Snowball.com Pares Loss to $12.9M in First Quarter
Snowball.com Inc., a portal and ad network catering to young adults, said its net loss for the first quarter fell to $12.9 million, or $1.13 per share, from $21.9 million, or $2.40 per share, a year ago.The company also said revenue in the first quarter fell to $2.5 million, from $4.6 million in 2000.
For second quarter 2001, Snowball.com forecasts increased revenue but does not expect its revenue for the year to exceed the $21.2 million posted in 2000.
Last year, the Brisbane, CA, company reported a net loss of $64.8 million, or $2.02 per share. Revenue of $21.2 million was up 218 percent from the $6.6 million it posted in 1999.
Snowball.com recently instituted cost-cutting measures that included reducing its work force by 55 employees, or about one-third. The company said it made the reductions to help it achieve cash flow breakeven by year's end.
Mark Jung, Snowball.com's CEO, said the company is diversifying its revenue streams to include subscription services and advertising programs.
