StorageNetworks Increases Revnues, Reduces Losses
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StorageNetworks, Inc. , a provider of data storage management services, today announced revenues for the third quarter ended September 30, 2001 of $31.5 million, a 120% increase over revenues of $14.3 million in the third quarter of 2000. StorageNetworks managed services revenue for the quarter was $29.8 million equal to $29.8 million in the second quarter of this year. Total revenues were $33.4 million in the second quarter of 2001.
The company reported an EBITDA loss (net loss before interest, taxes, depreciation, amortization and non-cash stock compensation) of $11.2 million, a 38% improvement over an EBITDA loss of $18.2 million in the second quarter of 2001. The company also reported a net loss of $27.0 million, or $0.28 per share, a 16% improvement from a loss of $32.2 million, or $0.33 per share, for the second quarter of 2001. The company finished the quarter with $326 million in cash and cash equivalents.
"I was pleased with the financial performance of our company for the quarter ended September 30, 2001," stated Peter Bell, StorageNetworks' Chairman and Chief Executive Officer. "Revenues met expectations while results of operations exceeded expectations. Just as importantly, enterprise organizations continue to recognize the value of our software and services. New customers including Cingular Wireless, Charles Schwab, Hewitt Associates, Manulife Financial, Peregrine Systems, Salomon Smith Barney and Zurich Scudder Investments recognize the value of StorageNetworks offerings and have signed agreements for StorageNetworks(R) STORconsulting and / or managed service offerings such as STORmanage(sm) and STORbackup."
In related news, StorageNetworks recently announced the addition of Tony Scotto, as Senior Vice President of Product Development. Scotto will be responsible for enhancing the company's industry leading data storage management software platform. The company also announced the departure of Ken Fehrnstrom, StorageNetworks former President and Chief Operating Officer. Peter Bell will continue with responsibility for the company's day-to-day operations.