Here's another w/cash earnings..
biz.yahoo.com
Rare Medium's Fourth Quarter Internet Services 'Cash Earnings' Increase to $.06 Per Share
NEW YORK--(BUSINESS WIRE)--Feb. 14, 2001--Rare Medium (NASDAQ:RRRR - news), a leading strategic Internet enabler, today announced that its Internet Services business earned income, including interest and before depreciation, amortization and taxes (``cash earnings''), of $3.5 million or $0.06 per share during the fourth quarter ended December 31, 2000, compared to $3.2 million or $0.04 cents per share for the previous quarter.
The Company reported revenue from the Internet Services business for the fourth quarter of $33.7 million, representing a 98 percent increase over the fourth quarter of 1999 and virtually flat with the previous quarter of 2000. For the full year, revenue from the Internet Services business increased 228 percent to $121.0 million from $36.9 million in the previous year. Revenue for the Internet Services business includes revenue from consolidated subsidiaries, which is eliminated in the consolidated financial statements.
Consolidated revenue, net of intercompany eliminations, for the fourth quarter was $29.2 million, a 66% increase over the prior year level of $17.6 million. For the full year 2000, consolidated revenue increased 200 percent to $110.1 million from $36.7 million for 1999.
The Company reported a consolidated net loss available to common shareholders of $(0.73) per share for the fourth quarter of 2000 compared to a loss of $(0.73) for the same period of the previous year and a loss of $(0.64) per share for the third quarter of 2000. Included in the fourth quarter loss were non-cash dividends and accretion charges related to the Company's preferred securities of $2.9 million or $(0.04) per share, and depreciation and amortization charges of $13.9 million or $(0.22) per share. The third quarter loss included non-cash dividends and accretion charges of $3.0 million or $(0.05) per share, and depreciation and amortization charges of $13.5 million or $(0.24) per share.
Cash and short-term cash investments at December 31, 2000 was $157.5 million. In addition, the carrying value of our investments in affiliates, which include public and private companies, was $48.0 million at December 31, 2000.
Internet Services Operations
Selected comparative operational metrics related to Internet Services:
Q3 2000 Q4 2000
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Billable Professionals (end of period) 657 558
Average Revenue per Hour $164 $168
Annual Revenue per Billable Professional $205,000 $222,000
Utilization 65% 69%
Gross Margin 50% 50%
Key Operations Developments
Significant project wins include Nestle, West Group, Morgan Stanley, XM Radio, Radio City Entertainment, Publix, Standard & Poor's, Ritz Carlton, Bell South, FAO Schwartz, ABC and Universal Studios.
Rare Medium was named a charter member of the new Microsoft Gold Certified Partner Program, an initiative developed by Microsoft to help customers better identify companies that have exhibited proven expertise in delivering solutions based on Microsoft technologies.
In an expansion of its relationship with Sun, Rare Medium announced plans for an iForce Ready Center, which will be a key element of Rare's Java- and Unix-based solutions offering. The Center will serve as a valuable tool for clients to explore potential solution sets, and will also be a significant tool for reducing development risk for clients using Java- and Unix-based platforms.
Rare Medium announced plans to begin the build-out of a new service offering (IBM competency) aimed at delivering on the IBM's Websphere product suite. Rare plans to train and certify a significant number of engineers on Websphere Application Server, Websphere Commerce Suite, Websphere Everyplace Suite and MQSeries and B2B Integrator.
Established fully functional User Research and Usability testing facilities in five markets.
``While we have not been immune to the softening demand presently characterizing our industry, we are pleased with our performance relative to our industry peers. Our goal is to continue to run our Services business profitably,'' commented Glenn S. Meyers, Rare Medium chairman and CEO. ``However, based on current market conditions, we are no longer comfortable with the existing analyst estimates for 2001.''
``Moreover, because of Rare's strong cash and business position, we're being approached constantly with strategic propositions that we are evaluating very seriously. We will continue to assess opportunities and expect to give full year guidance at a later date,'' added Mr. Meyers.
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