While software provider Kintera cut its net loss in the first quarter of 2008, revenues fell and the company says it is restructuring.
The company, which provides software and services to the nonprofit sector, lost $4.3 million in the quarter ended March 31, almost half the loss of $8.3 million reported for the first quarter of 2007.
However, the company’s revenue tumbled 17 percent to $8.9 million during the first quarter of 2008 from $10.7 during the same period last year, in part due to the elimination of five businesses and the loss of two large customers, the company says.
The company lost $0.11 per diluted share in the first quarter, compared to a loss of $0.21 per diluted share in the same period a year ago.
As of the end of the first quarter of this year, Kintera employed 276 people, down from 361 at the end of the first quarter of 2007.
The company also announced it is reducing its workforce by 14 percent, a move it believes will help reduce expenses by more than $1 million per quarter.
This action should help the company turn a profit, on an adjusted-earnings basis, by the second half of this year, Richard Davidson, Kintera’s chief financial officer, said in a webcast.
The company expects an expense of $450,000 associated with the restructuring.
“We believe our unified software as a service platform, which includes events, marketing, and donor management, will help fuel our growth, expand our existing relationships, and attract new organizations to Kintera,” Richard N. LaBarbera, says in a statement.
“We are excited about its potential and the value it brings to help nonprofit organizations better achieve their mission,” he says.