Value Click misses forecast
Internet advertising company ValueClick has announced that its profits increased substantially over the second quarter - but still fell short of analyst estimates.
Profits for April through June stood at $17.6 million - up by 22 per cent on the $14.4 million profit registered a year ago. This represents an increase of $0.17 per share, which falls just short of the $0.18 per share profit forecast by analysts.
In market trading, the company’s share value dropped by 19 per cent, after it lowered its earning per share forecast for the full year to $0.74 to $0.76 per share, down from $0.79 to $0.81 per share.
"The promotion-based sector suffered a downturn that began in late May and became more pronounced in June, which negatively impacted our quarter," said chief executive Tom Vadnais.
"We have reassessed our outlook on the promotion-based business and have taken aggressive steps to bring its costs in line with the changes occurring in this part of the industry. We expect to see the full impact of this cost-cutting initiative in the fourth quarter."
