• by Mark Walsh  @markfwal, November 3, 2006

aQuantive Inc. Thursday reported a third-quarter rise in profits of 44% as all three of its business segments saw increased sales. Net income grew to $13.6 million, or 16 cents per diluted share--from $9.4 million, or 13 cents per share, from the year-earlier period.

Third-quarter revenue increased 41% to $111 million over last year, but missed analysts' average estimate of $112.6 million.

"The market for interactive marketing service and technology is robust. Aquantive achieved strong year-over-year growth domestically and internationally," said Brian McAndrews, president and CEO of aQuantive, in a prepared statement. "With the investments we continue to make in technology, recruiting and training, sales and international expansion, we anticipate continued strong growth in the fourth quarter and 2007."

aQuantive's digital marketing services business, which includes ad agency Avenue A/Razorfish, had operating income of $14.3 million on revenue of $67.7 for the third quarter compared to $8.9 million and $48.5 million a year ago. During the quarter, Avenue A/Razorfish acquired a pair of overseas agencies: Amnesia in Australia and Neue Digitale in Germany. (This week, it also picked up agency e-Crusade, with offices in Hong Kong and Shanghai.)

The company's digital marketing technologies group, which includes Atlas, reported operating income of $12.2 million on revenue of $29.9 million compared to $10.6 million and $23.5 million in the third quarter of 2005.

The digital performance media unit nearly tripled operating profit to $2.7 million from $1 million a year ago, while almost doubling revenue to $13.4 million from $6.8 million. The segment encompasses the Drivepm and MediaBrokers online advertising networks.

aQuantive reiterated its guidance for the full year of net income of 54 cents to 58 cents per share on $420 million to $430 million in revenue. Analysts estimate a profit of 59 cents on $429.6 million in revenue.