ValueClick (VCLK) to Divest Search123; Updates Q3 Outlook on Impact
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Price: $24.97 -0.4%
EPS Growth %: +10.5%
Financial Fact:
Revenue: 165.44M
Today's EPS Names:
CEDU, CHC, CIDM, More
EPS Growth %: +10.5%
Financial Fact:
Revenue: 165.44M
Today's EPS Names:
CEDU, CHC, CIDM, More
Trade VCLK Now!
ValueClick, Inc. (NASDAQ: VCLK) today announced the divestiture of Search123, its self-service paid search business operating in Europe.
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.
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.
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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.
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.
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