E-services company Viant reported deep revenue losses for its fourth quarter of 2001 as it struggles to emerge from the grip of a market slump.
Bob Gett, CEO, told analysts during a conference call Thursday morning he believes an infusion of new management and a focus on team collaborative applications will help boost revenue and return the company to near profitability during 2002.
Revenue for the fourth quarter declined 82 percent from the previous year.
"We are continuing to experience a demand-constrained environment," Gett told analysts. "We continue to win new business, but the weak market requires new strategies from us and other organizations in our sector."
For the quarter ended Dec. 31, 2001, Viant reported a loss, before charges, of $8.5 million, or 17 cents per share, on sales of $4.4 million. That compares with a loss, before charges, of $7.1 million, or 14 cents per share, on sales of $25 million for the fourth quarter of fiscal 2000.
The loss per share is a penny deeper than Wall Street analysts predicted, according to First Call. When considering a restructuring charge of $14.3 million, Viant reported a net loss of $22.8 million, or 46 cents per share, for fourth-quarter 2001.
Gett highlighted new strategies related to the concept of collaboration networks, specifically to the business issues and priorities of the vertical industries served by the company.
For example, Gett said, teams of Viant consultants have been working to develop new strategies to engage sales and marketing teams in media, entertainment and pharmaceutical companies and to share best practices and business intelligence. Similar collaboration with channel partners and consumer products companies is also a priority, he said.
During the call, Gett also introduced Bruce D. Shoger, Viant's new president and chief operating officer. Shoger told analysts he believes Viant's delivery capability is sound and the company has enough capacity to move close to profitability.
"What we need to focus on in the near term is re-tooling the sales organization and making sure every opportunity available is one we are invited to participate in," Shoger said.
Viant reported Thursday it expects to grow revenue by about 2.6 percent to approximately $4.5 million during the first quarter of 2002. The accompanying pre-tax loss is expected to be $5.9 million, or 12 cents per share. No further guidance was provided. Viant closed trading Wednesday at $1.
