PSINet losses near $11 million

The national ISP posted a net loss of $10.9 million for its second quarter.

CNET News staff
National Internet service provider PSINet today reported a net loss of $10.9 million for its second quarter.

Earnings for the quarter, posted at $22.6 million, were up almost 200 percent over the second quarter of 1995 but were offset by operating costs and expenses of $34.8 million, a significant increase from the year-ago figure of $14.8 million. Losses amounted to 28 cents per share, a 5-cent increase over last year's figures.

The report did not seem to affect market reaction to PSINet today, however. The company's stock rose slightly, by 1/8 of a point, to close at 9-7/8.

As both earnings and losses grew, so did the PSINet's subscriber base. Last week the company announced that its customer base for the second quarter had grown beyond 130,000, almost triple the 34,000 customers in the second quarter of 1995.

Demand for bandwidth kept pace with that expansion. The company received 149 orders for upgrades during the quarter, compared to the 59 received in the same period in 1995.

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