First quarter 2001 net income which includes a one-time gain of $125.8 million from retirement of bonds and a net loss from continuing operations of $28.8 million, was $97.0 million or, $2.10 per basic share. During the quarter, Ventro launched and completed a tender offer for $250 million of 6% Convertible Subordinated Notes due 2007. Ventro accepted for purchase from holders a principal amount of approximately $184.7 million, yielding an extraordinary gain of approximately $125.8 million. The first quarter of the prior year presented net income of $29.4 millions, or $0.77 per basic share, which included a $74.5 million one-time gain on Ventro’s investment in Tradex stock and a loss on discontinued operations of $33.3 million, or $0.87 per basic share.
In connection with its ongoing efforts to improve efficiencies and accelerate cost cutting activities, Ventro recently announced it had reduced its workforce by approximately two-thirds. The company anticipates this action, as well as write-downs and reserves with respect to certain assets and commitments, will result in an aggregate charge of between $10 million and $20 million during the second quarter. The company anticipates that less than $10 million of this charge will require use of cash. The ultimate amount of restructuring charges will be finalized in connection with the determination of financial results for the quarter ending June 30, 2001.
During the first quarter we made progress towards defining our target market and thus, our future business model. We also strengthened our management team with the hiring of David Zechnich as CFO, said David Perry, President and CEO of Ventro Corporation. We ended the quarter with approximately $96 million in cash and investments, which, together with the $11 million Broadlane note receivable, provide adequate funding to execute on our business plan. Additionally, we are continuing to focus on streamlining our organization to fit the needs of our transitioning business model; we expect to reduce our ongoing operating cash expenses to less than $7 million per quarter, once our restructuring actions are completed. There are many challenges that remain, but I am encouraged by the progress we have made to date.
