Digital Island, Inc. (Nasdaq: ISLD)was up 62 U.S. cents at $5.38 in early trading Wednesday after the company said it has been awarded a new U.S. patent.
According to the company, which provides hosting, content delivery and network services, the patent covers inventions designed to improve the speed and efficiency of deliveringdigital content over the Internet.
Digital Island said the patented technology allows its Footprint service to improve theperformance of Web sites.
The company also said the issuance of the patent, U.S. Patent No. 6,185,598, is based on the work of chiefsystem strategist David Farber and vice president Andrew Swart.
According to Digital Island, the patent recognizes the company’s “early contributions to the areas of Internet contentdelivery.”
The company has additional claims pending in related patent applications inthe U.S., as well as in Europe and other countries.
Digital Island recently moved up its forecast for profitability, saying it expects to break even before income taxes,depreciation and amortization in the quarter ending in June 2002.
Thecompany said it would cut back on capital spending to reach its goal andensure that it has enough cash to fund operations until then.
Digital Island reported revenue for the first quarter ended December 31st of$31.6 million, up from $7.6 million in the year-earlier quarter. The lossbefore income taxes, depreciation and amortization widened to $53.8 million,or 69 cents per share, from $20.1 million, or 55 cents. After charges, thecompany lost $142.5 million, or $1.82 per share.
For the second quarter, the company expects a 15 percent sequential increasein revenue to more than $36 million, along with a loss before income taxes,depreciation and amortization of $51 million, or $1.92 per share.