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Corio Reports Q3 Results, Customer Wins

In its third quarter ended September 30, 2001, Corio Inc. , the San Carlos, Calif.-based enterprise application service provider, today announced revenues of $12.2 million for the Application management services revenue, consisting principally of monthly fees from application maintenance and monitoring, reached $9.7 million in the third quarter, up from $4.3 million in the same period of the previous year.

Professional services and other revenue, reflecting fees primarily from Corio's provision of implementation, consulting, training and related services, was $2.4 million in the most recent quarter. For the third quarter, the company reported a net loss of $12.4 million. Excluding non-cash amortization charges, and net interest income, the operating loss for the third quarter was $11.7 million.

Corio reported the following additional financial highlights:

  • Application management services revenue increased 126 percent from the same period for the prior year while associated costs for providing such services increased 17 percent. For the most recent quarter, application management services revenue represented 80 percent of total revenue.
  • Corio was selected by a number of enterprise customers including Carlson Companies, Gallaudet University, National Gypsum Company, Terra Lycos and TXU Corporation.
  • Balance of cash, cash equivalents, restricted cash and short-term investments at September 30, 2001 totaled more than $95 million while cash used in operations during the quarter declined 60 percent to $8.3 million compared with $20.8 million used in operations during the quarter ended September 30, 2000, and decreased 26 percent compared with $11.2 million used in operations during the quarter ended June 30, 2001.
  • Operating loss, excluding non-cash amortization expenses, decreased to $11.7 million in the quarter ended September 30, 2001, down 42 percent from the $20.0 million loss in the same quarter a year ago, and down 30 percent from the $16.8 million loss in the quarter ended June 30, 2001.
  • Net loss of $0.25 per share for the quarter ended September 30, 2001 decreased 59 percent from the $0.61 loss per share for the same period of the previous year, and decreased 31 percent from the $0.36 loss per share for the prior quarter.

Corio's total customer wins follow:

  • Carlson Companies provides relationship marketing, travel, and hospitality industries with over 192,000 people employed under its brands and services. Corio will implement Carlson's Human Resources and Payroll solutions.
  • Gallaudet University is a university for deaf and hearing-impaired students. Corio will upgrade its public sector Financials solution, migrate the application to Corio's ASP model.
  • National Gypsum manufactures gypsum wallboard in the United States. Corio will upgrade the solutions, migrate to Corio's ASP model, and provide ongoing application management for its Financials, Human Resources, and Payroll solutions.
  • Terra Lycos, a global Internet powerhouse, is an Internet network in the U.S., Canada, Europe and Asia and is also a popular portal to Spanish and Portuguese-speaking markets. As part of a global deployment, Corio will upgrade and provide ongoing application management for its Financials application.
  • TXU Corp. is the world's ninth largest energy company and global leader in energy and energy services. Corio will implement and manage its customer relationship management application for the energy industry.

    "Corio provides us access to a highly skilled technical team, as well as proven application expertise with enterprise applications. Corio's implementation methodology will expedite the rollout of our new system and their application management resources will alleviate our need to hire the IT skills in-house, reducing our total cost of ownership by 25 percent," says Bill Parmelee, chief financial officer of National Gypsum.

    "These new enterprise customer wins demonstrate that Corio's ASP model adds value across many industry lines from brick and mortars to educational institutions and service industry leaders," says George Kadifa, president and CEO of Corio.