iXL posts hefty loss, restructures
The Internet consulting firm reported a pro forma net loss of $52 million, or 69 cents per share, excluding charges, compared to a pro forma net loss of $6.8 million or 11 cents per share in the same period a year ago. First Call Corp.’s estimate called for a loss of 14 cents per share. That estimate was cut following a revenue warning from iXL.
Revenue increased 37.8 percent to $87.8 million compared with third quarter 1999 revenues of $63.7 million.
In September, iXL preannounced its third quarter results, lowering revenue estimates 15 to 20 percent from the second quarter and calling for a pro forma net loss in the third quarter. The company also announced it was laying off 10 percent of its workforce. Including charges related to the restructuring, iXL reported a net loss of $88 million, or $1.16 a share.
The third quarter earnings release acknowledged the “difficult quarter” for the company and Internet consulting industry as a whole. iXL reaffirmed its dual strategy of management restructuring and cost reduction to bring the company back to profitability. The company will also focus on its core markets.
In other news, iXL also named James G. Gionfriddo as its new chief operating officer.
Apart from its financial difficulties, the company has also been dogged by a series of securities fraud class action suits brought against the company and its management. The actions are still pending.