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netGuru's Q3 revenue down to $5.1 Million
By siliconindia
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Thursday, 13 February 2003, 20:30 IST
YORBA LINDA: netGuru Inc, an integrated information technology and services company, on Thursday reported that net revenues for the third quarter ended Dec. 31, 2002, were $5.1 million, a decrease of $0.3 million, from $5.4 million in the comparable quarter of the prior year.
For the nine months ended Dec. 31, 2002, net revenues were $15.3 million, a decrease of $3.2 million, from $18.5 million for the nine months ended Dec. 31, 2001. The decrease in net revenues is attributable to continuing declines in the IT services segment. Net revenues from the IT services segment for the quarter and nine months ended Dec. 31, 2002, declined $0.4 million and $3.7 million, respectively, as compared with the same period last year. A small increase in net revenues from Web-based telecommunications and travel services partially offset the decline in IT services revenue.
For the quarter ended Dec. 31, 2002, the company reported a net loss of $0.9 million, or $0.05 per diluted share, compared with a net loss of $1.6 million, or $0.09 per diluted share for the same period in the prior year. During the nine months ended Dec. 31, 2002, the company reported a net loss of $3.2 million, or $0.18 per diluted share, compared with a net loss of $4.1 million, or $0.24 per diluted share for the same period in the prior year.
The net loss for the quarter and nine months ended Dec. 31, 2001, included amortization of goodwill in the amount of $0.3 million and $0.9 million, respectively. In connection with the adoption of SFAS No. 142, Goodwill and Other Intangible Assets, the company ceased amortizing the goodwill on April 1, 2002.
"Despite the uncertainties in the financial markets, we continue to improve operational efficiencies in order to achieve positive operating cash flow for our international and domestic divisions," said Amrit K. Das, netGuru's chairman & CEO.
"We have reduced our operating loss and cash outflow for the quarter ended Dec. 31, 2002, even in the face of challenging markets. We continue to invest in research and development for collaborative solutions to enhance shareholder value and position ourselves for future growth.
"Lastly, we have improved our liquidity position by completing a financing of $2 million in December. In summary, we believe we are on track to achieve positive cash flow from operations by the end of the fourth quarter of the current fiscal year."