Sales increased 3% to $17.7m for the three months to the end of December 2004, with its net loss narrowing a touch to $2.3m from $2.6m in the year ago period. For the full year, Corio’s revenues increased by 3%, and its net loss improved to $12.6m from $12.9m in 2003.
The San Carlos-based company cancelled its quarterly conference call due to the IBM acquisition which was announced on January 25. IBM is paying $182m for the company, a hefty 38% premium on the company’s market cap before the announcement, and a very high 2.6 times its 2004 revenues, especially considering its low revenue growth and continued losses.
IBM senses that it can exploit opportunities that Corio has been unable to, and that despite the fact that the ASP market has been subjected to years of ridicule since its much hyped arrival five years ago, it is finally ready for more widespread acceptance.
