RealTime IT News

PSINet Sees Record Revenues, Charges Keep Net Down

Internet provider PSINet Inc. reported a sharp 111 percent increase in revenues for the third quarter, although its earnings were held down by costs associated with a recent buying spree.

Herndon, Va.-based PSI lost $50.6 million, or 98 cents a share, up from a loss of $10.7 million, or 26 cents a share, in the third quarter of 1997. Revenues jumped to $67.6 million from $32 million a year ago.

Excluding a one-time charge of $15.9 million related to PSI's acquisitions of Canada's Interlog, Japan's Rimnet and Korea's INet, PSI lost 78 cents a share. That's better than Wall Street's expectations of an 82-cent loss, according to First Call Research Network.

For the first nine months of 1998, PSI lost $134.9 million, or $2.75 a share, up from $31.3 million, or 78 cents a share, a year ago.

William L. Schrader, PSINet's chairman and chief executive officer, said the company focused on acquisitions and new product roll-outs during the quarter and is positioning itself for substantial overseas growth.

"This was an outstanding quarter demonstrating strong momentum in all U.S. and international business units and, coupled with our effective use of PSINet's financing resources, we accelerated our growth with acquisitions. "As part of our global strategy, PSINet is expanding its position in the top 20 telecommunications markets worldwide and we seek to establish PSINet as one of the top three Internet providers in each of these markets," he said.