Kintera, which provides software as a service to nonprofits and government, says it reduced its net loss for the three months ended March 31 to $8.3 million, or 21 cents a share, from $9.9 million, or 29 cents a share, in the same period a year earlier.
Revenue for the first quarter grew to $10.7 million from $9.9 million in the same period a year earlier.
Kintera, which is based in San Diego, says costs associated with a restructuring plan it announced in the fourth quarter of 2006 will total an estimated $2.4 million, or 6 cents a share.
Under the restructuring plan, the company said it would divest itself of several solutions “not core” to its social customer-relationship-management system, or CRM; reduce its workforce by 16 percent, or nearly 60 employees in a workforce of 366 employees as of Dec. 31, 2006; and move resources closer to customers.
All employees affected by the job cuts will have left the company by June 30, Kintera says.
Excluding the restructuring costs, it says, operating expenses for the first quarter totaled $13.8 million, down from $17.1 million in the same period a year earlier.
Kintera, which has never posted a profit, says its accumulated deficit grew to $136.4 million on March 31, 2007, up from $128.1 million on Dec. 31, 2007.
“Kintera is focused on delivering value and service to nonprofits via our core social CRM business,” CEO Richard LaBarbera says in a statement. “As a result, Kintera is continuing to drive revenue while improving operating performance. We continue striving to create value for our stakeholders, including Kintera clients, employees, shareholders and the community, and are taking the necessary steps to achieve our financial objectives.”
Earlier this year, Kintera co-founder and CEO Harry Gruber quit under pressure, although he remains on the board, and the company said Dennis Berman no longer was executive vice president and would leave the board in July.
LaBarbera was promoted to president in February, a year after being named chief operating officer, and was named CEO in March.