Synacor’s second-quarter loss more than doubled as expenses associated with the ramp up of its major new web portal contract with AT&T offset a 23 percent rise in revenues.
But the Buffalo-based internet content provider’s shares fell by 6 percent after the company warned that its third-quarter loss would be even bigger.
Synacor said it lost $2.8 million, or 9 cents per share, during the second quarter, compared with a loss of $1.1 million, or 4 cents per share, a year ago. Most of the increase in Synacor’s losses came from the $1.5 million it spent to gear up for the AT&T web portal contract it won earlier this year. The loss was less than the 13 cents per share that analysts were expecting.
Revenue rose to $30.5 million from $24.7 million, with recurring and fee-based sales more than doubling.
Synacor warned that its loss during the current quarter would widen to between $5.2 million, or 17 cents per share, and $6.5 million, or 22 cents per share. That’s more than double the loss of 7 cents per share that analysts were expecting. Revenue is forecast to be between $29 million and $31 million.