Ailing internet consultancy Razorfish yesterday posted its first quarterly loss since opening its doors for business five years ago.
The news comes in the same week that the New York-headquartered agency group laid-off 22% of its 1,800 staff [WAMN: 6-Feb-01], the second culling of employees inside three months.
Hailed in January by Forbes magazine as the fastest growing company over a span of five years, Razorfish reported a pro forma net loss of $19.8 million (20 cents a share) for the quarter ended December 31. In the same period in 1999, the shop achieved a profit of $5.8m (6 cents).
Said chief executive officer Jeff Dachis: “We have continued to build and align our business to face the challenges of a year filled with rapid change. While we reflect on our first unprofitable quarter, we continue to execute our strategy to develop and deliver digital solutions.”
In after-hours market trading last night, Razorfish stock fell 19 cents to $1.69.
News source: Financial Times