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.”