Shares of Motricity fell more than 50 percent in after hours trading today following a disappointing second quarter earnings report. The Bellevue company posted a net loss of $4.3 million on revenue of $34.6 million, with CEO Ryan Wuerch saying in a release that the company was “clearly not satisfied with the company’s financial performance or our third quarter outlook.”
“Our financial results are below our expectations, due to headwinds in our North America carrier business, increased competition in the international market which impacted our ability to close new deals, and a later than expected closing of the Adenyo transaction,” said Wuerch.
Earlier this year, Motricity announced its intentions to buy Canadian mobile advertising company Adenyo for $100 million.
In addition to the tough quarter, Motricity — which arrived in the Seattle area in 2008 after purchasing the mobile assets of Bellevue-based InfoSpace — noted that CFO Allyn Hebner and Chief Strategy Marketing and Development Officer Jim Ryan have left the company.
Motricity — which finished the quarter with just $2.9 million in cash and cash equivalents — hinted that layoffs or other cost-cutting moves are coming. “We are increasing expense management efforts to align our costs with our outlook,” Wuerch said in today’s release. (We have an email into the company and will update this post as we learn more).
Shares of Motricity were down 55 percent on the news, trading at $2.02 in after hours trading. The company, which went public last summer, has lost 75 percent of its value so far this year.
Motricity’s mCore platform is used by mobile carriers to power mobile data services.