CrowdGather Inc. continues to lose money but thinks its financial restructuring could help it reach breakeven this winter, the company said in its annual report Wednesday.
The Woodland Hills company, which sells advertising on its owned and operated Internet forums, reported a net loss of $2.8 million or 5 cents a share for the fiscal year ended April 30. That compares to a loss of $3.1 million or 5 cents a share for the previous fiscal year. Revenue was flat at $1.9 million.
Although the company has restructured by cutting payroll and trimming costs, it continues to lose about $60,000 a month. However, Chief Executive Sanjay Sabnani said that summer is the slow season for online revenues and he expects business to improve as the holiday season approaches.
“We believe that the net cash burn toward the end of the first quarter of fiscal 2014 will be closer to approximately $50,000 per month, and in the coming fall and winter, when momentum returns to the online advertising marketplace, we believe an increase of approximately $50,000 per month in revenues from current levels will put the company into breakeven territory,” he said in a statement.
Shares of CrowdGather closed down Wednesday a fraction of a cent at 8.2 cents a share in over-the-counter trading.