Messaging provider MindArrow Systems Inc. narrowed its loss in Q3 and reported record revenues. The Huntington Beach, Calif.-based company reported a loss of $1.8 million, down 45% from the same
period a year ago and 38% better than the quarter ended March 31. Revenues reached a high of $1.24 million, a 50% jump over last year. In the past quarter, MindArrow Systems has announced a merger
agreement with Category 5 Technologies Inc., a $3 million financing commitment from venture capitalists and products that include Messenger for Outlook content management tool. "Despite a challenging
external environment, we continue to make significant progress," said Robert Webber, MindArrow Systems president/CEO. "We were able to secure necessary financing, improve our capital structure and
enter a merger agreement with Category 5. A couple of large transactions kicked off the quarter, which helped lead to record revenues." The revenue increase during the quarter was primarily due to the
initial recognition of revenue from large transactions that launched during the quarter, including a custom software development engagement. The company's operating loss was offset by an $806,000
recovery, representing additional cash recovered from the perpetrators of a fraud on the company by a former transfer agent in 1999 and early 2000. Without this, the company would have recorded a net
loss for the quarter of approximately $2.6 million, or $0.13 per share.
