Digital Impact Reins in Quarterly Forecast

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E-mail service provider Digital Impact said yesterday that it will post a higher-than-expected loss in the quarter because of slow sales cycles and a drop in e-mail volume.


The San Mateo, CA, company said it expects to lose 2 cents to 3 cents a share when it reports results for its fiscal year 2004 fourth quarter April 27. Digital Impact had forecast breakeven to a 1-cent-a-share loss. It also reined in its sales forecast, cutting expectations from $10.5 million to $11 million to $10 million to $10.5 million.


The revised revenue forecast means Digital Impact does not expect to grow compared to the same period a year earlier, when it posted $10.9 million in sales.


In a statement, CEO Bill Park expressed disappointment with the company's performance in the quarter.


"We are optimistic in the future as we invest in our business to develop new offerings beyond our core e-mail business," he said.


In fiscal year 2005, Digital Impact expects to break even or post a small loss on a slight increase in sales.


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