Laguna Hills-based Interchange Corp. posted big sales growth in the fourth quarter, the company said Monday. But shares of Interchange, which links online advertisers to Internet searchers, tumbled in after-hours trading on the company’s outlook for 2005.
Interchange reported sales of $6 million in the period, up 115% versus a year earlier. Operating income fell 12% to $413,000.
Shares of Interchange were down 40% to $12.4 in after-hours trading. The company released its earnings results after the close of trading Monday.
Looking ahead, Interchange expects net income of $240,000 to $335,000 in the first quarter,down from the fourth quarter. The company expects sales of $6.3 million to $6.5 million, up 5% on the low end from the fourth quarter.
The company said it expects higher costs to fund its growth.
“In 2005 the company is making significant investments in research and development, as well as sales and marketing and expects to realize the benefits of these investments in future periods,” the company said in a statement.
Meanwhile, Interchange said it wrapped up its buy of Inspire Infrastructure 2i AB, a Swedish Internet and wireless local-search technology company. The company paid $15 million in cash and could pay another $7.5 million in stock based on future performance to fund the deal.
Interchange went public in October and saw its shares shoot up 340% to $30 in the following weeks as the company saw benefits from other high-profile Internet IPOs, including Mountain View-based Google Inc.
