24/7 Media Inc.’s effort to realign its business around its core competencies and stave off oblivion apparently has not been succesful just yet. The company said yesterday that its net loss for the first quarter rose to $78.7 million, or a loss of $1.84, from a loss of $23.8 million, or 93 cents per share, a year ago.
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.”