, the Purchase, N.Y.-based provider of managed infrastructure solutions, yesterday reported results for its fourth quarter ended December 31, 2001.
In addition, the firm also announced funding of $10 million from two of its original investors, Charterhouse Group International and Mobius Venture Capital (formerly Softbank Venture Capital).
Interliant says the investment will be in the form of a convertible debt instrument bearing interest at 10 percent per annum, with a conversion price of 30 cents a share plus warrant coverage of 30 percent with an exercise price of 30 cents.
The transaction is expected to close by early March.
“In a challenging economic climate, Interliant has strengthened its balance sheet through debt reduction, produced improvements in EBITDA and cash burn, and, subsequently, received a commitment for additional financing,” said Bruce Graham, Interliant president and CEO.
“The restructuring plan we undertook last year has positioned Interliant to compete more aggressively in today’s market. We expect that those actions, in combination with the additional funding from our lead investors and successful execution of our growth plan, will be sufficient to fund the company until we reach our targeted goals of attaining positive EBITDA in Q3 and positive cash flow by the end of 2002,” he added.
Interliant’s fourth quarter 2001 EBITDA was negative $7.5 million compared to negative $10.6 million reported for the third quarter of 2001 and negative $14.2 million for the same period in 2000. This represents a 30 percent improvement in EBITDA for the fourth quarter as compared to the third quarter and a 47 percent improvement as compared to the same period in 2000.
Net income was $68.1 million, or $1.32 per share in the fourth quarter, including gains on the restructuring of convertible subordinated notes of $83.9 million or $1.62 per share.
This compares to a net loss of $41.4 million or $0.86 per share in the fourth quarter of 2000. Net loss was $171.8 million, or $3.39 per share for the full year 2001 compared to a net loss of $151.2 million or $3.18 per share for the full year 2000.
The loss for 2001 was positively impacted by the gain of $83.9 million on the restructuring of the debt and negatively impacted by the $126.7 million write-down of goodwill and fixed assets yielding a comparable net loss for 2001 of $129 million. Cash and cash equivalents at December 31 totaled $5.4 million.
Total revenue for the fourth quarter of 2001 was $22.6 million. This compares to revenue of $28.3 million in the third quarter and $37.5 million for the same period a year earlier.
Interliant’s revenue, excluding all divested businesses, was $15.2 million for the fourth quarter of 2001, consisting of recurring revenues of $7.6 million, professional services revenue of $3.9 million, and hardware/software product revenue of $3.7 million.
For the full year 2001, Interliant’s revenue was $117.3 million compared to $134.9 million for 2000.