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AGENCY.COM LOSSES GROW

Published on .

(Aug. 1, 2001) -- I-shop Agency.com, which is minority-owned by the Seneca Investments e-holding company of Omnicom Group and Pegasus Partners, announced second-quarter financial results on Wednesday.

The net loss for the quarter widened to $47 million, or $1.21 per share, compared to a net loss of $1.4 million, or 4 cents per share, for the second quarter of 2000. The net loss for this year's first quarter was $10.3 million, or 27 cents per share.

Agency.com' second-quarter revenues were down by nearly half, with $25.8 million compared to $50.2 million for the same period last year, and $41.1 million in the first quarter of 2001. The company said it took a $28.3 million restructuring charge related to the already-announced lay off of 320 employees, or 22 percent of its workforce, during the quarter, including about 240 billable consultants.

Agency.com hopes to realize annual cost savings of approximately $55 million in 2001 due to the cuts.

Copyright August 2001, Crain Communications Inc.

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