Despite posting a loss for the fourth quarter of 2001, e-business integrator Burntsand says it is on track to reach positive cash flow at the end of the first quarter, boosted by the recent acquisition of the North American assets of Primix Solutions.
Burntsand (VARBusiness 500 rank: 338) execs said this week that they expect a loss of about 5 cents a share, on revenue of $16 million, for its fiscal fourth quarter, ended Dec. 31.
The company's loss includes $1 million for accounts receivable, as well as a provision for vacant real estate that was made in early 2001 and increased last quarter.
While president and CEO Paul Bertin says the quarter fell short of the company's expectations, a result of "disruption and uncertainty" and continued spending delays, Burntsand is ending 2001 with double-digit growth and a strong balance sheet.
"Based on the indicators from our customers, partners and the industry and financial analyst community, we believe the business climate and market for Burntsand services has stabilized and will begin to recover and grow through fiscal 2002," Bertin said in a statement.
In an effort to reduce short-term risks and stabilize the business' financials for 2002, the company is cutting salaries of its leadership team by 10 percent and readjusting all compensation and bonus plans to better reflect market conditions.
Looking to 2002, the company says it expects first quarter revenue to be between $24 million and $26 million, up about 20 percent from the 2001 period. That revenue--which includes about $5 million the company hopes to gain from its acquisition of the Primix assets--should bring the company back to positive cash earnings per share.