InsWeb Corp. (Nasdaq: INSW) fell 3 1/4 to 2 11/16 Wednesday after reporting a first-quarter loss and the departure of its biggest client.
Revenue for the quarter rose 160 percent to $8.6 million, but the Redwood City, California-based Internet insurance company posted a net loss of $13.1 million, or 37 cents a share, compared with a loss of $6.0 million, or 24 cents, in the year-earlier quarter.
InsWeb said it expects a “material decline in revenues” because State Farm Insurance, the company’s largest customer, has said it will no longer participate in InsWeb’s marketplaces. State Farm currently accounts for about 30 percent of InsWeb’s revenue. Because of the loss of State Farm, the company said, it is cutting its workforce by about 10 percent, and will reduce sales and marketing expenses as well.
“We believe that State Farm’s non-renewal will materially reduce our revenues for fiscal year 2000, which have grown significantly to this point,” said Chief Executive Officer Hussein Enan. Revenue for the second quarter is likely to total about $5 million, Enan said.