ValueClick Announces Divestiture of Search123
Provides Update on Third Quarter Outlook, Adjusted for Divestiture
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--
ValueClick, Inc. (NASDAQ: VCLK) today announced the divestiture of
Search123, its self-service paid search business operating in Europe.
"Search123 has been a small business for us and does not fit with our
long-term strategy. Its divestiture allows us to focus on our
significant growth initiatives as we build out an integrated solution to
help digital marketers drive multi-channel brand engagement and customer
acquisition through one strategic partner," said James R. Zarley, chief
executive officer of ValueClick. "As our updated third quarter outlook
illustrates, we expect another solid quarter of financial performance,
with all segments generating growth in-line with our prior expectations."
Search123 Divestiture
Operating in Europe, Search123 is a self-service offering that generates
search traffic through relationships with third-party content websites.
Search123's revenue is generated on a cost-per-click basis through a
relationship with a major search engine provider. The business was
previously included in the Company's Owned & Operated Websites segment.
The Company is selling Search123 to Carl White, the former executive in
charge of the Company's European operations. The terms of the
transaction, which are not material to the Company's financial position,
consist of future contingent payments based upon the performance of the
business over the next four years. In accordance with applicable
accounting standards, ValueClick anticipates presenting the Search123
business as a discontinued operation and restating the Company's
historical financial statements and segment operating results to reflect
this change. The transaction is expected to close by the end of
September.
Search123 generated revenue of $31.4 million in fiscal year 2011 with
the first, second, third, and fourth quarters contributing revenue of
$7.7 million, $8.5 million, $8.1 million, and $7.1 million,
respectively. In the first two quarters of 2012, Search123 generated
revenue of $6.4 million and $7.0 million, respectively, representing
approximately four percent of the Company's total consolidated revenue
in each period.
Updated Third Quarter 2012 Outlook
Today, ValueClick provided an update on expected results for the third
quarter ended September 30, 2012. The Company currently expects third
quarter revenue and adjusted-EBITDA from continuing operations
(excluding Search123) to be near the high-end of the respective guidance
ranges provided on August 2, adjusted to exclude Search123. ValueClick's
third quarter and fourth quarter 2012 guidance assumed that Search123
would contribute revenue in the range of $6.0 million to $6.5 million
each quarter with operating income margins of approximately 25 percent.
The Company anticipates releasing third quarter 2012 financial results
on Thursday, November 1.
About ValueClick
ValueClick, Inc. (NASDAQ: VCLK) is one of the world's largest digital
marketing companies. Through a unique combination of data, technology
and services, ValueClick increases brand awareness and drives customer
acquisition at scale for the world's largest advertisers, and maximizes
advertising revenue for tens of thousands of online and mobile
publishers. ValueClick's brands include Commission Junction, ValueClick
Media, Dotomi, Greystripe, Mediaplex, Smarter.com, CouponMountain.com,
Investopedia.com, and PriceRunner. The Company is based in Westlake
Village, California, and has offices in major advertising markets
worldwide. For more information, please visit www.valueclick.com.
This release contains forward-looking statements that involve risks
and uncertainties, including, but not limited to, the risk that market
demand for on-line advertising in general, and performance based on-line
advertising in particular, will not grow as rapidly as predicted, the
risk that legislation and governmental regulation could negatively
impact the Company's performance, the effects of recent acquisitions on
ValueClick's financial results, the potential inability to successfully
operate or integrate Dotomi's business, including the potential
inability to retain customers, key employees or vendors. Actual results
may differ materially from the results predicted, and reported results
should not be considered an indication of future performance. Important
factors that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements are detailed
under "Risk Factors" and elsewhere in filings with the Securities and
Exchange Commission made from time to time by ValueClick, including, but
not limited to: its annual report on Form 10-K filed on February 29,
2012; recent quarterly reports on Form 10-Q; and other current reports
on Form 8-K.
The Business Outlook contained in this release is based on current
expectations. These statements are forward-looking, and actual results
may differ materially. These statements do not include the potential
impact of any mergers, acquisitions or other business combinations that
may be completed after the date of this release. Actual stock-based
compensation may differ from these estimates based on the timing and
amount of stock awards granted, the assumptions used in stock award
valuation and other factors. Actual income tax expense may differ from
these estimates based on tax planning, changes in tax accounting rules
and laws, and other factors. ValueClick undertakes no obligation
to release publicly any revisions to any forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
ValueClick, Inc.
Gary J. Fuges, CFA
1.818.575.4677
Source: ValueClick, Inc.
News Provided by Acquire Media
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