Internet services provider Verio Inc. today released results for the first quarter of 1998, posting a net loss of $28.4 million and $21.2 million in revenues.
In comparison, net loss for the first quarter of 1997 was $4.7 million, while revenues increased 380% from $4.4 million reported for the same period last year.
The company said its losses include a one-time $10.1 million non-cash charge due to refinancing of Senior Notes in March 1998. In addition, $6.4 million of depreciation and amortization expenses resulted from company acquisitions and investments.
Verio also reported having cash equivalents of $187.6 million, as of March 31, compared to the previous quarter’s $113.1 million, ending December 31, 1997.
Established in 1996, the Englewood, CO-based company provides Internet connectivity to small to medium-sized businesses, in addition to Web hosting services. Verio has built a high-speed national backbone through the acquisition and consolidation of several ISPs.
In early April, Verio teamed up with Qwest Communications International Inc. in a $100 million deal that gave Verio access to Qwest’s Macro Capacity Fiber Network.
“We are pleased with Verio’s continued rapid growth and national expansion, extending Verio’s reach now to 36 of the top 50 MSA’s in the country,” said Justin L. Jaschke, Verio’s President and CEO, in a statement. “Equally important, Verio has made tremendous strides in integrating its acquired operations into regional operating units, marketing under a consistent national brand name and supported by a common suite of national services. With the recently announced relationships with NTT and Qwest, Verio is well positioned to continue its aggressive growth strategy as the leading industry consolidator.”
In mid-afternoon trading today, Verio (NASDAQ: VRIO) was down -1 1/16 to 23 5/16.