Internet services provider USWeb Corp. today announced 1998 second
quarter results, posting a net loss of $60.9 million, or $1.81 per share,
and revenues of $25.4 million.
Losses were up compared to the previous quarter’s net losses of $16.4
million, or $0.56 per share, while revenues climbed 86%, compared to last
quarter’s revenues of $13.7 million and surged 940% vs. same time last year
revenues.
Excluding non-cash charges, the net loss was $1.2 million, or $.03 per
share, compared with a net loss of $2.5 million, or $.09 per share, in the
previous quarter. USWeb said non-cash charges included depreciation and
amortization, stock compensation, acquired in-process technology, and
amortization of intangible assets.
Citing second quarter initiatives, USWeb highlighted its acquisition of
network solutions provider Gray Peak
Technologies. The company said the purchase was a major push in growing
its newly established USWeb Network Solutions Practice, focusing on
Internet network engineering, network
management, network integration, network security, and voice over IP.
During the same period, the company announced restructuring plans,
segmenting its business into three main divisions: USWeb Strategies,
to offer strategy consulting services; USWeb Technologies,
to provide development of Internet applications and network systems
implementation services; and USWeb Studio, to create, design, and
market online services.
The Santa Clara, CA-based company disclosed that it purchased and
incorporated a total of 31 companies during the last 18 months, in a bid to
expand domestically and abroad. It now operates in all major U.S. markets,
as well as the UK, Germany and Hong Kong. On a pro forma
basis, assuming each acquisition had occurred by the start of the year, the
consolidated revenues
of USWeb for the second quarter equaled $27.7 million.
“It is important for our constituents to understand the financial model
USWeb follows,” said
Carolyn Aver, CFO of USWeb Corporation. “Following generally accepted
accounting
principles (GAAP), we show non-cash charges in our statement of operations.
However,
because most of these charges are due to actions outside regular operations
(primarily our
acquisition program), we believe that showing our financial statements
without these charges
assists in the understanding of our ongoing business. So we disclose the
net loss two ways–with
and without non-cash charges.”
“USWeb has reached a major milestone of $100 million in annualized
revenue,” said Joe Firmage, chairman and CEO. “This is demonstrative of our
growth and viability
as a market leader in this space.”
In early morning trading today, USWeb (NASDAQ:USWB) was down 1 1/8, trading
at 20.
