DoubleClick and Internet Advertising
  04/13/2001 4:10:01 PM MDT Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

DoubleClick gets Double Whacked, and so do we.   DoubleClick beat the recent estimates for the first quarter by a penny, but it changed the good news to bad Thursday by revising second-quarter and full-year revenue and earnings estimates.

  The online marketing and advertising company announced that it lost 8 cents per share, 1 cent less than predicted by analysts, and took in $114.9 million in revenue, beating estimates of $112 million. However, the New York-based firm lowered an estimated loss per share of 2 cents for the second quarter to between 5 and 7 cents. DoubleClick also lowered second-quarter revenue estimates to between $100 million and $105 million from $125 million.

  (DoubleClick provides the Internet Advertising for AMO.NET)
  "Continued Softness" in online advertising hasn't just hurt DoubleClick, it's hurt Yahoo, and us; AMO.NET. Yahoo fired more than a few hand fulls of workers, and recently made headlines from offering "PORN" affiliates to it's site. Yahoo did eventually pull the "PORN" link affiliates after one too many BAD news stories were covered on the Subject.

  DoubleClick CEO Kevin Ryan said that despite the downward revision, his company's prospects remain bright as it takes a leading position in the industry. "Ironically, the tough industry environment has resulted in DoubleClick having a better competitive position than ever before," Ryan said in a press release. "I am excited about our prospects for the future."

  At the end of Nasdaq trading Thursday, DoubleClick shares lost 4.8 percent, or $0.61, to close at $12.01. In after-hours trading, the stock was down an additional $1.62, or 13 percent, at $11.

  The online advertising market began to nose-dive a year ago along with the value of technology stocks. As the wider economy stalled, media buyers shifted money away from online buys and back to traditional media that was again becoming less expensive. Not untouched by the phenomenon, DoubleClick in February cut 10 percent of its workforce, or 200 jobs, mostly in its sales group, and consolidated its sales force.

  "We have taken the necessary steps to stay lean and mean," CFO Stephen Collins said in the release. "As the economy recovers and advertising dollars are allocated more and more to online media, DoubleClick will benefit enormously."

  Earlier in the day, DoubleClick competitor 24/7 Media said it will lay off 100 of its 950 employees and close offices as it struggles to remain viable. The restructuring will save approximately $10 million a year on an annualized basis. 24/7 Media said it was pursuing all strategic alternatives, including selling certain assets, to raise money to fund ongoing operations.

  All I have to say is, things better get better before they get worse or it's going to affect AMO.NET's customers.