Connecture narrows Q2 loss

CEO says efficiency initiatives have reduced operating losses

Jeff Surges
Connecture CEO Jeff Surges.

Brookfield-based Connecture Inc. reported a second-quarter net loss of $5 million, or 30 cents lost per diluted share, compared with a net loss of $9.9 million, or 47 cents lost per share, in the same period last year.

The health insurance marketplace software developer’s revenue totaled $18.3 million in the second quarter, down from $18.7 million in the second quarter of 2016.

Jeff Surges
Connecture CEO Jeff Surges.

Connecture’s operating loss was $4 million in the second quarter, down from $7.2 million in the same period in 2016.

“In the second quarter, we built upon our first quarter progress to deliver a significant improvement in our year-over-year first half operating results,” said Jeff Surges, president and CEO of Connecture, in a statement.

“On the operations and cost front, our ongoing efficiency initiatives in the first half of the year have driven improved gross margins and have substantially reduced our operating losses. Overall, I am very pleased with our execution and results,” Surges added.

For the first six months of 2017, the company reported a net loss of $8.7 million, or 51 cents lost per share, compared to $17.2 million, or 81 cents lost per share. Revenue was $36.6 million in the first six months of 2017, compared to $36.3 million in the same period in 2016. 

Total revenue is expected to be in the range of $73 million to $78 million this year, the company said.

In May, Connecture received a deficiency notice from Nasdaq indicating it has not met the required $15 million minimum market value of publicly held shares for the past 30 consecutive business days. Per Nasdaq rules, Connecture has until Oct. 31 to bring its market value into compliance with this rule, or its stock will be delisted.

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