El Segundo, California-based Infonet posted a net profit of $18.2m for the three months ended December 31, 2002 compared to a net loss of $8.81m in 2001, on revenue that increased 28% to $198.3m. The revenue was boosted by a $57m cash gain relating to the closure of an outsourcing engagement in Europe. During the nine-month period, Infonet’s net loss widened to $24.4m from a net loss of $9.78m in 2001, on revenue that grew 5.4% to $239.2m.
Infonet paid all of its $81m debt through the use of its $250m credit agreement, and in addition to the $51m gain, the company ended the December quarter with an overall cash position of $482m, down from $518m in 2001. The company also said its board of directors had agreed to invest up to $100m in a stock repurchase plan over the next 24 months.
During the third quarter, Infonet signed up 148 new contracts, down on the 190 signed in the same period in 2001. Of these, 76 were new client engagements and the other 72 were with existing clients. The company said it expects to receive a further unspecified gain from the European outsourcing contract in the fourth quarter.
Source: Computerwire
