Last week, Kintera (NASDAQ:KNTA) announced more bad news for its weary shareholders. The company postponed its second-quarter numbers because of a pending restatement of its first-quarter results. It also revealed that its Q2 net loss would probably see a significant year-over-year increase.

The company finally announced second-quarter results yesterday, and it wasn't kidding about those increased net losses. Even as revenues rose from $5.9 million to $10.4 million, Kintera's net loss swelled to $10.1 million, or $0.33 per share. That was up from $4.2 million, or $0.17 per share, in the year-ago period.

That bad news followed Kintera's earlier announcement that it would reduce its overall workforce by roughly 10%. The company said this move aimed to improve "efficiency and operating performance." To me, that sounds like corporatespeak for an attempt to stop its hemorrhaging.

Kintera's products help nonprofit organizations manage their fundraising efforts through content production, personalized communications, and online donation collection.

In its favor, Kintera has 19,000 organizations in its customer base and a suite of useful products. The company has pursued the cutting edge, launching ASP versions of its software in the mold of (NYSE:CRM). ASP creates a scalable solution that generally yields relatively high margins, provided the company can unilaterally apply the basic program functions across all its customer companies.

Unfortunately, the workforce cuts won't eliminate Kintera's bloated cost structure. The company's attempts to pump up growth through aggressive acquisitions haven't helped, especially given the strain of integrating sales operations among disparate operating units. In recent quarters, sales and marketing costs have grown faster than revenues.

With its lowly stock price and puny $31.9 million cash hoard, the company will probably postpone future acquisitions. At least into 2006, Kintera is likely to remain a non-profitable company itself, much to shareholders' dismay.

Fool contributor Tom Taulli does not own shares mentioned in this article.