For the nine-month period, Andover, Massachusetts-based NaviSite reported a net loss of $9.82m compared to a loss of $41.5m in 2003, on revenue that grew 24.5% to $66m. At the end of April, the company had improved its cash position to $7.63m from $3.86m at the end of July 2003.
Navisite has spent recent months consolidating the enterprise ASP sector. Last month, the company announced the acquisition of Surebridge Inc for $54m in cash and shares. Surebridge provides hosted application services, specializing in Microsoft Business Solutions, PeopleSoft, and Siebel Systems software. NaviSite said the deal values the combined company at $125m, and will add $11m to quarterly revenue and will enable the company to record a profit before tax and other items of $3m to $4m for its first fiscal quarter ending October 31.
However, the company said the deal is taking longer to integrate than planned, and as a result it warned that some of the cost savings that it anticipated would now come in the second quarter of fiscal 2005. It said earnings before interest, tax, depreciation and amortization would be between $2.5m and $3m for the first quarter ending October 31, 2004.
