By Todd Cohen
Financially-troubled Kintera, a San Diego-based provider of software and services for nonprofits, says its net loss fell and revenue grew for the fourth quarter and year ended Dec. 31, 2006.
The company lost $6.7 million for the quarter, or 18 cents a share, on revenue of $9.7 million, compared to a loss of $11.8 million, or 37 cents a share, on revenue of $9.1 million for the same period a year earlier.
For the year, the company lost $33.1 million, or 93 cents a share, on revenue of $41.1 million, compared to a loss of $41.9 million, or $1.36 cents a share, on revenue of $40.9 million in the same period a year earlier.
In documents filed with the Securities and Exchange Commission less than a month after co-founder and CEO Harry Gruber quit under pressure, the company also says it will reduce its workforce by 16 percent.
Kintera says its workforce totaled 366 employees on Dec. 31, 2006, so the cut would total roughly 58 employees.
The company also says it will discontinue all acquired technology, solutions and resources that are “not core to its business,” and will focus on increasing sales of its “customer relationship management” platform for constituent engagement, donor management and fund accounting, a platform known CRM.
The target for expense reductions through discontinuation of non-core business operations and core-operations efficiencies total $2.5 per quarter, the company says.
“By focusing on Kintera’s core social CRM business, the company is taking the necessary steps to ensure that we are the clear choice for nonprofits to partner with,” CEO Richard N. LaBarbera says in a statement.
Kintera also says changes it made during 2006 to fix “material weaknesses” it reported a year ago in its internal controls over financial reporting did not correct all the problems and that its disclosure controls and procedures “were not effective as of December 31, 2006.”
Kintera, which launched its service in the first quarter of 2001, says its processed $316.8 million in online donations in 2006, up from $9 million in 2002.
In separate documents filed with the Securities and Exchange Commission earlier this month, Kintera says that Dennis Berman no longer if executive vice president for corporate development.