Vancouver's PhotoChannel Networks Inc. (TSX-V:PN) has signed a contract with Wal-Mart Argentina to provide online photofinishing services for Wal-Mart's website.
The contract comes a day after PhotoChannel signed a deal with Wal-Mart division Sam's Club USA to provide online photo services for the latter's website.
PhotoChannel's revenue jumped 84% in 2007 to $7.5 million from $4.1 million in 2006. The largest increase came from a 186% rise in transaction commission fees generated from online photofinishing sales on its partner websites, which include Wal-Mart Canada and Costco.
The company, however, reported a net loss of $6 million compared with a net loss of $2.6 million in 2006. More than $2 million of the increase came from rising research and development, amortization and administrative expenses. Total expenses for the year rose to $4.8 million from $2.6 million in 2006.
An additional $1.7 million of the net loss was due to foreign exchange losses as a result of proceeds from a private placement received in U.S. dollars when the dollar was weakening.
PhotoChannel's share price range during the past week: between $3.10 and $3.80; 52-week high: $5.77; 52-week low: $2.65.