LifeMinders, Inc. (Nasdaq: LFMN) was up 1/8 at 11 9/16 early Tuesday after the online direct marketer reported a narrower-than-expected loss for the third quarter.
Herndon, Virginia-based LifeMinders said revenue for the quarter rose to $16.7 million from $4.6 million in the same period last year. The company posted a loss before items of $4 million, or 17 cents per share, compared with a loss of $7.7 million, or 44 cents. Analysts had expected the company to lose 24 cents per share before charges and amortization. After all items, the loss amounted to $7.8 million, or 32 cents per share.
LifeMinders said it ended the quarter with about $78 million in cash and marketable securities, which the company termed “more than enough” to fund operations and investments.
“The $176 billion offline direct marketing industry is coming online, and is the perfect match for our suite of direct marketing products,” said chief executive officer Stephen R. Chapin, Jr. All three of the company’s business lines — consumer products, outsourcing and wireless technologies — are seeing strong demand, Chapin said.
The company increased the number of traditional advertisers using its products by 36 percent during the quarter, striking deals with firms including Discovery Communications, Gateway, Wenner Media’s Rolling Stone, Metrocall, Schering-Plough and Nestle.
Meanwhile, the company’s consumer membership base grew to 19.5 million, up 15 percent from the end of the second quarter and 179 percent from the beginning of the year.
Separately Monday, LifeMinders said it has formed an alliance with marketing firm Net Perceptions that will get LifeMinders’ wireless and e-mail outsourcing products to Net Perceptions’ 250 clients.
LifeMinders said the agreement “greatly accelerates” its penetration of the commercial e-mail market, which is expected to reach $4.8 billion over the next few years.