ValueClick cuts forecasts due to weak economy

The Westlake Village, Calif.-based company now expects revenue of $655 million to $675 million in fiscal 2008, down from a previous forecast of $730 million to $745 million.

ValueClick expects to earn 69 cents to 71 cents for the year, down from previous guidance of 81 cents to 83 cents. Analysts polled by Thomson Financial expected 2008 earnings of 81 cents per share.

The company said it expects profit before interest, taxes, depreciation and amortization of $172 million to $176 million, down from $190 million to $195 million.

"Due to increasing macroeconomic uncertainty, we no longer anticipate the seasonal strength in ad spending we typically see in the second half of the year," said Tom Vadnais, chief executive officer of ValueClick.

The slowing sales will show up in ValueClick's second-quarter earnings report, the company said. It now expects revenue for the quarter at $163 and $164 million down from a previous forecast $166 to $170 million.

However, cost-management moves will raise second-quarter adjusted profit to between $43 million and $43.5 million, or 17 cents to 18 cents per share, up from a previous forecast of $40 million to $42 million, or 15 cents to 16 cents per share. Analysts expected 16 cents per share, on average.

ValueClick is scheduled to report second-quarter results on July 31.

The company said it plans to actively buy back stock in the coming weeks, noting that is has authorization to buy $101 million in stock.

ValueClick shares closed Wednesday at $13.77.