Internet advertising powerhouse DoubleClick
on Tuesday announced plans to issue a $135 million debt offering to service other debt, and said its second quarter results would come in at the higher end of earlier guidance.
The New York-based DoubleClick, which hit profitability in the previous quarter, now expects Q2 revenues to be between $61 million and $63 million and earnings to break even or reach 2 cents per share.
DoubleClick had earlier projected revenues to be between $60 million and $63 million in the second quarter. For the full year, the company reaffirmed earlier guidance of between $250 million and $300 million in revenues, with earnings to be between 3 cents and 12 cents per share.
DoubleClick said the improved expectations take into account a gain that will be recognized from the sale of certain patents and equity losses in the company’s investment in MaxWorldwide, Inc. DoubleClick came to own shares in MaxWorldwide when it sold its media business to the firm for 4.8 million shares and $5 million in cash.
The ad-serving and marketing firm is also negotiating a lease buy-out of its New York City headquarters, which will involve a cash payment of approximately $40 million. “The company would not expect EPS guidance for the second quarter or the full year to be negatively impacted if the lease termination were completed,” DoubleClick said in a statement.
Separately, DoubleClick said it would offer $135 million of convertible subordinated notes due in 2003 to help retire other debt due in 2006.
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