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Excite misses by a penny
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April 23, 2001: 6:14 p.m. ET
Internet provider reports 1Q losses of 15 cents, issues 2Q warning
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NEW YORK (CNNfn) - High speed Internet service and content provider Excite@Home Corp. on Monday reported losses wider than expected as it shuffled its senior management.
Excluding non-operating costs and other items, Redwood City, Calif.-based Excite@Home (ATHM: down $0.20 to $3.87, Research, Estimates) posted first quarter net operating losses of $61.6 million, or 15 cents a share versus losses of $4.6 million or 1 cent a share, in the prior year.
Including the items and costs, the troubled ISP reported first quarter net losses of $832.6 million, or $2.05 a share, compared to $676.5 million, or $1.75 a share in the prior year. The write down and restructuring charges totaled $630.5 million for the quarter.
Earnings tracker First Call had expected losses of 14 cents a share.
Excite@Home Corp. also named Patty Hart its new chairman and chief executive officer, succeeding George Bell, who resigned.
Revenue rose three percent to $142.8 million. Excite also issued a second quarter earnings warning, saying it expected results to be similar to first quarter with net operating pro forma losses in the 16 cents to 17 cents a share range. First Call forecast a second-quarter loss of 10 cents a share.
Last week, Excite issued a first quarter warning and expected to post losses, excluding goodwill, of 14 cents or 15 cents a share on revenue of $140 million to $145 million. AT&T Corp. then said Friday it would take a charge of up to $780 million due to financial problems at Excite@Home Corp.
Excite credited the increase in losses due to the continued build out and upgrade of its broadband network. The ISP is struggling with steep losses and is considering selling some divisions, including the Excite portal.
The company is consider more layoffs that will be in addition to the 250 workers, or 8 percent of staff, cut in January. Excite's media operations were also draining the company's cash resources and impacting its revenues, said Excite CFO Mark McEachen on a conference call open to analysts.
"Assuming all business units and possible headcount reductions, we can't be certain when or if media units [will be] sold," McEachen said. "Efforts to sell the non-core units are underway."
Revenues in second quarter will be similar to first quarter's results with growth resuming in the second half, McEachen said. He expects low single-digit growth occurring in third quarter and double-digit gains in fourth quarter.
Shares for Excite@Home (ATHM: down $0.20 to $3.87, Research, Estimates) fell 28 cents to $3.59 in after hours trading on Instinet. 
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