PSINet Inc, the Herndon, Virginia-based internet service provider, has reported a second-quarter net loss of $57.8m on revenue up 131% at $123.8m, compared to a net loss of $53.6m in the year-ago period. Excluding a one-time gain of $700,000 from the adjustment of an arbitration charge taken last year, the loss amounted to $1.01 per share, when analysts surveyed by First Call were expecting a loss of $1.11. Results for the year-ago period include an acquisition-related charge of $20m.
The company says it had 73,400 corporate customer accounts as of June 30, a year-over-year increase of 90%. Non-US accounts now make up 58% of the total customer base, compared to just 41% a year ago. The average new contract value for business accounts rose to $7,300 for the quarter from $6,200 in the prior quarter and $6,000 for fiscal 1998. Retention rates for business accounts slipped one point sequentially to 80%.
In the company’s carrier and ISP business, 71 new net customers were added during the quarter, taking the total to 364. Total carrier, consumer and SOHO customers totaled 1.04 million as of June 30, up from 898,000 in the prior quarter and 863,000 a year ago. For the six-month period, PSINet posted a net loss of $116.5m on revenue up 133% at $228.7m, against a loss of $82.7m last year. Year-ago results include acquisition-related charges of $27m.
