Digitas' revenue for the quarter increased 22% to $77 million, from $63 million for the same period in 2000. A net loss of $6.6 million, or 11 cents per share, was reported in the first quarter of 2001, compared to a net loss of $7.5 million, or 14 cents per share, the year before. Pro-forma cash earnings were $1.8 million compared to $4.5 million last year.
Though, the earnings were more positive than its competitors, Boston-based Digitas is beginning to show signs that it is being affected by the Internet marketing slowdown. The company on a conference call with analysts said that it was laying off 65 people, mostly in administrative roles, from its staff of approximately 1,900 employees.The company also revised its full-year growth downward. It said that it anticipates second-quarter revenue growth of 0 to 6% from the second quarter of 2000 and that it anticipated full-year growth of 2% to 6% over 2000. In its year-end 2000 results, Digitas had said it expected growth of 20% to 25% for 2001.
In addition, the company announced a temporary 5% pay cut for its senior leadership team and that it is realigning its administrative functions and reducing real-estate commitments where possible to save between $5 million and $7 million this year and $8 million to $10 million in subsequent years.
Juno, New York, recorded a net loss of $9.6 million, or 23 cents per share, for the first quarter of 2001, narrowing its net loss from $47.6 million in the first quarter of 2000. Revenue dropped to $28.7 million from the fourth quarter to $30.3 million. However, it was up from the first quarter from $24 million. The company also has increased its subscriber base by 68,000 to 15.9 million registered users, and 4.1 million active users.
The company, which laid off almost 40 people earlier this month, indicated further jobs could be cut in "selected departments in response to the evolving business environment." Juno currently employs 259 people worldwide.
Seattle-based Avenue A saw a dramatic drop in first-quarter revenue compared to a year earlier, reporting revenue of $24.1 million compared to $46.8 million for the first quarter of 2000. Net loss for the first quarter was $9.1 million or 16 cents a share. -- Adrienne Mand
Copyright April 2001, Crain Communications Inc.