Art Technology Group Inc, a supplier of web-based internet customer relationship management and e-commerce software and services, reported narrower than expected third-quarter losses on revenue up 127% on the year-ago. The Cambridge, Massachusetts- based company posted a net loss of $1.4m, or 5 cents a share, excluding costs arising from its initial public offering in July. Losses were up from $.44m, or 2 cents a share, in the year-ago, but came in 5 cents below the 10 cents per share loss tipped on average by analysts polled by First Call
Including pay-outs on warrants issued to preferred stockholders in the firm before its IPO, the net loss was $5.29m of 18 cents a share compared to $1.71m or 19 cents in the year-ago. Revenues for the quarter, which ended on September 30, were up 131% on the comparable period last year to $8.1m. Gross profit margin increased to 68% from 66% in the year-ago.
The firm’s shares rocketed about 21% on Thursday to hit an all- time high of $58 ahead of the result announcement, made at close of business on the day. The stock debuted in July at $12 a share, when 5 million shares were floated. Meantime the firm announced plans on Thursday to offer another 4.5 million shares on the Nasdaq stock market. It said it would file a statutory registration statement for the offering with the Securities and Exchanges Commission this week. The offering will be composed of 1.425m shares from Art Technology itself, 3.075m from certain shareholders, plus another 675,000 if market demand dictates.
