Jaime: VRIO story on Dow Jones wire:
Verio Expects To Post Narrower-Than-Expected Loss In 4th Quarter
Dow Jones Online News, Friday, January 22, 1999 at 16:12
NEW YORK -(Dow Jones)- Verio Inc. Chief Executive Justin Jaschke
predicted Friday that the company would post a narrower fourth-quarter
loss than the $1.09 estimate of Wall Street analysts.
"I'd say we'll probably do a little better than that," he said.
In industry parlance, Englewood, Colo.-based Verio (VRIO) plans to
develop a national backbone, one of the networks that serve as the main
arteries of the Internet. Verio has pursued rapid-fire acquisitions
since its inception in 1996.
William Klein, an analyst with Wasserstein Perella Securities Inc.,
said a more important measure for Verio than its per-share results at
this stage is earnings before interest, taxes, depreciation and
amortization. Also known as Ebitda, the cash flow measure is most often
used by companies, particularly in the entertainment industry, with
heavy debt loads and high interest payments.
Klein expects Verio to have a loss before those items of $14.2
million on revenue of $37.8 million. He doesn't expect earnings until
2002, but predicted Verio will report positive cash flow in the third
quarter of 1999.
The analyst also is projecting $121.3 million in revenue for all of
1998, and $248.4 million for 1999. The 1998 number "sounds ballpark
right," Jaschke said, and the 1999 number is a "number we're comfortable
with, barring any large acquisitions."
Klein projects that Verio's annual revenue will rise to $1.13 billion
by 2003 and $2.19 billion by 2007. And he characterizes those estimates
as "conservative, given the growth in Web-hosting and e-commerce."
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