AppliedTheory Reports Record Second Quarter Revenues
Looks like I am going to keep this dog for a while instead of sending it to the pound.<g>
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Providing Customers With 'End-To-End' Internet Solutions Boosts Performance
GREAT NECK, N.Y., July 20 /PRNewswire/ -- AppliedTheory Corporation (Nasdaq: ATHY - news) the leading provider of integrated Internet solutions, today announced record second quarter revenues of $8.7 million, up 81% from $4.8 million in the second quarter of 1998 and an increase of 26% from $6.9 million in the first quarter of 1999.
Net loss attributable to common shareholders for the quarter ended June 30, 1999, was $2.32 million, or $0.12 per share, versus $1.44 million, or $0.13 per share, in the comparable 1998 period. Loss from operations before Interest, Taxes, Depreciation and Amortization (EBITDA) for the second quarter of 1999 was $1.86 million versus $0.85 million in the equivalent 1998 period.
''We are pleased to report revenue growth ahead of schedule, and we have now achieved sequential revenue increases for four consecutive quarters,'' reported David A. Buckel, AppliedTheory Vice President and Chief Financial Officer. Buckel attributed the higher-than-expected sales to the strong demand for AppliedTheory's total end-to-end Internet solutions and the ramp-up of the company's sales force. Buckel also noted that the lower-than-expected losses were due to the economies of scale achieved by the higher sales as well as the rapid growth of high-margin businesses.
He added, ''While experiencing this strong growth, we maintained our high level of customer satisfaction. Our average annualized revenue per customer in the 1999 second quarter increased 41% to $24,000 from $17,000 in the 1999 first quarter and 118% from $11,000 in the 1998 second quarter. We were particularly encouraged by the strong revenue growth from Internet integration services and enterprise portal development, our highest margin business.''
Revenues from Internet integration and portal development in the 1999 second quarter increased 212% from the comparable period last year.
Web hosting revenues rose 151% in the second quarter of 1999 compared to the same period last year; while Internet connectivity revenues increased 41%.
Richard Mandelbaum, AppliedTheory Chairman and Chief Executive Officer, noted, ''Customers are demanding sophisticated e-commerce solutions, and we're delivering them. Our expertise in developing customized, high-transaction web sites, combined with our robust physical infrastructure, gives us a competitive edge in a fast-growing market.''
AppliedTheory remains on track to become a national company over the next 18 months. In the 1999 second quarter, the company doubled its sales force and outsourced a 24-member telesales force. Sales offices were opened in four new regions, bringing the total number of sales offices to seven. The company also signed several significant contracts to deliver high-end Internet services, substantially expanding its customer base. Customers ordering services from AppliedTheory during the second quarter included Citigroup, Inc.; Road Runner (broadband online service); Oneida, Ltd; The Brooklyn Public Library; Loral Space and Communications, Ltd; and Ingram Micro, Inc.
AppliedTheory broadened its product offerings for the second quarter of 1999 by investing in Planning Technologies, Inc., which will allow the company to provide customers with critical network engineering and consulting services. Additionally, AppliedTheory formed a strategic partnership with Trident Data Systems to provide best-of-breed network security services for its customers.
For the six months ended June 30, 1999, AppliedTheory achieved record revenues of $15.6 million, up 54% from the comparable 1998 period. Net loss attributable to common shareholders for the first two quarters of 1999 was $4.03 million, or $0.23 per share, versus $2.23 million, or $0.20 per share, for the equivalent 1998 period. Net loss before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first half of 1999 was $2.74 million versus $1.1 million in the first half of 1998.....
APPLIEDTHEORY CORPORATION
STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
STATEMENT OF OPERATIONS 1998 1999 1998 1999
Net revenues
Internet connectivity
revenues $3,518 $4,947 $7,095 $9,108
Internet integration and
enterprise portal
development revenues 943 2,939 2,304 5,034
Web hosting revenues 321 807 717 1,418
Total net revenues 4,782 8,693 10,116 15,560
Costs and expenses
Cost of revenues 2,864 5,789 5,804 9,892
Sales and marketing 1,536 2,644 2,974 4,408
General and administrative 1,159 2,055 2,302 3,869
Research and development 74 67 120 130
Depreciation and
amortization 399 791 759 1,407
Other expenses - - 2 3
Total costs and
expenses 6,032 11,346 11,961 19,709
Loss from operations (1,250) (2,653) (1,845) (4,149)
Interest income - (505) - (523)
Interest expense 141 146 283 326
NET LOSS (1,391) (2,294) (2,128) (3,952)
Preferred stock
dividends 53 21 105 73
Net loss attributable
to common
stockholders ($1,444) ($2,315) ($2,233) ($4,025)
Basic and diluted
loss per common
share ($0.13) ($0.12) ($0.20) ($0.23)
Shares used in
computing basic
and diluted loss
per share 11,038,208 19,440,599 10,972,642 17,695,081
Other data:
EBITDA (A) (850) (1,862) (1,085) (2,742)
Capital
Expenditures (B) 243 1,120 840 2,009
(A) EBITDA is earnings (loss) from operations before interest, taxes,
depreciation, and amortization. EBITDA is presented because management
believes that investors may find it to be a useful tool for measuring a
company's ability to service debt. However, EBITDA does not represent cash
flow from operations, as defined by generally accepted accounting
principles. EBITDA should not be considered as a substitute for net loss
or as an indicator of our operating performance, cash flow or liquidity.
(B) Capital expenditures include assets acquired with debt and exclude
assets acquired through capital lease financing.
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