Organic, Inc. (Nasdaq: OGNC) slipped 3/4 to 2 3/4 Friday after reporting third-quarter results that failed to match analysts’ expectations.
The San Francisco, California-based Internet consulting company said revenue for the quarter totaled $37.4 million, up 53 percent from a year earlier, but just 1 percent ahead of the second quarter.
The company lost $4.5 million, or 5 cents per fully diluted share, before items, compared with $4.8 million, or 7 cents, in the year-earlier quarter. Analysts had predicted a 3 cent loss. The net loss totaled $16.5 million, or 19 cents per share.
Chairman and chief executive officer Jonathan Nelson said the company posted a revenue gain despite “difficult market conditions.”
“We are expanding our business development organization and streamlining our client services efforts,” Nelson added.
Lower-than-expected revenue, merit raises for existing employees and an increase in staff all contributed to the decline in gross margins from the second quarter, said chief financial officer Sue Field. The company, she said, increased selling, general and administrative spending by less than 2 percent during the quarter. “Near-term profitability continues to be a major company-wide goal,” Field said.
Organic had $83 million of cash on hand at the end of the quarter, which was better than expected, according to Field.
Earlier in the week, Organic said it hired Ray Britt, formerly with online grocer Peapod, to serve as its chief strategy officer. Britt will be responsible for leading the company’s global expansion efforts.