EarthLink aims to prove itself
EarthLink gives investors a peek at its fourth-quarter financial performance to prove that it is on track.
EarthLink, which launched its initial public offering in January, reported a shrinking quarterly net loss of $9.3 million, compared with the previous quarter's loss of $10.1 million. The quarterly results reflect EarthLink's performance while it was still a private company, and, as a result, no price per share is available.
Revenues, meanwhile, rose to $12.3 million in the fourth quarter, up 23 percent over the previous quarter. For the year, the company reported a net loss of $31.1 million and revenues of $32.5 million.
Shares of Earthlink rose as high as 11 a share in morning trading before ending the day at 10-11/16, up 1/8 from yesterday.
"We decided to release this information to show that we've kept on track with our previous projections," said Kirsten Kappos, a spokeswoman.
The company is scheduled to report its first-quarter results in mid-April, its first earnings report since the company went public.
EarthLink went public at 13 a share and has seen its stock trade below its IPO price in the past several weeks to the low-10 range.
Shares of EarthLink initially spiked to more than 22 a share within the first few weeks of the IPO in late January, but then quickly fell to the 15 range in February. The stock took a hit in early March, sliding to the 10 range.
The market has beaten down ISP stocks in the past several months as investors have become increasingly skeptical of their ability to remain on track for profitability.