ValueClick Plans Restatement

It got its taxes wrong.
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ValueClick

(VLCK)

said it will restate results to fix an income tax error that sharply increased 2004 earnings.

The Westlake, Calif., online advertising and marketing company said it discovered an error in its provision for income taxes. Fixing the error will reduce ValueClick's 2004 profit to 39 cents a share from the previously reported $1.05, the company said. ValueClick said fixing the mistake reduces the deferred tax benefit reported in the fourth quarter of 2004 and increases its previously reported effective tax rate for the first three quarters of that year. The company was then forced to eliminate a deferred tax benefit in the second quarter of this year.

Complete details of the restatement weren't yet available and the company didn't respond to a request for comment.

ValueClick also reported fourth-quarter net income of $13.6 million, or 13 cents a share. Revenue rose 114% to $116.6 million. The earnings figures matched the average forecast of analysts surveyed by Thomson Financial. The sales figure was slightly ahead of analysts' forecasts of $115.7 million.

The company increased its fiscal 2006 revenue guidance for $490 million to $500 million, from $480 million to $500 million, in line with forecasts. Adjusted EBITDA will be between $125 million and $130 million compared with previous guidance of $123 million to $128 million.

"While we are disappointed that it is necessary to restate our previously reported results due to the 2004 income tax adjustment, the fundamentals of our business are not impacted and remain strong," says CEO James Zarley.

Shares of ValueClick fell 60 cents, or 3%, to $17.96 after the close of trading.