DG FastChannel swings to Q3 profit
DG FastChannel Inc. (Nasdaq: DGIT) shares are down slightly in pre-market trading despite the technology services provider’s announcement that its third-quarter revenue rose to $25.1 million, from $18.8 million a year earlier.
“The third quarter was strategically and financially productive for DG FastChannel as we completed two significant transactions and generated record third-quarter operating results,” CEO Scott Ginsburg said in a statement. “With increasing video traffic, continued client adoption of new service products and the benefit of significant merger cost synergies, we are well-positioned to deliver solid growth from our business model in the fourth quarter and throughout 2008.”
The Dallas-based firm swung to a quarterly profit of $2 million, or $0.12 per share, from a loss of $4.5 million, or $0.35 per share, during the same period of 2006.
The third-quarter results included consolidated revenue from six weeks of Point.360’s advertising operations and about one month from GTN, Inc.’s ad distribution business.
The company also reaffirmed its 2007 revenue guidance of a range of $110 million to $113 million. For 2008, DG expects revenue in the range of $122 million to $126 million.
“Looking to next year and beyond, HD digital content distribution will pick up additional momentum,” Ginsburg said. “The imminent opportunities created by the mandate from Congress and FCC for broadcasters to move to the HDTV broadcast standard will support significant long-term revenue growth.”
In pre-market trading, DGIT shares are down 1.43%, or $0.33, at $22.71. Over the last 52 weeks, shares have ranged from $9.60 to $25.50.
