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Ziff-Davis Q4 Net Falls

Shares of Ziff-Davis fell Friday after the technology publisher said its fourth quarter earnings dropped from the year-ago period and that its outlook for 1999 is "cautious."

The technology publisher (ZD) earned $8.4 million in the fourth quarter, well below its year-ago earnings of $72.6 million, due to a dip in advertising revenue.

Ziff-Davis said it earned 8 cents per share, including a restructuring charge for reducing its work force, vs. 73 cents per share last year.

Shares fell 1 13/16 to 18 1/2 on Friday morning.

Eighty percent growth in Internet revenue and a boost in the company's consumer publication revenue partially offset a drop in fourth quarter revenue.

Ziff-Davis CFO Timothy O'Brien told CBS.MarketWatch.com that Wall Street has been gauging the company on its earnings before interest, taxes, depreciation and amortization, rather than net profit. It's an approach that Wall Street often takes with media companies.

He said Ziff-Davis' fourth quarter EBITDA was $138.1 million, slightly ahead of the $135 million expected by analysts.

Excluding the charge, fourth quarter net income would have been $39.7 million, or 40 cents per share.

As for the outlook for 1999, O'Brien said he would tell analysts on the company's conference call that the company is "cautious."

Revenue will be flat in business publications and will grow for consumer publications.

The company's Internet operations under the ZDNet brand are expected to see "very strong growth," he said.

ZDTV, which Ziff-Davis acquired from parent Softbank, will likely see revenue growth in 1999.

Ziff-Davis' fourth quarter after-tax charge of $31.3 million, or 32 cents per share, consisted of a non-cash write-off of assets from discontinued publications, consolidation of operating support services and facilities and a 10 percent workforce reduction.

Revenue was $378.3 million vs. $403.6 million last year.

Separately, Vulcan Ventures, the investment vehicle of Microsoft Corp. co-founder Paul G. Allen, agreed to buy 3 million shares of Ziff-Davis Inc. for $50 million.

Dow Jones News Service reported Friday that Vulcan also completed its $54 million purchase of a one-third interest in Ziff-Davis' ZDTV cable television unit.

Dole Food Posts Loss
Dole Food Co. Inc. shares dipped Friday morning after the fruit giant posted a loss as devastating weather conditions and the Russian economic crisis rotted its sales.

Dole (DOL) reported a fourth-quarter loss of $7.8 million, or 13 cents a share before special charges, compared with an income of $23.2 million, or 38 cents, for the year-earlier same quarter. Analysts surveyed by First Call expected a loss of 14 cents.

Special charges in the fourth quarter include $100 million for damage done by Hurricane Mitch, as well as $20 million for destruction to Dole's citrus business from the California citrus freeze, the company said.

After special charges, Dol registered a loss of $108.3 million, or $1.82 a share.

Hurricane Mitch damaged over 30,000 acres of crops and impacted Dole's employee housing, irrigation, drainage, roads and bridges, packing plants, vehicles and heavy equipment, according to the company.

Dole said the California citrus freeze ruined 6,500 acres of orchards, which caused crop inventory losses.

Shares fell 5/16 to 31 9/16.

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