This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Inc. (Nasdaq:AQNT), a digital marketing services and technology company and parent company to interactive agencies Avenue A and i-FRONTIER, and advertising technology provider Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. DMT See DSL. , today reported fourth quarter 2003 financial results. Fourth quarter highlights include: -- Revenue of $63.9 million, an increase of 44 percent from the comparable year-ago period -- Gross profit of $17.3 million, an increase of 31 percent from the comparable year-ago period -- GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income of $4.1 million, or $0.07 per basic share, marking the company's tenth consecutive quarter of improved bottom line performance -- Strong balance sheet, with $123.3 million in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments -- Atlas DMT acquires Denver-based GO TOAST (jargon) toast - 1. Any completely inoperable system or component, especially one that has just crashed and burned: "Uh, oh ... I think the serial board is toast." 2. To cause a system to crash accidentally, especially in a manner that requires manual rebooting. , a leading global provider of paid search management and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. tools. This acquisition strengthens the company's commitment to the rapidly growing search engine marketing segment -- Avenue A introduces ChannelScope(TM), a proprietary and patent-pending capability that enables multi-channel See multichannel. marketers for the first time to quantify Quantify - A performance analysis tool from Pure Software. the impact that online advertising has on their offline sales "2003 ended on a high note for aQuantive and our business units. We further enhanced our leadership role in search engine marketing with Atlas DMT's acquisition of GO TOAST in December December: see month. ; we proved to advertisers the significant impact that online advertising has on offline sales through Avenue A's new ChannelScope(TM) capability; and we ended 2003 with a 59 percent annual increase in our gross profit, contributing to aQuantive's first ever annual profit," said Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. McAndrews McAndrews may refer to:
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in our business in the future." 2003 Fourth Quarter Results For the quarter ended December 31, 2003, aQuantive reported revenues of $63.9 million, compared to revenues of $44.4 million for the quarter ended December 31, 2002. Gross profit for the 2003 fourth quarter increased to $17.3 million compared to $13.1 million from the year-ago fourth quarter. Net income for the 2003 fourth quarter was $4.1 million, or $0.07 per basic share, or $0.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $1.7 million, or $0.03 per share for fourth quarter 2002. 2003 Full Year Results Revenue for the full year 2003 was $222.0 million, compared to revenue of $132.7 million for 2002. Gross profit for 2003 was $61.0 million versus $38.5 million for 2002. Net income for 2003 was $11.8 million, or $0.20 per basic share, or $0.17 per diluted share, versus a net loss of $4.6 million, or $0.08 per share for 2002. 2004 Financial Guidance Please note that the company is switching to net revenue reporting for its Avenue A agency unit effective January January: see month. 1, 2004, consistent with its announcement in 2003. The company expects first quarter results as follows: -- Revenue of $17-19 million -- Net income of $0.03-0.04 per basic share, or $0.02-0.03 per diluted share The company expects full year 2004 results as follows: -- Revenue of $88-98 million -- Net income of $0.28-0.33 per basic share, or $0.24-0.28 per diluted share Fourth Quarter 2003 Conference Call/Webcast Today at 8am PST/11am EST EST electroshock therapy. EST abbr. electroshock therapy aQuantive, Inc. will host a conference call /Webcast to discuss Q4 financial results today at 8am PST/11am EST. The conference call will be webcast from the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at www.aquantive.com/investor. Interested parties should log on to the webcast approximately 15 minutes prior to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. any necessary software. The webcast is not interactive. About aQuantive, Inc. aQuantive, Inc. (Nasdaq:AQNT), a digital marketing services and technology company, was founded in 1997 to help marketers acquire, retain and grow customers across all digital media. Through its operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. interactive agencies Avenue A (www.avenuea.com) and i-FRONTIER (www.ifrontier.com), and Atlas DMT (www.atlasdmt.com), a provider of advertising technology solutions, aQuantive is positioned to bring value to any interaction in the digital marketplace. aQuantive (www.aquantive.com) is headquartered in Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. . Atlas DMT is DMT I Diabetes Mellitus Type 1 a member of the NAI See Network Associates. and adheres to the NAI privacy principles that have been applauded by the FTC FTC See Federal Trade Commission (FTC). . These principles are designed to help ensure Internet user Internet user n → internauta m/f Internet user Internet n → internaute m/f privacy. For more information about online data collection associated with ad serving, including online preference marketing and an opportunity to opt out of the Atlas DMT cookie cookie File or part of a file put on a Web user's hard disk by a Web site. Cookies are used to store registration data, to make it possible to customize information for visitors to a Web site, to target Web advertising, and to keep track of the products a user wishes to , go to: www.networkadvertising.org. Certain statements in this press release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements include all passages containing verbs such as 'aims, anticipates, believes, estimates, expects, intends, plans, predicts, projects, sees or targets' or