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Razorfish Revenue Declines, But Posts Profit

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NEW YORK -- Though revenue continued to decline for Razorfish, the interactive agency improved to a net gain in the first quarter.

According to the New York-based i-shop's earnings release Wednesday, total revenues reached $11.3 million for the first quarter down from $13.8 million in the fourth quarter and $43.8 million a year earlier.

Net income for the first quarter was $2.5 million or two cents a share, including the reversal of about $1.7 million of previously recorded restructuring reserves related to settled real estate obligations. Conversely, the company recorded a net loss of $7 million or seven cents a share in the fourth quarter and nearly $25 million or 25 cents per share in Q1 2001.

Razorfish's pro forma net income for Q1 was $900,000 or a penny per share, in line with previous management projections. That compares to a pro forma net income of $600,000 or a cent per share in Q4.

Razorfish said it anticipates pro forma net earnings of $500,000-1 million for the second quarter. Razorfish stock (RAZF) was trading on the Nasdaq at 48 cents Wednesday, up 33 cents.