Profit Rises, Revenue Falls at Modem Media

NEW YORK Modem Media reported its third consecutive profitable quarter on Q3 revenue of $14.6 million yesterday.

The interactive agency, 43 percent owned by Interpublic Group, recorded a third-quarter net income of $2.1 million, or 8 cents per diluted share. That is compared to $1.7 million, or 7 cents per diluted share in the like period a year ago, and $1.7 million, or 6 cents per diluted share in Q2.

The sublease of excess office space in the company’s San Francisco office added $700,000, or 2 cents per diluted share, to Q3 net income.

Revenue for Modem Media totaled $14.6 million, down 18 percent from $17.8 million in the year-earlier period and 6 percent from $15.5 million in Q2.

The Norwalk, Conn.-based i-shop, which works for clients such as General Motors, Delta Air Lines and Kraft, said it anticipates full-year revenue of $59-61 million and earnings per share on a diluted basis of 19-21 cents.

“While we are cautiously optimistic and expect modest growth next year, we plan to support that growth by investing some of our profits in people and related activities,” said Modem Media president and CEO Marc Particelli in a statement.

The company’s stock (MMPT) was trading on the Nasdaq today at $5.64, down 12 cents, or about 2 percent. Its 52-week high is $6.25 and 52-week low is $1.86 cents.