Autobytel loss widens on revenue and expenses

Auto services marketer Autobytel Inc. said its third-quarter loss widened significantly on lower revenue and higher expenses.

But the company’s shares surged in late trading on its announcement that it had reached a marketing agreement with Time Warner Inc.’s AOL unit and was exploring strategic alternatives for its Retention Performance Marketing and Automotive Information Center business units. The alternatives could include alliances with complementary businesses or the sale of the units, the Irvine company said.

Autobytel said it would be the exclusive listing agent to AOL customers looking to buy cars. More than 27 million customers have used the Internet to find car dealers, Autobytel said.

“The divestitures may be getting people excited, though it’s unclear what kind of buyout offer they’d get,” said Richard Fetyko, an analyst at Merriman Curhan Ford & Co. “They’ve already been working with AOL, but this is going to increase that volume.”

Autobytel posted a loss of $7.9 million, or 19 cents a share, compared with a loss of $287,000, or 1 cent, a year earlier. Revenue fell 8% to $28.1 million.

Autobytel’s stock rose 65 cents, or 20%, to $3.90 in after-hours trading after closing down 1 cent at $3.25.