By Todd Cohen
Kintera, a San Diego-based provider of software to nonprofits and government, reported a net loss of $41.9 million, or $1.36 a share, for the year ended Dec. 31, more than double its net loss of $19.2 million, or 77 cents a share, for the previous year.
The net loss for 2005 eclipsed total revenue for the year of $40.9 million, which grew 73 percent from $23.7 million in 2004.
Kintera also acknowledged, based on a report by public accounting firm Ernst & Young, that it “did not maintain effective internal control over financial reporting” as of Dec. 31.
Ernst & Young said such internal control was “designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.”
On March 16, the day Kintera reported its year-end results, its stock plunged to $1.63 a share, down 77 cents, or nearly one-third.
Kintera, which was incorporated in 2000 and has posted operating and net losses in every quarter since it began generating revenue in 2001, also reported that its accumulated deficit grew to $95 million on Dec. 31.
The net loss for the fourth quarter totaled $11.8 million, or 37 cents a share, double the net loss of $5.9 million, or 21 cents a share, in the same period a year earlier.
Total revenue in the fourth quarter grew to $9.1 million, up 17 percent from the same period in 2004.
Kintera said it processed $302 million in online donations in 2005, more than double the $149.2 million it processed in 2004.
And it said its clients raised more than $700 million in both online and offline giving using its Kintera Sphere product.
Kintera said it “continued to focus on product development, enhancing client services and programs, and recruiting the executive management needed to improve the company’s financial results.”