aQuantive Reports Strong Q2 Results; Company Raises Full Year Guidance.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. -- Conference Call and Webcast at 8am PT/11am ET Today 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, today reported financial results for the second quarter ended June June: see month. 30, 2005. Second quarter highlights, which include contributions from all acquisitions made during 2004, were: --Revenue of $77.2 million, an increase of 177 percent over the second quarter of 2004 --Net income of $7.8 million, or $0.11 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 --EBITDA(1) of $17.7 million, or $0.23 per diluted share, an increase of 99 percent over the second quarter of 2004 "During the second quarter, our three operating segments delivered outstanding performance in every area of the business further enhancing aQuantive's leadership position within the online advertising industry," 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:
2005 Second Quarter Results For the quarter ended June 30, 2005, aQuantive reported revenue of $77.2 million, compared to revenue of $27.8 million for the second quarter ended June 30, 2004. Net income for the second quarter of 2005 was $7.8 million, or $0.11 per diluted share, compared to $7.5 million, or $0.11 per diluted share for the second quarter of 2004. The company noted that the effective GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). income tax rate for the second quarter of 2005 was 40 percent, versus six percent for the second quarter of 2004. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $17.7 million for the second quarter of 2005, or $0.23 per diluted share, compared to $8.9 million, or $0.13 per diluted share for the second quarter of 2004. aQuantive operates three business segments. Segment information is as follows: Digital Marketing Services aQuantive's digital marketing services (DMS (1) (Document Management System) See document management. (2) (Defense Messaging System) An X.500-compliant messaging system developed by the U.S. Dept. of Defense. ) segment, consisting of Avenue A / Razorfish Razorfish is a common name used for two unrelated groups of fishes:
The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter of 2005 was $7.2 million, compared to operating income of $4.7 million for the second quarter of 2004. Avenue A / Razorfish continued to have strong performance in all areas of the segment, including web design and development, web media and search. Client wins and project work recently announced includes Hotels.com Hotels.com provides reservation services for hotel rooms and other places to stay. The company was founded in Dallas, TX in 1991 as Hotel Reservations Network (HRN) by Dave Litman and Bob Diener as a toll-free telephone service, offering consumers a one-stop source for discounted and Mercedes-AMG Mercedes-AMG is the tuning arm of the Mercedes-Benz car company. Mercedes-Benz acquired AMG in 1999. Production climbed from 500 cars a year to 20,000 AMG vehicles in 2005 (half of which were delivered to the United States). . Digital Marketing Technologies aQuantive's digital marketing technologies (DMT See DSL. ) segment, consisting of Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. , had revenue of $22.5 million in the second quarter of 2005, compared to revenue of $14.4 million in the second quarter of 2004. Operating income for the second quarter of 2005 was $10.0 million, compared to $5.9 million in the second quarter of 2004. Atlas announced its move into the digital television marketplace with the launch of Atlas On Demand. Following the launch, Atlas On Demand announced partnerships with the two leading Video On Demand technology providers, SeaChange Seachange or sea change is an informal term meaning a profound transformation. It may refer to:
a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. campaign management solutions to enable advertising agencies to plan, buy, execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution and measure Video On Demand advertising. Digital Performance Media aQuantive's digital performance media (DPM (Documents Per Minute) The number of paper documents that can be processed in one minute. ) segment, consisting of DRIVEpm and European-based MediaBrokers, had revenue of $6.5 million in the second quarter of 2005, compared to revenue of $665,000 in the second quarter of 2004. Operating income for the second quarter of 2005 was $1.2 million, compared to a loss of $374,000 in the second quarter of 2004. Both DRIVEpm and MediaBrokers contributed significantly to the steady growth of this business in the second quarter. Increased penetration The successful unauthorized breach of a security perimeter. See penetration test. with customers, specifically with agency clients, along with continued commitment to technology, sales, customer support and media inventory has positively impacted the performance of this segment. 2005 Financial Guidance The company expects third quarter results as follows: --Revenue of $72-$76 million --Net income of $0.08-$0.11 per diluted share --EBITDA of $0.22-$0.24 per diluted share Guidance for the full year 2005 has been increased, due to performance in the first two quarters of 2005 and improved expectations for the remainder of the year. The company expects full year 2005 results as follows: --Revenue of $288-$298 million --Net income of $0.38-$0.43 per diluted share --EBITDA of $0.88-$0.92 per diluted share (1) EBITDA (or earnings before interest expense, net interest and other income, income tax, depreciation and amortization) is a non-GAAP financial measure. See supplemental schedule of EBITDA reconciliation to GAAP net income for the three and six months ended June 30, 2005 and 2004. Second Quarter 2005 Conference Call/Webcast Today at 8am PT/11am ET aQuantive, Inc. will host a conference call/Webcast to discuss second quarter 2005 financial results today at 8am PT/11am ET. 