Other options under consideration to improve shareholder value are: recapitalization of the company; an extraordinary dividend out of its $265 million cash pile; a share repurchase; or the spin-off of part of the business.
After a successful IPO at $17 a share in 1998, Doubleclick became a glamour stock during the dot-com boom as it appeared to be poised to benefit from the growth of online advertising. However, after reaching a peak of more than $100 at the beginning of 2000, the shares have spiraled downward ever since to reflect the decline in Doubleclick’s fortunes.
Revenue, which reached $405.6 million in 2001, was down to $271.3 million in 2003. However, the company has been showing a revival of late and last week reported third-quarter net income 142% higher at $15.4 million on revenue up 8.2% at $81 million. Despite this, it lowered its 2004 revenue outlook to a range of $290 million to $295 million, down from its previous estimate of $290 million to $305 million.
