Local.com Shares Slump on Expected Q1 LossFriday, February 17, 2012
Shares of Irvine-based digital media company Local.com Corp. plunged nearly 12% in New York midday trading on an expected loss for the current quarter.
Local.com Chief Executive Heath Clarke cited a seasonal slowdown in advertising at the beginning of the year and continued spending on business improvements for the anticipated $200,000 first-quarter loss.
Local.com said it expects to return to profitability in the second quarter.
The company said it expects a full-year revenue of $110 million, a 40% increase from 2011. Profit is expected to come in at $1.1 million for the year.
The outlook for the current quarter came the same day Local.com said it reversed two straight quarterly losses in the fourth quarter with a $412,000 profit. The company reported a $1.1 million loss in the year earlier period.
Fourth-quarter revenue was up 27% from a year earlier to $25.5 million.
The company operates its namesake online local search engine along with a daily deals business, and sells a number of digital advertising products to marketers.
Earlier this year the company made improvements to Local.com’s mobile site, making it easier to navigate. In October the company launched a mobile app for its Spreebird daily deals site.