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Concentric shows sharp growth

The ISP's pre-IPO filing with the SEC reveals sharp revenue growth.

Internet service provider Concentric Network, which is planning to launch an initial public offering, today provided a peek at its latest quarterly performance with a Securities and Exchange Commission filing.

Concentric posted shrinking losses and sharp revenue growth for the three-month period ending June 30.

The company lost $12.9 million for the quarter, compared with a loss of $15.4 million a year ago. In the previous quarter, the ISP lost $14.7 million.

Revenues, meanwhile, grew to $10.8 million for the quarter, up from $2.5 million a year ago.

Concentric said its increased revenues reflect growth in its expanding product offerings to enterprise customers, and that the company has leveraged its marketing arrangements with partners. Concentric noted its Internet access revenues are growing as well.

Concentric plans to sell 3 million shares and has set an initial pricing range of 10 to 12 a share, which would raise $36 million in capital. The ISP has previously stated it plans to use the proceeds to expand its network and data center operations, with the remainder to be used for operating capital and repurchasing some outstanding common stock.

Meanwhile, Bay Networks (BAY) and Williams Communications Group have agreed to purchase approximately $18 million in shares directly from the company via a private placement when the IPO closes. This private placement will also include $3 million in canceled debt for Concentric.