AppNet tops expectations with 67% rise in revenue

Bethesda company to sell 4 million more shares

Electronic commerce

October 27, 1999|By Mark Ribbing | Mark Ribbing,SUN STAFF

AppNet Inc. reported yesterday that its third-quarter revenue was up 67.6 percent over last year and announced that it planned to sell 4 million additional shares of common stock.

The Bethesda electronic commerce company had revenue of $30.1 million in the quarter, which ended Sept. 30. In the third quarter of last year, the company took in $18 million.

AppNet had a quarterly net loss of $21.3 million, or 68 cents per diluted share. Last year, the company's third-quarter loss was $20.7 million, or $1.09 per share. Shares outstanding increased 58 percent to 31.1 million.

"The quarter was ahead of expectations on the Street," said analyst Mark Wolfenberger of Credit Suisse First Boston Corp. in New York.

In a separate announcement, AppNet said it intends to file with the Securities and Exchange Commission for an offering of 4 million shares of its common stock, 1.5 million of which would be sold by the company directly and the rest offered by various shareholders.

The company said the filing would take place early next month.

AppNet's share price fell $7, or 13 percent, yesterday, to $49 in trading of 2 million shares, more than triple the three-month daily average.

Since its first day of public trading June 18, the stock has embodied the supercharged volatility of the e-commerce sector. AppNet shares closed at a low of $8.625 June 24 and hit a closing high of $67.25 Monday.

Pub Date: 10/27/99

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