Modem Media Posts Q4 Revenue Rise

NEW YORK Modem Media late last week reported that its fourth-quarter revenue rose 10 percent to $16.4 million, while its full-year 2003 revenue fell 13 percent to $61 million.

Favorable foreign exchange rates improved the company’s fourth quarter and full-year revenue by $200,000 and $500,000, respectively, compared to the year-earlier period.

The interactive agency recorded a fourth-quarter net income of $700,000, or 2 cents per diluted share, an improvement over the year-ago quarter’s net loss of $5.2 million, or 20 cents per diluted share. The company’s Q4 net income figure included an after-tax charge of $1.3 million, or 5 cents per share, for its remaining CentrPort investment and the related deferred tax asset, as well restructuring and other charges of $200,000, or 1 cent per share.

Net income for the full year was $5 million, or 19 cents per diluted share, compared with a net loss of $7.5 million, or 29 cents per diluted share for 2002. Restructuring, including the sub-lease of excess office space in San Francisco, added $500,000, or 2 cents per diluted share, to the full-year earnings.

Modem Media said it expects revenue of $15-16 million in the first quarter with earnings of 2-4 cents per diluted share. The Norwalk, Conn.-based i-shop, which works with clients such as Delta Air Lines, General Motors and Sprint, projected full-year 2004 revenue of $65-70 million and earnings per diluted share of 23-26 cents.

The company’s stock (MMPT) was trading on the Nasdaq today at $7.44, up 9 cents or one percent. Its 52-week high is $8.92; its low, $1.86.