Mar 12, 2002 : NaviSite Releases Q2 Fiscal Results

📅 March 12, 2002 - NaviSite, Inc. (navisite.com 👉 Total Reviews: 1
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In Q2 fiscal 2002, NaviSite says it continued to drive to profitability. AtJan. 31, 2002 NaviSite had $31.7 million in available cash; reduced itsrun-rate cash burn to approximately $2.1 million per month from $3.3 millionper month in Q1 and $7.3 million per month in Q4 fiscal 2001; restructured95% of the total dollar value of outstanding equipment lease obligations;eliminated $96 million of debt in conjunction with its recent $65 millionfinancing from Compaq and CMGI; generated 75% of revenue in fiscal 2002second quarterfrom non-CMGI companies and signed 11 new managed hostingcustomers.
Revenue for the fiscal 2002 second quarter was $15.7 million, exceeding theguidance offered at the end of Q1. This compared to revenue of $19.3 millionfor the fiscal 2002 first quarter.
Net loss for the fiscal 2002 second quarter was $26.8 million, or ($0.31)per share. This compares to a net loss for the fiscal 2002 first quarter of$44.3 million, or ($0.71) per share.The second quarter net loss amountincluded an asset impairment charge of $7.2 million or ($0.08) per sharerelated to equipment lease restructuring and buyouts as well as thewrite-down of idle and obsolete equipment. NaviSite's fiscal 2002 firstquarter pro forma net loss without a $27.4 million or ($0.44) per shareimpairment charge related to NaviSite's financing agreement with CompaqFinancial Services and other lease buyouts would have been $17 million or($0.27) per share. EBITDA losses decreased to $17.7 million in the fiscal2002 second quarter from $35.4 million in the fiscal 2002 first quarter.
"NaviSite is on-track in terms of our finances and operations, and we arecontinuing to drive to profitability," said Tricia Gilligan, president andCEO of NaviSite, Inc. "As we continue to execute on our operating plan weare confident that our value proposition maps well to market demand and thatour customer base is fundamentally healthier."
Major developments related to the company include:
Appointed former Compaq executive, Steve Kirchoff, as executive vicepresident product business units, sales and marketing, and former IBMexecutive Robert Poon as vice president, Service DeliveryPromoted Kevin Lo to position of CFO* Consistently met or outperformed guarantees in all three publiclytracked operational metrics: mean time to notify, mean time to respond andsite availabilitySigned 11 new managed hosting customers, primarily in the enterprisespace; managed out a total of 44 customersLaunched enhanced Site Migration Services, offering professionalrisk mitigation and migration assistance
Management's current estimates for the company's business in the thirdfiscal quarter of 2002 include revenue of approximately $14.5 million to $16million, gross margin of negative 9% to negative 15% EBITDA loss in therange of approximately $5.5 to $6.5 million, and loss per share betweennegative $0.15 and negative $0.17.