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TechTarget delays filing financial results, issues preliminary estimates

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Needham, Mass.—Tech media company TechTarget announced Thursday that it is delaying the official release of fourth quarter and 2008 financial results due to an adjustment to how it recognizes Webcast revenue.

The company does not expect that the change will have a material effect on results from 2008 or 2007. As it reviews the accounting of its Webcast revenue, TechTarget did report estimated revenue for the fourth quarter of $25.1 million, which is down from the $28.4 million the company reported for the fourth quarter of 2007.

Estimated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter was $4.6 million (not including a $1.4 million restructuring charge), which was down from $8.4 million in the fourth quarter of 2007. Total estimated revenue for 2008 is $103.5 million, up from $94.7 million in 2007. Estimated adjusted 2008 EBITDA, excluding the fourth-quarter restructuring charge, is $20.2 million, down from $24.6 million in 2007.

“Despite the challenging economic conditions, we are adjusted EBITDA-positive, have a very strong balance sheet and are very well-positioned for the future. We plan to continue to invest aggressively during the downturn to take advantage of the shift of advertising dollars to online marketing that demonstrates ROI,” Greg Strakosch, TechTarget's chairman-CEO, said in a statement.

The company expects total first-quarter revenue to be $17 million to $18 million and adjusted EBITDA to be within the range of negative $700,000 to positive $200,000. Research firm Collins Stewart downgraded TechTarget Friday from "hold" to "sell." In early trading Friday, the company's share price was $3.22, down about 15% from the Thursday's close. —Sean Callahan

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