CoActive Marketing Group reported a $2.6 million loss for fiscal 2004, due in part to a change in accounting practices.
CoActive had been reporting revenue for partially completed work to the Securities & Exchange Commission, but asked the SEC to clarify that practice. Under SEC guidelines, CoActive will now report revenue only when the full contract is complete. The year ended March 31.
The bulk of its fiscal 2004 loss is a $2.2 million accounting charge; the remainder is $417,000 in expected fourth-quarter business that didn’t materialize. Much of that work was postponed to fiscal 2005, due in part to the United Food & Commercial Workers strike against California grocers. Great Neck, NY-based CoActive projects a profitable fiscal 2005.
“We are very disappointed in our results for fiscal 2004,” said President John Benfield in a statement. “We have reduced expenses and revamped our sales efforts to improve profitability. Our goal is to capitalize on our capacity to offer multi-faceted solutions to our clients using all our services and skills in an integrated fashion. We are dedicated to regaining our profitability and credibility in 2005.”
CoActive, a marketing, sales promotion and Internet services agency, ranked No. 26 in the PROMO 100 with 2003 U.S. net revenues of $32 million.
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