Second quarter revenue at CoolSavings off by 40%

CoolSavings.com Inc., a Chicago-based e-marketing company, reports net revenue in the second quarter of $5.3 million, compared to $8.9 million in the same period of 2000. Gross profit in the second quarter was $3.8 million, while operating expenses were $13.6 million, compared to $17.9 million in the second quarter 2000. Net loss for the quarter was $6.4 million, compared to a net loss of $9.1 million in the second quarter 2000.

For six months ended June 30, net revenue was $11.6 million, compared to $17 million in the same period last year. Gross profit was $8.2 million, compared to $14.6 million in the same period in 2000. Operating expenses in the six months ended June 30, were $26.5 million, compared to $33.7 million in the same period in 2000. Net loss for the period was $14.9 million, compared to $16.8 million in the same six months last year.

Newly-appointed President and CEO Matt Moog said the second quarter was a period of transition. “In addition to a difficult economy and a soft advertising market, it took longer than anticipated to raise capital, which constrained our ability to invest in marketing and keep current on our payables. To best position the company for long-term growth and profitability, during the quarter we instituted a number of cost reduction measures that will substantially reduce our burn and improve free cash flow on more conservative revenue targets.”

CoolSavings earlier this month announced that it had secured $15 million in new financing from Norfolk, VA-based Landmark Communications. The company at the same time cut 47 jobs and founder, chairman and CEO Steven Golden resigned.