NetSolve says AT&T pact is secure
NEW YORK, Oct 1 (Reuters) - Computer network service provider NetSolve Inc. (NasdaqNM:NTSL - news) on Friday said its pact with AT&T Corp. (NYSE:T - news), which accounts for a majority of its revenues, was renewed before NetSolve's stock market debut this week and was not set to expire until 2004.
The company's vice president of marketing, Harry Budow, clarified NetSolve's pact with the long-distance carrier, which resells NetSolve services to AT&T customers.
The deal generated 59 percent of the company's revenues in the fiscal year ended March 31 and 69 percent of revenues for the three months ended June 30, according to federal filings.
NetSolve's proxy statement, filed for its initial public offering, said that parts of the AT&T deal expire starting in December. Those parts refer to AT&T contracts with individual customers, Budow said, rather than the master agreement.
''The master agreement has been renewed with AT&T,'' he said. ''The overall, overriding agreement lasts until 2004. The December 1999 expirations are really from the prior agreement.''
''We have quite a high renewal rate,'' he added.
Budow declined to specify the renewal rate, citing the federally mandated ''quiet period'' before and after a company's stock debut.
NetSolve offers a range of services that allow companies to outsource some or all of the activities relating to the design, implementation, management and security of their computer networks.
It raised 48.1 million in its IPO on Wednesday, offering 3.7 million shares, or 26 percent of its stock, at $13 each. The share price more than doubled on the stock's first day of trade, but eased to close at 18-9/16 on Friday. |
