Is Patch, AOL’s Hyper-Local Experiment, Doomed?

So foul and fair a day AOL had not seen.

Nearly six months ago, AOL CEO Tim Armstrong announced his company increased year-over-year sales for the first time in eight years. In almost the same breath, he said that revenue goals for 900 Patch local sites fell far below expectations.

The company had projected sales between $40 and $50 million, but that number fell way short at only $34 million.

Patch released the following statement to Business Insider, which ran a story Wednesday which suggested that the Patch experiment could be headed for failure, slashing its editors in populated areas — and that some editors were pulling double duty.

“Patch as we know it will continue to exist and thrive, as we continue to be, a blend of original reporting, high-quality community contribution, and aggregation. We test different models in an effort to best serve our existing communities, and our future ones. We had a great 2012 in which we more than doubled revenue, increased traffic by roughly 40% and realized double-digit percentage operating efficiencies. We are well positioned for our stated goal of run-rate profitability by the end of the year.”

Read more over at Business Insider.