Mustang bucks losses
The multimedia telecom firm narrows its first-quarter net loss as it tightens company spending.
The multimedia telecommunications firm reported a net loss of $217,000, or 6 cents per share, for their first quarter ending March 31, compared with last year's corresponding period, when it posted a loss of $652,000, or 19 cents a share.
Mustang executives attribute this shrinkage to strict company-wide cost controls. The company, for example, reduced its workforce to 37 from from 65 and sharply lowered its marketing expenses during the quarter.
Although revenues fell to $800,000 in the quarter from $1.2 million, chief financial officer Don Leonard pointed out that last year's quarter was bolstered by the release of its Wildcat Interactive Net Server Five.
Leonard is confidant that the new Web Essentials line, a suite of interactive products designed to work with Microsoft's Internet-Intranet Server, coupled with a no-frills marketing plan will improve the company's bottom line for the rest of the year.
Because Web Essentials will only be offered to customers via the Internet, all expenses should be markedly less than with traditional distribution. Leonard expects that with Web Essentials, "we will be able to receive the full list price, because there is no retail channel."
Mustang is optimistic that its reduced spending will pay off.
"Our hopes are that the WIN server will get us to a 'get-even' point and that Web Essentials will just be profit," Leonard said.