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K2 Design Posts Net Income of $266,000 for 3Q

Interactive agency K2 Design Inc. posted net income for the third quarter of $266,000, compared to a loss for the same period last year of $339,000.

Net revenue for the third quarter ending Sept. 30 was $1.24 million, compared to $962,000 for the same period last year. (Net revenue represents gross revenue minus media cost of sales and reimbursable expense pass-through billings).

Gross revenue was $1.7 million, compared to $1.9 million a year earlier. Earnings per share were $0.08 and $0.07 per basic and diluted share respectively for the third quarter 1999, as compared to a loss of $0.10 per basic and diluted share for the same period last year.

"The results reflect our evolving profile from an online advertising agency to a technology-focused professional services firm," said Matthew de Ganon, executive chairman of K2 Design."

"Using our W3 Organizational Modeling, we are providing fee-based strategic and process consulting, as well as technical development, design and marketing of ROI-driven e-communications initiatives."

"The changing service mix resulted in fewer media placements in traditional venues, such as newspaper and radio, as the gross revenue demonstrates, and stronger fee-based consulting, which resulted in higher net revenue."

The company said it also chose to repurchase 90,000 shares of its stock during the quarter as part of a stock buyback program "that mirrors the company's confidence and drive on behalf of its stockholders."