Interliant Narrows EBITDA Loss, Lands Funding

Interliant

Excluding depreciation, amortization, non-cash compensation, restructuring and asset impairment charges, Interliant lost $7.5 million for the fourth quarter compared with a third-quarter loss of $10.6 million and a loss of $14.2 million during the year-ago quarter.

The company reported an overall profit of $68.1 million, or $1.32 per share, for the quarter ended Dec. 30, but that was due to a one-time gain, related to restructuring $164 million in debt. The restructuring reduced this debt by $120 million. In the year-ago period , the company lost $41.4 million, or 86 cents per share.

Interliant reported fourth-quarter sales of $22.6 million, down from $37.5 million in the year-ago quarter.

For the year the company lost $172 million, or $3.39 per share, on sales of $117 million. In 2001 Interliant lost $151 million, or $3.18 per share, on sales of $135 million.

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Interliant also landed new funding during the quarter. Charterhouse Group International and Mobius Venture Capital invested a total of $10 million.

"With our restructuring complete, a dramatic decrease in our cash burn rate, our focus now on core offerings and upcoming targeted acquisition, we have renewed energy here," said Bruce Graham, CEO of Interliant, based here. "We expect to grow in the 50 percent range this year."

Last year Interliant began selling off what it considered to be non-core offerings such as its CRM and ERP practices. The most recent move was the sale of its PeopleSoft consulting group to Springbow Solutions earlier this week.

The company has shed its ASP offerings and now positions itself as a managed infrastructure solution provider, said Graham.

Among its managed offerings, security in particular is taking off, accounting for 25 percent of its revenue, according to the company.