Datascension Sees Q2 Revenues Halved

Data collection provider Datascension has reported a 49.6% drop in revenues to $1.9m in Q2 2010, from $3.8m for the three months ended June 2009. The firm also recorded a net loss of $840k, compared with a net profit of $210k for the same period in 2009.

Datascension is a market research data collection, contact center and business operations provider with headquarters in Las Vegas, Nevada, and operations in Anaheim, California, San Jose and Limon, Costa Rica. Approximately 99% of its workforce is based outside the US, while 90% of its clients are US-based companies.

The firm says the second quarter decrease in revenue resulted primarily from the current economic downturn, which has caused clients to reduce their requirement for outsourcing.

For H1, total selling, general and admin expenses decreased 23.2% to $712k, due mainly to a reduction in executive salaries, marketing costs, and all admin costs.

In a statement, Datascension warned: 'We believe that our current assets will be sufficient to meet our operating expenses and capital expenditures, however, we may need to seek one or more substantial new investors. New investors could cause substantial dilution to existing stockholders'.

Datascension needs additional funding for its Costa Rica-based call center, where it plans to add daytime working to its existing afternoon/evening shift patterns. The firm said that the balance of funding required for this initiative would need to be obtained from 'other sources' such as debt or the sale of additional equity.

'Management believes that its revenues from operations and collections on accounts receivable will meet its minimum general and administrative cost requirements and provide the basic liquidity needed to operate at current levels over the next twelve months,' the firm concluded in the statement, signed by President, Chairman and Director Lou Persico.

Web site: www.datascension.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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