THINK New Ideas Inc.
posted a net loss for its first quarter of fiscal 1999 ending Sept. 30 of $1.4
million, or $0.17 per share, compared with net income of $61,000, or $0.01 per
diluted share, for the year-ago period.
Revenues for the first quarter grew to $11.3 million, up from $6.9 million in
the prior year.
Ron Bloom, THINK chairman and chief executive officer, said in a statement:
“As we indicated in September, it is our belief that economic uncertainties
here and
abroad had the effect of freezing certain client, new business and licensing-
related decisions during the quarter, effecting our overall revenue growth.
Although we have continued to experience new wins, the initiation of the work
associated with these wins is taking longer to be reflected in revenues.”
Mel Epstein, THINK’s chief financial officer, said: “As we had indicated, we
were expecting less than originally estimated revenues for the period. The
additional quarterly loss is primarily due to a shortfall resulting from
additional client decision postponements. These affected both licensing and
fixed fee work. Many of these opportunities are still in play and we hope to
see their positive impact in future quarters.”
Epstein said expense-reduction efforts have had positive impact, as first-
quarter expenses were approximately $900,000 less than in the quarter ended
June 30.
Added Bloom: “Despite the revenue shortfall, we have maintained our focus on
our business, and we made significant strides during the quarter. We are
particularly proud to have been selected by IBM as one of six interactive
marketing companies from among more than 100 competitors as a preferred
interactive partner in support of IBM’s Web strategy, marketing, design and
interactive advertising activities. We continue to be optimistic about
THINK’s long-term prospects for growth.