• by Paul Gough , March 4, 2004

Interactive agency Modem Media reported growth in revenues and net income in the fourth quarter following new client wins in 2003.

Revenues rose from $15 million in the fourth quarter of 2002 to $16.4 million a year later. About $200,000 of the increase was related to the impact of foreign exchange rates.

Net income was $700,000, or 2 cents a share, in the fourth quarter compared to a $5.2 million loss, or 20 cents a share, recorded in the fourth quarter of 2002. Modem Media took an after-tax charge of $1.3 million, or 5 cents a share, related to the remaining investment in CentrPort.

In its earnings data released Thursday night after the market closed, Modem Media said it expected revenue of between $15 million and $16 million, or between 2 cents and 4 cents a share, in the current quarter. That compared to $14.4 million in revenues in the first quarter of 2003 and $18.8 million in revenues in the first quarter of 2002. It expects full-year revenue to be between $65 million and $70 million in 2004.

That would be up from 2003's revenues of $61 million, but down from 2002's revenues of $70.1 million.

Net income was $5 million, or 19 cents a share, for 2003 compared to a net loss of $7.5 million in 2002.