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Modem Media Posts $1.31 Million 3Q Profit

Interactive agency Modem Media Poppe Tyson Inc. posted third quarter net income of $1.31 million, or 12 cents per share, compared to a loss of $1.13 million, or 15 cents a share, in the same period a year earlier.

Revenues for the third quarter ending Sept. 30 rose to a record $21.1 million, up from $10.9 million in the third quarter of 1998. Earnings before interest, taxes and amortization of goodwill rose to $3.6 million from a loss of $0.9 million in the third quarter of 1998.

"Our exceptional performance is the result of our customer-focused e-business vision, superior service architecture and organic business model," said G.M. O'Connell, chairman and chief executive officer of Modem Media.

"Our clients continue to accelerate their global commitment to the Internet. This commitment, coupled with significant new business wins this year, drove our better than expected results."

The company cited across the board increases in spending from its top 10 clients, with the notable addition of GE to the top 10 after the signing of an $11+ million contract in the second quarter. The company's stock closed at 69-1/2.

Other recent new business wins include Toyota, The Industry Standard and Starwood Hotels and Resorts.