ECAREER HLDGS INC (OTCMKTS:ECHI) submitted its quarterly report to the SEC. The revenue in 2Q2014 came at $2,725 compared to $19,671 in the same quarter, a year ago. The company purposefully delayed sales plans and opted for sales personnel layoffs so that it can complete the re-launched Openreq site. With the recent modifications, the company expects to boost its sales results later in the year. It will have no adverse impact on its future relationships with existing clients.
The financial performance
ECAREER reported operating expenses of $426,000 compared to $917,000 in 2Q2013. The company’s plan of sales personnel layoffs contributed to lower operating expenses. The salaries and benefits expenses came lower at $67,000 compared to $291,000 in 2Q2013. Also, the professional and consulting fees declined to $65,000 from $103,000 in the same period, a year ago. ECAREER HLDGS INC (OTCMKTS:ECHI) incurred expenses of just $2,000 in advertising and marketing. It was a sharp drop from advertising and marketing expenses of $208,000 in 2Q2013.
Operating cost reduction
Operating cost reduction was achieved by minimizing marketing costs and personnel related to the promotion of Openreq.com. ECAREER HLDGS INC (OTCMKTS:ECHI) wisely allocated the available funds in the completion of the revamped website. ECAREER net loss narrowed down to almost $0.02 per share compared to $0.14 per share in 2Q2103. The decline in net loss was primarily due to the decline in operating expenses. The company reported cash of $7,484 compared to $8,303 in the previous quarter.
Current and Future Financing Needs
ECAREER reported a stockholder deficit of almost $500,000 in the 2Q2014. It has therefore raised additional capital of almost $38,500 from the sale of warrants and common stocks in January. The management said that ECAREER HLDGS INC (OTCMKTS:ECHI) will continue to spend a large percentage of capital on implementing its business plans, including the marketing and advertising campaign. However, it will closely monitor the expenses and take required measures to manage cash outflow from operations.