Shares of Irvine-based Interchange Corp. took a beating in afterhours trading Wednesday after the company reported lower second-quarter profits and third-quarter guidance below what Wall Street had expected.
Interchange, which provides local Internet search advertising, posted a net loss of $828,000, compared to income of $81,000 in the same quarter a year ago.
Analysts had expected a loss of $579,000.
The company posted sales of $4.8 million for the quarter, up 11% from a year ago and just above analysts’ expectations.
Interchange said its third-quarter sales would be $4.3 million to $4.6 million, well below the $6.1 million analysts had expected.
The company’s loss for the third quarter could come at around $1.5 million, Interchange said.
The stock was off nearly 13% in afterhours trading. The company counted a market value of about $60 million at Wednesday’s close.
Interchange executives were upbeat about the launch of Local.com, a revamped service of a business Interchange acquired earlier this year.
“Local-search represents a significant market opportunity for Interchange, and Local.com positions us to capitalize on this opportunity,” said Heath Clarke, Interchange’s chief executive. “We will continue to invest in the success of Local.com.”
