NetCreations Inc., shares fell almost 37% yesterday on news that the e-mail marking service expected disappointing third-quarter earnings.
The company cited reduced spending by its clients cutting back on marketing budgets for missing its third quarter estimates. The company expects revenue for the quarter ended Sept. 30 to be about $14 to $15 million, which could mean that earnings could be half or less of Wall Street expectations, according to a Reuters news report.”
The third quarter has been a difficult one for Internet advertising companies, and NetCreations is no exception,” Rosalind Resnick, NetCreations’s CEO, said in the report. ” Our revenues and earnings have been adversely affected by the decline in marketing related expenses associated with our business-to-consumer dot-com customers as they are being forced to operate within increasingly tighter budgets in order to attain profitability.”
Because of the shortfall, NetCreations stock was downgraded from “buy” to “accumulate.” NetCreations went public in 1999.
NetCreations is not alone in as many online companies in recent weeks have come under pressure amid concerns about slowdowns in dot-com advertising. Both DoubleClick and Avenue A have scaled back quarterly predictions, the report said.
In other news, NetCreations named Robert Mattes, chief financial officer.
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