Intermedia Communications Inc. (Nasdaq: ICIX) posted second-quarter loss of $2.74 a share, better than the loss of $2.86 a share expected by First Call.
The company cited accelerated revenue growth for driving the better than expected results. Revenue of $217.9 million compared to $190.2 in the second quarter of 1998. It was also up 6 percent over first quarter 1999 revenue of $204.7 million.
Shares in Intermedia, one of the top Internet services providers specializing in business and government customers, closed at 22 3/8 Wednesday, beneath their 52-week high of 39 1/2.
Last week, Intermedia spun off its majority-owned Digex (Nasdaq: DIGX) subsidiary in an initial public offering, raising $195.5 million by the issue of 18.7 percent of Digex to the public. Intermedia has kept 81.3 percent ownership. Digex offers hosting services including electronic retailing and online banking for companies that use the Internet as a business tool.
Other accomplishments the company's pact with Bell Atlantic's to provide data services to out-of-region customers, announced earlier this week. Intermedia has the 4th largest nationwide frame relay and IP network in the U.S. and is based in Tampa, Florida.
Ten out of 18 analysts covering Intermedia rate it a "moderate buy," according to Zacks Investment Research. The other eight are split evenly between "strong buy" and "hold."