AQuantive Reports Strong Q2, Sets Sights Overseas

The company saw the biggest revenue jump in its digital marketing segment, which includes Avenue A/Razorfish and U.K.-based DNA.

AQuantive reported a strong second quarter, with revenue up 37 percent year-over-year to $105.6 million. Net income was $12.3 million or $.15 per diluted share.

The company experienced growth across all three of its business segments. Its digital marketing segment (DMS), comprised of Avenue A/Razorfish and the U.K.-based DNA, boasted revenues of $64.1 million, compared with $48.3 million in the second quarter of 2005. A breakdown of DMS clients showed pharmaceutical companies accounted for 17 percent of its business during the period; and finance, travel and telecom following with 15 percent each.

International business accounted for 20 percent of the company’s second quarter consolidated income, and CEO Brian McAndrews stressed the central role of global expansion in its second quarter consolidated income. He hinted aQuantive will continue to seek greater access to the Asia-Pacific market and characterized the recent acquisition of Australia-based Amnesia as a “toehold” there.

The Digital Marketing Technologies segment, Atlas, had revenues of $29.7 million, up from $22.5 million from last year. Atlas had particular success with its rich media offerings and will continue to develop business opportunities overseas. In response to questions concerning aQuantive’s strategy in diversifying its offering of video ad tools, McAndrews expressed confidence in the company’s current offering and added, “We do not need to make an acquisition to be competitive.”

The Digital Performance Media segment recorded revenue of $11.9 million, up from $6.5 million in the second quarter of 2005. The DPM segment includes Drive PM, Media Brokers and the recently acquired Franchise Gators, a lead generation company specifically serving the franchise industry.

The company expects full-year revenue of between $420 to $430 million with a net income of $.54 to $.58 per diluted share. It also predicts a slight increase in Q3 revenues with the price per diluted share hovering around the $.15 mark.

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