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In a statement, David J. Moore, chairman and chief executive officer of 24/7 Real Media, said that the company's path to profitability was no longer dependent upon a recovery in its on-line advertising sector and that he remained confident that it would reach break-even by the fourth quarter of 2002.
The firm reduced its net loss to USD3.7 million, or USD0.07 per share. A quarter earlier, 24/7 Real Media had posted a net loss of USD36.1 million, or USD0.77 per share. Additionally, pro forma losses decreased 68 percent from the previous quarter's loss of USD10.3 million, or USD0.22 per share.
The company also claimed that its operations in Europe had broken even due to brisk technology sales. 24/7 stopped funding its European operations last year, only months before it acquired Real Media, thus acquiring a new presence in Europe.
The improved results from the firm, mean that a previously agreed to deal with Real Media's former parent PubliGroupe will go into effect. That deal will see 24/7 receive a fresh infusion of USD1.5 million in debt financing from PubliGroupe. The agreement stipulated that PubliGroupe would offer a second round of financing should the combined firm meet operating loss targets.
The company said it expects modest revenue growth during first quarter, likely between five percent and 10 percent, resulting in a pro forma loss of between USD0.05 per share and USD0.07 per share. Moore said the firm is still on track to hit profitability in fourth quarter, and to introduce its OpenAdvertiser server in the US in third quarter.
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