VIA NET.WORKS Reports 2nd Quarter 2003 Financial Results.
Highlights:
* VIA continued to execute against its Strategic Plan during the quarter with significant outsourcing arrangements concluded and new products and platforms launched
* Confirms guidance for reaching net cash flow break-even during 2004 * Financial highlights for the three months and six months ended June 30, 2003 were:
- Adjusted continuing revenue(1) of $16.6 million for the 3 months ended June 30, 2003, essentially flat as compared to the same period in 2002
- Adjusted continuing operating costs for Internet services for the 6 months ended June 30, 2003 were 48% of adjusted continuing revenue, compared with 57% in the same period in 2002
- Operating loss from continuing operations of ($10.1 million) for the three months ended June 30, 2003, compared with a loss of ($12.4 million) in the same period in 2002
- Net loss from continuing operations of ($10.7 million) for the half year ended June 30, 2003 represents a significant improvement as compared with ($19.0 million) in the same period in 2002
* Continued improvements in reducing cash outflow during the half year ended June 30, 2003 and continued close management of cash reserves:
- Cash outflow of ($15.0 million) for the half year ended June 30, 2003, a 39% improvement over the same period in 2002
- Retained $82.8 million of cash and no material debt at June 30, 2003
* Sold loss-making Italian operation in order to maintain focus on those countries where VIA has significant operations and growth potential.
AMSTERDAM, The Netherlands, Aug. 15 /PRNewswire-FirstCall/ -- VIA NET.WORKS, Inc. (Nasdaq: VNWI; EASE) today reported results for the quarter ended June 30, 2003. VIA also confirmed that it remains on target for achieving net cash flow break-even during the course of 2004.
Chief Executive Officer Rhett Williams commented, "VIA continues to make progress in seeking to achieve net cash flow break-even during 2004. As expected, we have experienced turbulence in our revenue trend as a result of the actions we have taken to deliver medium-term growth, yet we continue to drive for further operational improvements through our strategic outsourcing initiatives.
We have not shied away from making the difficult decisions needed to keep us focused on a path to profitability. We have brought new products to the market, new disciplines to our organization and new platforms to our back-office. These, combined with a strong customer-focused culture, are helping us fulfill the objectives we set out in the strategic plan. The road to profitability is bumpy, especially when you're moving as quickly as we are, but we remain on track to reach our key objectives."
VIA continues to execute on its 2003-2005 Strategic Plan and take actions that contribute both to increased operational performance and future revenue growth.
On the side of improving operational performance, VIA has re-aligned the management organization of VIA along functional lines, and has begun the process of standardizing across all of our operations a common set of systems, processes and controls. During this quarter, the Company:
* Completed a strategic arrangement with Dimension Data Holdings plc for the outsourcing of VIA's network management and monitoring infrastructure.
The transition to Dimension Data's network management is expected to be completed by the end of 2003. Upon completion, this arrangement will provide VIA with significantly better network management capabilities, scope and scale.
* Acquired new billing and customer management software from Inovaware Corporation, a leading provider of billing and customer management systems, with a target of transitioning all VIA operations to the new system by the first quarter 2004.
* Introduced a state-of-the-art hosting platform based on Sphera Corporation's Hosting Business Suite for our hosting customers in the US with plans to roll the platform out in other operations.
This platform provides VIA with a more robust and scaleable platform for shared hosting customers and resellers.
* Continued personnel reductions, reducing total headcount to 480 as compared to 539 at the beginning of the quarter, and as compared to 575 at the start of the year.