ValueClick, Inc. (Nasdaq: VCLK) had their Q3 2006 Earnings Call on November 1, 2006 and there were some interesting comments about the affiliate marketing piece of their business.

According to James R. Zarley, Chairman of the Board, President, Chief Executive Officer for ValueClick, "Affiliate marketing had worldwide product revenue growth of 14% year-over-year in the quarter. As we have said in prior calls, growth trends in this business are still very good because of some anomalies in our 2005 growth; the comps for 2006 are tougher."

"We anticipate growth trends to normalize next year and we continue to have record numbers of sign-ups. It takes three to six months for new clients to reach full scale," continued Zarley.

James R. Zarley also commented that ValueClick's CJU (Commission Junction University) was completely sold out with 600 advertisers and publishers in attendance.

Samuel J. Paisley, Chief Administrative Officer of ValueClick, added that "affiliate marketing revenue increased 12% to $21.2 million in the third quarter of 2006, compared to $19 million in 2005. Inter-company revenue in these amounts was approximately $2.2 million in Q3 2006 and $1.7 million in Q3 2005. Affiliate marketing segment revenue does not include international affiliate marketing revenue, which for SEC purposes is part of our media reporting segment."

Paisley added, "Including international revenues, worldwide affiliate marketing product revenue grew 14% year-over-year in Q3 2006. Affiliate marketing segment gross margins were 87.3% in the third quarter of 2006 compared to 88.5% in 2005."

Read the Q&A from the ValueClick Q3 2006 Earnings Call at http://internet.seekingalpha.com/article/14792.