Ambassadors International, parent of Windstar Cruises, reported that second-quarter revenue was $13.4 million, an 8.2% drop from a year earlier.
The company said the economy negatively affected occupancy and pricing.
Despite the revenue decline, Ambassadors cut its loss to $5.2 million, compared with a $22 million loss in last year's second quarter.
"The company continues to reduce its operating loss and remains focused on strengthening our financial position with the goal of becoming profitable," said Hans Birkholz, CEO of Ambassadors and Windstar. "For the second half of the year, we are on track for growth, experiencing positive improvement in per diems and load factors, and we anticipate approximately an 11% improvement in revenue as compared to the second half of 2009."
Looking ahead to 2011, Ambassadors said it is "cautiously optimistic" due to strong advance bookings and a high rate of repeat customers. Bookings for charter and FIT business are up year over year, said the company.
As previously reported, Ambassadors currently is not in compliance with two requirements for continued listing of common stock on the Nasdaq Global Market.
Ambassadors said stockholders approved a 1-for-8 reverse stock split to regain compliance with the requirement that the company have a closing bid price of at least $1 for a minimum of 10 consecutive trading days.
The reverse stock split is expected to take effect in late August; the company must be in compliance by Sept. 10.
Ambassadors also is in violation of Nasdaq's requirement that the company has stockholders' equity of at least $10 million. Ambassadors said the company has been "invited to present its views" to the Nasdaq Listing Qualifications Panel regarding this requirement, "and will do so shortly."
Birkholz said Ambassadors is "comfortable" with its liquidity and that the company has full availability of its $5 million revolving credit facility.