ValueClick Reports Record First Quarter 2004 and Raises
Guidance for Full Year 2004
Profitability Net of Non-Recurring Gain Exceeds Guidance
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--April 27,
2004--ValueClick, Inc. (Nasdaq:VCLK), the single-source provider of
media, technology and services across all major interactive
marketing channels, today reported
financial results for the first
quarter ended March 31, 2004. Performance in the quarter
exceeded the Company's previously issued guidance for revenue,
net income per share and EBITDA(1), on both a reported basis and
net of the non-recurring $8.0 million gain associated with the
Company's sale of its ownership interest in ValueClick
Japan.
For the quarter ended March 31, 2004, ValueClick reported revenue
of $36.7 million, which was an increase of $17.2 million, or 89
percent, from revenue of $19.5 million for the first quarter of
2003. First quarter 2004 results include a full quarter of
operations from Search123, Commission Junction and Hi-Speed Media,
acquired in late May 2003, early December 2003 and late December
2003, respectively.
Laptop Battery First quarter 2004 income before taxes and minority interest was
$15.0 million compared to $1.6 million for the first quarter of
2003. Net income for the first quarter of 2004 was $13.4 million,
or $0.16 per diluted common share, compared to net income of $1.2
million, or $0.02 per diluted common share, for the first quarter
of 2003. First quarter 2004 net income before interest, taxes,
depreciation, and amortization (EBITDA) was $16.9 million compared
to $2.1 million for the first quarter of 2003.
Stamps.com Reports First Quarter 66% Year over Year Revenue Growth, and Increased Guidance for 2004 Company Now Anticipates Approximately 55% Fiscal Year 2004 Revenue Growth and Profitability in the Fourth Quarter of 2004 SANTA MONICA, Calif. April 21, Stamps.com™ ( STMP) today announced financial results for the first quarter of 2004. First quarter revenue was an all time quarterly high of $7.6 million, up 66% versus the first quarter of 2003 and up 19% versus the fourth quarter of 2003. In addition, Stamps.com announced that it has adjusted its guidance for fiscal 2004 total revenue to be up approximately 55% versus fiscal year 2003; previously the company guided to an overall increase of 35%. Further, the company now anticipates profitability in the fourth quarter of 2004, a quarter earlier than previously expected.
Thinkpad First quarter 2004 financial results included a non-recurring
$8.0 million, or $0.10 per fully diluted share, gain on the sale of
the Company's equity interest in ValueClick Japan, which closed on
March 29, 2004. Excluding this non-recurring gain, ValueClick's
first quarter 2004 net income per fully diluted share and EBITDA
exceeded the Company's previously issued guidance.
Stamps.com reported a net loss of $4.5 million for the first quarter of 2004 compared to a net loss of $2.7 million in the fourth quarter of 2003 and a net loss of $2.1 million in the first quarter of 2003. On a per share basis, the net loss was $0.10 in the first quarter of 2004 based on the weighted average common shares outstanding of 44.4 million.
Microsoft The March 31, 2004 consolidated balance sheet remained strong
with $230.5 million in cash, cash equivalents and marketable
securities, $222.5 million in working capital and $292.5 million in
total stockholders' equity. Cash provided by operations for the
first quarter of 2004 was approximately $10.3 million, and as of
March 31, 2004 the cash, cash equivalents and marketable securities
balance represented $2.92 per outstanding common share.
- ScanSoft, Inc. ( SSFT), a global leader of speech and imaging solutions, month fiscal year ended September 30, 2004. ScanSoft reported third quarter 2004 revenue of $42.3 million, a 29 percent increase over third quarter 2003 revenue of $32.9 million. On a GAAP basis, ScanSoft recognized a third quarter 2004 net loss of $5.9 million, or $0.06 per basic share, compared with a net loss of $3.7 million, or $0.04 per basic share, in the third quarter of 2003.
Laptop Computers 2004 Guidance
For the first quarter of 2004, Stamps.com expects revenue to be up 5% from the fourth quarter of 2003. First quarter gross margin is expected to be approximately 60%. First quarter 2004 net loss is expected to be approximately $4.5 million or $0.10 on a per share basis, including the estimated $ time expense.
Laptop Computer The following statements are based on current expectations.
These statements are forward-looking, and actual results may differ
materially. These statements do not include the potential impact of
any mergers, acquisitions or other business combinations that may
be completed after the date of this release.
Nuance reported revenues of $75.6 million in the quarter ended December 31, 2005, a 25 percent increase over revenues of $60.6 million in the quarter ended December 31, 2004. On a GAAP basis, Nuance recognized a net loss of $4.9 million, or $(0.03) per share, in the quarter ended December 31, 2005, compared with net income of $3.1 million, or $0.03 per diluted share, in the quarter ended December 31, 2004.
Desktop Computer Based on its first quarter results and outlook for the remainder
of 2004, ValueClick is raising its fiscal year 2004 guidance.
Please note that previously issued guidance included a full year's
expected contribution from ValueClick Japan, while the Company's
new guidance does not include any contribution from ValueClick
Japan after the first quarter of 2004.
