Rereading this I think it's apparent that the quarter wasn't all that bad.
Hosting revenue grew 300% compared with third quarter 1999 and 24% sequentially.
During the quarter, PSINet stopped offering or renewing contracts for low margin, dial-up and shared web accounts,
mainly in the U.S. At the end of the quarter, PSINet provided service to over 97,000 corporate customer accounts.
Accounts outside the U.S. represented 75% of PSINet's customer base at September 30, 2000, compared with 60% at
September 30, 1999.
Gross margin for the quarter was 31%, a decrease of 2% from last quarter, largely as a result of the performance of the
Consulting Solutions businesses, which had a gross margin of 28% for the quarter.
Average annual new contract value for PSINet corporate accounts increased to $15,000 for the quarter from $9,800
for the second quarter 2000. This continues to reflect the increasing demand for value-added services, specifically
managed web hosting, and higher levels of bandwidth.
The average annual new contract value for U.S. managed web service accounts during the quarter was $354,000, an
increase of 46% over the value in the second quarter.
The PSINet annualized corporate account retention rate remained strong for the quarter at 80%.
As of September 30, 2000, PSINet serviced over 2.4 million end users of its carrier customers around the world.
Granted, their was some very big bad things(see a certain write off) but the company is still performing.
97k cust. x avr $15k year contract= nearly 1.5billion
So I don't see why surpassing 2 billion in revs. next year should be a probem, esp. with webhosting growing like it is(avr. annual contract 354k, which probably contributed to the increase from 9800 to 15,000 on the average yearly contract for all customers)
cg |