nouns corresponding to such verbs. Forward-looking statements also include any other passages that are primarily relevant to expected future events or trends that can only be evaluated by events or trends that will occur in the future. The forward-looking statements in this release include, without limitation, statements of belief that 2004 is going to be a very exciting year for aQuantive and online advertising in general, the prospect of higher operating margins in the future, and statements regarding financial guidance for the first quarter of 2004 and for 2004. The forward-looking statements are based on the opinions and estimates of management at the time the statements were made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, among others, the risk of unforeseen changes in client online advertising budgets, unanticipated loss of clients, the potential failure to attract new clients due to the company's inability to competitively market its services, the risk of fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. demand for its advertising services, the potential failure to maintain current, desired client relationships or to achieve effective advertising campaigns for existing clients, potential deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. or slower-than-expected development of the Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. market, quarterly and seasonal fluctuations in operating results, timing variations on the part of advertisers to implement advertising campaigns, costs and risks related to acquisitions of technologies, businesses or brands, the short term nature of the company's contracts with clients, which generally are cancelable on 90 days' or less notice, and the uncertainties, potential costs, and possible business impacts of unfavorable rulings in previously announced lawsuits involving the company. More information about factors that could cause actual results to differ materially from those predicted in aQuantive's forward-looking statements is set out in its quarterly report on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended September 30, 2003, filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as to the date of this release. Except as required by law, aQuantive, Inc. undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
aQuantive, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
December 31, December 31,
2003 2002
------------ ------------
Assets
Current assets:
Cash, cash equivalents, and short-term
investments $ 123,255 $ 121,391
Accounts receivable, net of allowance 48,480 26,587
Other receivables 1,674 1,316
Prepaid expenses and other current
assets 1,141 398
----------- -----------
Total current assets 174,550 149,692
Property and equipment, net 6,802 4,166
Other assets 1,355 843
Goodwill and other intangible assets, net 18,052 4,439
----------- -----------
Total assets $ 200,759 $ 159,140
=========== ===========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 58,329 $ 38,423
Pre-billed media 4,545 3,757
Notes payable, current portion - 1,569
Deferred rent, current portion 285 -
Deferred revenue 5,773 2,554
----------- -----------
Total current liabilities 68,932 46,303
Deferred rent, less current portion 1,234 -
Deferred taxes, less current portion 54 -
----------- -----------
Total liabilities 70,220 46,303
----------- -----------
Shareholders' equity:
Common stock 602 584
Paid-in capital 220,637 215,858
Deferred stock compensation - (1,116)
Subscription receivable - (280)
Accumulated deficit (90,700) (102,209)
----------- -----------
Total shareholders' equity 130,539 112,837
----------- -----------
Total liabilities and shareholders' equity $ 200,759 $ 159,140
=========== ===========
aQuantive, Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
(unaudited)
Quarter Ended Twelve Months Ended
December 31, December 31,
----------------- -------------------
2003 2002 2003 2002
-------- -------- --------- ---------
Revenue $63,892 $44,351 $221,966 $132,650
Cost of revenue 46,622 31,203 160,960 94,194
-------- -------- --------- ---------
Gross profit 17,270 13,148 61,006 38,456
-------- -------- --------- ---------
Expenses:
Client support 6,920 4,828 24,986 15,720
Product development 1,214 1,330 4,198 6,183
Selling, general, and
administrative 4,526 3,943 17,506 15,385
Depreciation and amortization
of property and equipment 757 1,213 3,442 4,723
Amortization of deferred stock
compensation 199 449 1,103 2,718
Corporate restructuring charges - - - 497
Amortization of intangible
assets 72 50 276 50
-------- -------- --------- ---------
Total expenses 13,688 11,813 51,511 45,276
-------- -------- --------- ---------
Income (loss) from operations 3,582 1,335 9,495 (6,820)
Interest and other income, net 1,043 401 3,164 3,557
-------- -------- --------- ---------
Income (loss) before provision
for income taxes and cumulative
effect of change in accounting
principle 4,625 1,736 12,659 (3,263)
Provision for income taxes 537 - 875 -
-------- -------- --------- ---------
Income (loss) before cumulative
effect of change in accounting
principle 4,088 1,736 11,784 (3,263)
Cumulative effect of change in
accounting principle - - - (1,330)
-------- -------- --------- ---------
Net income (loss) $4,088 $1,736 $11,784 $(4,593)
======== ======== ========= =========
Basic net income (loss) per share
before change in accounting
principle $0.07 $0.03 0.20 $(0.06)
Cumulative effect of change in
accounting principle $- $- $- $(0.02)
-------- -------- --------- ---------
Basic net income (loss) per
share $0.07 $0.03 $0.20 $(0.08)
======== ======== ========= =========
Diluted net income (loss) per
share $0.06 $0.03 $0.17 $(0.08)
======== ======== ========= =========
Shares used in computing basic
net income (loss) per share 59,988 58,175 59,304 58,270
======== ======== ========= =========
Shares used in computing diluted
net income (loss) per share 69,598 63,447 68,354 58,270
======== ======== ========= =========
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