shares moved a bit higher today
after the Internet services provider announced it had surpassed Wall Street
estimates for the third quarter and rolled out a new Internet services
USWeb shares were up $2.93 up from $9.37 this morning to $11.68 this
afternoon and traded as high as $12.37 during the day.
The company announced today that its revenues for the quarter, ending
September 30, were $34 million, or a 34 percent increase over revenues of
$25.4 million reported for the previous quarter. Excluding noncash charges, the
company reported a profit of $835,000, or 2 cents per share, compared with a
net loss of $1.2 million, or 3 cents per share, the previous quarter, and beating analyst
estimates of a loss of 2 cents for the quarter, according to First Call.
Including noncash charges, the company posted a net loss for the quarter of
$38.5 million, or 95 cents per share, compared with a net loss of $60.9
million, or $1.81 per share, in the previous quarter ending June 30.
"This was another milestone quarter for USWeb," Tobey Corey, president and
COO of the company, said in a statement. "We attribute our early attainment
of profitability, after noncash charges, to a number of key factors: the
benefits of a well integrated organization, very strong demand, larger
client engagements, streamlined business processes, and shared knowledge
across the firm."
In the third quarter, USWeb merged with CKS
Group to form a new company called Reinvent Communications.
earlier , the deal is valued at about $350 million as of yesterday,
executives said. CKS's stock rose nearly 8 percent on the news, while
USWeb's stock fell nearly 15 percent.
Today the company announced the launch of USWeb Electronics Services, a set
of externally managed packaged Internet applications for corporations to be
hosted by USWeb. The new offering will include services packaged with third
party applications in the areas of financial services, distribution,
manufacturing and supply chain management, collaboration, resources, and
payroll as well as sales force automation, the company said.
The merger with CKS, which is expected to close by the end of 1998, is a
move to meet what the company sees as customer demand for integrated
consulting services with Internet systems and new media communications.
In total, USWeb has acquired 33 companies in the last 21 months. Assuming
each acquisition had occurred by the start of 1998, the consolidated
revenues of USWeb for the third quarter would have been $34.5 million, the
Operating expenses excluding noncash charges were $13.0 million or 38
percent of revenues in the third quarter, compared to $11.7 million or 46
percent in the previous quarter.