Notebooks For the second quarter of 2004, ValueClick anticipates revenue
in the range of $35.0 million to $36.0 million, an approximate 77
percent increase in revenue from the second quarter of 2003. The
Company expects diluted net income per share of approximately $0.06
in the second quarter of 2004. EBITDA for the second quarter of
2004 is expected to be in the range of $8.5 million to $9.5
million.
Lenovo For fiscal year 2004, ValueClick is raising its guidance as
follows:
New Guidance ---------------------------------- Excluding 1Q Including 1Q 2004 Previous Guidance 2004 Non- Non-Recurring Recurring Gain Gain ----------------- ---------------- ----------------- Revenue $145 to $148 $147 to $150 $147 to $150 million million million Diluted net income per share $0.21 to $0.27 $0.26 to $0.29 $0.35 to $0.38 EBITDA $36 to $38 $38 to $40 $46 to $48 million million million [code] "While we realized a significant non-recurring gain from the ValueClick Japan transaction, the performance of our ongoing operations exceeded our expectations," said James Zarley, chairman and chief executive officer of ValueClick. "The momentum in our collective businesses enables us to raise our 2004 revenue guidance from its original level, in spite of removing Japan's contribution from the remaining three quarters of 2004. We are off to a good start in 2004, and we are working hard to build upon our strong first quarter operating performance." First Quarter 2004 Conference Call Today James Zarley, chairman and chief executive officer, and Sam Paisley, chief financial officer, will present an overview of the results and other factors affecting financial performance for the quarter during a webcast on April 27, 2004 at 1:30 p.m. PT. Investors and analysts may obtain dial-in information through StreetEvents (www.streetevents.com). The live webcast and other information of potential interest to investors will be available to the public in the Investor Relations section of the Company's website (www.valueclick.com). Please allow 15 minutes prior to the call to download and install any necessary audio software. An archive of the webcast will be available in the Investor Relations section of the Company's website for seven days after the call. An archived audio replay will be available for seven days after the call and may be accessed at 888-203-1112 for domestic and 719-457-0820 for international callers. The passcode is 407430. About ValueClick ValueClick, Inc. (Nasdaq:VCLK) is the single-source provider of media, technology and related services that enable advertisers, agencies and publishers to reach consumers in all major online marketing channels, through our four business units: ValueClick Media ( http://media.valueclick.com ) provides a wide range of online marketing solutions -- including Web Marketing, Email Marketing, Lead Generation Marketing and Search Marketing -- to create awareness, build brands, deliver targeted visitors, generate leads, drive sales, and grow customer relationships. Commission Junction ( www.cj.com ) provides advanced performance marketing solutions that help marketers increase online leads and sales. By facilitating strategic relationships between advertisers and publishers, Commission Junction leverages its proven expertise in affiliate marketing and search marketing to drive measurable results for its clients. Mediaplex ( www.mediaplex.com ) provides technology and services that help advertisers, agencies and Web site publishers manage their online advertising and permission-based email campaigns. AdWare ( www.adware.com ) provides software and services that help advertising agencies and other companies operate their businesses more efficiently, through effective agency management, media management, and content management. For more information, please visit www.valueclick.com. This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, trends in online advertising spending and estimates of future online performance-based advertising. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" and elsewhere in filings with the Securities and Exchange Commission made from time to time by ValueClick, including its Annual Report on Form 10-K filed on March 15, 2004, recent quarterly reports on Form 10-Q and current reports on Form 8-K. Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the risk that market demand for online advertising, and performance-based online advertising in particular, will not grow as rapidly as predicted. ValueClick undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. (1) Please see the attached schedule entitled "Reconciliation of Net Income to EBITDA" for a reconciliation of EBITDA to net income, and a discussion of why the Company believes EBITDA is a useful non-GAAP financial measure to investors and how management uses EBITDA. [code] VALUECLICK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three-month Periods Ended March 31, ----------------- 2004 2003 -------- -------- (note 1) (Unaudited) (note 2) Revenue $36,709 $19,463 Cost of revenue 11,129 6,501 -------- -------- Gross profit 25,580 12,962 Operating expenses: Sales and marketing 7,445 4,978 General and administrative 6,651 4,452 Product development 4,076 2,572 Stock-based compensation 238 97 Amortization of intangible assets 864 312 -------- -------- Total operating expenses 19,274 12,411 -------- -------- Income from operations 6,306 551 Interest income, net 696 1,039 Gain on sale of equity interest in Japan subsidiary 8,007 -- -------- -------- Income before taxes and minority interests 15,009 1,590 Provision for income taxes 1,691 385 -------- -------- Income before minority interest 13,318 1,205 Minority share of loss (income) of consolidated subsidiary 130 (19) -------- -------- Net income $13,448 $1,186 -------- -------- Basic net income per share $0.17 $0.02 ======== ======== Weighted-average shares used in computing basic net income per share 78,412 75,267 ======== ======== Diluted net income per share $0.16 $0.02 ======== ======== Weighted-average shares used in computing diluted net income per share 83,920 77,967 ======== ========
Hard Drive Note (1) -- The condensed consolidated statements of operations
include the results of Search123, Commission Junction and Hi-Speed
Media from the dates of acquisition (May 30, 2003, December 7, 2003
and December 18, 2003, respectively) in accordance with the
purchase method of accounting. Had these purchase transactions been
completed as of January 1, 2003, on an unaudited pro forma GAAP
basis revenues would have been $27.5 million and the net income
would have been $0.9 million, or $0.01 per share for the
three-month periods ended March 31, 2003.
Travelstar These unaudited pro forma GAAP results are for information
purposes only and not necessarily indicative of what the actual
results would have been had the acquisitions occurred on January 1,
2003, and are not necessarily indicative of future results.
Gateway Note (2) -- Net income and diluted net income per share would
have been $5,441 and $0.06, respectively, after excluding the
non-recurring gain on the sale of the Company's interest in
ValueClick Japan.
VALUECLICK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 31, December 31, 2004 2003 ------------ ------------ ASSETS CURRENT ASSETS: Cash, cash equivalents and marketable securities $230,476 $220,120 Accounts receivable, net 20,177 21,942 Other current assets 2,827 3,654 ------------ ------------ Total current assets 253,480 245,716 Property and equipment, net 9,542 10,559 Goodwill and intangible assets, net 64,485 65,349 Other assets 1,339 1,475 ------------ ------------ TOTAL ASSETS $328,846 $323,099 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $30,974 $31,907 Non-current liabilities 5,353 5,676 Minority interest in consolidated subsidiary -- 11,309 Total stockholders' equity 292,519 274,207 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $328,846 $323,099 ============ ============ VALUECLICK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three-month Periods Ended March 31, ----------------- 2004 2003 -------- -------- Cash Flows from operating activities: Net income $13,448 $1,186 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,428 1,569 Tax benefit from stock option exercises 1,692 -- Provision for bad debts 425 288 Stock-based compensation 238 97 Minority share of (loss) income of consolidated subsidiary (130) 19 Change in deferred income taxes (114) (4) Gain on sale of equity interest in Japan subsidiary (8,007) -- Changes in operating assets and liabilities 272 (94) -------- -------- Net cash provided by operating activities 10,252 3,061 -------- -------- Cash flows from investing activities: Purchase of marketable debt securities, net (34,115) (955) Proceeds from the sale of marketable debt securities -- 8,700 Purchases of property and equipment (1,999) (852) Purchases of intangible assets -- (788) Sale of equity interest in Japan subsidiary, net 2,351 -- -------- -------- Net cash (used in) provided by investing activities (33,763) 6,105 -------- -------- Net cash provided by (used in) financing activities 2,798 (9,685) -------- -------- Effect of currency translations 477 (366) -------- -------- Net decrease in cash and cash equivalents (20,236) (885) Cash and cash equivalents, beginning of period 36,642 27,066 -------- -------- Cash and cash equivalents, end of period $16,406 $26,181 ======== ======== VALUECLICK, INC. RECONCILIATION OF NET INCOME TO EBITDA (note 1) (Unaudited, in thousands) Three-month Periods Ended March 31, ------------------ 2004 2003 (note 2) Net income $13,448 $1,186 Less interest income, net (696) (1,039) Plus provision for income taxes 1,691 385 Plus amortization of intangible assets 864 312 Plus depreciation and leasehold amortization 1,564 1,257 -------- ------- EBITDA $16,871 $2,101 ======== =======
Laptop Parts Note (1) -- Earnings before interest, taxes, depreciation and
amortization ("EBITDA") included in this press release is a
non-GAAP financial measure which represents net income excluding
the effects of interest, income taxes, depreciation, and
amortization. EBITDA, as defined above, may not be similar to
EBITDA measures used by other companies and is not a measurement
under generally accepted accounting principles.
Software We believe that EBITDA provides useful information to investors
about the Company's performance because it eliminates the effects
of period to period changes in costs associated with capital
investments and income from interest on our cash and marketable
securities that are not directly attributable to the underlying
performance of the Company's business operations. Management uses
EBITDA in evaluating the overall performance of the Company's
business operations.
Hard Drives Though management finds EBITDA useful for evaluating aspects of
the Company's business, its reliance on this measure is limited
because excluded items often have a material effect on the
Company's earnings and earnings per share calculated in accordance
with GAAP. Therefore, management always uses EBITDA in conjunction
with GAAP earnings and earnings per share measures. The Company
believes that EBITDA provides investors with an additional tool for
evaluating the Company's core performance, which management uses in
its own evaluation of performance, and a base line for assessing
the future earnings potential of the Company. While the GAAP
results are more complete, the Company prefers to allow investors
to have this supplemental metric since, with a reconciliation to
GAAP, it may provide greater insight into the Company's financial
results.
Electronics Note (2) -- EBITDA would have been $8,864 after excluding the
non-recurring gain on the sale of the Company's interest in
ValueClick Japan.
Canon CONTACT: ValueClick, Inc.
Gary J. Fuges, 818-575-4677
Desktop Pc SOURCE: ValueClick, Inc.
[ Comment, Edit or Article Submission ]
