Razorfish Posts Q3 Revenue Decline, Net Loss

NEW YORK — Razorfish reported Thursday Q3 revenue declines of 10 percent over the second quarter of this year and 51 percent over the third quarter of last year.

The New York-based i-shop said revenues before reimbursements for direct costs fell to $9.4 million from $10.5 million in the second quarter and $19 million a year earlier.

Razorfish posted a net loss of $200,000 or four cents per share, versus a second-quarter net income of $300,000 or seven cents per share, and year-earlier net loss of $15 million or $4.40 per share.

In line with previous management guidance, Q3 pro forma net income, excluding non-cash compensation, restructuring charges, impairment loss and amortization of intangibles, was one cent per share. That compares to pro forma net income of 11 cents per share in the second quarter.

During the third quarter, Razorfish said it landed new business from MasterCard International, Key Energy, Covad Communications and City of Cupertino, and won additional assignments from Cisco Systems, Verizon Communications, Ford Motor Company and Microsoft, among others.

The company said it anticipates revenues before reimbursements for direct costs to be flat to moderately down for fourth quarter 2002 compared to the third quarter 2002. Pro forma net earnings are expected to break even for the fourth quarter of 2002.

Razorfish stock (RAZF) was trading the Nasdaq small cap market at $1.46 Friday, down 42 cents or 22 percent. Its 52-week high is $26.33 and 52-week low is $1.10.