MKTG Services Inc. has reported a drop in third quarter revenue to $8.7 million from $45.8 million one year ago. Its net loss grew to $39.4 million from $12.9 million.
The relationship marketing company has limited capital resources and has incurred significant recurring losses and negative cash flows from operations. If the company is unable to raise needed financing operations may have to be scaled back or discontinued, the company said in its Securities and Exchange Commission third quarter filing.
The company has been actively consolidating its offices and infrastructure and reducing its workforce.
MKTG Services plans to “continue to dramatically cutting costs,” during the fourth quarter, CEO Jeremy Barbera said in a statement.
Of the third quarter decrease, approximately $19.4 million is attributable to the sale of Grizzard Advertising Inc. in July 2001 to Omnicom Group Inc. About $3 million, or 10% of the loss, was caused by a decrease in list services and database marketing billing and the move of its telemarketing call center. The decrease in billings was a direct result of the weakened economy causing unexpected client cancellations, postponed fundraising campaigns and lost clients, the report said. The quarter ended March 2.
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