2Q Revenues Slide for Modem Media

Battered by the soft economy, Modem Media saw revenues slide in the second quarter. The Norwalk, Conn.-based interactive agency, which reported its second quarter earnings Tuesday, posted $26.1 million in revenue for the period ending June 30. That is down 21 percent from last year’s Q2 revenues of $32.8 million and 22 percent from $33.4 million in the first quarter of 2001.

The company recorded a net loss for the quarter of $5.5 million or 21 cents per share compared to that of $5.8 million or 24 cents per share in the same period a year earlier. The net losses included one-time charges of $6.8 million due to real-estate expenses and $1 million for severance costs related to a 76-person downsizing in June.

Despite the shortfalls, company executives remain upbeat. “We are weathering a difficult market environment, and we continue to deliver real value to our clients and our shareholders,” said Marc Particelli, Modem Media’s CEO, in a statement. “We are managing our business for positive cash flow and, on a relative basis, we are strengthening our competitive market position and preparing for growth.”

As of late, Particelli has stressed that Modem Media–43-percent owned by the Interpublic Group of Cos.–intends to stay independent–a pledge that has boosted investor confidence and in turn, its stock price. The stock (MMPT) closed at $5 Tuesday, up 15 cents. It’s 52-week high is $13 and low is $2.

Currently, Modem Media employs about 680 staffers and serves clients like Citibank, Delta Airlines, General Electric, General Motors and IBM.