Modem Media’s Q1 Revenue, Income Improve

NEW YORK Modem Media posted a modest 6 percent year-over-year revenue rise to $15.3 million in the first quarter as it experienced positive momentum with new business from Charles Schwab and Spiegel, among others.

As a part of its Q1 earnings report yesterday, Modem Media said it also added PricewaterhouseCoopers and the British United Provident Association to its client roster and expanded it relationship with America Online.

The Norwalk, Conn.-based i-shop’s Q1 net income was $700,000, or 3 cents per diluted share, compared to $600,000, or 2 cents per diluted share in the year-earlier quarter. Favorable foreign exchange rates improved Modem Media’s revenue by $400,000.

As for the second quarter, Modem Media plans to close its Sao Paulo, Brazil office, leaving it with its Norwalk, Conn., headquarters and San Francisco and London outposts. The shop expects to recognize a charge net of tax of about $600,000, or 2 cents per diluted share, due to the closure.

Modem Media, which works with clients like General Motors, Sprint and Delta Air Lines, projected Q2 revenue of $15-17 million and earnings per diluted share of 3-5 cents. The company’s full-year outlook remains the same: $65-70 million in revenue and earnings per diluted share of 24-26 cents.