Feeds

Via Net.Works considers sell-offs

Acquisition bloat

  • alert
  • submit to reddit

Build a business case: developing custom apps

ComputerWire: IT Industry Intelligence

Troubled ISP Via Net.Works Inc is considering a wholesale restructuring of the company that could lead to the closing down or selling off of its operations in certain countries.

The Reston, Virginia-based company, which is suffering from an acquisition strategy that bloated its presence into 15 countries, said that in its fourth quarter ended December 31, it made a net loss of $133.8m on sales of $19.8m, compared to a $25.6m loss on sales of $26.9m a year ago.

Acting CEO Karl Maier - David D'Ottavio resigned in January, with company president Michael Simmons and CFO Catherine Graham following him out the door last month - admitted that 2001 had been "a disappointing year... both financially and operationally."

Although much of the loss stems from non-cash charge for the impairment of goodwill, its cash usage of $25.7m for the quarter needs to be addressed urgently if it is to remain trading.

The company stressed that it still has a very healthy balance sheet, which strangely it does. It did not have to incur any long-term debt to acquire 26 ISPs in 15 countries stretching from the US to Latin America and Europe, as it managed a successful IPO in 2000 when it raised $357m. At the end of 2001 it had cash remaining of $137.8m, but it is estimated that this has now dropped to $120.5m.

The company said it is considering all its options in its attempt to stop leaking cash and turn profitable, but was unable to project operating results beyond its first quarter of 2002, which has already closed.

Via Net.Works was also threatened by a possible delisting last month after its stock price traded under $1 for more than 30 days. If it doesn't rise above $1 for at least 10 consecutive trading days prior to June 19, Via Net.Works will be delisted from the Nasdaq National Market, though it can apply to be listed on the Nasdaq SmallCap Market. The company was once valued by the market at $1.2bn dollars, but is now worth less than $50m.

© ComputerWire.com. All rights reserved.

Boost IT visibility and business value

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.