Engage Technologies, Inc. (Nasdaq: ENGA) was down 3/4 to 16 3/16 early Tuesday after news of a planned acquisition. After the close of trading Monday, the online marketing company reported a smaller-than-expected loss before items for the third quarter ended April 30th.
Before acquisition and other costs, Engage lost $38.3 million, or 22 cents per share, in the quarter; analysts had expected a loss of 27 cents, according to First Call/Thompson Financial. Revenue rose more than 1,000 percent to $58.7 million, due mainly to the acquisition of Flycast Communications. Engage posted a net loss of $196.5 million, or $1.14 per share, compared with a loss of $14.4 million, or 19 cents, a year earlier.
On Monday, reports that Engage would buy Acton, Massachusetts-based marketing firm MediaBridge for 14.5 million common shares drove the company’s stock lower.