Software leasing concern says loss, furloughs coming

USinternet working to lay off 150 people

January 17, 2001|By Kristine Henry | Kristine Henry,SUN STAFF

USinternetworking Inc., which leases business management software over the Internet, said yesterday that it will have a fourth-quarter operating loss of $12 million and that it will lay off about 11 percent of its work force - 150 people.

Chris Walker, a spokesman for the Annapolis-based company, said USinternetworking met or exceeded the projections given to analysts for the three months that ended Dec. 31. He said the company told Wall Street to expect revenue of $34 million to $35 million and an earnings-before-expenses loss of $15 million. Revenue for the fourth quarter is expected to be $37 million, which includes one-time fees of about $3 million.

A majority of the announced layoffs, Walker said, will occur in the Annapolis headquarters and in its offices in Northern Virginia. He said the layoffs come as the company tries to boost efficiencies and eliminate redundancies.

The company, which made yesterday's announcement after the markets closed, is expected to release its full fourth-quarter earnings statement early next month.

Usinternetworking had sales of $14.66 million in the fourth quarter of 1999 and a net loss of $34 million. Analysts, on average, are expecting the company to report an earnings-per-share loss of $1.84 for the year 2000 and a loss of 49 cents a share for the fourth quarter.

"We continue to be encouraged by the increasing efficiencies we are realizing in servicing our clients, as reflected in our improving EBITDA performance," Chief Executive Andrew A. Stern said in a statement.

Shares of Usinternetworking were up 44 cents yesterday to close at $5.06.

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