The company reported a loss for its second fiscal quarter to February 28 of $22.4m, compared to a loss of $19.8m a year ago, for revenue up 3.4% at $26.1m. The company said it is working on integrating its acquisitions, and that fiscal 2004 will be its year of organic growth.
The second phase [of the company strategy], which we’re in the middle of right now, is designed to first dramatically improve earnings by integrating all these acquisitions and eliminate costs, said CFO Allen Shulman, and second to build a professional infrastructure to manage it now and into the future.
The integration involves cutting costs by, for example, shutting down data centers and consolidating bandwidth contracts with ISPs. Interland now has two data centers, down from 11, and bought out of ISP contracts to reduce bandwidth costs by more than half.
The company is planning a spring launch for its mass markets web hosting business, which will heavily involve the hosted web site building tools it got its hands on when it bought Trellix Inc last December. The organic growth third phase of Interland’s plan will start in September, Shulman said.
Source: Computerwire
