Netcentives, Inc. (Nasdaq: NCNT) gained 5/16 to 3 13/16 Thursday after the e-mail marketing company announced a contract with 3Com Corp. (Nasdaq: COMS).
Netcentives said 3Com will use its technology for a "large-scale, fully customized incentive system and e-mail communications program" for 3Com's U.S. and Canadian partners. The new program is aimed at increasing sales by rewarding partners who do business with 3Com.
The Netcentives system will allow 3Com to manage the online rewards program, which gives points for product sales, training and event attendance. Points can be redeemed for frequent-flyer miles or for products showcased in an online catalog to be provided by Netcentives. Netcentives technology will also be behind an e-mail newsletter that 3Com will send to its partners.
West Shell III, Netcentives chairman and chief executive officer, said that the combination of online rewards and e-mail communications is expected to leverage the value of 3Com's channel partners.
Netcentives, headquartered in San Francisco, California, reported a 492 percent rise in year-over-year revenue for the third quarter, to US$11.9 million. The company lost $16.4 million, or 39 cents per share, before extraordinary items.
The company has agreements with America Online -- which took a stake in
Netcentives as part of its alliance -- and Nortel (NYSE: NT) 
Networks, among others.
Netcentives provides technical consulting services, in addition to its rewards-
management programs.
Netcentives went public in October 1999 at $12 per share. Since then, the stock has traded as high as 96 and as low as 3 1/4.
As of early trading Friday, 3Com was trading up 3/16 at 12 7/16.
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