Provides Update on Third Quarter Outlook, Adjusted for Divestiture
Search123, its self-service paid search business operating in
"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
executive officer of
illustrates, we expect another solid quarter of financial performance,
with all segments generating growth in-line with our prior expectations."
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
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
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
Search123 generated revenue of
the first, second, third, and fourth quarters contributing revenue of
respectively. In the first two quarters of 2012, Search123 generated
approximately four percent of the Company's total consolidated revenue
in each period.
Updated Third Quarter 2012 Outlook
quarter revenue and adjusted-EBITDA from continuing operations
(excluding Search123) to be near the high-end of the respective guidance
ranges provided on
third quarter and fourth quarter 2012 guidance assumed that Search123
would contribute revenue in the range of
each quarter with operating income margins of approximately 25 percent.
The Company anticipates releasing third quarter 2012 financial results
marketing companies. Through a unique combination of data, technology
acquisition at scale for the world's largest advertisers, and maximizes
advertising revenue for tens of thousands of online and mobile
Investopedia.com, and PriceRunner. The Company is based in
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
operate or integrate
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
Exchange Commission made from time to time by
not limited to: its annual report on Form 10-K filed on
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.
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.
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