MessageMedia Pares First-Quarter Loss to $13.5M
MessageMedia Inc., a provider of e-mail messaging services, said yesterday that it reduced its net loss for the first quarter to $13.5 million, or 22 cents per share, from a loss of $18.9 million, or 34 cents per share, in the year-ago quarter.The company attributed its performance to successful cost reduction initiatives started in December. Part of that cost reduction entailed eliminating 21 percent of its work force. On April 17 the company announced a headcount reduction of 21 percent, or about 75 people. The cuts are expected to save the company about $1 million.
The Boulder, CO-based company said revenue for the first quarter rose to $8.7 million from $6.9 million a year earlier. Messaging revenue grew to $6 million, from $4.3 million in the same quarter in 2000. Software revenue declined slightly in the first quarter to $2.6 million, from $2.62 million in the year-ago period.
MessageMedia said it added 58 new software clients and five new messaging clients in the first quarter. Its total client base stands at 311 messaging accounts and 304 software accounts.
