iXL Releases 2000 Financial Report
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iXL released its fourth quarter and year-end financial report late Thursday, and the figures indicate the Atlanta-based company had a disappointing ride in 2000.
For the fourth quarter of 2000, iXL claimed pro forma net losses of $46.3 million, or $0.61 per share, compared to a pro forma net income of $1.1 million, or $0.02 per share, for the fourth quarter of 1999. The reported loss narrowly missed a Zacks Investment Research consensus analyst estimate of a $0.59 per-share loss for the quarter.
The firm reported a net loss of $88.5 million, or $1.19 per share for 2000, compared to a net loss of $11 million, or $0.25 per share in 1999, excluding amortization, stock-based compensation, other non-cash expenses, loss on equity investments, impairment of intangible assets and restructuring charges. Zacks' estimated a $0.67 per share loss, but First Call's estimate was for a loss of $0.98 per share.
Revenues for the company, however, increased 65 percent, with $359.3 million for FY2000, compared to 1999 revenue totals of $216.9 million.
In after-hours trading, shares of iXL were at $2, down 1/16.
iXL's rocky road culminated in 2000 with a restructuring plan announced last November, in an effort to streamline its operations and reduce its workforce. In that same announcement, iXL said it expected to reach profitability in the first half of 2001 by focusing on its largest clients and target four key industries for growth: financial services, travel/transportation, enterprise services and retail/consumer packaged goods.
In January, iXL hired Christopher M. Formant as its president and chief executive officer.
"While the second half of 2000 was a difficult and disappointing period, iXL has taken action in response to the market shifts in our industry," iXL chairman Bert Ellis said. "We have reduced our operating expenses by more than half, retained our top clients and added new Global 1000 accounts. We also forged an industry- leading off-shore development alliance with HPS and set a path for profitability in the first half of 2001. We also have brought on Chris Formant as iXL's new president and CEO, and although he has only been at iXL for two weeks, Chris is having an immediate and positive impact in strengthening our operations and augmenting our client delivery capabilities."
"One of my primary goals is to establish iXL as the global leader in providing unique, category-killer client solutions," Formant said in a statement. "We have a strong base on which to build, including very talented people, formidable Fortune 1000 client and alliance relationships, a focused set of vertical market capabilities and cost-effective development and implementation resources. We plan to invest in our top people and offices, improve the efficiency of our operations and add new talent and capabilities in 2001. We also believe we will have better visibility on the rest of the year shortly, and that we can become profitable very quickly."
Fauve Yandel is managing editor of atlanta.internet.com.