USi maintains plans to break even in Q3
 
|
|||
 | |||
|
Application service provider USinternetworking Tuesday reported a net loss of $51.5 million, or 37 cents per share, on revenues of $32.2 million for the second quarter ending June 30, but reconfirmed its plan to break even by the end of next quarter.
CEO Andrew Stern remains optimistic about the ASP market and repeated his prediction that USi would reach breakeven in EBITDA (earnings before interest, taxes, depreciation and amortization) in the third quarter.
"During the quarter, we signed $34 million in new service contract value, almost entirely from enterprise clients," Stern said in a statement. "This result in the face of a continued economic slowdown and reductions in IT spending, and while undertaking a major restructuring of our business, is further evidence of the continued acceptance of the ASP value proposition."
USi signed new contracts with companies such as Blue Cross and Blue Shield of Michigan and GMAC Commercial Holding Company during the second quarter.
During the second quarter, USi also completed the restructuring it announced earlier this year, including laying off about 250 employees, or a quarter of its workforce, and closing some offices (see story). It took a $7.8 million charge for the restructuring, but the resulting annual savings are estimated to be $35 million.
Related Links
