iXL (Nasdaq: IIXL) was down 1 3/4 at 6 5/8 early Tuesday after the Atlanta, Georgia-based Internet consulting company said third quarter revenue will be 15 to 20 percent below the $119.2 million recorded in the second quarter, and well below the $63.7 million seen in the 1999 third quarter. The company also expects a pro forma loss for the quarter. On Friday, the stock fell 1 3/16 to 8 3/8.
“Despite continued strong demand for our services, larger clients are focusing on bigger, more complex projects, which has resulted in extended sales cycles,” said iXL Chairman and Chief Executive Officer Bert Ellis. “We believe we are responding appropriately to these recent trends, although we expect our revenue in the second half of 2000 to be below forecasts.”
The company also said it will revert to “a more senior management team.” William Nussey, 34, resigned as president. Ellis, 46, will take over his duties, and co-founder Barry Sikes, 47, will resume his title of chief operating officer. The current CFO, 26 year-old Niraj Shah, will return to his former role as executive vice president of worldwide operations.
Internet consulting companies were lower across the board Friday following a similar announcement from Viant Corp. (Nasdaq: VIAN). Viant said it will report a loss for the quarter ending September 29th because its clients have scaled back on their e-business spending. Also on Friday, Internet consultant Scient Corp. (Nasdaq: SCNT), fell 5 1/16 to 22, despite announcing a plan to buy back up to $25 million of stock. Analysts Merrill Lynch, Lehman Brothers and S.G. Cowen were said to have downgraded the stock.
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