MessageMedia Cuts its Losses in the Second Quarter
MessageMedia Inc., a provider of e-mail messaging services, said that it reduced its net loss for the second quarter to $13.5 million, or 20 cents per share, from $19.7 million, or 35 cents per share a year ago.Total revenue for the quarter fell to $7.6 million from $8.4 million in the same quarter a year earlier. Messaging revenue fell slightly in the second quarter to $5.3 million, from $5.9 million a year ago. Software and related services revenue also was down, to $2.3 million from $2.5 million in 2000.
The Louisville, CO-based company attributed its performance to successful cost reduction initiatives started in December. Part of that cost reduction entailed the elimination earlier this year of 21 percent of its workforce, or about 75 people. The cuts are expected to save the company about $1 million.
MessageMedia said its second quarter performance included expenses of $600,000 related to workforce reductions and a restructuring charge of $6.4 million.
