ATG`s Q3 revenue drops 4% year-over-year

Revenue at e-commerce technology provider Art Technology Group Inc. fell 4% to $21.8 million for the third quarter ended Sept. 30, from $22.7 million in 2005’s third quarter, ATG reported today. Revenue for the first nine months of 2006 totaled $71 million, up 9% from $65 million a year earlier.

ATG posted a net loss for the third quarter of $285,000, compared with net income of $1.5 million a year earlier.

“Based on our pipeline for the fourth quarter and the continued healthy demand for our e-commerce solutions, we remain confident that we will not only close the deals that slipped from the third quarter but also meet our financial objectives for the full year,” says Bob Burke, president and CEO.

The recent acquisition of eStara, a customer service technology company, is expected to help ATG’s fourth quarter earnings, Burke says. “EStara’s offerings improve conversion rates and customer care for both ATG and non-ATG powered web sites,” he says. “And since eStara solutions are offered exclusively on demand, eStara will augment our overall recurring revenue streams.”