iVillage (Nasdaq: IVIL) fell 18 U.S. cents to $1.05 in morning trading Friday after the company, which operates Web sites aimed at women, reported a drop in revenue for the first quarter ended March 31st.
However, the New York-based company managed to narrow its loss from a year earlier as it cut costs and streamlined its operations.
iVillage said that revenue from continuing operations fell to $12.6 million in the latest quarter from $18.1 million a year earlier as dot-com clients spent $5.6 million less on advertising.
About three-quarters of revenue in the latest quarter came from “traditional,” non-Internet advertisers, the company said.
iVillage, which operates Web sites including the iVillage network and Astrology.com, reported a loss from continuing operations before charges of $11.4 million, or 38 cents per share, compared with a loss of $22.3 million, or 75 cents, a year earlier.
The net loss from continuing operations totaled $12.2 million, or 41 cents per share.
“Our drive toward profitability continues to be the main focus at iVillage, as we grow the company, diversify revenue streams, deepen relationships with advertisers, and build brands in this challenging environment,” said chairman and chief executive officer Douglas McCormick.
iVillage said that it now gets about 60 percent of its revenue from advertising on iVillage.com, with 40 percent coming from other sources, such as television, magazine publishing, production services, licensing, research, and astrological chart and subscription sales.
The company also operates the Newborn Channel, a satellite-based program shown in hospitals.
iVillage plans to acquire competitor Women.com in a deal that is scheduled to close in the current quarter.