Internet Capital Group (Nasdaq:ICGE) was trading at US$3.22 Thursday morning, down 22 cents, after the Internetincubator reported a wider loss for the fourth quarter ended December 31st.
The company’s net loss grew to $561.17 million,or $1.97 per share, from $23.37 million, or 9 cents.
However, Walter Buckley, president and chief executive officer of the Wayne,Pennsylvania-based company, said that Internet Capital has “made substantial progress” inthe quarter, by both reducing cash burn and streamlining operations.
Revenue for the quarter climbed to $21.26 million, up from $1.75 million in thesame period a year earlier, according to the company.
Internet Capital said that it expects to end the year with cash, short-terminvestments and available-for-sale securities of more than $200 million.
“As the [business-to-business] market evolves, ICG remains steadfast in its goal to buildleading B2B e-commerce companies by focusing its human and financialresources on partner companies that we believe will bring the greatestnear-term value,” said Buckley.
The revenue gain shows that the company is making progress, Buckley said.
Internet Capital said that it has reduced selling, general and administrative expenses by more than 50 percent, to a rate of about $35 million a year. Proceeds of morethan $25 million were generated through the sale of the company’s stakes inVerticalNet Europe, Blackbird and other ventures.
For the current year, Internet Capital said that it expects to spend $125 million to $150million to fund its partner companies. About $40 million will go to fundgeneral operations at the company.
There will also be “one-time items” of$10 million and $32 million of interest expense in the year, the companysaid.
“We continue to manage our business with a high level of financialdiscipline and rigor,” said chief financial officer Ed West. “With more than$330 million in liquid resources at quarter end, access to alternativefinancing sources, and the ongoing ability to monetize non-strategic assets,we have substantial flexibility going forward.”