EBITDA profit was $3.2 million for the second quarter 2001, also above the most recent guidance, compared to $8.1 million for the second quarter 2000, marking the sixth consecutive quarter the Company has delivered positive EBITDA results.
Cash net loss was $138.5 million for the second quarter 2001, or $0.25 per share, compared with a cash net loss of $43.0 million, or $0.11 per share, for the second quarter 2000. Cash and cash equivalents were $616.8 million at the end of the quarter.
During the second quarter, the Company recorded total charges of $318.3 million for restructuring and related activities, primarily from the disposition of certain excess administrative and non-operational facilities, and, to a lesser extent, staff reductions and the impairment of other assets. These activities, combined with other cost reduction activities, are expected to result in reduced spending of over $250 million annually.
Net loss for the second quarter 2001 was $583.4 million or $1.05 per share, compared to $51.8 million or $0.13 per share in the second quarter 2000.
Exodus has delivered a solid quarter in a challenging economic environment, said Ellen M. Hancock, chairman and CEO of Exodus. Exodus continues to attract and sign new customers and expand the services provided to existing customers. We are pleased to add 264 new names to our long list of customers who outsource their operations to Exodus. Although we continued to see churn, we have been replacing those customers with new ones that make our customer base even stronger. The vast majority of our customer churn was the result of the general economic environment and the financial pressures those customers experienced. No other company can provide what we do in terms of the quality and depth of service offerings and customer support. Our global network and outsourcing solutions are unsurpassed. The Company’s outstanding customer and partner relationships and our dedicated and skilled employees are the key to industry leadership.
In response to the current economic environment, we have implemented plans to reduce our expenditures and strengthen our business, said Hancock. We continue to target the third quarter of next year to achieve free cash flow.
