USWeb/CKS Posts Loss on Record Revenues

USWeb/CKS said second quarter revenues reached a record high of $101.0 million, but the company posted a fully
diluted net loss for the quarter of $22.6 million or $0.29 per share.

That compares to revenues of $54 million in the same period a year earlier,
when the company posted a fully diluted net loss of $61.1 million or $1.08
per share.

“Reaching the $100 million quarterly revenue mark demonstrates that the
hard work performed over the past two quarters is paying off,” said Robert
Shaw, CEO of USWeb/CKS. “We grew the business 20 percent sequentially while at the
same time improving operating margins to 15 percent, before non-cash charges, which
highlights the leverage in our business model.”

Non-cash charges include a provision for contract loss or recovery (which
represents the value of certain warrants granted in a strategic
relationship), stock compensation, acquired in-process technology,
amortization of intangible assets, and depreciation and amortization.

The company said it now has more than 2,900 employees in 40 offices in 10
countries.

USWeb/CKS provides a variety of services from brand development and
advertising to business process automation and e-commerce solutions.

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