Kintera a bit down, promises to rise again

Non-profit and government Software as a Service provider Kintera Inc. announced financial results for the first quarter of 2006. Total revenue for the quarter was $10.7 million, up from $9.1 million of one year ago and $9.3 million in the first quarter of 2005. This revenue is greater than Kintera financial consultants had predicted at the end of last year. Before interest, taxes, depreciation, amortization and stock-based compensation, Kintera showed a loss of $6.5 million (eighteen cents per share) in the quarter. Though still a decrease, this represents a serious improvement over fourth quarter 2005, which saw a loss of no less than $9.4 million, or twenty-nine cents per share. Kintera’s net loss for the first quarter of 2006 was $9.3 million, or twenty-six cents per share. Operating expenses for the first quarter 2006 totaled $17.1 million, a decrease of $1.2 million from the fourth quarter 2005 and $1.4 million from the first quarter 2005. In spite of the negative news, Kintera brass attempted to put an optimistic spin on the result.

“Kintera’s first quarter 2006 earnings results reflect the company’s increased focus on market penetration and improving operating results,” Kintera CEO Dr. Harry E. Gruber said, a bit illogically, continuing with the claim / promise that “Kintera expects to have positive cash flow from operations for the fourth quarter 2006.” Perhaps to boost stockholder morale a bit, Kintera representatives also provided a rundown of some of the major moves made by the company in the quarter, including the launching of the firm’s new social CRM system, Kintera Sphere v.8, at the Association of Fundraising Professionals Conference; twenty-one contracts signed for social CRM, most in response to the new release; and three hundred new client organizations added to the Kintera clientele list. Kintera Sphere v. 8 is a particular feather in the Kintera cap, an enterprise-grade software platform that promises to provide a secure, scaleable and reliable CRM system, enabling organizations to drive all interactions based on comprehensive knowledge of constituents. Additionally, a new personnel addition was announced.

Rene Pharisien was named to the position of senior vice president of sales; he’ll be heading up Kintera sales organization in general. Pharisien’s résumé includes stints at 3Com, Epiphany Software, Niku Corporation and Siebel Systems. The Kintera forecast has the firm turning $11 million to $12 million in revenue for the second quarter, representing an anticipated loss of between twelve and fourteen cents per share. The firm can now claim over 15,000 accounts in the nonprofit, government and corporate sectors.

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