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Corio Reports Rising Q4 Revenues

Corio, Inc. , the San Carlos, Calif.-based enterprise application service provider (ASP), yesterday announced revenues of $12.4 million for the fourth quarter ended December 31, 2001.

Application management services revenue, consisting principally of monthly fees from application maintenance and monitoring, was $9.1 million in the fourth quarter, up from $6.8 million in the same period of the previous year.

Professional services and other revenue, reflecting fees primarily from providing implementation, consulting, training and related services, was $3.3 million in the fourth quarter. For the fourth quarter, the company reported a net loss of $13.8 million. Excluding non-cash amortization charges, restructuring charges, and net interest income, the operating loss for the fourth quarter was $9.4 million, or $0.18 per share.

For the fiscal year ended December 31, 2001, revenues totaled $49.6 million, including $35.7 million of application management services revenue and $13.9 million of professional services and other revenue.

This represents a 14 percent increase in revenues compared with the prior year. Net loss was $1.27 per share for fiscal year 2001. Excluding non-cash amortization charges, restructuring charges, and net interest income, the operating loss for the year was $57.3 million, or $1.14 per share.

Financial highlights for Corio's fourth quarter follow:

  • Application management services revenue increased 34 percent from the same period for the prior year while associated costs for providing such services decreased 10 percent.

  • Corio scored a number of new and existing enterprise customers, namely: Carlson Companies, CSAA, Forest Express, Harvard University, Hitachi America, Ingersoll-Rand, NBC, and Quadrem.

  • Balance of cash, cash equivalents, restricted cash and short-term investments at December 31, 2001 totaled $86 million while cash used in operations during the quarter declined 52 percent to $7.1 million compared with $14.7 million used in operations during the quarter ended December 31, 2000, and decreased 14 percent compared with $8.3 million used in operations during the quarter ended September 30, 2001.

  • Operating loss, excluding non-cash amortization expenses, restructuring charges, and net interest income, declined for the third consecutive quarter to $9.4 million in the quarter ended December 31, 2001, down 49 percent from the $18.6 million loss in the same quarter a year ago, and down 20 percent from the $11.7 million loss in the quarter ended September 30, 2001.

  • Corio wrote off certain assets to achieve increased operational efficiencies while sustaining high service levels. These actions resulted in a non-recurring restructuring and impairment charge of $2.4 million.