To: DanielleC who wrote (99 ) 11/19/2001 11:31:49 PM From: Glenn Petersen Read Replies (1) | Respond to of 136 Loudcloud's 3rd-quarter net loss narrows SUNNYVALE, Calif., Nov 19 (Reuters) - Loudcloud Inc. <LDCL.O>, a provider of managed hosting for corporate Internet sites, on Monday posted a fiscal third-quarter net loss that was smaller than a year ago and said full-year revenue should land on the high end of previous guidance. Revenue from the quarter ended Oct. 31 more than tripled to $14.3 million from $4.6 million last year on strong repeat business, Loudcloud President and Chief Executive Ben Horowitz told Reuters. The Sunnyvale, California-based company's net loss narrowed to $40.7 million, or 62 cents a share, from a net loss of $58.2 million last year as the company continued to hold down costs. Loudcloud shares, which finished the regular Nasdaq session 8 cents lower at $3.15, flirted with $4 in after-hours trade on Instinet before settling near $3.80. The company -- which was founded by former Netscapers Marc Andreessen and others -- went public at $6 in March. "We're happy, we did what we wanted to do," said Horowitz, who added that the company closed its first joint deal with broadband communications provider Qwest Communications International Inc. <Q.N> in the current quarter. He would not disclose the deal's terms. The company, which trimmed its cash burn to about $29 million from $35 million in the second quarter, wrapped up its third quarter with about $140 million in cash and other investments. Loudcloud Chief Financial Officer Rod Sherwood said the company expects to reach cash-flow break-even in calendar 2003. Looking ahead, Loudcloud sees a fourth-quarter loss of 55 cents or 56 cents a share on revenue of $15.5 million to $15.7 million. As a result, the company said, full-year results should hit the high end of its previous forecast for fiscal 2002 revenue of $53 million to $57 million. 18:19 11-19-01