Revenue and losses more than doubled for Salon.com (Nasdaq: SALN) in the first quarter.
Excluding one-time events, the online media company posted a fiscal first quarter net loss of $4.6 million, or 43 cents a share, based on shares outstanding after the company's recent IPO. Preferred Capital Markets -- the only investment firm with a Salon.com estimate, according to First Call -- predicted a loss of 61 cents a share, for the quarter ended June 30.
First quarter revenue of $1 million represented a 146 percent improvement from $408,000 in the year-ago period, when Salon.com lost $1.425 million. Revenues were up 16 percent sequentially. Higher
Continued spending on content and expansion of the company's sales and marketing force led to the increased losses, the company said. "We've experienced great results thus far from our radio spots and print magazine ads and look forward to the impact of our planned television advertising," said Michael O'Donnell, president and CEO.
Salon.com reported a 13 percent increase in traffic, to 1.3 million users in June from 1.15 million in March.
The company recorded a one-time charge of $11.5 million related to a non-cash preferred deemed dividend associated with Salon.com's Series C preferred stock issued in April. Including that expense, Salon.com lost $16.1 million, or $1.50 a share.
Shares of Salon.com rose 9/16 to 8 3/4 in Monday's regular trading prior to the quarterly report. The one analyst polled by Zack's Investment Research has a "moderate buy" rating on Salon.com.>