Customer Wins Fail To Stave Off Loss For Corio


Corio landed deals with Fortune 1000 customers such as Carlson Companies and Harvard University, but the ASP's losses continued during its fourth quarter.

For the period ended Dec. 31, Corio had a loss of $14 million, or 27 cents per share, on sales of $12.4 million. For the year-ago period, Corio had a loss of $19 million, or 39 cents per share, on sales of $14 million.

Losses were cut in half year over year, but revenue also decreased by about $1.7 million year over year. Application management services revenue rose to $9.1 million, compared with $7 million in the 2000 quarter, while professional services revenue decreased to $3.3 million from $7.3 million in the year-ago quarter.

Corio CEO George Kadifa has said in past earnings calls with analysts that the company is moving more of its professional services work to partners such as Cap Gemini Ernst and Young.

Excluding noncash amortization charges, restructuring charges and net interest income, Corio had an operating loss of $9.4 million , or 18 cents per share.

First Call estimates were not available.

During the quarter Corio cut its cash burn rate to $7.1 million compared with a burn rate of $14.7 million in the year-ago quarter. The ASP ended the year with $86 million in cash, cash equivalents, restricted cash and short-term investments.