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PSINet gives guidance
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September 15, 2000: 10:05 a.m. ET
Second-half view cites softness, slower growth for some units
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NEW YORK (CNNfn) - Internet communications provider PSINet released financial guidance for the second half Friday, and while it said it anticipates revenue three times that of last year, the company also forecast a pullback in certain businesses.
PSINet (PSIX: Research, Estimates) foresees revenue in the second half of $920 to $960 million and EBITDA of $5 million to $15 million, versus negative EBITDA of $17 million in last year's second half.
 The Ashburn, Va.-based firm said guidance includes adjustments made in anticipation of softness in the carrier access business, slower-than- forecasted growth in its seasonal transactions unit and revisions associated from Xpedior (XPDR: Research, Estimates), an 80 percent-owned subsidiary.
PSINet's 2001 outlook includes full-year revenue of $2.3 to $2.5 billion, of which 60 percent will come from Web hosting and consulting. Its EBITDA margin is expected to be between 7 and 10 percent.
Analysts polled by First Call had expected a loss of $1.17 a share for PSINet's third quarter, a $1.15 a share loss for the fourth quarter, and a loss of $5.02 a share for the full year.
The company also said it expects to close out 2000 with $500 million in cash and, due to anticipated demand for its Web hosting services, will need an additional $600 million in funding to build out its technology centers.
PSINet said it expects to be able to raise the necessary capital and may sell "certain non-strategic assets," to do so.
"PSINet is focused on increasing margins and attaining profitability," Chairman and CEO William Chader said
"...Sales will be accomplished through bundled product offerings that will enable our customers to fill all their Web hosting, e-commerce, access and implementation needs," Chader said.
In Thursday trade, shares of PSINet closed down $1.44 at $14.44 and in pre-open activity Friday, was off $1.19 at $13.25 
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PSINet
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