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PSINet reports earnings growth

PSINet posts improved fourth-quarter results as membership among its corporate customers grew 26 percent.

PSINet (PSIX) today posted improved fourth-quarter results as membership among its corporate customers grew 26 percent.

The Internet service provider had 26,400 customers at the end of the year, and doubled its ISP customer base to 47 from 22 the previous year.

PSINet shrunk its quarterly net loss to $14.3 million, or 36 cents a share, for the period ending December 31, 1997, compared with a loss of $16.8 million, or 42 cents a share, reported for the same quarter a year ago. The latest earnings figures slightly beat analysts' expectations of a loss of 37 cents a share, according to First Call.

The company's revenues rose to $34.8 million during the quarter, up 52 percent from the previous year and up 9 percent from the previous quarter.

PSINet's most notable event of the last year was a deal in which digital network supplier IXC Communications (IIXC) agreed to take a 20 percent stake in the company in exchange for giving PSINet access to additional bandwidth. That transaction was challenged by a buyout offer by a competing investor.

The year also saw PSINet acquiring several ISPs, including Canada-based iSTAR, France-based CalvaCom SA, and Switzerland-based Internet Prolink SA.

The company reported revenues of $121.9 million for the year, up from $84.4 million reported for the previous year. It reduced its net loss for the year to $45.6 million from a loss of $55.1 million reported for the previous year.