Earnings Report: Internet Communications Corp

Computergram International, May 24, 1999

Internet Communications Corp, the Greenwood Village, Colorado ISP and telecommunications company, has reported a first-quarter net loss of $289,000, down from $3.1m last time, on revenue down 11.7% at $7.3m. The company says the revenue decline is due to restructuring in March 1998 when it "eliminated unprofitable sales efforts." It took a charge of $409,000 in the first quarter of 1998 for that purpose.

ICC says first quarter revenues are up 5% from the fourth quarter of last year and gross margins increased by 20% from the previous quarter. Last year, it also agreed to be acquired by Rocky Mountain Internet Inc in a deal that quickly turned sour. In June 1998, a reverse takeover of ICC for $38m was proposed by fellow Colorado ISP, Rocky Mountain through a high-yield debt financing. ICC sued RMI in October for $30m after RMI withdrew from the deal, but RMI is counter-suing for about $175m to recover the amount it was trying to raise as a debt offering to finance the ICC acquisition and other projects.