Reeling from a management restructuring, New York City-based K2 Design Inc. posted a net loss for the
fourth quarter ending Dec. 31 of $1.46 million, or 43 cents per share,
compared with a net loss of $307,066, or eight cents a share in the same
period a year earlier.
Fourth quarter, revenues were $483,088, compared with $3.11 million in the
fourth quarter of 1997. Decreased sales and a one-time severance charge of
$400,000 contributed to the fourth quarter loss, the company said.
For the year, revenues were $6.42 million, compared with $7.50 million in
1997. Net income was $1.23 million, or 35 cents per share, compared with a net
loss of $1.70 million or 46 cents per share, in 1997. Net income in 1998 is
principally the result of a $2.99 million gain from the sale of discontinued
operations.
“As anticipated, our management restructuring impacted revenues and
earnings in
the second half of 1998,” said Matthew de Ganon, executive chairman of K2
Design. “However, the changes have positioned K2 for growth in
our core specialty of developing online businesses, sales and marketing
strategies. This has already
proven successful, since over the past six months, K2 Design has landed
several new accounts. The outlook for 1999 is very encouraging.”
In October, Lynn Fantom joined the company as president and CEO. Fantom was
previously an officer of several companies owned by the Interpublic Group and
served as chief executive officer of Interpublic subsidiary Lowe Direct.
David Centner, the former chairman, CEO and co-founder of K2 Design Inc., left
the company in September 1998.
Recent new K2 clients include NCR Corp., the Puerto Rico Convention Bureau,
USAccess Bank and VarsityBooks.com.
