The economic downturn and reduction in advertising has hit third quarter results at America group Applied Graphics Technologies (AGT).

The group, which bought Wace in 1999, sales in its pre-media operations for the three months to 30 September fall 21.7% to 76.4m ($109.7m). Its net loss was 6.4m.

President and chief operating officer Joe Vecchiolla said the company was pressing ahead with cost-cutting and integration plans, and emphasised that the group remains in full compliance with its banking covenants.

The results were complicated because the firm had to reclassify the results of its up-for-sale publishing business, which were previously reported as a discontinued operation.

The firms share price fell to a 52-week low of 25 cents on the news. The 52-week high was $9.69.