by Luke Jones
Posted 4/24/2014 03:20 pm
Updated 7 months ago
Inuvo Inc. of Conway on Thursday announced net income of $674,759, up from a loss of $290,713 in the same quarter last year.
In a first-quarter earnings report released after market close, Inuvo said earnings were 3 cents per diluted share, compared to a loss of 2 cents per diluted share in 2013.
The Internet marketing company had revenue of $10.1 million, down from $15.9 million in 2013.
CEO Richard Howe attributed the profitable quarter to the company focusing on its Alot-brand websites and moving away from its toolbar products.
In a conference call with analysts, Howe said the toolbar product represented about $1 million of the company's revenue in the quarter, compared to $4.8 million in the same quarter of 2013. He said he expected the toolbar product to be "fully transitioned" out of the company by the end of this year.
"The first quarter results and the second quarter's upward revenue trajectory give us confidence that the foundation we've built can deliver both growth and profit," Howe said in the release. "While revenue was light in the first quarter, this was expected and directly related to the announced transition from toolbar to content rich websites and mobile applications, and masks the 44 percent quarter-over-quarter underlying growth rate in the latter."
The company consolidated its operations in Conway last year, moving its offices from disparate locations in Florida and New York in an effort to save costs and maintain compliance with the New York Stock Exchange.
This week, the company also had its deadline for meeting with NYSE standards extended to May 30. Howe told analysts he was not worried about the issue.
"We believe we are in compliance," he said.