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 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 agency Avenue A / Razorfish (www.avenuea-razorfish.com), Atlas (www.atlassolutions.com), a provider of digital marketing technologies and expertise, and DRIVEpm (www.drivepm.com), a performance media company, aQuantive. is positioned to bring value to any interaction in the digital marketplace. aQuantive (www.aquantive.com) is headquartered in Seattle. 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. Words such as "expects," "anticipates," "predicts," and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . Forward-looking statements also include any other passages that relate 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 regarding expected financial performance for the third quarter of 2005 and for the full year 2005. 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 risks that the company may not successfully complete the integration of companies it acquired in 2004 and that it may incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. unforeseen expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc such acquisitions, the risk of unforeseen changes in client online marketing and advertising budgets, unanticipated loss of clients or delays in anticipated campaigns and projects, 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 the company's services, the potential failure to maintain desired client relationships or to achieve effective advertising campaigns for 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 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 new legislation or litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. 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 quarter ended June 30, 2005, 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, 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)
June 30, December 31,
2005 2004
--------- ------------
Assets
Current assets:
Cash, cash equivalents, and short-term
investments $ 67,782 $ 59,247
Accounts receivable, net of allowances 134,539 106,683
Other receivables 660 1,486
Prepaid expenses and other current assets 2,863 1,631
Deferred tax asset 7,204 7,204
-------- --------
Total current assets 213,048 176,251
Property and equipment, net 23,304 17,569
Goodwill and other intangible assets, net 170,724 174,071
Other assets 2,564 2,690
Deferred tax asset, net 12,456 15,642
-------- --------
Total assets $422,096 $386,223
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $101,356 $ 89,608
Pre-billed media 15,812 15,655
Deferred revenue 9,128 10,394
Other current liabilities 600 603
-------- --------
Total current liabilities 126,896 116,260
Notes payable 80,000 80,000
Other long-term liabilities 3,826 3,466
-------- --------
Total liabilities 210,722 199,726
-------- --------
Shareholders' equity:
Common stock 640 623
Paid-in capital 244,717 233,898
Accumulated deficit and other comprehensive
income (33,983) (48,024)
-------- --------
Total shareholders' equity 211,374 186,497
-------- --------
Total liabilities and shareholders' equity $422,096 $386,223
======== ========
aQuantive, Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
(unaudited)
Three Months Six Months Ended
Ended
June 30, June 30,
----------------- ------------------
2005 2004 2005 2004
------- ------- -------- -------
Revenue 77,189 27,849 142,186 50,491
Costs and expenses:
Cost of revenue 9,475 4,497 17,636 8,535
Client support 36,053 7,393 66,709 14,239
Product development 2,166 1,414 4,133 2,906
Sales and marketing 3,471 2,140 6,410 3,984
General and administrative 9,988 4,521 17,702 8,590
Amortization of intangible
assets 1,803 333 3,606 846
Client reimbursed expenses 959 - 1,637 -
------- ------- -------- -------
Total costs and expenses 63,915 20,298 117,833 39,100
------- ------- -------- -------
Income from operations 13,274 7,551 24,353 11,391
Interest and other income, net 257 477 527 1,057
Interest expense 583 - 1,173 -
------- ------- -------- -------
Income before provision for
income taxes 12,948 8,028 23,707 12,448
Provision for income taxes 5,188 520 9,537 793
Net income $ 7,760 $ 7,508 $ 14,170 $11,655
======= ======= ======== =======
Basic net income per share $ 0.12 $ 0.12 $ 0.22 $ 0.19
======= ======= ======== =======
Diluted net income per share $ 0.11 $ 0.11 $ 0.20 $ 0.17
======= ======= ======== =======
Shares used in computing basic net
income per share 63,438 60,965 63,020 60,741
======= ======= ======== =======
Shares used in computing diluted net
income per share 75,677 69,753 74,895 69,752
======= ======= ======== =======
EBITDA
The term "EBITDA" refers to a financial measure that is defined as
earnings before net interest and other income, interest expense,
income taxes, depreciation and amortization. EBITDA is commonly used
to analyze companies on the basis of leverage and liquidity. However,
EBITDA is not a measure determined under GAAP in the United States of
America and may not be comparable to similarly titled measures
reported by other companies. EBITDA should not be construed as a
substitute for net income or as a better measure of liquidity than
cash flow from operating activities, which are determined in
accordance with GAAP. We have presented EBITDA to provide additional
information on the company's operations and our ability to meet future
capital expenditures and working capital requirements. The following
schedule reconciles EBITDA to net income on the company's consolidated
statement of operations, which the company believes is the most
directly comparable GAAP measure.
