Datascension, Inc. Reports First Quarter Financial Results
For the quarter ended March 31, 2010, the Company recorded a net loss of ($194,723). Total net revenues decreased to $2,702,191, from $3,773,187 a decline of $1,070,996 or approximately 28.4%. Cost of goods sold decreased to $2,417,430 from $3,106,504, a reduction of $689,074, or approximately 22.1%, from the prior year period. For the quarter ended March 31, 2010, the Company generated earnings before income taxes, depreciation and amortization of $60,686 or 2.2%, compared to $246,473 or 6.5%, for the quarter ended March 31, 2009.
Total selling, general and administrative expenses decreased by $63,149 or 14.4%, to $374,179 for the three months ended March 31, 2010, from $437,328 in the prior year period. The decrease in expenses is mainly due to reductions in executive salaries combined with a reduction in administrative costs.
Interest expense increased by $11,654, or 8.0%, to $157,599 for the three months ended March 31, 2010, as compared to $145,945 for the three months ended March 31, 2009. The increase in interest expense was primarily attributable to increased borrowings over the prior year period.
Basic and diluted loss per share was ($0.01) for the quarter ended March 31, 2010, as compared to basic and diluted loss per share of $0.00 for the quarter ended March 31, 2009. At March 31, 2010, the Company had cash and cash equivalents of $215,666.
Revenues decreased as a result of several factors including: (i) challenges associated with the continuing global economic turmoil for both Datascension and its customers; (ii) heavy price competition within the industry resulting in longer sales cycle and/or lost opportunities; (iii) shift to heavier use of in-house call centers; (iv) increased use of more cost effective, on-line data collection rather than telephone interviews; and (v) internal initiative to eliminate business that does not meet our profitability hurdle rate.“When I took the helm of Datascension in December 2008, I outlined in my First Quarter 2009 Press Release that before we could expand we would become smaller by “cleaning house” in order to build a solid profitable foundation” said Lou Persico, Chairman and CEO of Datascension. “While the turnaround has stabilized the company’s operations, we continue to work diligently to meet the ever-changing dynamics of the market place. We are focused on growing the business and plan to invest significantly in sales and marketing to drive future revenues. We have already leveraged our strong brand to expand our global footprint by establishing partnerships in Asia Pacific, Europe and the U.S. which we believe will allow us to identify profitable new client opportunities.”
ABOUT DATASCENSION, INC. Datascension, Inc. is a multi-faceted data collection, contact center and business operations provider with operations in Las Vegas, Nevada, San Jose and Limon, Costa Rica. We are committed to customer service, quality and on-time project management. Our dedication to providing both value and excellence for our clients, employees and shareholders continually fosters Datascension’s excellent reputation within the industry. We are positioning the company to be the forerunner in the fields of Market Research Data Collection, Contact Center and Business Operations Provider services.