aQuantive
In the third quarter, aQuantive posted a 69% increase in revenues, to $78.8 million. Still, during this period, net income slipped from $24.1 million, or $0.34 per diluted share, to $9.4 million, or $0.13 per diluted share. This was mostly due to the company's reversal of a valuation allowance for deferred tax assets -- earnings would have come in at $3.5 million during the same period last year, excluding the tax benefit.
As for the fourth quarter, the company expects revenues to range from $78 million to $82 million, with net income of $0.11 to $0.14 per diluted share.
However, aQuantive is pumping its growth not only through acquisitions, but also by continuing to innovate with its products. For example, it recently introduced Atlas Version 2.0, which allows for the creation of rich-media advertisements. Atlas uses Macromedia's
aQuantive is fairly unique in its industry because of the breadth of its service offerings. To stay afloat during the dot-com bust, aQuantive underwent an "extreme makeover." It realized that digital media would be a big force, and that companies would need high-end consulting help and technologies. The company could have built these organically, but instead, it wanted to get to market faster. It was great timing, as the company was able to pick up assets and talent at good valuations and has had time to integrate everything. Now, it has a fairly unique platform of high-end consulting and technologies that companies want.
And if anything, the digital future is getting much more diverse, as seen with such innovations as podcasting and Apple's
Fool contributor Tom Taulli does not own shares mentioned in this article.