Despite anecdotal evidence of an economic and advertising recovery, DoubleClick's CEO, Kevin Ryan, said the company has not seen increased spending come its way.
"There's no proof at this point that there's going to be a pickup. It's not like people have placed huge orders," Mr. Ryan said in a conference call after close of market Thursday.
Tech division up, media down
The lion's share of revenue -- $50.4 million vs. $54.9 million in the year-earlier period -- came from the company's technology division, which includes e-mail marketing. DoubleClick's media division fared the worst, with revenue falling to $16.3 million from $46 million, primarily due to the completion of the sale of its European media business to AdLink Internet Media AG in January and the sale of its e-mail list services business to infoUSA in March. Revenue for DoubleClick's data unit was flat for the quarter at $18.2 million.
Despite posting a net loss, DoubleClick reported pro forma net income of $1.4 million, or a penny per share, for the quarter -- the first time it has achieved profitability in the first quarter. It exceeded analysts' estimates as well as its own previous guidance of a pro forma loss of 3 cents to 6 cents per share.
"We did not anticipate a quarter ago that we would reach profitability in the first quarter, which is generally the toughest quarter in marketing," Mr. Ryan said. "I'm pleased with what we've been able to do in a bad economy."
DoubleClick maintained guidance for full-year revenue of $330 million to $400 million. It expects second-quarter revenue to be $77 million to $82 million. It predicts the bulk of this revenue -- $48 million to $51 million -- to come from its technology business, with e-mail expected to generate $9 million to $10 million in the quarter.