Leapnet Posts $0.04 Per Share Profit for Q2

Ad agency Leapnet Inc. said net income for the second quarter increased to $576,326 or $0.04 per diluted share, compared to net income of $73,894, or $0.01 per diluted share in the same period last year.

For the quarter, revenues increased 9.3% to $9.8 million, compared to revenues of $9.0 million in the same period last year.

On a pro forma basis, excluding revenues from One World Communications and the AT&T revenue from YAR Communications (YAR), revenues increased 110% from $4.7 million. (Leapnet sold the assets of One World and the AT&T account at YAR to Young & Rubicam in October 1998.)

For the six-month period, revenues were $17.7 million, compared to $19.4 million for the year-ago period. On a pro forma basis, excluding revenues from One World and AT&T revenue from YAR, revenues increased 67% from $10.6 million.

Net income for the six-month period was $364,640 or $0.03 per diluted share, compared to net income of $88,880, or $0.01 per share, for the comparable year-ago period.

Internet revenues at Quantum Leap Communications, Leapnet’s Internet advertising and development company, increased 132% for the six months. The increase was due primarily to greater business activity from Microsoft, the company said.

“We expect continued Internet revenue growth as we begin to realize revenue from new clients, such as Morningstar, in the third and fourth quarters, and as we continue to pursue new e-business opportunities,” said Frederick A. Smith, chairman and chief executive officer of Leapnet.

Leapnet subsidiaries are Quantum Leap Communications, The Leap Partnership and YAR Communications.