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Technology Stocks : Internap Network Services Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Dave B who wrote (313)	3/21/2001 12:15:43 PM
From: Dave B	Read Replies (1) \| Respond to of 1011

InterNAP Suffers Earnings Blow, But Maintains Mid-Year Expansion Plans. (Company Operations) ISP Business News, March 12, 2001 v7 i11 pNA Full Text By Ruth Suarez Zane Seattle-based InterNAP Network Services [INAP] has joined the legions of telecom players having to batten down the hatches to weather an intense economic storm. The Internet access provider has announced plans to trim 65 jobs and slash network operating costs a month after giving investors the grim news that it would have $39 million in losses for the first quarter. After the company's revised earnings last week, InterNAP's stock hit its lowest level in a year and a half, dipping to $1.88 last week, compared to last year's $111 all-time high. "The decline in the general economic climate has been more severe than we, or others, expected," says Anthony Naughtin, InterNAP CEO and president. In addition to cutting jobs, InterNAP plans to strengthen finances by decreasing its network operating costs, as well as real estate costs and discretionary spending. "It takes into account more than just the [current market] softness," Naughtin says. "We've factored several components into our recurring revenue model." With the economic downturn resulting in order cancellations and delays, InterNAP revised its original year-end 2001revenue projections from $220million to $160 million, which still is 130 percent higher than 2000 year-end revenues of $69.6 million. InterNAP did not revise its projected $118 million loss for the year 2001, which is less than last year's $185 loss. Despite projecting lower numbers, InterNAP is welcoming a star-studded line-up of customers that includes Coors [RKY] and the Associated Press. InterNAP, which competes with AT&T [T], PSINet [PSIX] and UUNet [WCOM], plans to stick with plans of releasing new products in mid-2001 and increasing its sales team by 120 reps. "We want to be in a competitive position once the economy rebounds," says Paul McBride, InterNAP chief financial officer. (Paul McBride, Anthony Naughtin, InterNAP Network Services, 206/441- 8800.) COPYRIGHT 2001 Phillips Publishing International, Inc.