News Alert from Dow Jones Online News via Quote.com
Topic: (NASDAQ:ICMT) Icon Cmt Corp,
Quote.com News Item #5834865
Headline: Icon CMT Chief Touts Diversity Of Upstart Internet Service Provider
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NEW YORK -(Dow Jones)- The chief executive of upstart Internet
services provider Icon CMT Corp. appeared on CNBC Friday, promoting the
fact that his company offers wider range of services than other ISPs.
"We have a very large professional services practice that actually
builds the applications," said Scott Baxter. "We'll actually take the
company's content, or their applications, and deploy it over that
network, which we also control."
The Weehauken, N.J.-based concern, which last month made a ho-hum
stock-market debut, is trying to differentiate itself from a sea of
other Internet players by becoming both an Internet-backbone provider as
well as a designer and host service for Internet sites. It also operates
some on-line services and a disaster-recovery service that lets
customers send data to remote storage devices.
"So we're in a very unique position in the marketplace in that we
provide a true end-to-end solution versus a company having to go out to
multiple sources to solve one problem," Baxter said.
But Icon has incurred net losses and negative cash flow from
operations since adopting the end-to-end Internet solutions strategy in
1995, and the firm expects to continue to operate at a loss and
experience negative cash flow at least through 1998.
Icon recently announced a deal with IBM Global Services, a unit of
International Business Machines Corp. (IBM), that allows Icon CMT to
expand its network to 600 dial-up sites accessible to 92% of the U.S.
population.
The company's stock (ICMT), which drew little interest at $10 when it
debuted last month, has been surging of late. On Friday, Icon's stock
finished trading up $1.4375, or 9.7%, at $16.25; earlier, it established
a new 52-week high of $17.625. Over the last few days, Icon unveiled two
new Internet products and announced plans to upgrade and expand its
network operations center and hosting facility in an effort to avoid
malfunctions.
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