RMH Teleservices Inc., burdened by at least one financially troubled client, reported a $3.9 million net loss during the third quarter, and a $6 million operating loss.
However, revenue increased by 38% to $59.2 million.
The loss was cause primarily by a charge of $7.1 million to write down the remaining receivables from BrandDirect Marketing, a long-term membership services client.
In addition, RMH had to hire and train new insurance agents and senior personnel to support its growing relationship with Aegon Direct Marketing. These costs totaled $1.1 million during the quarter, which ended March 31.
The firm expects revenue to be “relatively flat” during the third quarter, but to improve during the fourth quarter, said chief financial officer Scot Brunke in a statement.
RMH, which is transforming itself from an outbound telemarketing firm to a full-service CRM provider, recently expanded its work with clients ADMS and Nextel. Roughly two-thirds of its revenue comes from long-term agreements.
Revenue from telecommunications clients increased by 21% during the quarter, and from insurance firms by 20%.
Financial services, which makes up most of RMH
