Salon Reports First Ever Pro Forma Profit
It wasn’t net income, but the folks over at Salon Media Group were crowing this week when the firm reached pro forma profitability for the first time. That means that — excluding certain one-time costs — the online publisher would have turned a profit of $0.2 million in the second quarter.
“We are very excited to report Salon’s first ever pro forma net profit,” said David Talbot, Salon’s chairman and CEO. “This milestone could not have been reached without the concerted effort and dedication of Salon’s employees, investors and readers.”
In the real world of generally accepted accounting practices, though, Salon reported a net loss of $1.2 million, or $0.08 per share. In the first quarter, Salon had lost $1.3 million, or $0.09 per share.
Total revenues came in at $1.7 million, up 68 percent from a year ago. Advertising revenues increased to $1 million, from $0.4 million a year ago.
ValueClick Dampens Hope with Forecast
Online ad and marketing firm ValueClick experienced some unexpected surprises in the second quarter, but it’s looking ahead with the $29 million acquisition of Sweden-based Pricerunner.
The company had one affiliate marketing client re-structure its program, costing ValueClick $1.5 million in lost revenue. The firm’s ad serving business lost one customer in the quarter, and renewed a much bigger customer at a lower rate.
Still, the company saw year-over-year organic growth of 26 percent. The company brought in revenue of $34.6 million, a 72 percent increase over the year-ago quarter. Net income came in at $5.5 million, or $0.07 per diluted share.
In the coming months ValueClick plans to expand Pricerunner’s operations and its own search business into the United Kingdom, expand affiliate marketing into Germany, and build optimization and bid management into its technology platform.
The company’s forecast for the rest of the year wasn’t what analysts had hoped for, though. The company expects revenue to come in around $147 to $150 million. Excluding the one-time gain related to the sale of ValueClick Japan, that would make for diluted net income per share of between $0.26 and $0.29.
24/7 Real Media Posts a Profit
Interactive marketing technology and media player 24/7 Real Media saw net income of $1.5 million, or $0.04 per share in the second quarter of 2004. In 2003, it posted a net loss of $4.4 million or $0.31 per share.
The company saw revenue climb 61.3 percent over the same quarter last year. Revenues came in at $19.6 million this quarter, while the 2003 period saw revenues of only $12.2 million.
The company saw Integrated Media Solutions revenue, which includes revenue from the 24/7 Web Alliance, 24/7 Search and other media services, climbed 78.1 percent to $14.9 million. Technology Solutions revenue grew 24.2 percent to $4.7 million.
The company expects third-quarter revenues to be between $19.5 million and $20.5 million. For the full year, 24/7 Real Media expects between $80 and $82 million in revenue, resulting in pro forma per share earnings of $0.04 to $0.07.
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