RealTime IT News

K2 Design 4Q Revenues Climb 68%

New York City-based interactive agency K2 Design Inc. said fourth quarter revenues rose 68.4% to a record $3.77 million, from $2.24 million in the same period in 1996.

The net loss for the quarter ending Dec. 31 was $307,067, which includes more than $400,000 in various charges related to its ongoing restructuring and cost-cutting measures begun in late November 1997. The net loss in the fourth quarter of 1996 was $197,57.

For fiscal 1997, revenues rose 106% to a high of $8.39 million, from $4.07 million reported in fiscal 1996. The net loss for the year was $1.7 million, compared to $895,417 in 1996.

"In November 1997, we began to actively rein in our expenses to bring them more in line with our revenues and manage our cash effectively," said Matthew de Ganon, vice chairman and president of K2 Design.

K2's cash position strengthened by 28%, with cash of $2.24 million as of December 31, 1997.

"We're extremely pleased that our restructuring efforts seem to have begun to take hold in the latter half of the fourth quarter and that our enhanced liquidity position enables us to focus our attention on smart, controlled growth," said de Ganon.

The various charges taken in the fourth quarter relate to K2's ongoing financial and business restructuring, and include bad debt write-offs and charges incurred as a result of the company's office consolidation into one location at 30 Broad Street, New York.

K2 specializes in online brand building strategies and media campaigns for both traditional and new media platforms. Additionally, through its CLIQNOW! division, the company develops and maintains content-specific advertising networks.