AppNet, Inc. (Nasdaq: APNT) tumbled 12 percent Tuesday after it reported a third quarter operating profit of 5 cents a share, two pennies above First Call's prediction of 3 cents a share. The company also announced a secondary offering of 4 million shares.
AppNet's profit follows an upside surprise from fellow Internet services company Viant (Nasdaq: VIAN). AppNet slipped 6 7/8 to 49 1/8, below their high of 67 1/4. The company, which fizzled in its June IPO, got a boost after a recent upgrade.
Of the shares to be offered in AppNet's secondary offering, 1.5 million shares will be offered by the company with the remainder being sold by insiders.
Revenue for the quarter was $30.1 million, a 68 percent increase over the $18 million for the third quarter of 1998. Gross margins were 45.1 percent compared to 40.1 percent for the third quarter of 1998. Earnings before interest, taxes, depreciation, amortization, acquisition costs and stock-based compensation was $1.9 million. Cash earnings per share was 5 cents a share, compared to a loss of 1 cent last year.
"We are increasing the size, scope, and complexity of our engagements, as we help our customers move to the next stage of e-business,'' said Ken Bajaj, chairman and CEO of AppNet in a company statement.
In other earnings news early Tuesday:
PSINet Inc. (Nasdaq: PSIX) reported a third quarter loss of $87.7 million, or $1.35 a share, on sales of $140.6 million.
First Call consensus called for a loss of $1.39 a share.
Sales were up 108 percent from a year ago. Revenue were up 14 percent from the second quarter. PSINet also said it was ramping up its Web hosting business.
ZipLink, Inc. (Nasdaq: ZIPL) reported a third quarter loss of $2.2 million, or 17 cents a share, on sales of $3.4 million. Revenue from WebTV Networks accounted for 62 percent of sales. First Call consensus called for a loss of 29 cents a share.
Andrew Corporation (Nasdaq: ANDW), a wireless network equipment maker, reported fiscal fourth quarter earnings of $13.4 million, or 16 cents a share, missing Wall Street consensus by a wide margin. First Call consensus expected earnings of 21 cents a share.
Earnings were halved from the year ago period. Sales were $215.1 million, down 3 percent from a year ago. "Growth in Europe and in China was offset by a weak U.S. infrastructure market and continued price erosion," the company said.
Silicon Valley Group, Inc. (Nasdaq: SVGI), a chip equipment maker, reported a fourth quarter profit of $1.6 million, or a nickel a share, well above Wall Street analysts. Sales were $189.8 million, up 76 percent from a year ago.
First Call consensus expected a loss of a penny a share.