Online consultant iXL reports $88.5 million loss

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Atlanta-based Internet consultancy iXL on Feb. 14 reported a pro forma net loss of $88.5 million, or $1.19 a share, for 2000, compared with a pro forma net loss of $11 million, or 25 cents a share in 1999--a 704.5% increase in losses. The pro forma loss excludes amortization, stock-based compensation, other non-cash expenses, loss on equity investments, impairment of intangible assets and restructuring charges. iXL revenues were $359.3 million for 2000, a 65% increase over revenue of $216.9 million for 1999. Revenue for the fourth quarter ended Dec. 31, 2000, was $52.3 million, vs. $75.1 million for the year ago period. Excluding amortization, stock-based compensation, other non-cash expense, loss on equity investments, impairment of intangible assets and restructuring charges, iXL reported a pro forma net loss of $46.3 million vs. pro forma net income of $1.1 million for the fourth quarter of 1999.

In November 2000, iXL announced a reduction in its workforce and a restructuring to streamline its operations. As part of that announcement, iXL also said it expected to reach profitability in the first half of 2001 and that it would focus on its largest clients and target four key industries for growth: financial services, travel/transportation, enterprise services and retail/consumer packaged goods. In January 2001, iXL appointed Christopher M. Formant president-CEO.

Copyright February 2001, Crain Communications Inc.

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