iMALL Posts Net Loss on 18% Sales Increase

iMALL Inc. posted a net loss of $1.4 million in its third quarter, compared with a profit of $63,100 a year earlier.

For the three months ended Sept. 30, the Studio City-based Internet company reported sales of $4.5 million, up 18% from $3.8 million a year ago.

For the nine months, iMALL reported a net loss of $2.7 million, compared with a net profit of $986,600 in 1996 and sales of $13.6 million, up 8% from $12.6 million.

The company said that direct costs of revenues in the third quarter rose 148% over a year ago as a result of increased advertising and marketing expenses.

iMALL is an electronic mall on the Internet with more than 1,600 merchants.