| |
Datascension Shrinks but Turns First Profit
Call center operator and BPO specialist Datascension has announced results for the first quarter of 2009, turning a net loss into a net income, the first in its history. Revenue decline of 29.4% to $3.77m was more than matched by cost reductions.
The company generated net income of $8,911 for the three months ended March 31, 2009, compared to a net loss of ($66,890) in Q1 2008. The cost of goods sold decreased by 30.4%, from $4.47m to $3.11m year-on-year. The revenue fall is explained as the result of the general economic downturn reducing demand for services.
Cuts in exec salaries, marketing and admin costs reduced total selling, general and administrative expenses by $243,520, or 35.8%, to $437,328; while interest expenses were also reduced. The company reported operational net cash flow of $343,949, as compared to $31,700 in the prior period.
New CEO Lou Persico said the quarter represented 'a defining moment for Datascension', explaining: 'In a recessionary environment, impacting every sector of the economy, we delivered positive net earnings for the first time in the Company's public history. We took deliberate, methodical and disciplined steps to reduce our overall operating and fixed costs to achieve profitability, which resulted in a smaller but profitable Datascension, Inc.' Persico said the company would 'continue to incorporate cost-cutting measures in order to become the lowest cost provider and to maintain our competitive edge in the marketplace', concluding: 'We are running Datascension for the long term.'
The firm has operations in California and Costa Rica and positions itself 'to be the forerunner in the fields of Inbound call center services and Outbound Market Research.' Web site: www.datascension.com .
|
