ValueClick Flat On Q3 Profit
By: David Utter
The Federal Trade Commission has been looking into ValueClick's lead generation model, which likely contributed to weakness in that part of the business.
With FTC regulators casting a jaundiced eye at ValueClick, the online marketer still managed to pull in higher revenue, nearly $157 million during the third quarter.
But acquisitions contributed to that increase, as Reuters noted. Net income stayed level at $16.8 million.
Despite these numbers, ValueClick finished slightly ahead of Wall Street estimates, which called for 16 cents per share. ValueClick beat that by a penny, earning 17 cents a share.
ValueClick's issues with the FTC center on accusations of violations of the CAN-SPAM Act. On May 16, 2007, ValueClick informed the SEC of FTC investigation:
"...the FTC is conducting an inquiry to determine whether the Company's lead generation activities violate either the Federal Trade Commission Act or the CAN-SPAM Act. Specifically, the FTC is investigating certain ValueClick websites which promise consumers a free gift of substantial value, and the manner in which the Company drives traffic to such websites, in particular through email.
ValueClick expressed its belief that it is in compliance with the relevant state and federal laws regarding this.
While several firms like aQuantive, BlueLithium, 24/7 Real Media, and found interested buyers in recent months, interest in ValueClick as an acquisition target passed the company by.
Together it has had some effect. ValueClick expects its 2007 profits to be slightly under analyst estimates. Though shares are up in early trading today, they are still off November 1st's intraday high of $27.19, by $2.06 as of press time.
About the Author:
David Utter is a staff writer for InternetFinancialNews and WebProNews covering technology and business.
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