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said Tuesday that it beat Wall Street's earnings expectations, even as the Internet advertising industry

succumbs to the increasing demands and shrinking pocketbooks of advertisers.

The company also warned of possible challenges in meeting third quarter estimates.

For the second quarter ended June 30, DoubleClick reported a loss, excluding noncash charges, of $3.8 million, or 3 cents a diluted share, compared to a loss of $4.3 million, or 4 cents a share, a year earlier. The consensus estimate of analysts polled by

First Call/Thomson Financial

was a pro forma loss of 5 cents.

Consolidated revenue rose 157% to $128.1 million from $49.9 million a year ago.

In the second quarter, DoubleClick served 149 billion ads globally across its proprietary Dynamic Advertising Reporting and Targeting platform, or Dart, only a 19% increase over the 125 billion served in the first quarter. In comparison, there was a 62% increase recorded in the first quarter over the company's fourth quarter.

That figure came in below the expectations of George Nichols, a stock analyst at

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. "That's the lowest number since 14% in the third quarter of 1998," he said. "Management said this was indicative of overall slowing growth for all Internet traffic for the latest quarter, pointing to



approximate 8% sequential growth in page views."

Morningstar does not rate individual stocks and does not participate in underwriting.

The New York-based company ended the quarter with $882 million in cash and marketable securities.

As for the third quarter, DoubleClick reminded investors that sales are usually weak, adding in a conference call with analysts that the consensus revenue forecast for the third quarter was "very challenging" and "perhaps achievable." However, management said the fourth quarter will be strong and suggested that the company can surpass estimates.

Shares of DoubleClick closed Tuesday trading at 35 1/2, down 2 1/16 or 6%. The stock is down 74% from their 52-week high of 134 on January 3, mostly on worries that dot-com and Web-based companies have less money to spend on advertising.

In after-market trading, shares were down 5/8, or 2%, to 34 7/8, according to

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