MindArrow Lays Off 9 Workers as CEO Foresees Growth, Profit

MindArrow Systems Inc., which provides online marketing brochures to businesses and recently saw trading halted in its stock because of alleged irregularities, laid off nine of its 105 workers Friday.

The layoffs are part of a cost-cutting strategy put in place even before the Aliso Viejo company discovered it had been victimized by an apparent stock fraud, Chief Executive Robert Webber said.

The Nasdaq stock market has suspended trading of MindArrow stock since Feb. 5 while the FBI investigates the issuance of 1.1 million unauthorized shares by the company’s former stock transfer agent. A government source said investigators regard the company as a victim.

Despite that controversy, Webber said MindArrow continues to grow. The company signed a record number of contracts last month and is on track to log record revenue this month, he said. If growth continues as projected, Webber said, the company will be profitable before the end of the year.