Ottawa-based business analytics firm In-Touch Survey Systems Ltd. (TSXV: INX) announced Thursday it lost money in the first three months of 2013 as the company continued to feel the sting of losing two major customers last year.
© Darren Brown
Michael Gaffney, CEO of In-Touch Survey Systems.
The first quarter loss of $145,339 was the second straight period where the company failed to post a profit. It also reported losing $169,000 during the last quarter of 2012.
Revenues decreased during the first three months of 2013 when compared to a year earlier, dropping 18 per cent from $2.79 million during that period in 2012 to $2.28 million this year.
The company lost two of its major customers in fall of last year, which helped fuel the losses of the two previous financial periods and brought eleven straight quarters of profits and growth to an end.
"The last few quarters have been challenging from the perspective of having to replace the revenue lost from major customers and also putting the final touches on a multi-year plan to improve operating margins,” said Michael Gaffney, the company’s chief executive officer, in a statement.
“We are confident that revenue will rebound in future quarters and that we will show significant improvements in revenue and profitability compared to the first quarter of 2013.”
In-Touch is planning a return to revenue growth during the second and third quarters of the year, which is why the company decided against major cuts to its labour costs.
It needs those workers to help with revenue increases and so reducing those costs would have been “counterproductive,” it said in a statement.
It anticipates the previously announced acquisition of the research division of U.S.-based NAVEX Global will help with that anticipated revenue growth.