Modem Media Q2 Income Improves

NEW YORK Modem Media posted its second consecutive profitable quarter last week, and said it expects to repeat the trend in the third quarter.

The interactive agency, 43 percent owned by Interpublic Group, recorded a second-quarter net income of $1.7 million, or 6 cents per share, compared to a loss of $2.2 million, or 9 cents per share, in the like period a year ago. The Norwalk, Conn.-based shop, which posted a Q1 net income of $600,000, or 2 cents per share, said it expects Q3 earnings of 3-5 cents per share.

Revenue for Modem Media totaled $15.5 million, down 16 percent from $18.5 million in the year-earlier period and up 7 percent from $14.5 million in Q1. The 16-year-old i-shop, which works for clients such as General Motors, Delta Air Lines and Kraft, said it anticipates third-quarter revenue of $15-16 million.

Modem Media’s full-year revenue guidance remained unchanged at $60-64 million, though the company raised its 2003 earnings outlook to 15-18 cents per share from the previously projected 14-16 cents per share.

The company’s stock (MMPT) closed on the Nasdaq today at $3.75, down 11 cents or nearly 3 percent. Its 52-week high is $4.15 and 52-week low is $1.68 cents.