paidContent.org - Advertising Earnings: Miva Raises $10 Million Credit Line, Posts Q3 Loss; Marchex Fares Better
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Monday, November 10, 2008; 7:07 PM
PPC-centric ad network and media company MIVA has secured a $10 million credit facility from Bridge Capital Holdings subsidiary Bridge Bank, NA. America's Growth Capital arranged the credit line, and MIVA was eligible to borrow $6.5 million of it as of the end of Q3. The Fort Meyers, FL-based company will use the funds to expand distribution of its ALOT toolbar, roll out a new media platform (and likely stave off potential buyers like Blinkx).
?And MIVA seemingly needs all the help it can get. In today's Q3 earnings report, the company posted a $10.5 million loss (or 32 cents per share), in contrast to a $3.3 million loss (12 cents per share) in Q307. Part of the loss stemmed from the company's restructuring program?which resulted in a $2.7 million charge in the quarter?but revenues were also headed the wrong way, down 21 percent to $28.1 million. CEO Peter Corrao said that MIVA's restructuring program and the new ad platform should get the company profitable in 2009. Release.
In contrast, fellow search-centric ad company Marchex had a relatively strong Q3; posting revenues of $37.2 million, up 11 percent year-over-year. Net income was $1.3 million?a big contrast from Q307's loss of $1.5 million?and up more than 150 percent from Q2's $509,000. Ad revenues, which Marchex separates into local and search channels were also relatively strong, at $17.5 million and $19.7 million, respectively. Release.
Related
Blinkx Drops Bid For Search Marketing Firm Miva
Updated: Blinkx Bids $41 Million For Miva; Ad Net Rejects Proposal
