InfoSearch Media Inc. reported a net operating loss of $2 million for the fiscal year that ended Dec. 31, an improvement over the $6.8 million loss reported for 2006.
But the search-marketing firm’s auditors have raised concerns about its future.
"The company’s ability to continue as (an ongoing) concern is contingent upon its ability to ultimately maintain profitable operations or secure additional financing," the auditors said in a statement released with the financial results. "Management believes that its current and future plans provide an opportunity to continue as (an ongoing) concern."
Earnings and revenue for InfoSearch improved during the second half of 2007. Revenue for the fourth quarter grew by 5.3% to $1.2 million.
In addition, the company achieved its first quarterly operating profit of $24,390 in the fourth quarter of 2007. In the fourth quarter of 2006 it reported a $572,429 loss.
But overall revenue for 2007 fell to $4.9 million, compared with $7.6 million for 2006. The company eliminated underperforming customer categories and non-core Web properties, reducing expenses and losses, according to InfoSearch.
The Marina Del Rey, CA-based firm is counting on new services it began offering during the first quarter of this year to further improve its financial situation.
"InfoSearch must now deliver higher growth rates; the company is actively pursuing complementary search marketing opportunities which may require additional financing," said CEO George Lichter in a statement.
The firm has started offering pay per click advertising campaign management with landing page optimization services designed to produce higher customer conversion rates. It also introduced other new search engine optimization services and products.
