SoundBite Reduces Loss as Revenues Rise

SoundBite Communications, Inc. (Nasdaq: SDBT), a provider of on-demand customer contact solutions, this week announced it sharply cut its losses to 10 cents a share, compared to a loss of $1.37 per share for the comparable year ago period. Revenues were $10.6 million, an increase of 21 percent from the same quarter in 2007.

The revenues fell below the company estimates, prompting Cantor Fitzgerald to cut its ratings on the company from a buy to a hold. However, SoundBite officials were upbeat about the company’s results and its prospects.

“We were pleased with our progress this quarter on a number of fronts; our clients continue to expand their usage with additional campaigns and applications, we began the introduction our next generation software platform to clients, and we won new deals in Fortune 1000 clients across a number of verticals,” said Peter Shields, SoundBite president and CEO, in a prepared statement. “The company’s integration of Mobile Collect’s text messaging platform, a cornerstone of our integrated multi-channel strategy, into our product offering has met with high interest from our clients and prospects. And we made great strides in transitioning our network to VoIP.”

SoundBite acquired Mobile Collect, Inc. in an all cash transaction of approximately $500,000 plus additional contingent consideration of up to $2 million based upon a certain percent of text messaging revenue in a deal earlier this year (“SoundBite Communications Acquires Mobile Collect,” Feb. 29).