Three Months Six Months Ended
Ended
June 30, June 30,
---------------- -----------------
(in thousands, except per share
data) 2005 2004 2005 2004
------- ------ ------- -------
(unaudited) (unaudited)
Net income $ 7,760 $7,508 $14,170 $11,655
Depreciation and amortization of
property and equipment 2,389 803 4,380 1,546
Amortization of intangible assets 2,015 545 4,030 1,078
Interest and other income, net (257) (477) (527) (1,057)
Interest expense 583 - 1,173 -
Provision for income taxes 5,188 520 9,537 793
------- ------ ------- -------
EBITDA $17,678 $8,899 $32,763 $14,015
======= ====== ======= =======
EBITDA per basic share $ 0.28 $ 0.15 $ 0.52 $ 0.23
======= ====== ======= =======
EBITDA per diluted share $ 0.23 $ 0.13 $ 0.44 $ 0.20
======= ====== ======= =======
Supplemental Schedule of Segment Information
(in
thousands) Digital Digital Digital Unallocated Total
Marketing Marketing Performance Corporate
Services(1) Technologies(2) Media(3) Expenses
----------- --------------- ----------- ----------- -------
(unaudited)
Three Months ended June 30, 2005
-----------------------------------------------------------
Revenue $ 48,252 $22,482 $ 6,455 $ - $ 77,189
Costs and
expenses:
Cost of
revenue - 5,607 3,676 192 9,475
Client
support 34,836 - 1,217 - 36,053
Product
development - 2,166 - - 2,166
Sales and
marketing 1,082 2,389 - - 3,471
General and
administrative 4,223 2,295 409 3,061 9,988
Amortization of
intangible
assets - - - 1,803 1,803
Client
reimbursed
expenses 959 - - - 959
----------- --------------- ----------- ---------- -------
Total costs
and expenses 41,100 12,457 5,302 5,056 63,915
----------- --------------- ----------- ---------- -------
Income from
operations $ 7,152 $10,025 $ 1,153 $(5,056) $ 13,274
=========== =============== =========== ========== =======
Three Months ended June 30, 2004
-----------------------------------------------------------
Revenue $ 12,785 $14,399 $ 665 $ - $ 27,849
Costs and
expenses:
Cost of
revenue - 3,605 700 192 4,497
Client
support 7,102 - 291 - 7,393
Product
development - 1,414 - - 1,414
Sales and
marketing 179 1,961 - - 2,140
General and
administrative 812 1,519 48 2,142 4,521
Amortization of
intangible
assets - - - 333 333
----------- --------------- ----------- ---------- -------
Total costs
and expenses 8,093 8,499 1,039 2,667 20,298
----------- --------------- ----------- ---------- -------
Income from
operations $ 4,692 $ 5,900 $ (374) $(2,667) $ 7,551
=========== =============== =========== ========== =======
(in
thousands) Digital Digital Digital Unallocated Total
Marketing Marketing Performance Corporate
Services(1) Technologies(2) Media(3) Expenses
----------- --------------- ----------- ----------- -------
(unaudited)
Six Months ended June 30, 2005
-----------------------------------------------------------
Revenue $ 87,339 $43,123 $11,724 $ - $142,186
Costs and
expenses:
Cost of
revenue - 10,364 6,888 384 17,636
Client
support 64,563 - 2,146 - 66,709
Product
development - 4,133 - - 4,133
Sales and
marketing 2,175 4,235 - - 6,410
General and
administrative 7,361 4,090 649 5,602 17,702
Amortization of
intangible
assets - - - 3,606 3,606
Client
reimbursed
expenses 1,637 - - - 1,637
----------- --------------- ----------- ---------- -------
Total costs
and expenses 75,736 22,822 9,683 9,592 117,833
----------- --------------- ----------- ---------- -------
Income from
operations $ 11,603 $20,301 $ 2,041 $(9,592) $ 24,353
=========== =============== =========== ========== =======
Six Months ended June 30, 2004
-----------------------------------------------------------
Revenue $ 22,647 $26,394 $ 1,450 $ - $ 50,491
Costs and
expenses:
Cost of
revenue - 6,671 1,672 192 8,535
Client
support 13,745 - 494 - 14,239
Product
development - 2,906 - - 2,906
Sales and
marketing 356 3,628 - - 3,984
General and
administrative 1,774 3,048 98 3,670 8,590
Amortization of
intangible
assets - - - 846 846
----------- --------------- ----------- ---------- -------
Total costs and
expenses 15,875 16,253 2,264 4,708 39,100
----------- --------------- ----------- ---------- -------
Income from
operations $ 6,772 $10,141 $ (814) $(4,708) $ 11,391
=========== =============== =========== ========== =======
(1) Digital Marketing Services includes Avenue A / Razorfish
(2) Digital Marketing Technologies includes Atlas
(3) Digital Media includes DRIVEpm and MediaBrokers
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion