Shares of online ad network DoubleClick Inc. fell sharply yesterday after the company cut sales forecasts and predicted losses for the rest of the year.
The company made the announcement after the close of regular U.S. trading on Thursday. The market was closed on Friday for Good Friday.
DoubleClick’s shares dropped 13% yesterday closing at $10.43. The New York-based Internet advertising firm forecast a 2001 loss, excluding amortization expenses and other costs, of 18 cents to 22 cents a share amid the sharp downturn in the online ad market. The warning disappointed many analysts, who had been expecting DoubleClick to turn a profit by year-end.
Demand for Internet advertising has failed to improve, CFO Stephen Collins said in a news report. Many dot-com companies have either slashed costs or collapsed after last year’s decline in Web stocks.
The company expects sales of $425 million to $450 million for 2001, below the $524.5 million average estimate of analysts polled by IBES International Inc, the report said.
For the quarter ended March 31, DoubleClick reported a net loss of $10.5 million, down from a net loss of $13.2 million for the same period in 2000.
First quarter revenue was $114.9 million, an 4% increase over $110.1 million the same period last year. Gross profit for the quarter was $64.5 million, a 12% increase over gross profit of $57.6 million in the first quarter of 2000.
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