PSINet narrows loss
PSINet slims its third-quarter loss by cutting expenses and increasing revenues through a higher volume of subscribers.
PSI reported a net loss of $12.5 million, or 31 cents a share, for the quarter ending September 30, compared with a loss of $13.1 million, or 40 cents a share, a year ago.
Wall Street had been expecting PSI to report a loss of 28 cents a share, according to First Call. PSINet said that if it had not taken a one-time charge for accelerating the amortization of some software costs, the company would have posted a 26-cents-a-share loss.
Revenues climbed to $27.2 million during the quarter, more than double the $11.1 million generated a year ago.
The company attributed the improved results to increased revenue per subscriber and the completion of its global network in Canada, Japan, the United Kingdom, and the United States. PSI also pared down its debt to $51.5 million during the quarter, down from $55.6 million in the previous quarter.
"PSINet has completed its best quarter ever, and we are well-positioned to become profitable in 1997," Chairman William Schrader said in a statement.
The Internet sevice provider earlier this year accelerated its plans to concentrate on the corporate market--an area that offers bigger revenues--instead of serving residential customers. PSINet is one of many ISPs to target businesses and to add back-end electronic services.