Wednesday, May 7, 2008

Breaking News: Layoffs At Kintera, Earnings Call Set For Today

One month after Kintera received notice about potential de-listing from NASDAQ, widespread layoffs have begun at the San Diego-based software provider to nonprofits. The cuts are ahead of the firm’s quarterly earnings call slated for this afternoon.

Company insiders said more than 40 people were cut starting Tuesday, although Kintera officials declined to comment in advance of today’s 4:45 p.m. Eastern conference call to discuss first quarter financial results. The department losing the most people was finance, followed by marketing and product development, according to insiders.

Roth Capital, one of the few analysts still tracking Kintera, downgraded the stock from “buy” to “hold” on Monday, 15 months after making it a “buy.” Kintera, which trades on the symbol KNTA, ended 2007 with almost $16 million in losses, down from $33 million in 2006 and almost $42 million in 2005. For the first quarter of 2007, losses were $8.2 million.

An insider told The NonProfit Times the earnings report “is not expected to be good” but that the layoffs were more “matching expenses to resources.” Another insider was less optimistic, saying, “This doesn’t surprise you, does it? You had to see this coming.” Neither source would disclose the number of people losing their jobs.

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