24/7 Media's Realignment Has Yet to Pay Off
Total revenue for the quarter fell to $25.2 million, down from $46.2 million in the same quarter in 2000. Revenue from 24/7 Media's e-mail marketing business continued its decline in the first quarter, falling to $3.9 million from $6.9 million a year ago. In the fourth quarter of 2000, the company reported e-mail revenue, which includes results from its list management and database businesses, of $4.1 million.
The company also said revenue from its network business, which includes banner advertising and customer promotional programs, fell to $11.4 million from $36.5 million a year ago. Revenue from 24/7 Media's technology business rose to just over $10 million in the first quarter from $2.8 million in 2000.
In a conference call with analysts, David Moore, 24/7 Media's CEO, said he was encouraged by the company's efforts to grow revenue and reduce operating costs.
The company forecasts second quarter revenue of between $22 million and $25 million and expects earnings per share to improve between 10 percent and 15 percent.
The company has high hopes for the fourth quarter. It had $13.7 million in cash on hand at the end of the first quarter, down from $28.9 million Dec. 31.
"We are refocusing on our core competencies, which are multiplatform advertising, e-mail list management, brokerage and consulting services, search engine optimization and our proprietary technologies that support these efforts," Moore said. "We are optimistic about reaching profitability."