Ziff-Davis, the largest computer magazine publisher, said Tuesday its second-quarter loss more than quadrupled -- far more than Wall Street had expected -- as weakened technology companies cut advertising spending.
Ziff-Davis posted a net loss of US$76.6 million, or 77 cents a share, compared with a loss of $17.4 million, or 17 cents, a year ago. Wall Street analysts had expected a loss of 2 cents a share in the latest quarter, according to First Call.
In early afternoon trading, Ziff-Davis (ZD) shares were down $2, or 17 percent, at $9.69.
"As anticipated, our overall revenue growth was adversely affected by soft conditions in the technology industry," Eric Hippeau, chairman and chief executive, said in a statement.
Revenues for the quarter fell 8 percent to $276.5 million from $301.3 million a year ago.
The revenue decline was also due to a change in accounting methods, as Ziff-Davis shifted the ownership of some publications to a joint venture and changed the dates of two trade shows.
The results also were affected as the company, which completed an initial public offering in May, paid $64.5 million in income taxes in the 1998 quarter. In the same quarter last year, Ziff-Davis had a tax benefit of $328,000.
Its ZDNet Internet business and some consumer publications like Yahoo! Internet Life, however, had strong advertising growth, the company said. Revenue for the ZDNet unit increased 53 percent to $12.9 million for the quarter from $8.5 million last year.
In its publishing business, revenue was $210.7 million for the second quarter, $8.5 million below year-ago results.
Revenue from the events business was $65.8 million, $16.3 million below a year ago.
Ziff-Davis competes with Wired Digital and its Wired News unit.
Reuters contributed to this report.
