ValueClick Inc. downgraded its revenue and earnings estimates for full year 2007 after missing revenue estimates for the second quarter. The Westlake Village-based Internet marketing and advertising services provider said it now expects 2007 earnings to range between $0.74 per share and $0.76 per share, down from the $0.79 per share to $0.81 per share it had previously anticipated. Revenues are expected to fall in the range of $645 million to $660 million instead of $655 million to $665 million previously announced. ValueClick attributed its second quarter disappointment to what it called the “promotion based sector.” “The promotion-based sector suffered a downturn that began in late May and became more pronounced in June, which negatively impacted our quarter,” said Tom Vadnais, Valueclick CEO in a press release. “We have reassessed our outlook on the promotion-based business and have taken aggressive steps to bring its costs in line with changes occurring in this part of the industry. We expect to see the full impact of this cost-cutting initiative in the fourth quarter.” For the second quarter, ValueClick reported revenues increased 14 percent to $148.7 million, compared to $130 million in the second quarter of 2006. The revenue results missed the company’s previously-issued guidance. Earnings for the second quarter were $17.6 million or $0.17 per diluted share, up from $14.4 million or $0.14 per diluted share in the comparable period a year ago. The results fell at the low end of the company’s previously issued guidance. ValueClick also announced today that it closed the acquisition of MeziMedia Inc. for about $95.5 million in cash. The acquisition carries an additional, performance-based payout.
