Wink Communications Inc. slashed its projected revenue for 2001 from $15
million to between $7.2 million and $7.7 million.
The interactive-television company -- which had been pummeled on Wall Street
weeks before the Sept. 11 attacks -- said the attacks resulted in a 55 percent
drop in ad-airing and ad-transaction volumes.
Wink's advertising partners postponed campaigns into the fourth quarter and
the first quarter of 2002, the company said when it reported third-quarter
earnings Friday.
UBS Warburg LLC cut its price target for Wink Monday to $6 per share from
$8.
'Given the economic slowdown, we remain skeptical of a near-term turnaround
and believe that Wink may need to reassess its business model if the current
negative advertising and funding environment remains prolonged,' UBS analyst Tom
Eagan wrote in a research note.
Wink's stock dropped nearly 7 percent to $1.20 per share Monday.
Wink reported $1.8 million in third-quarter revenue, up 22 percent from the
same time last year. Its loss widened to $14.6 million compared with $6.9
million during the third quarter of 2000.
Wink said it counts 5 million subscribers and it expects to reach 6 million
by the end of the year.
In other Wink news, Lifetime Television announced Monday that it is adding
Wink's interactive capabilities to its original programming.
The first Lifetime shows with the Wink enhancements include Denise
Austin's DailyWorkout and Denise Austin's Fit & Lite,
which quietly added interactive elements late in August.
