Kintera posts another loss

Kintera, a San Diego firm that provides software as a service to nonprofit and government clients, reported a loss of $8.3 million, or 27 cents a share, for the three months ended Sept. 30, compared to a loss of nearly $4.5 million, or 17 cents a share, for the same period in 2004.

Net revenues for the third quarter totaled nearly $12.1 million, compared to just over $7 million for the same period last year.

For the first nine months of this year, the net loss totaled nearly $30.1 million, or 99 cents a share, compared to nearly $13.4 million, or 55 cents a share, in the same period last year.

Kintera said its accumulated deficit totaled $83.1 million on Sept. 30.

Its net loss for the third quarter fell 18 percent from the second quarter, while revenues grew 16 percent.

Kintera said it processed $92 million in online donations in the third quarter, compared to $34.6 million in the same period last year and to $56 million in the second quarter of 2005.

To lower overall operating expenses, the company said, it had eliminated some sales, marketing and administration positions in the third quarter, and had reduced its use of outside consultants.

Expenses related to the reduction in force totaled $300,000.

Kintera also said it had continued to shift its pricing strategy from one focused mainly on building market share to one focused on higher margins and tighter cost controls.

It also reported it was a nominal defendant in a lawsuit action filed in a California Superior Court in September by a shareholder against several of its principal executive officers and directors.

The company said it had filed documents with the court saying the plaintiff did not have standing to bring the case, which it said alleges breaches of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment mainly based on the its announcement of the restatement of its financial statements for the three months ended March 31, 2005.

At the close of trading Wednesday, before the company released its third-quarter earnings report, its stock closed at $2.70 a share, down 1 cent.

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