USWeb/CKS Inc, the San Francisco-based internet consultancy and services company reported third quarter numbers ahead of expectations, managing to maintain its growth rate while closing a major acquisition. The company recorded net losses in the quarter of $44.0m, including non-cash charges for a provision for contract loss or recovery, stock compensation ($9.3m), amortization of intangible assets ($38.9m) and depreciation and amortization ($1.4m). Without those charges, the company says it would have made net profits of $13.3m, or $0.15 per shares, which was two cents better than the Street expected, according to First Call’s round up. Revenue in the quarter grew 122.0% over the previous year to $138.9m and 38% up on the previous quarter.
In early September USWeb closed the acquisition of New York consultancy Mitchell Madison Group (MMG), which added about 700 employees, 520 of which were billable consultants, taking the company’s total headcount to 4,016 at the end of the quarter, of which 3,190 were billable. Customer wins during the quarter included Britannica.com Inc, BellSouth Corp, Saks Fifth Avenue and three unnamed global financial services companies, which apparently were won by the MMG folks. Net losses for the nine months were $118.3m, including $142.1m in cash and non-cash charges, and nine-month revenues stood at $324.0m. Cash and equivalents stood at $82.3m on September 30.
