New York City-based K2 Design Inc. reported a net loss for the first quarter ended March 31 of $681,481, or 20 cents per basic share, compared to net income of $37,919 or one cent per basic and diluted share for the same period a year ago.
Revenues for the first quarter were $1.44 million compared with $2.14 million in the first quarter of 1998 and $483,088 in the fourth quarter of 1998.
“As we said last quarter, we expected stronger results and we delivered them,” said Matthew de Ganon, executive chairman of K2. “We increased revenue and earnings from the fourth quarter, expanded our client base, made significant hires and continued to develop our visionary W3 Organizational Modeling as a guide for multi-national, multi-divisional corporations looking to communicate and do business on the Internet.”
During the first quarter, the company increased its working capital by selling 50,000 shares or part of its minority position in 24/7 Media Inc., resulting in net proceeds of $2.17 million.
de Ganon said that K2 continues to own 146,492 shares, which as of May 18, had a market value of approximately $6.4 million.
K2 Design specializes in online strategies and media campaigns for e-businesses. Clients include Lexis-Nexis; NCR Corp.; the Puerto Rico Convention Bureau; Smith Kline Beecham; Sony Online Entertainment; Standard & Poor’s; and Varsitybooks.com.