For the fourth consecutive quarter, revenue slipped for i-shop Modem Media. The Norwalk, Conn.-based company, which reported its third quarter earnings Thursday, posted $23.1 million in revenue for the period ending Sept. 30. That is a decline of 11 percent from $26.1 million in second quarter 2001 and 39 percent from last year's third quarter revenues of $37.8 million.
The company recorded a net loss for the quarter of $1.9 million or 8 cents per share, compared with a net loss of $5.5 million or 21 cents per share for second quarter 2001 and $3.8 million or 15 cents per share for third quarter 2000.
The net losses included a one-time charge of $2.7 million for restructuring, excess real estate and severance-related costs. In late September, Modem Media cut seven percent from its global workforce of 616 and closed its New York office; earlier this year, the i-shop shuttered its Tokyo outpost.
Modem Media CEO Marc Particelli was optimistic, calling the interactive agency's financial performance "steady." CFO Frank Connolly projected overall revenue for 2001 to reach about $100 million. The stock (MMPT) closed on the Nasdaq at $3.49 Thursday, up 5 cents. It's 52-week high is $8.31 and low is $2.
Currently, Modem Media, 43-percent owned by the Interpublic Group of Cos., employs about 573 people; clients include Delta Air Lines, General Electric, IBM and Philips.