Revenue Rises, Losses Narrow at 24/7

NEW YORK 24/7 Real Media yesterday reported a 24 percent revenue rise and narrower net losses in the third quarter versus the year-ago period.

The online advertising and technology company recorded Q3 revenue of $12.1 million, up from $9.7 million in Q3 2002 and flat with $12.2 million in Q2 2003. 24/7 also achieved positive EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter of $145,000.

Third-quarter net loss was $1.4 million, or 2 cents per share, a 79 percent improvement over a net loss of $6.6 million, or 12 cents per share, for the same quarter a year ago. Q2 net loss was $2.5 million, or 3 cents per share.

Pro forma net loss, which is defined as net loss excluding amortization of intangibles, stock-based compensation, gain or loss on sale of non-core assets and other expenses, totaled $500,000, or 1 cent per share. That compares to a pro forma net loss of $3 million, or 6 cents per share, in the third quarter of 2002.

The New York-based company, which in June averted a threatened delisting from the Nasdaq Small Cap Market by regaining compliance with the $1 minimum bid price requirement, said it expects third-quarter revenue of $13-15 million and a pro forma loss per share of 0-1 cent.

“In 2004 and beyond, we intend to further leverage our operations and financial resources to build a profitable business,” said David Moore, chairman and CEO of 24/7, which forecasted 20-25 percent revenue growth and full-year operating profit next year. “We are taking a close look at investments and acquisition opportunities in the highest growth segments of our industry and in the fastest growing geographic regions, including Asia.”

24/7 Real Media shares (TFSM) was trading on the Nasdaq today at $1.52, down 17 cents or nearly 10 percent. The stock’s 52-week high is $2.49 and 52-week low is 14 cents.