Xpedior Inc. (Nasdaq: XPDR) said Thursday that revenue has declined since last quarter, and it has received $30 million to fund operations.
Shares in the eBusiness company plunged 0.46 to 1.88. Its majority shareholder PSINet (Nasdaq: PSIX) announced Thursday it had a loss of $29 million from discontinued operations from Xpedior. During the quarter, Xpedior's CEO resigned, and management was reshuffled.
The company said it completed two transactions resulting in the immediate availability of $30 million to fund operations.
Xpedior secured a $15 million revolving line of credit with Comerica Bank N.A, which may be increased to $35 million. Xpedior also announced a $15 million preferred stock investment from PSINet; 300,000 shares of Series B convertible preferred stock were issued to PSINet at $50 each, with an initial conversion price of $2.28.
Revenue of $50.9 million was up 47 percent from $34.5 million in the third quarter of 1999. Sequentially, revenues declined 19 percent from $62.9 million in the second quarter. The company blamed softened demand from Global 2000 customers and small and mid-sized companies. Consultant utilization dropped to 49 percent from 64 percent in the second quarter while the gross margin declined to 27.9 percent from 48.1 percent.
Net loss was $38.5 million, and operating loss before one-time charges, loss on stock guarantee, and non-cash stock based compensation expense was $23.9 million. After tax net loss including charges for the third quarter totaled $38.5 million, or 76 cents share.
First Call was expecting a loss of 7 cents a share, excluding charges.
Late in the quarter Xpedior announced a series of actions designed to address its declining utilization and revenues. The company reduced its consultant workforce by more than 200.
Changes to Xpedior's senior management team included the resignation of David N. Campbell as Chairman and CEO. William Schrader, Chairman and CEO of PSINet, has been named Chairman of Xpedior's Board of Directors.
CyberCash, Inc. (Nasdaq: CYCH) also reported third quarter results; net loss was $7.6 million, or 29 cents per share, beating the First Call consensus estimate for a loss of 33 cents per share.
Shares in the provider of electronic payment technologies and services were up 0.44 to 3.25.
The third quarter loss represents a near halving of CyberCash's $14.2 million, or 65 cent per share, loss in the same period a year ago.
Revenue for the quarter totaled $5.8 million, up14 percent from the third quarter of 1999.
V-ONE Corporation (Nasdaq: VONE) reported loss of 12 cents a share for its third quarter, slightly narrower than First Call's estimates, but wider than 1999's third quarter loss. Revenues declined.
Shares in the troubled provider of enterprise-level network security protection fell 0.22 to 1.66.
Revenue was $645 000 for the third quarter, down from $933 000 in 1999's third quarter.
The loss attributable to holders of common stock was $2.7 million or 12 cents a share, compared with a loss of 16 cents per basic and diluted share, based on the weighted average number of common shares outstanding in the third quarter of 1999.
The company, which had advised of an expected revenue shortfall in the third quarter because of protracted sales cycles on several large government contracts, said it has a healthy start to revenue for the fourth quarter. Shortly after quarter's close, it shipped an order for $500,000, under a Federal Bureau of Investigation (FBI) project.
The company's cash position as of Sept. 30 was $4.2 million in cash and cash equivalents and $4.8 million in shareholder's equity. The cost reduction program implemented in October is underway, and V-One said it believes it will be successful in raising the additional funds needed to sustain operations for the foreseeable future and to maintain capital needed to satisfy listing requirements on the Nasdaq Small Cap Market.